SB 1578: DBEDT; Office of International Affairs; Hawaii Sister-State and International Partnerships Commission; East-West Center; Sister‑State Partnerships; Appropriations

A BILL FOR AN ACT

RELATING TO INTERNATIONAL AFFAIRS.

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

     SECTION 1.  The legislature finds that the Center for Cultural and Technical Interchange Between East and West Act of 1960, Public Law 86-472, authorized the establishment in Hawaii of a center for cultural and technical interchange between East and West, and Act 82, Session Laws of Hawaii 1975 (Act 82), established an educational non-profit public corporation, the Center for Cultural and Technical Interchange Between East and West, Inc., better known and referred to as the "East-West Center", to administer and operate the center.  Act 82 specifies the purposes of the East-West Center, which include, among other things, the promotion of better relations and understanding between the United States and the nations of the East through the administration and operation of the East-West Center as an educational institution operating in furtherance of the objectives of Public Law 86-472 and the promotion, among the nations of the East and West, of the use of the East-West Center by qualified persons for cooperative study, training, and research in matters of East-West significance, thus leading to better relations and understanding as to such matters.

     The legislature further finds that the East-West Center has become a pivotal institution in fostering understanding and cooperation between the United States and the nations of Asia and the Pacific.  Hawaii's unique geographical location and multicultural heritage make it an ideal location for promoting international relations, particularly within the Asia-Pacific region.  For over six decades, the East-West Center has significantly contributed to the State's role as a bridge between the East and West, enhancing the State's position in international affairs.

     The legislature further finds that the East-West center's programs in research, education, and exchange have directly benefited the State's economy, culture, and diplomatic relations.  While the federal government has provided significant funding to the East-West center, this federal support has fluctuated over the years.  The legislature recognizes that the center would benefit from regular, predictable state resources to support the development of programs and initiatives that align with the State's strategic goals in international relations, education, and economic development.

     The legislature finds that the East-West center has served and continues to serve a public purpose of promoting better relations and understanding between the United States and the nations of the East and that granting authorization to the East‑West center to receive appropriations of state funds exempt from the requirements of chapter 42F, Hawaii Revised Statutes, complies with the public purpose requirement of article VII, section 4, of the Hawaii State Constitution.

     The legislature further finds that strong sister-state, sister-school, and similar relationships benefit the State's businesses and economy, improve access to flights and transportation, expand high school and college student educational exchanges, broaden access to Pacific culture and arts, preserve the State's relationships to the places of origin of its immigrant communities, and spur sub-national government collaborations to address common priorities, including the eradication of invasive species, promotion of economic development, advancement of clean energy, and preservation of peace between nations.  Further, it is appropriate for the State to explore and take advantage of additional ways that Hawaii can benefit from international partnerships, including generating revenue abroad similar to many other jurisdictions.  For example, hosting facilities abroad for local farmers and retailers to more easily sell Hawaii products in key markets, or investing in projects that generate a return, could create revenue to support Hawaii programs and services without additional expense to local taxpayers.

     The legislature also finds that international relations across the Pacific have been rapidly changing.  Additionally, previous generations of the State's key community, business, and government leaders who have carefully fostered and maintained these important relationships are retiring or passing on.  In order for residents to continue to benefit from the State's international ties, and for Hawaii to take advantage of international business and revenue opportunities abroad, as so many other jurisdictions currently do, it is critical that the State adjust its engagement strategy, ensure continuity with its sister-state communities and partners, and plan for the future.

     Therefore, the legislature finds that in celebration of the fiftieth anniversary of the establishment of the East-West center, the State must update its international engagement strategy and reaffirm its commitment to building and maintaining the international partnerships that have benefitted the State over the years so they can continue to benefit local residents for generations to come.

     Accordingly, the purpose of this Act is to:

     (1)  Establish the official designation of the East-West center as the center for cultural and technical interchange between East and West, Inc., and exempt state fund appropriations to the East-West center from chapter 42F, Hawaii Revised Statutes;

     (2)  Rename the Hawaii sister-state committee as the Hawaii sister-state and international partnerships commission and amends its functions and membership;

     (3)  Require the office of international affairs to provide support to the Hawaii sister-state and international partnerships commission;

     (4)  Expand the department of business, economic development, and tourism's authority to establish out‑of‑state offices to include out-of-state facilities to support sister-state or province partnerships and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners, generate revenue for the State, and buy property; and

     (5)  Appropriate funds. 

     SECTION 2.  Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§201-    East-West center.  (a)  The official designation of the East-West center shall be the center for cultural and technical interchange between East and West, Inc.

     (b)  The qualifying standards and conditions related to the receipt of funds under chapter 42F shall not apply to funds received by the East-West center, or center for cultural and technical interchange between East and West, Inc.; provided that if the center for cultural and technical interchange between East and West, Inc. contracts with a recipient or provider, then the qualifying standards, conditions, and other provisions of chapter 42F shall apply to the recipient or provider and the contract.

     (c)  To receive state funds, the center for cultural and technical interchange between East and West, Inc., shall:

     (1)  Be licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which state funds are appropriated;

     (2)  Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability;

     (3)  Agree not to use the funds for entertainment or lobbying activities in the State;

     (4)  Be incorporated under the laws of the State;

     (5)  Have bylaws or policies that describe the manner in which the activities or services for which funds are appropriated shall be conducted or provided;

     (6)  Have been determined and designated to be a tax-exempt organization by the Internal Revenue Service; and

     (7)  Have a governing board whose members shall have no material conflict of interest and serve without compensation.

     (d)  The comptroller and state auditor may examine the use of funds appropriated to the center for cultural and technical interchange between East and West, Inc.

     (e)  The allocation of state support shall neither impinge on the autonomy of the center for cultural and technical interchange between East and West, Inc., nor imply state control over its programs or policies, except as provided in this section.

     (f)  The center for cultural and technical interchange between East and West, Inc., shall submit a report to the legislature no later than twenty days prior to the convening of each regular session, which shall include an explanation of the facility maintenance and other functions accomplished by state fund expenditures in the previous fiscal year."

     SECTION 3.  Section 201-17, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The office shall:

     (1)  Develop policies that promote and strengthen relations with other countries in the areas of international business, economy, culture, and the arts;

     (2)  Develop policies that promote transportation between, and tourism with, other countries;

     (3)  Develop and promote international telecommunications and high technology exchanges;

     (4)  Encourage the development of international sister-city programs, pairing Hawaii cities with cities around the globe for artistic, cultural, economic, educational, and faith-based exchanges;

     (5)  Develop and promote Hawaii as the economic, trade, commerce, transportation, banking, and tourism hub of the Pacific;

     (6)  Develop an international affairs and peace education curriculum that includes studies of international affairs and peace initiatives and takes a proactive, strategic approach to the development of policies that promote the prevention of national and international conflict, nonviolent intervention, mediation, peaceful resolution of conflict, and structured mediation of conflict; [and]

     (7)  Provide for exchanges of individuals between Hawaii and other nations to develop international and peace‑based initiatives[.]; and

     (8)  Provide support to the Hawaii sister-state and international partnerships commission."

     SECTION 4.  Section 201-81, Hawaii Revised Statutes, is amended to read as follows:

     "§201-81  Establishment of out-of-state offices; purposes.  The department of business, economic development, and tourism may establish and operate offices and facilities in out-of-state locations, including foreign nations, to effectuate the following purposes:

     (1)  Develop programs to reach targeted companies or industries in the respective area and surrounding regions;

     (2)  Monitor out-of-state government policies and regulations that have an impact on business, markets, sales, tourism, and related activities;

     (3)  Host government and business officials at conferences, meetings and social occasions, or other events on matters pertaining to business opportunities and attraction of investments for the State;

     (4)  Develop and conduct advertising efforts, promotional events, media coverage, and educational programs regarding commerce in the State; [and]

     (5)  Conduct related operations as needed, [such as] including hiring or contracting for consultants[.];

     (6)  Support sister-state or province relationships, as defined in section 229-1, and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners; and

     (7)  Generate revenue for the State."

     SECTION 5.  Section 201-82, Hawaii Revised Statutes, is amended to read as follows:

     "§201-82  Powers of the department.  The department, subject to the approval of the director of budget and finance, shall have the following general powers to operate out-of-state offices and facilities established:

     (1)  To enter into contracts, leases, or cooperative agreements, or perform other transactions with any person, firm, partnership, association, company, corporation, or foreign nation, as may be necessary in the conduct of its business and on [such] any terms as the department may deem appropriate, using competitive procurement practices, to the extent practicable, in accordance with rules adopted by the policy board;

     (2)  To establish operational bank accounts in out-of-state locations, including foreign denomination accounts, as may be necessary in the conduct of its business, notwithstanding the provisions of chapter 38;

     (3)  To receive by gifts, grants, devises, bequests, or otherwise from private sources or a foreign nation, any property, real, personal, or mixed, intangible or tangible, absolutely or in trust, to be used and disposed of, either the principal or the income therefrom, in accordance with the conditions under which it was received;

     (4)  To buy, sell, lease, rent, hold, maintain, use, and operate any property, real, personal, or mixed, tangible or intangible, in accordance with the conditions under which it was received;

     (5)  To hire such personnel as may be necessary in the conduct of its business and on [such] any terms as the department may deem appropriate; and

     (6)  To do any or all other acts reasonably necessary to carry out the objects and purposes of this part, provided that the department shall not obligate any funds of the State not appropriated to the department."

     SECTION 6.  Section 229-1, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-1[]]  [Definition.] Definitions.  For the purposes of this chapter, unless the context otherwise requires[, "sister-state]:

     "Commission" means the Hawaii sister-state and international partnerships commission established under section 229-2.

     "Sister-state or province [relationship"] partnership" means a [relationship] partnership between the State of Hawaii and the state or province or similar governmental or political subdivision of a foreign nation."

     SECTION 7.  Section 229-2, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-2[]]  Hawaii sister-state [committee] and international partnerships commission.  [[(a)]  There shall be established the Hawaii sister-state committee, to be placed within the department of business, economic development, and tourism for administrative purposes only, consisting of five members appointed by the governor as provided in section 26-34.

     The purpose of the committee shall be to advise the governor and the legislature on matters relating to sister-state or province relations and relations, in general, between the State and the states or provinces of foreign countries.

     [(b)]  The governor shall appoint five members, one member from each of five lists of nominees submitted respectively by the following:

     (1)  Speaker of the house of representatives;

     (2)  President of the senate;

     (3)  Native Hawaiian cultural organization;

     (4)  East-West Center; and

     (5)  Hawaii State Association of Counties.

     A chair and vice chair of the committee shall be appointed by the committee members from among themselves.  Members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.]

     (a)  There is established within the department of business, economic development, and tourism, for administrative purposes only, the Hawaii sister-state and international partnerships commission.

     (b)  The commission shall support the governor, legislature, and office of international affairs in building and maintaining strategic long-term sister-state or province partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners.

     (c)  The commission shall consist of the following members:

     (1)  Three members appointed by the governor, with the advice and consent of the senate; provided that two of the three members appointed by the governor shall be from a list of at least three nominees submitted respectively by the:

          (A)  Office of Hawaiian affairs; and

          (B)  Center for cultural and technical interchange between East and West, Inc.;

     (2)  One member appointed by the president of the senate;

     (3)  One member appointed by the speaker of the house of representatives; and

     (4)  The chairs of the respective senate and house committees with jurisdiction over international affairs or intergovernmental affairs, who shall serve as ex-officio, non-voting members of the commission.

     (d)  The commission shall elect from among its members a chairperson and vice chairperson.

     (e)  Members of the commission shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties."

     SECTION 8.  Section 229-3, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-3[]]  Initiating sister-state relationships.  The [Hawaii sister-state committee] commission shall evaluate and develop recommendations for the initiation of all sister-state or province [relationships] partnerships and forward its recommendation to the legislature.  The legislature, if it so chooses, shall implement the recommendation to initiate a sister-state or province [relationship] partnership by either adopting a concurrent resolution or by enacting session law to that effect."

     SECTION 9.  Section 229-4, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-4[]]  Maintaining sister-state relationships.  The [Hawaii sister-state committee] commission shall periodically evaluate established sister-state [relationships] or province partnerships and forward its recommendations on maintaining sister-state [relationships] or province partnerships to the governor and to the legislature."

     SECTION 10.  Section 229-5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-5[]]  Dissolving sister-state relationships.  The [Hawaii sister-state committee] commission may make a recommendation to terminate a sister-state [relationship] or province partnership it deems to be defunct, moribund, or not beneficial and forward its recommendation to the legislature.  The legislature, if it so chooses, shall implement the recommendation to terminate a sister-state [relationship] or province partnership either by adopting a concurrent resolution or by enacting session law to that effect."

     SECTION 11.  There is appropriated out of the general revenues of the State of Hawaii the sum of $200,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the office of international affairs to develop an:

     (1)  Updated strategy for the State's international engagement in the twenty-first century; and

     (2)  Analysis of potential investment and revenue generation abroad.

     The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

     SECTION 12.  There is appropriated out of the general revenues of the State of Hawaii the sum of $4,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the center for cultural and technical interchange between East and West, Inc. to assist in the development and maintenance of the State's international relationships, programs, and partnerships.

     The sums appropriated shall be expended by the university of Hawaii for the purposes of this Act.

     SECTION 13.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 14.  This Act shall take effect on July 1, 2025.

Report Title:

DBEDT; Office of International Affairs; Hawaii Sister-State and International Partnerships Commission; East-West Center; Sister‑State Partnerships; Appropriations

Description:

Establishes the official designation of the East-West Center as the Center for Cultural and Technical Interchange Between East and West, Inc., and exempts state fund appropriations to the East-West Center from chapter 42F, HRS.  Renames the Hawaii Sister-State Committee to the Hawaii Sister-State and International Partnerships Commission and amends its functions and membership.  Requires the Office of International Affairs to provide support to the Hawaii Sister-State and International Partnerships Commission.  Expands the Department of Business, Economic Development, and Tourism's authority to establish out‑of‑state offices to include out-of-state facilities to support sister-state or province partnerships and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners, generate revenue for the State, and buy property.  Appropriates funds.  (CD1)

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 INTERNATIONAL AFFAIRS.

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

     SECTION 1.  The legislature finds that the Center for Cultural and Technical Interchange Between East and West Act of 1960, Public Law 86-472, authorized the establishment in Hawaii of a center for cultural and technical interchange between East and West, and Act 82, Session Laws of Hawaii 1975 (Act 82), established an educational non-profit public corporation, the Center for Cultural and Technical Interchange Between East and West, Inc., better known and referred to as the "East-West Center", to administer and operate the center.  Act 82 specifies the purposes of the East-West Center, which include, among other things, the promotion of better relations and understanding between the United States and the nations of the East through the administration and operation of the East-West Center as an educational institution operating in furtherance of the objectives of Public Law 86-472 and the promotion, among the nations of the East and West, of the use of the East-West Center by qualified persons for cooperative study, training, and research in matters of East-West significance, thus leading to better relations and understanding as to such matters.

     The legislature further finds that the East-West Center has become a pivotal institution in fostering understanding and cooperation between the United States and the nations of Asia and the Pacific.  Hawaii's unique geographical location and multicultural heritage make it an ideal location for promoting international relations, particularly within the Asia-Pacific region.  For over six decades, the East-West Center has significantly contributed to the State's role as a bridge between the East and West, enhancing the State's position in international affairs.

     The legislature further finds that the East-West center's programs in research, education, and exchange have directly benefited the State's economy, culture, and diplomatic relations.  While the federal government has provided significant funding to the East-West center, this federal support has fluctuated over the years.  The legislature recognizes that the center would benefit from regular, predictable state resources to support the development of programs and initiatives that align with the State's strategic goals in international relations, education, and economic development.

     The legislature finds that the East-West center has served and continues to serve a public purpose of promoting better relations and understanding between the United States and the nations of the East and that granting authorization to the East-West center to receive appropriations of state funds exempt from the requirements of chapter 42F, Hawaii Revised Statutes, complies with the public purpose requirement of article VII, section 4, of the Hawaii State Constitution.

     The legislature further finds that strong sister-state, sister-school, and similar relationships benefit the State's businesses and economy, improve access to flights and transportation, expand high school and college student educational exchanges, broaden access to Pacific culture and arts, preserve the State's relationships to the places of origin of its immigrant communities, and spur sub-national government collaborations to address common priorities, including the eradication of invasive species, promotion of economic development, advancement of clean energy, and preservation of peace between nations.  Further, it is appropriate for the State to explore and take advantage of additional ways that Hawaii can benefit from international partnerships, including generating revenue abroad similar to many other jurisdictions.  For example, hosting facilities abroad for local farmers and retailers to more easily sell Hawaii products in key markets, or investing in projects that generate a return, could create revenue to support Hawaii programs and services without additional expense to local taxpayers.

     The legislature also finds that international relations across the Pacific have been rapidly changing.  Additionally, previous generations of the State's key community, business, and government leaders who have carefully fostered and maintained these important relationships are retiring or passing on.  In order for residents to continue to benefit from the State's international ties, and for Hawaii to take advantage of international business and revenue opportunities abroad, as so many other jurisdictions currently do, it is critical that the State adjust its engagement strategy, ensure continuity with its sister-state communities and partners, and plan for the future.

     Therefore, the legislature finds that in celebration of the fiftieth anniversary of the establishment of the East-West center, the State must update its international engagement strategy and reaffirm its commitment to building and maintaining the international partnerships that have benefitted the State over the years so they can continue to benefit local residents for generations to come.

     Accordingly, the purpose of this Act is to:

     (1)  Establish the official designation of the East-West center as the center for cultural and technical interchange between East and West, Inc., and exempt state fund appropriations to the East-West center from chapter 42F, Hawaii Revised Statutes;

     (2)  Rename the Hawaii sister-state committee as the Hawaii sister-state and international partnerships commission and amends its functions and membership;

     (3)  Require the office of international affairs to provide support to the Hawaii sister-state and international partnerships commission;

     (4)  Expand the department of business, economic development, and tourism's authority to establish out‑of‑state offices to include out-of-state facilities to support sister-state or province partnerships and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners, generate revenue for the State, and buy property; and

     (5)  Appropriate funds. 

     SECTION 2.  Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§201-     East-West center.  (a)  The official designation of the East-West center shall be the center for cultural and technical interchange between East and West, Inc.

     (b)  The qualifying standards and conditions related to the receipt of funds under chapter 42F shall not apply to funds received by the East-West center; provided that if the East-West center contracts with a recipient or provider, then the qualifying standards, conditions, and other provisions of chapter 42F shall apply to the recipient or provider and the contract.

     (c)  To receive state funds, the center for cultural and technical interchange between East and West, Inc., shall:

     (1)  Be licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which state funds are appropriated;

     (2)  Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability;

     (3)  Agree not to use the funds for entertainment or lobbying activities;

     (4)  Be incorporated under the laws of the State;

     (5)  Have bylaws or policies that describe the manner in which the activities or services for which funds are appropriated shall be conducted or provided;

     (6)  Have been determined and designated to be a tax-exempt organization by the Internal Revenue Service; and

     (7)  Have a governing board whose members shall have no material conflict of interest and serve without compensation.

     (d)  The comptroller and state auditor may examine the use of funds appropriated to the center for cultural and technical interchange between East and West, Inc.

     (e)  The allocation of state support shall neither impinge on the autonomy of the center for cultural and technical interchange between East and West, Inc., nor imply state control over its programs or policies, except as provided in this section.

     (f)  The center for cultural and technical interchange between East and West, Inc., shall submit a report to the legislature no later than twenty days prior to the convening of each regular session, which shall include an explanation of the facility maintenance and other functions accomplished by state fund expenditures in the previous fiscal year."

     SECTION 3.  Section 201-17, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The office shall:

     (1)  Develop policies that promote and strengthen relations with other countries in the areas of international business, economy, culture, and the arts;

     (2)  Develop policies that promote transportation between, and tourism with, other countries;

     (3)  Develop and promote international telecommunications and high technology exchanges;

     (4)  Encourage the development of international sister-city programs, pairing Hawaii cities with cities around the globe for artistic, cultural, economic, educational, and faith-based exchanges;

     (5)  Develop and promote Hawaii as the economic, trade, commerce, transportation, banking, and tourism hub of the Pacific;

     (6)  Develop an international affairs and peace education curriculum that includes studies of international affairs and peace initiatives and takes a proactive, strategic approach to the development of policies that promote the prevention of national and international conflict, nonviolent intervention, mediation, peaceful resolution of conflict, and structured mediation of conflict; [and]

     (7)  Provide for exchanges of individuals between Hawaii and other nations to develop international and peace‑based initiatives[.]; and

     (8)  Provide support to the Hawaii sister-state and international partnerships commission."

     SECTION 4.  Section 201-81, Hawaii Revised Statutes, is amended to read as follows:

     "§201-81  Establishment of out-of-state offices; purposes.  The department of business, economic development, and tourism may establish and operate offices and facilities in out-of-state locations, including foreign nations, to effectuate the following purposes:

     (1)  Develop programs to reach targeted companies or industries in the respective area and surrounding regions;

     (2)  Monitor out-of-state government policies and regulations that have an impact on business, markets, sales, tourism, and related activities;

     (3)  Host government and business officials at conferences, meetings and social occasions, or other events on matters pertaining to business opportunities and attraction of investments for the State;

     (4)  Develop and conduct advertising efforts, promotional events, media coverage, and educational programs regarding commerce in the State; [and]

     (5)  Conduct related operations as needed, [such as] including hiring or contracting for consultants[.];

     (6)  Support sister-state or province relationships, as defined in section 229-1, and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners; and

     (7)  Generate revenue for the State."

     SECTION 5.  Section 201-82, Hawaii Revised Statutes, is amended to read as follows:

     "§201-82  Powers of the department.  The department, subject to the approval of the director of budget and finance, shall have the following general powers to operate out-of-state offices and facilities established:

     (1)  To enter into contracts, leases, or cooperative agreements, or perform other transactions with any person, firm, partnership, association, company, corporation, or foreign nation, as may be necessary in the conduct of its business and on [such] any terms as the department may deem appropriate, using competitive procurement practices, to the extent practicable, in accordance with rules adopted by the policy board;

     (2)  To establish operational bank accounts in out-of-state locations, including foreign denomination accounts, as may be necessary in the conduct of its business, notwithstanding the provisions of chapter 38;

     (3)  To receive by gifts, grants, devises, bequests, or otherwise from private sources or a foreign nation, any property, real, personal, or mixed, intangible or tangible, absolutely or in trust, to be used and disposed of, either the principal or the income therefrom, in accordance with the conditions under which it was received;

     (4)  To buy, sell, lease, rent, hold, maintain, use, and operate any property, real, personal, or mixed, tangible or intangible, in accordance with the conditions under which it was received;

     (5)  To hire such personnel as may be necessary in the conduct of its business and on [such] any terms as the department may deem appropriate; and

     (6)  To do any or all other acts reasonably necessary to carry out the objects and purposes of this part, provided that the department shall not obligate any funds of the State not appropriated to the department."

     SECTION 6.  Section 229-1, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-1[]]  [Definition.] Definitions.  For the purposes of this chapter, unless the context otherwise requires[, "sister-state]:

     "Commission" means the Hawaii sister-state and international partnerships commission established under section 229-2.

     "Sister-state or province [relationship"] partnership" means a [relationship] partnership between the State of Hawaii and the state or province or similar governmental or political subdivision of a foreign nation."

     SECTION 7.  Section 229-2, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-2[]]  Hawaii sister-state [committee] and international partnerships commission.  [[(a)]  There shall be established the Hawaii sister-state committee, to be placed within the department of business, economic development, and tourism for administrative purposes only, consisting of five members appointed by the governor as provided in section 26-34.

     The purpose of the committee shall be to advise the governor and the legislature on matters relating to sister-state or province relations and relations, in general, between the State and the states or provinces of foreign countries.

     [(b)]  The governor shall appoint five members, one member from each of five lists of nominees submitted respectively by the following:

     (1)  Speaker of the house of representatives;

     (2)  President of the senate;

     (3)  Native Hawaiian cultural organization;

     (4)  East-West Center; and

     (5)  Hawaii State Association of Counties.

     A chair and vice chair of the committee shall be appointed by the committee members from among themselves.  Members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.]

     (a)  There is established within the department of business, economic development, and tourism, for administrative purposes only, the Hawaii sister-state and international partnerships commission.

     (b)  The commission shall support the governor, legislature, and office of international affairs in building and maintaining strategic long-term sister-state or province partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners.

     (c)  The commission shall consist of the following members:

     (1)  Three members appointed by the governor, with the advice and consent of the senate; provided that two of the three members appointed by the governor shall be from a list of at least three nominees submitted respectively by the:

          (A)  Office of Hawaiian affairs; and

          (B)  East-West center;

     (2)  One member appointed by the president of the senate;

     (3)  One member appointed by the speaker of the house of representatives; and

     (4)  The chairs of the respective senate and house committees with jurisdiction over international affairs or intergovernmental affairs, who shall serve as ex-officio, non-voting members of the commission.

     (d)  The commission shall elect from among its members a chairperson and vice chairperson.

     (e)  Members of the commission shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties."

     SECTION 8.  Section 229-3, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-3[]]  Initiating sister-state relationships.  The [Hawaii sister-state committee] commission shall evaluate and develop recommendations for the initiation of all sister-state or province [relationships] partnerships and forward its recommendation to the legislature.  The legislature, if it so chooses, shall implement the recommendation to initiate a sister-state or province [relationship] partnership by either adopting a concurrent resolution or by enacting session law to that effect."

     SECTION 9.  Section 229-4, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-4[]]  Maintaining sister-state relationships.  The [Hawaii sister-state committee] commission shall periodically evaluate established sister-state [relationships] or province partnerships and forward its recommendations on maintaining sister-state [relationships] or province partnerships to the governor and to the legislature."

     SECTION 10.  Section 229-5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-5[]]  Dissolving sister-state relationships.  The [Hawaii sister-state committee] commission may make a recommendation to terminate a sister-state [relationship] or province partnership it deems to be defunct, moribund, or not beneficial and forward its recommendation to the legislature.  The legislature, if it so chooses, shall implement the recommendation to terminate a sister-state [relationship] or province partnership either by adopting a concurrent resolution or by enacting session law to that effect."

     SECTION 11.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the office of international affairs to develop an:

     (1)  Updated strategy for the State's international engagement in the twenty-first century; and

     (2)  Analysis of potential investment and revenue generation abroad.

     The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

     SECTION 12.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the East-West center to assist in the development and maintenance of the State's international relationships, programs, and partnerships.

     The sums appropriated shall be expended by the university of Hawaii for the purposes of this Act.

     SECTION 13.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 14.  This Act shall take effect on July 1, 3000.

Report Title:

DBEDT; Office of International Affairs; Hawaii Sister-State and International Partnerships Commission; East-West Center; Sister‑State Partnerships; Appropriations

Description:

Establishes the official designation of the East-West Center as the Center for Cultural and Technical Interchange Between East and West, Inc., and exempts state fund appropriations to the East-West Center from chapter 42F, HRS.  Renames the Hawaii Sister-State Committee to the Hawaii Sister-State and International Partnerships Commission and amends its functions and membership.  Requires the Office of International Affairs to provide support to the Hawaii Sister-State and International Partnerships Commission.  Expands the Department of Business, Economic Development, and Tourism's authority to establish out‑of‑state offices to include out-of-state facilities to support sister-state or province partnerships and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners, generate revenue for the State, and buy property.  Appropriates funds.  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 INTERNATIONAL AFFAIRS.

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

     SECTION 1.  The legislature finds that fifty years ago, Act 82, Session Laws of Hawaii 1975, established an educational non‑profit public corporation to administer and operate what is today known as the East-West center.  The mission of the East‑West center is to benefit local residents and the State's international partners by strengthening the State's international ties and advancing cooperation across the Pacific.  It has been an invaluable partner that is well suited to continuing to assist the State in building partnerships, expanding economic development and education, and collaborating abroad.

     The legislature further finds that strong sister-state, sister-school, and similar relationships benefit the State's businesses and economy, improve access to flights and transportation, expand high school and college student educational exchanges, broaden access to Pacific culture and arts, preserve the State's relationships to the places of origin of its immigrant communities, and spur sub-national government collaborations to address common priorities, including the eradication of invasive species, promotion of economic development, advancement of clean energy, and preservation of peace between nations.  Further, it is appropriate for the State to explore and take advantage of additional ways that Hawaii can benefit from international partnerships, including generating revenue abroad similar to many other jurisdictions.  For example, hosting facilities abroad for local farmers and retailers to more easily sell Hawaii products in key markets, or investing in projects that generate a return.  This enables direct financial benefit that can create revenue to support Hawaii programs and services without additional expense to local taxpayers.

     The legislature also finds that international relations between East and West across the Pacific have been rapidly changing.  Additionally, previous generations of the State's key community, business, and government leaders who have carefully fostered and maintained these important relationships are retiring or passing on.  If local residents are going to continue to benefit from the State's international ties, and if Hawaii is going to take advantage of international business and revenue opportunities abroad as so many other jurisdictions currently do, it is critical that the State adjust its engagement strategy, ensure continuity with its sister-state communities and partners, and plan for the future.

     Therefore, the legislature finds that in celebration of the fiftieth anniversary of the legislature's establishment of the East-West center, the State must update its international engagement strategy, and reaffirm its commitment to building and maintaining the international partnerships that have benefitted the State over the years, so they can continue to benefit local residents for generations to come.

     Accordingly, the purpose of this Act is to:

     (1)  Engage local leaders with strong relationships abroad to support the governor and legislature in strengthening international partnerships, by redesignating the Hawaii sister-state committee as the Hawaii sister-state and international partnerships commission;

     (2)  Enable the East-West center to better help and maintain the State's international relationships, programs, and partnerships; and

     (3)  Enable the State to more easily generate revenue from international partnerships and investment as other jurisdictions do, where appropriate.

     SECTION 2.  Chapter 201, Hawaii Revised Statutes, is amended by adding two new sections to part I to be appropriately designated and to read as follows:

     "§201-     East-West center.  (a)  The official designation of the East-West center shall be the center for cultural and technical interchange between East and West, Inc.

     (b)  The qualifying standards and conditions related to the receipt of funds under chapter 42F shall not apply to funds received by the East-West center; provided that if the East-West center contracts with a recipient or provider, then the qualifying standards, conditions, and other provisions of chapter 42F shall apply to the recipient or provider and the contract.

     (c)  To receive state funds, the center for cultural and technical interchange between East and West, Inc. shall:

     (1)  Be licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which state funds are appropriated;

     (2)  Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability;

     (3)  Agree not to use the funds for entertainment or lobbying activities;

     (4)  Be incorporated under the laws of the State;

     (5)  Have bylaws or policies that describe the manner in which the activities or services for which a grant is awarded shall be conducted or provided;

     (6)  Have been determined and designated to be a tax-exempt organization by the Internal Revenue Service; and

     (7)  Have a governing board whose members shall have no material conflict of interest and serve without compensation.

     (d)  The comptroller and state auditor may examine the use of funds appropriated to the center for cultural and technical interchange between East and West, Inc.

     (e)  The allocation of state support shall not impinge on the autonomy of the center for cultural and technical interchange between East and West, Inc., nor imply state control over its programs or policies, except as provided in this section.

     (f)  The center for cultural and technical interchange between East and West, Inc. shall submit to the legislature an annual report no later than twenty days prior to the convening of each regular session, which shall include an explanation of the facility maintenance and other functions accomplished by state fund expenditures in the previous fiscal year."

     SECTION 3.  Section 201-17, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The office shall:

     (1)  Develop policies that promote and strengthen relations with other countries in the areas of international business, economy, culture, and the arts;

     (2)  Develop policies that promote transportation between, and tourism with, other countries;

     (3)  Develop and promote international telecommunications and high technology exchanges;

     (4)  Encourage the development of international sister-city programs, pairing Hawaii cities with cities around the globe for artistic, cultural, economic, educational, and faith-based exchanges;

     (5)  Develop and promote Hawaii as the economic, trade, commerce, transportation, banking, and tourism hub of the Pacific;

     (6)  Develop an international affairs and peace education curriculum that includes studies of international affairs and peace initiatives and takes a proactive, strategic approach to the development of policies that promote the prevention of national and international conflict, nonviolent intervention, mediation, peaceful resolution of conflict, and structured mediation of conflict; [and]

     (7)  Provide for exchanges of individuals between Hawaii and other nations to develop international and peace‑based initiatives[.]; and

     (8)  Provide support to the Hawaii sister-state and international partnerships commission."

     SECTION 4.  Section 201-81, Hawaii Revised Statutes, is amended to read as follows:

     "§201-81  Establishment of out-of-state offices; purposes.  The department of business, economic development, and tourism may establish and operate offices and facilities in out-of-state locations, including foreign nations, to effectuate the following purposes:

     (1)  Develop programs to reach targeted companies or industries in the respective area and surrounding regions;

     (2)  Monitor out-of-state government policies and regulations that have an impact on business, markets, sales, tourism, and related activities;

     (3)  Host government and business officials at conferences, meetings and social occasions, or other events on matters pertaining to business opportunities and attraction of investments for the State;

     (4)  Develop and conduct advertising efforts, promotional events, media coverage, and educational programs regarding commerce in the State; [and]

     (5)  Conduct related operations as needed, [such as] including hiring or contracting for consultants[.];

     (6)  Support sister-state, -province, and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners; and

     (7)  Generate revenue for the State."

     SECTION 5.  Section 201-82, Hawaii Revised Statutes, is amended to read as follows:

     "§201-82  Powers of the department.  The department, subject to the approval of the director of budget and finance, shall have the following general powers to operate out-of-state offices and facilities established:

     (1)  To enter into contracts, leases, or cooperative agreements, or perform other transactions with any person, firm, partnership, association, company, corporation, or foreign nation, as may be necessary in the conduct of its business and on [such] any terms as the department may deem appropriate, using competitive procurement practices, to the extent practicable, in accordance with rules adopted by the policy board;

     (2)  To establish operational bank accounts in out-of-state locations, including foreign denomination accounts, as may be necessary in the conduct of its business, notwithstanding the provisions of chapter 38;

     (3)  To receive by gifts, grants, devises, bequests, or otherwise from private sources or a foreign nation, any property, real, personal, or mixed, intangible or tangible, absolutely or in trust, to be used and disposed of, either the principal or the income therefrom, in accordance with the conditions under which it was received;

     (4)  To buy, sell, lease, rent, hold, maintain, use, and operate any property, real, personal, or mixed, tangible or intangible, in accordance with the conditions under which it was received;

     (5)  To hire such personnel as may be necessary in the conduct of its business and on [such] any terms as the department may deem appropriate; and

     (6)  To do any or all other acts reasonably necessary to carry out the objects and purposes of this part, provided that the department shall not obligate any funds of the State not appropriated to the department."

     SECTION 6.  Section 229-2, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-2[]]  Hawaii sister-state [committee] and international partnerships commission.  [[(a)]  There shall be established the Hawaii sister-state committee, to be placed within the department of business, economic development, and tourism for administrative purposes only, consisting of five members appointed by the governor as provided in section 26-34.

     The purpose of the committee shall be to advise the governor and the legislature on matters relating to sister-state or province relations and relations, in general, between the State and the states or provinces of foreign countries.

     [(b)]  The governor shall appoint five members, one member from each of five lists of nominees submitted respectively by the following:

     (1)  Speaker of the house of representatives;

     (2)  President of the senate;

     (3)  Native Hawaiian cultural organization;

     (4)  East-West Center; and

     (5)  Hawaii State Association of Counties.

     A chair and vice chair of the committee shall be appointed by the committee members from among themselves.  Members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.]

     (a)  There is established within the department of business, economic development, and tourism for administrative purposes only the Hawaii sister-state and international partnerships commission.

     (b)  The commission shall support the governor, legislature, and office of international affairs in building and maintaining strategic long-term sister-state, -province, and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners.

     (c)  The commission shall consist of the following members:

     (1)  Three members appointed by the governor, with the advice and consent of the Senate; provided that two of the three members appointed by the governor shall be from a list of at least three nominees submitted respectively by the:

          (A)  Office of Hawaiian affairs; and

          (B)  East-West center;

     (2)  One member appointed by the president of the senate;

     (3)  One member appointed by the speaker of the house of representatives; and

     (4)  The chairs of the respective senate and house committees with jurisdiction over international affairs who shall serve as ex-officio, non-voting members of the commission.

     (d)  The commission shall elect from among its members a chairperson and vice-chairperson.

     (e)  Members of the commission shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties."

     SECTION 7.  Section 229-3, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-3[]]  Initiating sister-state relationships.  The Hawaii sister-state [committee] and international partnerships commission shall evaluate and develop recommendations for the initiation of all sister-state or province relationships and forward its recommendation to the legislature.  The legislature, if it so chooses, shall implement the recommendation to initiate a sister-state or province relationship by either adopting a concurrent resolution or by enacting session law to that effect."

     SECTION 8.  Section 229-4, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-4[]]  Maintaining sister-state relationships.  The Hawaii sister-state [committee] and international partnerships commission shall periodically evaluate established sister-state relationships and forward its recommendations on maintaining sister-state relationships to the governor and to the legislature."

     SECTION 9.  Section 229-5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-5[]]  Dissolving sister-state relationships.  The Hawaii sister-state [committee] and international partnerships commission may make a recommendation to terminate a sister-state relationship it deems to be defunct, moribund, or not beneficial and forward its recommendation to the legislature.  The legislature, if it so chooses, shall implement the recommendation to terminate a sister-state relationship either by adopting a concurrent resolution or by enacting session law to that effect."

     SECTION 10.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the office of international affairs to develop an:

     (1)  Updated strategy for the State's international engagement in the twenty-first century; and

     (2)  Analysis of potential investment and revenue generation abroad.

     The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

     SECTION 11.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the East-West center to assist in the development and maintenance of the State's international relationships, programs, and partnerships.

     The sums appropriated shall be expended by the university of Hawaii for the purposes of this Act.

     SECTION 12.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 13.  This Act shall take effect on July 1, 2050.

Report Title:

DBEDT; Office of International Affairs; Hawaii Sister-State and International Partnerships Commission; East-West Center; Sister‑State Relationships; Appropriations

Description:

Establishes the Hawaii Sister-State and International Partnerships Commission.  Requires the Office of International Affairs to provide support to the Hawaii Sister-State and International Partnerships Commission.  Allows the Department of Business, Economic Development, and Tourism to establish out‑of‑state offices and facilities to support sister-state and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners, generate revenue for the State, and buy property.  Appropriates funds.  Effective 7/1/2050.  (SD2)

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 INTERNATIONAL AFFAIRS.

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

     SECTION 1.  The legislature finds that fifty years ago, Act 82, Session Laws of Hawaii 1975, established an educational non‑profit public corporation to administer and operate what is today known as the East-West center.  The mission of the East‑West center is to benefit local residents and the State's international partners by strengthening the State's international ties and advancing cooperation across the Pacific.  It has been an invaluable partner that is well suited to continuing to assist the State in building partnerships, expanding economic development and education, and collaborating abroad.

     The legislature further finds that strong sister-state, sister-school, and similar relationships benefit the State's businesses and economy, improve access to flights and transportation, expand high school and college student educational exchanges, broaden access to Pacific culture and arts, preserve the State's relationships to the places of origin of its immigrant communities, and spur sub-national government collaborations to address common priorities, including the eradication of invasive species, promotion of economic development, advancement of clean energy, and preservation of peace between nations.  Further, it is appropriate for the State to explore and take advantage of additional ways that Hawaii can benefit from international partnerships, including generating revenue abroad similar to many other jurisdictions.  For example, hosting facilities abroad for local farmers and retailers to more easily sell Hawaii products in key markets, or investing in projects that generate a return.  This enables direct financial benefit that can create revenue to support Hawaii programs and services without additional expense to local taxpayers.

     The legislature also finds that international relations between East and West across the Pacific have been rapidly changing.  Additionally, previous generations of the State's key community, business, and government leaders who have carefully fostered and maintained these important relationships are retiring or passing on.  If local residents are going to continue to benefit from the State's international ties, and if Hawaii is going to take advantage of international business and revenue opportunities abroad as so many other jurisdictions currently do, it is critical that the State adjust its engagement strategy, ensure continuity with its sister-state communities and partners, and plan for the future.

     Therefore, the legislature finds that in celebration of the fiftieth anniversary of the legislature's establishment of the East-West center, the State must update its international engagement strategy, and reaffirm its commitment to building and maintaining the international partnerships that have benefitted the State over the years, so they can continue to benefit local residents for generations to come.

     Accordingly, the purpose of this Act is to:

     (1)  Engage local leaders with strong relationships abroad to support the governor and legislature in strengthening international partnerships, by redesignating the Hawaii sister-state committee as the Hawaii sister-state and international partnerships commission;

     (2)  Enable the East-West center to better help and maintain the State's international relationships, programs, and partnerships; and

     (3)  Enable the State to more easily generate revenue from international partnerships and investment as other jurisdictions do, where appropriate.

     SECTION 2.  Chapter 201, Hawaii Revised Statutes, is amended by adding two new sections to part I to be appropriately designated and to read as follows:

     "§201-    East-West center.  (a)  The official designation of the East-West center shall be the center for cultural and technical interchange between East and West, Inc.

     (b)  The qualifying standards and conditions related to the receipt of funds under chapter 42F shall not apply to funds received by the East-West center; provided that if the East-West center contracts with a recipient or provider, then the qualifying standards, conditions, and other provisions of chapter 42F shall apply to the recipient or provider and the contract.

     (c)  The allocation of state support shall not impinge on the autonomy of the East-West center, nor imply state control over its programs or policies, except as provided in this section."

     SECTION 3.  Section 201-17, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The office shall:

     (1)  Develop policies that promote and strengthen relations with other countries in the areas of international business, economy, culture, and the arts;

     (2)  Develop policies that promote transportation between, and tourism with, other countries;

     (3)  Develop and promote international telecommunications and high technology exchanges;

     (4)  Encourage the development of international sister-city programs, pairing Hawaii cities with cities around the globe for artistic, cultural, economic, educational, and faith-based exchanges;

     (5)  Develop and promote Hawaii as the economic, trade, commerce, transportation, banking, and tourism hub of the Pacific;

     (6)  Develop an international affairs and peace education curriculum that includes studies of international affairs and peace initiatives and takes a proactive, strategic approach to the development of policies that promote the prevention of national and international conflict, nonviolent intervention, mediation, peaceful resolution of conflict, and structured mediation of conflict; [and]

     (7)  Provide for exchanges of individuals between Hawaii and other nations to develop international and peace‑based initiatives[.]; and

     (8)  Provide support to the Hawaii sister-state and international partnerships commission."

     SECTION 4.  Section 201-81, Hawaii Revised Statutes, is amended to read as follows:

     "§201-81  Establishment of out-of-state offices; purposes.  The department of business, economic development, and tourism may establish and operate offices and facilities in out-of-state locations, including foreign nations, to effectuate the following purposes:

     (1)  Develop programs to reach targeted companies or industries in the respective area and surrounding regions;

     (2)  Monitor out-of-state government policies and regulations that have an impact on business, markets, sales, tourism, and related activities;

     (3)  Host government and business officials at conferences, meetings and social occasions, or other events on matters pertaining to business opportunities and attraction of investments for the State;

     (4)  Develop and conduct advertising efforts, promotional events, media coverage, and educational programs regarding commerce in the State; [and]

     (5)  Conduct related operations as needed, such as hiring or contracting for consultants[.];

     (6)  Support sister-state, -province, and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners; and

     (7)  Generate revenue for the State."

     SECTION 5.  Section 201-82, Hawaii Revised Statutes, is amended to read as follows:

     "§201-82  Powers of the department.  The department, subject to the approval of the director of budget and finance, shall have the following general powers to operate out-of-state offices and facilities established:

     (1)  To enter into contracts, leases, or cooperative agreements, or perform other transactions with any person, firm, partnership, association, company, corporation, or foreign nation, as may be necessary in the conduct of its business and on [such] any terms as the department may deem appropriate, using competitive procurement practices, to the extent practicable, in accordance with rules adopted by the policy board;

     (2)  To establish operational bank accounts in out-of-state locations, including foreign denomination accounts, as may be necessary in the conduct of its business, notwithstanding the provisions of chapter 38;

     (3)  To receive by gifts, grants, devises, bequests, or otherwise from private sources or a foreign nation, any property, real, personal, or mixed, intangible or tangible, absolutely or in trust, to be used and disposed of, either the principal or the income therefrom, in accordance with the conditions under which it was received;

     (4)  To buy, sell, lease, rent, hold, maintain, use, and operate any property, real, personal, or mixed, tangible or intangible, in accordance with the conditions under which it was received;

     (5)  To hire such personnel as may be necessary in the conduct of its business and on [such] any terms as the department may deem appropriate; and

     (6)  To do any or all other acts reasonably necessary to carry out the objects and purposes of this part, provided that the department shall not obligate any funds of the State not appropriated to the department."

     SECTION 6.  Section 229-2, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-2[]]  Hawaii sister-state [committee] and international partnerships commission.  [[(a)]  There shall be established the Hawaii sister-state committee, to be placed within the department of business, economic development, and tourism for administrative purposes only, consisting of five members appointed by the governor as provided in section 26-34.

     The purpose of the committee shall be to advise the governor and the legislature on matters relating to sister-state or province relations and relations, in general, between the State and the states or provinces of foreign countries.

     [(b)]  The governor shall appoint five members, one member from each of five lists of nominees submitted respectively by the following:

     (1)  Speaker of the house of representatives;

     (2)  President of the senate;

     (3)  Native Hawaiian cultural organization;

     (4)  East-West Center; and

     (5)  Hawaii State Association of Counties.

     A chair and vice chair of the committee shall be appointed by the committee members from among themselves.  Members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.]

     (a)  There is established within the department of business, economic development, and tourism the Hawaii sister-state and international partnerships commission for administrative purposes only.

     (b)  The commission shall support the governor, legislature, and office of international affairs in building and maintaining strategic long-term sister-state, -province, and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners.

     (c)  The commission shall consist of the following members:

     (1)  Three members appointed by the governor, with the advice and consent of the Senate; provided that two of the three members appointed by the governor shall be from a list of at least three nominees submitted respectively by the:

          (A)  Office of Hawaiian affairs; and

          (B)  East-West center;

     (2)  One member appointed by the president of the senate;

     (3)  One member appointed by the speaker of the house of representatives; and

     (4)  The chairs of the respective senate and house committees with jurisdiction over international affairs who shall serve as ex-officio, non-voting members of the commission.

     (d)  The commission shall elect from among its members a chairperson and vice-chairperson.

     (e)  Members of the commission shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties."

     SECTION 7.  Section 229-3, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-3[]]  Initiating sister-state relationships.  The Hawaii sister-state [committee] and international partnerships commission shall evaluate and develop recommendations for the initiation of all sister-state or province relationships and forward its recommendation to the legislature.  The legislature, if it so chooses, shall implement the recommendation to initiate a sister-state or province relationship by either adopting a concurrent resolution or by enacting session law to that effect."

     SECTION 8.  Section 229-4, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-4[]]  Maintaining sister-state relationships.  The Hawaii sister-state [committee] and international partnerships commission shall periodically evaluate established sister-state relationships and forward its recommendations on maintaining sister-state relationships to the governor and to the legislature."

     SECTION 9.  Section 229-5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-5[]]  Dissolving sister-state relationships.  The Hawaii sister-state [committee] and international partnerships commission may make a recommendation to terminate a sister-state relationship it deems to be defunct, moribund, or not beneficial and forward its recommendation to the legislature.  The legislature, if it so chooses, shall implement the recommendation to terminate a sister-state relationship either by adopting a concurrent resolution or by enacting session law to that effect."

     SECTION 10.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the office of international affairs to develop an:

     (1)  Updated strategy for the State's international engagement in the twenty-first century; and

     (2)  Analysis of potential investment and revenue generation abroad.

     The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

     SECTION 11.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the East-West center to assist in the development and maintenance of the State's international relationships, programs, and partnerships.

     The sums appropriated shall be expended by the university of Hawaii for the purposes of this Act.

     SECTION 12.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 13.  This Act shall take effect on July 1, 2050.

Report Title:

DBEDT; Office of International Affairs; Hawaii Sister-State and International Partnerships Commission; East-West Center; Sister‑State Relationships; Appropriations

Description:

Establishes the Hawaii Sister-State and International Partnerships Commission.  Requires the Office of International Affairs to provide support to the Hawaii Sister-State and International Partnerships Commission.  Allows the Department of Business, Economic Development, and Tourism to establish out‑of‑state offices and facilities to support sister-state and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners, generate revenue for the State, and buy property.  Appropriates funds.  Effective 7/1/2050.  (SD1)

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 international affairs.

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

     SECTION 1.  The legislature finds that fifty years ago, Act 82, Session Laws of Hawaii 1975, established an educational non-profit public corporation to administer and operate what is today known as the East-West center.  The mission of the East-West center is to benefit local residents and the State's international partners by strengthening the State's international ties and advancing cooperation across the Pacific.  It has been an invaluable partner that is well suited to continuing to assist the State in building partnerships, expanding economic development and education, and collaborating abroad.

     The legislature further finds that in 2014, the State of Hawaii joined an international partnership between pacific island nations, states, and territories, committed to green economic development, cooperation, and together addressing the many challenges each island community faces.  In Hawaii this became known as the Aloha+ Challenge, which was adopted by the legislature with the passage of S.C.R. No. 69, S.D. 1 (2014).  The Aloha+ Challenge sets six integrated targets for sustainability in the State on clean energy, local food, natural resource management, waste reduction, smart sustainable communities, and green workforce and education.  This effort was led by Hawaii Green Growth, a coalition of local businesses, community organizations, schools and students, who are well positioned to continue tracking Hawaii's progress toward the State's shared international goals, and build bridges with economic, academic, and community partners abroad.

     The legislature further finds that strong sister-state, sister-school, and similar relationships benefit the State's businesses and economy, improve access to flights and transportation, expand high school and college student educational exchanges, broaden access to Pacific culture and arts, preserve the State's relationships to the places of origin of its immigrant communities, and spur sub-national government collaborations to address common priorities, including the eradication of invasive species, promotion of economic development, advancement of clean energy, and preservation of peace between nations.  Further, it is appropriate for the State to explore and take advantage of additional ways that Hawaii can benefit from international partnerships, including generating revenue abroad similar to many other jurisdictions.  For example, hosting facilities abroad for local farmers and retailers to more easily sell Hawaii products in key markets, or investing in projects that generate a return.  This enables direct financial benefit that can create revenue to support Hawaii programs and services without additional expense to local taxpayers.

     The legislature also finds that international relations between East and West across the Pacific have been rapidly changing.  Additionally, previous generations of the State's key community, business, and government leaders who have carefully fostered and maintained these important relationships are retiring or passing on.  If local residents are going to continue to benefit from the State's international ties, and if Hawaii is going to take advantage of international business and revenue opportunities abroad as so many other jurisdictions currently do, it is critical that the State adjust its engagement strategy, ensure continuity with its sister-state communities and partners, and plan for the future.

