STAND. COM. REP. NO. 2306

Honolulu, Hawaii

RE: S.B. No. 3228

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Economic Development and Tourism, to which was referred S.B. No. 3228 entitled:

"A BILL FOR AN ACT RELATING TO A SUSTAINABLE TOURISM INFRASTRUCTURE,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Sustainable Tourism Infrastructure Matching Grant Program within the Department of Business, Economic Development, and Tourism to support one-time capital investments that advance measurable sustainability and climate resilience outcomes within the State's visitor industry;

(2) Require annual reports to the Legislature; and

(3) Appropriate funds.

Your Committee received testimony in support of this measure from the Chamber of Commerce Hawaii.

Your Committee finds that environmental stewardship is a core economic imperative for the State because the health of natural assets is inseparable from the success of the visitor economy. The long-term resilience of the tourism industry is increasingly threatened by climate-related risks to energy, water, transportation, and coastal assets. This measure will support economic stability by advancing measurable sustainability and climate resilience outcomes in the visitor industry.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3228, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3228, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,

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LYNN DECOITE, Chair