HB 1608: SPRB; Fenix Space, Inc.; Hilo International Airport

A BILL FOR AN ACT

RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST FENIX SPACE, INC.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds and declares that the issuance of special purpose revenue bonds under this Act is in the public interest and for the public health, safety, and general welfare.

     SECTION 2.  Pursuant to part V, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $          , in one or more series, for the purpose of assisting Fenix Space, Inc., a Delaware corporation, for the planning, design, procurement, and construction of a Fenix launch platform system for operations in the State, and the Fenix Space Hilo flight operations facility, a special purpose facility.  The facility shall include offices, a payload integration clean room, and hangar space with special equipment and shall be located at the Hilo International Airport.  The legislature hereby finds and determines that the planning, design, and construction of the Fenix launch platform system and Fenix Space Hilo flight operations facility constitute a project as defined in part V, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to an industrial enterprise.

     SECTION 3.  Notwithstanding the provisions of Act 182, Session Laws of Hawaii 2022, as amended by Act 262, Session Laws of Hawaii 2023, the legislature authorizes the issuance of special purpose revenue bonds to assist Fenix Space, Inc. in building facilities pursuant to part V, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist industrial enterprises that requires the allocation of the annual state ceiling under section 39B-2, Hawaii Revised Statutes, for the period July 1, 2026, through December 31, 2028.

     SECTION 4.  The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part V, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist industrial enterprises.

     SECTION 5.  The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2031, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 2 and to refund special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 2.  In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

     SECTION 6.  The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2031.

     SECTION 7.  This Act shall take effect on July 1, 3000.

Report Title:

SPRB; Fenix Space, Inc.; Hilo International Airport

Description:

Authorizes the issuance of special purpose revenue bonds for the planning, design, procurement, and construction of the Fenix launch platform system and Fenix Space Hilo flight operations facility.  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.

A BILL FOR AN ACT

relating to the issuance of special purpose revenue bonds TO ASSIST fenix SPACE, inc.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds and declares that the issuance of special purpose revenue bonds under this Act is in the public interest and for the public health, safety, and general welfare.

     SECTION 2.  Pursuant to part V, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $40,000,000, in one or more series, for the purpose of assisting Fenix Space, Inc., a Delaware corporation, for the planning, design, procurement, and construction of a Fenix launch platform system for operations in the State, and the Fenix Space Hilo flight operations facility, a special purpose facility, a special purpose facility.  The facility shall include offices, a payload integration clean room, and hangar space with special equipment and be located at the Hilo International Airport.  The legislature hereby finds and determines that the planning, design, and construction of the Fenix launch platform system and Fenix Space Hilo flight operations facility constitute a project as defined in part V, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to an industrial enterprise.

     SECTION 3.  Notwithstanding the provisions of Act 182, Session Laws of Hawaii 2022, as amended by Act 262, Session Laws of Hawaii 2023, the legislature authorizes the issuance of special purpose revenue bonds to assist Fenix Space, Inc. in building facilities pursuant to part V, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist industrial enterprises that requires the allocation of the annual state ceiling under section 39B-2, Hawaii Revised Statutes, for the period July 1, 2026, through December 31, 2028.

     SECTION 4.  The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part V, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist industrial enterprises.

     SECTION 5.  The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2031, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 2 and to refund special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 2.  In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

     SECTION 6.  The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2031.

     SECTION 7.  This Act shall take effect on July 1, 2026.

Report Title:

SPRB; Fenix Space, Inc.; Hilo International Airport

Description:

Authorizes the issuance of special purpose revenue bonds for the planning, design, and construction of the Fenix Space launch platform system and Fenix Space Hilo flight operations facility.

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

STAND. COM. REP. NO.  143-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1608

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Economic Development & Technology, to which was referred H.B. No. 1608 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST FENIX SPACE, INC,"

begs leave to report as follows:

     The purpose of this measure is to authorize the issuance of special purpose revenue bonds for the planning, design, procurement, and construction of the Fenix launch platform system and Fenix Space Hilo flight operations facility.

     Your Committee received testimony in support of this measure from the Hawaiʻi Technology Development Corporation and Fenix Space, Inc.  Your Committee received comments on this measure from the Department of Budget and Finance and Life of the Land.

     Your Committee finds that developing the State's space sector will help position Hawaii as a leading area for technology innovation in the Pacific region and support economic growth.  Your Committee further finds that Fenix Space, Inc., an aerospace company focused on next-generation space access technologies, has proposed the establishment of a launch platform system and flight operations facility at Hilo International Airport.  This measure seeks to provide a financing tool for the planning, design, procurement, and construction of this proposal, which will enable Fenix Space to develop the essential infrastructure needed to begin operations and generate revenue in the State.

     Your Committee notes that Act 262, Session Laws of Hawaii 2023, requires a moratorium of authorization for special purpose revenue bonds that require an allocation of annual state private activity bond cap until December 31, 2028.

     Your Committee has amended this measure by:

     (1)  Changing the special purpose revenue bonds limit to an unspecified amount;

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

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

     Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider a special purpose revenue bonds limit of $40,000,000.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1608, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1608, H.D. 1, and be referred to your Committee on Transportation.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,