     Therefore, the legislature finds that in celebration of the fiftieth anniversary of the legislature's establishment of the East-West center, the State must update its international engagement strategy, and reaffirm its commitment to building and maintaining the international partnerships that have benefitted the State over the years, so they can continue to benefit local residents for generations to come.

     Accordingly, the purpose of this Act is to:

     (1)  Engage local leaders with strong relationships abroad to support the governor and legislature in strengthening international partnerships, by redesignating the Hawaii sister-state committee as the Hawaii sister-state and international partnerships commission;

     (2)  Enable the East-West center and Hawaii Green Growth to better help and maintain the State's international relationships, programs, and partnerships; and

     (3)  Enable the State to more easily generate revenue from international partnerships and investment as other jurisdictions do, where appropriate.

     SECTION 2.  Chapter 201, Hawaii Revised Statutes, is amended by adding two new sections to part I to be appropriately designated and to read as follows:

     "§201-    East-West center.  (a)  The official designation of the East-West center shall be the center for cultural and technical interchange between East and West, Inc.

     (b)  The qualifying standards and conditions related to the receipt of funds under chapter 42F shall not apply to funds received by the East-West center; provided that if the East-West center contracts with a recipient or provider, then the qualifying standards, conditions, and other provisions of chapter 42F shall apply to the recipient or provider and the contract.

     (c)  The allocation of state support shall not impinge on the autonomy of the East-West center, nor imply state control over its programs or policies, except as provided in this section.

     §201-    Hawaii Green Growth.  (a)  The official designation of Hawaii Green Growth shall be the Hawaii Local2030 Hub.

     (b)  The qualifying standards and conditions related to the receipt of funds under chapter 42F shall not apply to funds received by Hawaii Green Growth; provided that if Hawaii Green Growth contracts with a recipient or provider, then the qualifying standards, conditions, and other provisions of chapter 42F shall apply to the recipient or provider and the contract.

     (c)  The allocation of state support shall not impinge on the autonomy of Hawaii Green Growth nor imply state control over its programs or policies, except as provided in this section."

     SECTION 3.  Section 201-17, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The office shall:

     (1)  Develop policies that promote and strengthen relations with other countries in the areas of international business, economy, culture, and the arts;

     (2)  Develop policies that promote transportation between, and tourism with, other countries;

     (3)  Develop and promote international telecommunications and high technology exchanges;

     (4)  Encourage the development of international sister-city programs, pairing Hawaii cities with cities around the globe for artistic, cultural, economic, educational, and faith-based exchanges;

     (5)  Develop and promote Hawaii as the economic, trade, commerce, transportation, banking, and tourism hub of the Pacific;

     (6)  Develop an international affairs and peace education curriculum that includes studies of international affairs and peace initiatives and takes a proactive, strategic approach to the development of policies that promote the prevention of national and international conflict, nonviolent intervention, mediation, peaceful resolution of conflict, and structured mediation of conflict; [and]

     (7)  Provide for exchanges of individuals between Hawaii and other nations to develop international and peace-based initiatives[.]; and

     (8)  Provide support to the Hawaii sister-state and international partnerships commission."

     SECTION 4.  Section 201-81, Hawaii Revised Statutes, is amended to read as follows:

     "§201-81  Establishment of out-of-state offices; purposes.  The department of business, economic development, and tourism may establish and operate offices and facilities in out-of-state locations, including foreign nations, to effectuate the following purposes:

     (1)  Develop programs to reach targeted companies or industries in the respective area and surrounding regions;

     (2)  Monitor out-of-state government policies and regulations that have an impact on business, markets, sales, tourism, and related activities;

     (3)  Host government and business officials at conferences, meetings and social occasions, or other events on matters pertaining to business opportunities and attraction of investments for the State;

     (4)  Develop and conduct advertising efforts, promotional events, media coverage, and educational programs regarding commerce in the State; [and]

     (5)  Conduct related operations as needed, such as hiring or contracting for consultants[.];

     (6)  Support sister-state, -province, and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners; and

     (7)  Generate revenue for the State."

     SECTION 5.  Section 201-82, Hawaii Revised Statutes, is amended to read as follows:

     "§201-82  Powers of the department.  The department, subject to the approval of the director of budget and finance, shall have the following general powers to operate out-of-state offices and facilities established:

     (1)  To enter into contracts, leases, or cooperative agreements, or perform other transactions with any person, firm, partnership, association, company, corporation, or foreign nation, as may be necessary in the conduct of its business and on such terms as the department may deem appropriate, using competitive procurement practices, to the extent practicable, in accordance with rules adopted by the policy board;

     (2)  To establish operational bank accounts in out-of-state locations, including foreign denomination accounts, as may be necessary in the conduct of its business, notwithstanding the provisions of chapter 38;

     (3)  To receive by gifts, grants, devises, bequests, or otherwise from private sources or a foreign nation, any property, real, personal, or mixed, intangible or tangible, absolutely or in trust, to be used and disposed of, either the principal or the income therefrom, in accordance with the conditions under which it was received;

     (4)  To buy, sell, lease, rent, hold, maintain, use, and operate any property, real, personal, or mixed, tangible or intangible, in accordance with the conditions under which it was received;

     (5)  To hire such personnel as may be necessary in the conduct of its business and on such terms as the department may deem appropriate; and

     (6)  To do any or all other acts reasonably necessary to carry out the objects and purposes of this part, provided that the department shall not obligate any funds of the State not appropriated to the department."

     SECTION 6.  Section 229-2, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-2[]]  Hawaii sister-state [committee] and international partnerships commission.  [[(a)]  There shall be established the Hawaii sister-state committee, to be placed within the department of business, economic development, and tourism for administrative purposes only, consisting of five members appointed by the governor as provided in section 26-34.

     The purpose of the committee shall be to advise the governor and the legislature on matters relating to sister-state or province relations and relations, in general, between the State and the states or provinces of foreign countries.

     [(b)]  The governor shall appoint five members, one member from each of five lists of nominees submitted respectively by the following:

     (1)  Speaker of the house of representatives;

     (2)  President of the senate;

     (3)  Native Hawaiian cultural organization;

     (4)  East-West Center; and

     (5)  Hawaii State Association of Counties.

     A chair and vice chair of the committee shall be appointed by the committee members from among themselves.  Members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.]

     (a)  There is established within the department of business, economic development, and tourism the Hawaii sister-state and international partnerships commission for administrative purposes only.

     (b)  The commission shall support the governor, legislature, and office of international affairs in building and maintaining strategic long-term sister-state, -province, and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners.

     (c)  The commission shall consist of the following members:

     (1)  Three members appointed by the governor; provided that two of the three members appointed by the governor shall be from a list of at least three nominees submitted respectively by the:

          (A)  Office of Hawaiian affairs; and

          (B)  East-West center;

     (2)  One member appointed by the president of the senate;

     (3)  One member appointed by the speaker of the house of representatives; and

     (4)  The chairs of the respective senate and house committees with jurisdiction over international affairs who shall serve as ex-officio, non-voting members of the commission.

     (d)  The commission shall elect from among its members a chairperson and vice-chairperson.

     (e)  Members of the commission shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties."

     SECTION 7.  Section 229-3, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-3[]]  Initiating sister-state relationships.  The Hawaii sister-state [committee] and international partnerships commission shall evaluate and develop recommendations for the initiation of all sister-state or province relationships and forward its recommendation to the legislature.  The legislature, if it so chooses, shall implement the recommendation to initiate a sister-state or province relationship by either adopting a concurrent resolution or by enacting session law to that effect."

     SECTION 8.  Section 229-4, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-4[]]  Maintaining sister-state relationships.  The Hawaii sister-state [committee] and international partnerships commission shall periodically evaluate established sister-state relationships and forward its recommendations on maintaining a sister-state relationships to the governor and to the legislature."

     SECTION 9.  Section 229-5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§229-5[]]  Dissolving sister-state relationships.  The Hawaii sister-state [committee] and international partnerships commission may make a recommendation to terminate a sister-state relationship it deems to be defunct, moribund, or not beneficial and forward its recommendation to the legislature.  The legislature, if it so chooses, shall implement the recommendation to terminate a sister-state relationship either by adopting a concurrent resolution or by enacting session law to that effect."

     SECTION 10.  There is appropriated out of the general revenues of the State of Hawaii the sum of $180,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the office of international affairs to develop an:

     (1)  Updated strategy for the State's international engagement in the twenty-first century; and

     (2)  Analysis of potential investment and revenue generation abroad.

     The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

     SECTION 11.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the East-West center to assist in the development and maintenance of the State's international relationships, programs, and partnerships.

     The sums appropriated shall be expended by the university of Hawaii for the purposes of this Act.

     SECTION 12.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 13.  This Act shall take effect on July 1, 2025.

Report Title:

DBEDT; Office of International Affairs; Hawaii Sister-State and International Partnerships Commission; East-West Center; Hawaii Green Growth; Sister-State Relationships; Appropriations

Description:

Establishes the Hawaii Sister-State and International Partnerships Commission.  Requires the Office of International Affairs to provide support to the Hawaii Sister-State and International Partnerships Commission.  Allows the Department of Business, Economic Development, and Tourism to establish out-of-state offices and facilities to support sister-state and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners, generate revenue for the State, and buy property.  Appropriates funds.

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

CONFERENCE COMMITTEE REP. NO. 205

Honolulu, Hawaii

                 , 2025

RE:    S.B. No. 1578

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1578, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INTERNATIONAL AFFAIRS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to:

     (1)  Establish the official designation of the East-West Center as the Center for Cultural and Technical Interchange Between East and West, Inc.;

     (2)  Exempt state fund appropriations to the East-West Center from chapter 42F, Hawaii Revised Statutes;

     (3)  Rename the Hawaii Sister-State Committee to the Hawaii Sister-State and International Partnerships Commission and amends its functions and membership;

     (4)  Require the Office of International Affairs to provide support to the Hawaii Sister-State and International Partnerships Commission;

     (5)  Expand the Department of Business, Economic Development, and Tourism's authority to:

          (A)  Establish out‑of‑state offices to include out-of-state facilities to support sister-state or province partnerships and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners;

          (B)  Generate revenue for the State; and

          (C)  Buy property; and

     (6)  Appropriate funds.

Your Committee on Conference finds that interstate partnerships are extremely valuable to the economic, sociopolitical, and cultural growth of the State.  Your Committee on Conference further finds that updating the names, functions, and authority of a broad spectrum of entities relating to various forms of partnership involving the State is an appropriate way to promote further growth and embrace an increasingly transnational world.

Your Committee on Conference has amended this measure by:

     (1)  Clarifying that to receive state funds, the Center for Cultural and Technical Interchange Between East and West, Inc. shall agree to not use the funds for entertainment or lobbying activities in the State;

     (2)  Inserting an appropriation amount of $200,000 for each year of the fiscal biennium for the Office of International Affairs to develop a strategy for international engagement and an analysis of potential investment and revenue generation abroad;

     (3)  Inserting an appropriation amount of $4,000,000 for each year of the fiscal biennium for the Center for Cultural and Technical Interchange Between East and West, Inc. to assist in the development and maintenance of the State's international relationships, programs, and partnerships; and

     (4)  Changing its effective date to July 1, 2025.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1578, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1578, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

STAND. COM. REP. NO.  1957

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 1578

      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 Finance, to which was referred S.B. No. 1578, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INTERNATIONAL AFFAIRS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Officially designate the East-West Center as the Center for Cultural and Technical Interchange between East and West, Inc., and exempt state fund appropriations to the East-West Center from chapter 42F, Hawaii Revised Statutes;

     (2)  Rename the Hawaii Sister-State Committee as the Hawaii Sister-State and International Partnerships Commission and amend its functions and membership;

     (3)  Require the Office of International Affairs to provide support to the Hawaii Sister-State and International Partnerships Commission;

     (4)  Expand the Department of Business, Economic Development, and Tourism's authority to establish out-of-state offices to include out-of-state facilities to support sister-state or province relationships and other partnerships, generate revenue for the State, and buy property; and

     (5)  Appropriate funds to the Office of International Affairs to develop an updated strategy for the State's international engagement and to the East-West Center to help develop and maintain the State's international relationships, programs, and partnerships.

     Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs; East-West Center; and East-West Center Employees Association, AFSCME Local 928, AFL-CIO.  Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1578, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

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

STAND. COM. REP. NO.  1345

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 1578

      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 Economic Development & Technology, to which was referred S.B. No. 1578, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO INTERNATIONAL AFFAIRS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish the official designation of the East-West Center as the Center for Cultural and Technical Interchange between East and West, Inc., and exempt state fund appropriations to the East-West Center from chapter 42F, Hawaii Revised Statutes;

     (2)  Rename the Hawaii Sister-State Committee to the Hawaii Sister-State and International Partnerships Commission and amends its functions and membership;

     (3)  Require the Office of International Affairs to provide support to the Hawaii Sister-State and International Partnerships Commission;

     (4)  Expand the Department of Business, Economic Development, and Tourism's authority to establish out‑of‑state offices to include out-of-state facilities to support sister-state or province partnerships and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners, generate revenue for the State, and buy property; and

     (5)  Appropriate funds.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Office of Hawaiian Affairs; and East-West Center.  Your Committee received comments on this measure from the Department of the Attorney General.

     Your Committee finds that Hawaii's international relationships have been instrumental in fostering economic growth, cultural exchange, and educational opportunities.  This measure strengthens the State's commitment to global partnerships and empowers the East-West Center and state agencies to play a greater role in maintaining and leveraging these relationships for the long-term prosperity of Hawaii's residents.

     Your Committee has amended this measure by:

     (1)  Providing more context in the preamble regarding the East-West Center's history and public benefit that warrants its public financing going forward;

     (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.

     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 S.B. No. 1578, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1578, 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 Economic Development & Technology,

STAND. COM. REP. NO. 841

Honolulu, Hawaii

RE:    S.B. No. 1578

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1578, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INTERNATIONAL AFFAIRS,"

begs leave to report as follows:

     The purpose and intent of this measure is to engage state leaders with strong relationships abroad to support the Governor and Legislature in strengthening international partnerships.

     More specifically, this measure:

     (1)  Redesignates the Hawaii Sister-State Committee as the Hawaii Sister-State and International Partnerships Commission;

     (2)  Enables the East-West Center to better help maintain the State's international relationships, programs, and partnerships; and

     (3)  Enables the State to more easily generate revenue from international partnerships and investment.

     Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism.

     Your Committee received written comments in opposition to this measure from one individual.

     Your Committee received written comments on this measure from the Attorney General.

     Your Committee finds that strong sister-state, sister-school, and similar relationships benefit the State's businesses and economy, improve access to flights and transportation, expand high school and college student educational exchanges, broaden access to Pacific culture and arts, preserve the State's relationships to the places of origin of its immigrant communities, and spur sub‑national government collaborations to address common priorities, including the eradication of invasive species, promotion of economic development, advancement of clean energy, and preservation of peace between nations.  Your Committee further finds that it is critical for the State to adjust its engagement strategy to ensure the continuity of existing sister-state relationships, explore additional opportunities, and plan for the future.  Accordingly, this measure provides a framework for the State to update its international engagement strategy and reaffirms the State's commitment to building and maintaining beneficial international partnerships.

     Your Committee has amended this measure by:

     (1)  Adopting an amendment requested by the Attorney General to include certain standards that the East-West Center must meet in order to receive public funds for official designation purposes; and

     (2)  Making technical, nonsubstantive changes for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1578, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1578, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 671

Honolulu, Hawaii

RE:    S.B. No. 1578

       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 S.B. No. 1578 entitled:

"A BILL FOR AN ACT RELATING TO INTERNATIONAL AFFAIRS,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish the Hawaii Sister-State and International Partnerships Commission;

     (2)  Require the Office of International Affairs to provide support to the Hawaii Sister-State and International Partnerships Commission;

     (3)  Allow the Department of Business, Economic Development, and Tourism to establish out-of-state offices and facilities to support sister-state and other partnerships that promote and enrich the people, cultures, environments, and economies of the State and its international partners, generate revenue for the State, and buy property; and

     (4)  Appropriate funds.

     Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaiʻi Green Growth Local2030 Hub; and two individuals.

     Your Committees received comments on this measure from the Department of the Attorney General.

     Your Committees find that the mission of the East-West center is to benefit local residents and the State's international partners by strengthening the State's international ties and advancing cooperation across the Pacific.  By supporting the State's sister-state mechanism, this measure will reaffirm the State's commitment to building and maintaining the international partnerships so they can continue to benefit local residents and communities.

     Accordingly, your Committees have amended this measure by:

     (1)  Deleting language that would have designated Hawaii Green Growth as the Hawaii Local2030 Hub and exempted it from 42F grant requirements;

     (2)  Specifying that the Hawaii Sister-State and International Partnerships Commission members appointed by the Governor shall be subject to the advice and consent of the Senate;

     (3)  Changing the appropriation to an unspecified amount;

     (4)  Amending section 1 to reflect its amended purpose;

     (5)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (6)  Making technical, nonsubstantive amendments 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 S.B. No. 1578, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1578, 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,