STAND. COM. REP. NO. 1807

Honolulu, Hawaii

RE: H.B. No. 1378

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1378, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE STATE FOUNDATION ON CULTURE AND THE ARTS,"

begs leave to report as follows:

The purpose and intent of this measure is to amend certain powers, responsibilities, programs, and funding sources of the State Foundation on Culture and the Arts.

More specifically, this measure:

(1) Authorizes the State Foundation on Culture and the Arts to acquire and own property;

(2) Establishes the performing arts grants program under the Foundation's existing grant program to support performing arts in the State;

(3) Establishes the performing arts special fund;

(4) Clarifies the scope of the State Foundation on Culture and the Arts' responsibilities to include the coordination, planning, promotion, marketing, and execution of performing arts events;

(5) Amends the funding sources for the State Art Museum;

(6) Amends the amounts required to be transferred by agencies into the works of art special fund and the allowable uses of moneys from the works of art special fund;

(7) Appropriates moneys from the general fund and federal funds for operations of the State Foundation on Culture and the Arts; and

(8) Appropriates moneys from the general fund to provide grants under the performing arts grants program.

Your Committee received written comments in support of this measure from SafeHaus Wellness Services and one individual.

Your Committee received written comments in opposition to this measure from the Office of the Governor; State Foundation on Culture and the Arts; Art+Flea & MORI; Board of Directors, Hawaii Contemporary; Chamber of Sustainable Commerce; Creative West; Donkey Mill Art Center; Exhibition Grid: A Contemporary Art Experience, LLC; Hawaii Arts Alliance; Hawaii Community Foundation; Hawaii Contemporary; Hawaii Craftsmen; Hawaii Forest Industry Association; Hawaii Health and Harm Reduction Center; Hawaii Open Arts Program; Hokulani Children's Theatre of Molokai; Honolulu Printmakers; Hula Preservation Society; Kau High and Pahala Elementary School; Kona Dance and Performing Arts; Loihi Arts Foundation; Mass Cultural Council; Molokai Arts Center, Inc.; Prince Dance Company; Puuhonua Society; Rhode Island State Council on the Arts; SAG-AFTRA Hawaii Local; Small Kine Gift; The LVRG Group; and numerous individuals.

Your Committee received written comments on this measure from the Attorney General; Department of Budget and Finance; Department of Business, Economic Development, and Tourism; Hawaii Council for the Humanities; and one individual.

Your Committee finds that this measure will clarify the operations and programs of the State Foundation on Culture and the Arts to better align with legislative priorities. Your Committee further finds that increased support for the performing arts will help provide the State's residents and visitors with additional creative, educational, and aesthetic performances that tell meaningful stories and provide engaging experiences.

Having received prior concurrence from the previous
subject-matter committee Chair, and to address concerns raised in written comments by the Attorney General and Department of Budget and Finance, your Committee has amended this measure by:

(1) Amending Section 2 of the measure to authorize the State Foundation on Culture and the Arts to enter into public‑private partnerships on real property that it acquires; and

(2) Amending Section 6 of the measure to:

(A) Establish that the works of art special fund balance cap shall be the amount provided in section 103-8.5(c), Hawaii Revised Statutes;

(B) Specify that capital improvement appropriations transferred into the works of art special fund shall be calculated from only the construction cost element of new state building construction, and repealing the reference to "renovation" of state buildings; and

(C) Remove references to the word "proportionate," regarding each state agency's share of the total amount of funds transferred into the works of art special fund.

If a Committee on Conference is convened on this measure, your Committee respectfully requests that the Committee on Conference consider inserting the amount of $15,000,000 for the works of art special fund unencumbered fund balance cap in Section 6 of the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1378, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1378, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair