STAND. COM. REP. NO. 1496

Honolulu, Hawaii

, 2025

RE: S.B. No. 891

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 Committees on Economic Development & Technology and Tourism, to which was referred S.B. No. 891, S.D. 2, entitled:

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

beg leave to report as follows:

The purpose of this measure is to establish a Tourism and Gaming Working Group within the Department of Business, Economic Development, and Tourism.

Your Committees received testimony in support of this measure from the Iron Workers Stabilization Fund; Aloha Hālawa District Partners; Boyd Gaming; Stanford Carr Development; and five individuals. Your Committees received testimony in opposition to this measure from four individuals. Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism; Stadium Authority; Hawaiʻi Tourism Authority; Aliʻi Pauahi Hawaiian Civic Club; and ʻAiea Community Association.

Your Committees find that legalizing gaming and gambling activities could spur economic activity and job creation while creating an additional source of revenue for the State. Your Committees further find that the New Aloha Stadium Entertainment District may offer a prime location for such activities. This measure ensures that the State examines the complex relationship between tourism and the potential introduction of legalized gaming and gambling.

Your Committees have amended this measure by:

(1) Requiring the Working Group to examine strategies to mitigate gambling addiction and other health harms associated with gambling;

(2) Requiring the Working Group to examine strategies to mitigate the financial harms associated with gambling;

(3) Allowing the Co-chairpersons of the Working Group to appoint designees;

(4) Changing the membership of the Working Group;

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

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

As affirmed by the records of votes of the members of your Committees on Economic Development & Technology and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 891, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 891, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Economic Development & Technology and Tourism,

____________________________ ADRIAN K. TAM, Chair

____________________________ GREGGOR ILAGAN, Chair