STAND. COM. REP. NO. 1308

Honolulu, Hawaii

RE: H.B. No. 450

H.D. 3

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Transportation and Culture and the Arts and Economic Development and Tourism, to which was referred H.B. No. 450, H.D. 3, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Transfer the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism;

(2) Transfer the authority held by the Comptroller over the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism; and

(3) Appropriate funds for positions within the Administrative Services Office of the Department of Business, Economic Development, and Tourism and the State Foundation on Culture and the Arts.

Your Committees received testimony in support of this measure from the State Foundation on Culture and the Arts; Department of Business, Economic Development, and Tourism; Department of Accounting and General Services; Hawaiʻi Arts Alliance; and two individuals.

Your Committees find that the State Foundation on Culture and the Arts (Foundation), is dedicated to the promotion, perpetuation, and preservation of culture and the arts throughout the State. Your Committees further find that both the Foundation and King Kamehameha Celebration Commission's (Commission) mandates align with the focus of the Department Business, Economic Development, and Tourism more than that of the Department of Accounting and General Services, where they are currently housed. By transferring the Foundation and Commission to the Department of Business, Economic Development, and Tourism, the arts community will have greater access to new revenue streams, workforce development, job creation, and collaboration opportunities throughout the State. Therefore, this measure will support the Foundation and Commission's endeavors by enhancing resources, elevating the arts, and strengthening the State's creative sector.

Accordingly, your Committees have amended this measure by:

(1) Clarifying that the selection of; commissioning artists for; reviewing of design, execution, and placement of; and the acceptance of works of art by the State Foundation on Culture and the Arts and the Director of Business, Economic Development, and Tourism shall not conflict with any law or specific direction by the Legislature; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Transportation and Culture and the Arts and Economic Development and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 450, H.D. 3, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 450, H.D. 3, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Culture and the Arts and Economic Development and Tourism,

________________________________ LYNN DECOITE, Chair

________________________________ CHRIS LEE, Chair