STAND. COM. REP. NO. 2397

Honolulu, Hawaii

RE: S.B. No. 3240

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 Public Safety and Military Affairs, to which was referred S.B. No. 3240 entitled:

"A BILL FOR AN ACT RELATING TO THE MILITARY AND COMMUNITY RELATIONS OFFICE,"

begs leave to report as follows:

The purpose and intent of this measure is to appropriate funds to the Department of Business, Economic Development, and Tourism through the Military and Community Relations Office to strengthen intergovernmental coordination for military and defense activities.

Your Committee received testimony in support of this measure from the Department of Defense, Military and Community Relations Office, and Chamber of Commerce Hawaii.

Your Committee received testimony in opposition to this measure from one individual.

Your Committee finds that the Military and Community Relations Office (MACRO) within the Department of Business, Economic Development, and Tourism acts as a vital link between the State's military and civilian sectors by promoting mutual respect and understanding. Specifically, MACRO has supported efforts that connect local companies with federal buyers and contracting pathways, helped align community college and training programs with shipyard and industrial workforce needs, coordinated with installations and state agencies to address infrastructure and community interface challenges, and convened cross-sector partners to streamline communication during high-impact projects. This measure will support the objectives of MACRO by providing funding for business readiness and compliance assistance; strengthened education-to-career pathways through partnerships with schools, community colleges, and training providers; and targeted initiatives that grow manufacturing, repair, and sustainment capacity in the State.

Your Committee has amended this measure by:

(1) Inserting a blank appropriation amount;

(2) Inserting an effective date of July 1, 2050; and

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

Your Committee notes that this measure, as amended, contains an unspecified appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it considers inserting an appropriation amount of $1,300,000 to carry out intergovernmental coordination, communication, and program administration responsibilities related to military and defense activities, workforce development, business readiness, and in state manufacturing and sustainment capacity.

As affirmed by the record of votes of the members of your Committee on Public Safety and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3240, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3240, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Public Safety and Military Affairs,

________________________________

CAROL FUKUNAGA, Chair