SB1589 HD1

SECTION 1. The legislature finds that the new aloha stadium entertainment district is a critical project for the State. The project promises significant benefits to the community and serves as an exemplar for large-scale public‑private partnerships within the State.

The State is deeply committed to ensuring the success of the new district. The State's project team, which comprises the department of accounting and general services and the stadium authority, has meticulously procured and contracted with a master developer. The objective is to complete the new aloha stadium and the first phase of the district development by summer 2028. This process includes several key milestones to be achieved throughout 2025.

The purpose of this Act is to:

(1) Require all gifts or grants from a private source deposited into the stadium development special fund to be used only for infrastructure related to the stadium and costs associated with the development of the stadium;

(2) Require any unexpended and unencumbered funds in the stadium development special fund to immediately lapse to the general fund if the project is terminated; and

(3) Appropriate funds out of the stadium development special fund with certain conditions.

SECTION 2. Section 109-3.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§109-3.5[]] Stadium development special fund; established. (a) There is established in the state treasury the stadium development special fund, into which funds collected by the stadium authority shall be deposited, including:

(1) All revenues from the stadium development district, including but not limited to agreements or actions generating revenue related to stadium operations, lease or rental of facilities or land, concessions, food and beverage, parking, sponsorship and advertising, utilities and infrastructure, and development;

(2) All gifts or grants awarded in any form from any public agency or any other source for purposes of the stadium development district; provided that any gift or grant from a private source shall be used only for infrastructure related to the stadium and costs associated with the development of the stadium;

(3) All proceeds from revenue bonds issued for the purpose of the stadium development district; and

(4) Appropriations made by the legislature to the fund.

(b) [~~Moneys~~] Except as provided in subsection (a)(2), moneys in the stadium development special fund shall be used by the stadium authority for the payment of expenses arising from any and all use, operation, repair, maintenance, alteration, improvement, development, or any unforeseen or unplanned repairs of the stadium development district, including without limitation:

(1) The development, operation, and maintenance of a new stadium;

(2) Food and beverage service and parking service provided at the stadium facility; the sale of souvenirs, logo items, or other items; any future major repair, maintenance, and improvement of the stadium facility as a commercial enterprise or as a world-class facility for athletic events, entertainment, or public events; and marketing the facility pursuant to section 109-2(4) and (8); and

(3) Contractual payments to developers or contractors engaged by the stadium authority for the purpose of redeveloping the site and related on- and off-site infrastructure that benefits the stadium district and its development guidance policies.

(c) Any unexpended and unencumbered funds in the stadium development special fund shall immediately lapse to the general fund if the new aloha stadium entertainment district project is terminated."

SECTION 3. There is appropriated out of the stadium development special fund the sum of $49,500,000 or so much thereof as may be necessary for fiscal year 2025-2026 and $ or so much thereof as may be necessary for fiscal year 2026-2027 for the purposes of the stadium development special fund described in section 109-3.5, Hawaii Revised Statutes; provided that:

(1) The development timelines set by the stadium authority have been met for the new aloha stadium entertainment district; and

(2) The sum appropriated and authorized for expenditure for fiscal year 2026-2027 pursuant to this section shall be derived solely from moneys received by the State as a gift or grant from private sources.

The sums appropriated shall be expended by the stadium authority of the department of business, economic development, and tourism for the purposes of this Act; provided that all unexpended or unencumbered moneys remaining in the stadium development special fund shall immediately lapse to the general fund if the new aloha stadium entertainment district project is terminated.

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 3000.

Report Title:

Department of Accounting and General Services; Stadium Authority; Stadium Development Special Fund; Appropriations

Description:

Requires gifts or grants from a private source deposited into the Stadium Development Special Fund to be used only for infrastructure related to the stadium and costs associated with the development of the stadium. Requires any unexpended and unencumbered funds in the Stadium Development Special Fund to immediately lapse to the general fund if the NASED project is terminated. Appropriates funds out of the Stadium Development Special Fund with certain conditions. Effective 7/1/3000. (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

THE SENATE	S.B. NO.	1589
THIRTY-THIRD LEGISLATURE, 2025		S.D. 3
STATE OF HAWAII		H.D. 1