STAND. COM. REP. NO. 1325

Honolulu, Hawaii

, 2025

RE: S.B. No. 583

S.D. 2

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Labor, to which was referred S.B. No. 583, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO NAMING RIGHTS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Permit any public or private entity to lease the naming rights of any state-owned facility; and

(2) Require any revenues derived from advertising or marketing in or on any state-owned facility to be deposited into the appropriate special fund of the state agency that owns the facility, or into the general fund if no special fund applies.

Your Committee received testimony in support of this measure from the Stadium Authority. Your Committee received testimony in opposition to this measure from the Outdoor Circle. Your Committee received comments on this measure from the Department of Budget and Finance; Hawaii State Department of Education; Hawaiʻi Tourism Authority; and Hawaii State Public Library System.

Your Committee finds that the maintenance and operation of certain government facilities can come at a hefty price for tax payers and the State. Permitting public or private entities to lease naming rights for state facilities and using funds derived from the advertising or marketing related to the naming rights provides an additional funding source to operate and maintain these facilities.

Your Committee has amended this measure by:

(1) Limiting provisions that would have allowed the leasing of naming rights to any state-owned facility to the Stadium Facility, or portion thereof, and the Convention Center Facility, or portion thereof;

(2) Specifying that the revenues generated pursuant to this measure are to be deposited into the Stadium Development Special Fund or the Convention Center Enterprise Special Fund, as appropriate;

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

(4) 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 Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 583, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 583, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

JACKSON D. SAYAMA, Chair