STAND. COM. REP. NO. 122

Honolulu, Hawaii

RE: S.B. No. 581

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Economic Development and Tourism, to which was referred S.B. No. 581 entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Aerospace and Aeronautics Development Program within the Department of Business, Economic Development, and Tourism; and

(2) Appropriate funds.

Your Committee received testimony in support of this measure from the Hawaiʻi Technology Development Corporation, The Alliance for Collaboration in the Exploration of Space, and one individual.

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

Your Committee finds that Hawaii's strategic geographical, topological, and technological assets enable the State to be an ideal place for innovation in science and technology within the fields of aerospace and aeronautics. Your Committee further finds that encouraging aerospace and aeronautics development will provide a focal point to facilitate dialogue and coordination to further diversify the State's economy. By establishing the Aerospace and Aeronautics Development Program within the Department of Business, Economic Development, and Tourism, this measure will allow the State to direct its resources to address the needs of the aerospace and aeronautics fields more efficiently.

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. 581, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 581, 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