STAND. COM. REP. NO. 1270-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2907

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred S.B. No. 2907, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MARINE AFFAIRS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Declare that the State is an ocean cluster;

(2) Establish the Office of Marine Affairs and Marine Affairs Task Force within the Office of the Governor;

(3) Establish and appropriate funds for a Marine Affairs Coordinator position;

(4) Repeal the powers and duties of the Department of Business, Economic Development, and Tourism in marine affairs; and

(5) Transfer the employees and functions of the Governor's Advisory Committee on Marine Affairs to the Office of Marine Affairs.

Your Committee received testimony in support of this measure from the Department of Agriculture and Biosecurity; Agribusiness Development Corporation; Hawaiʻi Reef and Ocean Coalition; WaiHome LLC; Blue Startups; Hawaiʻi Angels; Hawaii Ocean Power Solutions; Chamber of Commerce Hawaii; Makai Ocean Engineering, Inc.; Marine Genetics; Hohonu; Privateer Space Inc.; Ai.Fish; Havoc AI; and seven individuals. Your Committee received comments on this measure from the Office of the Governor; Department of Land and Natural Resources; Office of Hawaiian Affairs; Hawaiʻi Technology Development Corporation; and Natural Energy Laboratory of Hawaiʻi Authority.

Your Committee finds that the blue economy is the sustainable use of ocean and aquatic resources for economic growth and job creation and includes a broad set of industries. Your Committee further finds that Hawaii's blue economy is substantial and growing, with the number of marine businesses having increased by twenty-three percent within the past decade. Your Committee recognizes that to ensure this sector remains an integral part of Hawaii's economy and stays competitive, the State must modernize its approach to the blue economy and capitalize on technology, infrastructure, and manufacturing advancements. This measure seeks to centralize the State's blue economy efforts by establishing a dedicated office to facilitate marine affairs-related industries and funding positions to support the office.

Your Committee has amended this measure by:

(1) Establishing the Office of Marine Affairs within the Hawaii Technology Development Corporation instead of the Office of the Governor; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2907, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2907, S.D. 1, H.D. 1, and be referred to your Committee on Water & Land.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair