SB 581: RELATING TO ECONOMIC DEVELOPMENT.

A BILL FOR AN ACT

RELATING TO ECONOMIC DEVELOPMENT.

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

     SECTION 1.  The legislature finds that the aerospace and aeronautics fields have played a pivotal role in expanding and diversifying the national economy by forging new inroads to scientific discovery, advancing national engineering and manufacturing expertise, pioneering innovations in communications and computer technologies, enhancing surveillance of our home planet, and enabling a better understanding of weather systems and climate change.  The aerospace and aeronautics industries hold especially great potential to enable future development and innovation in science and technology in Hawaii.  Hawaii's strategic near‑equatorial location, substantial telemetry, accessible space surveillance, Moon- and Mars-like terrain, resident expertise in a broad range of aerospace- and aeronautic-related technologies, and long‑standing ties with space-faring nations throughout the Asia‑Pacific region are strategic assets and capabilities.  These can be leveraged to help realize humankind's full potential in space and to establish the State as a major contributor to, and beneficiary of, the global space enterprise.  Historically, Hawaii has played a seminal role in developing the nation's space program through astronaut training and the development of world-class observatories.  Today, Hawaii continues to support national space efforts through a wide range of aerospace-related activities on all major islands, including the Mauna Kea science reserve on the island of Hawaii, the Air Force Maui optical and supercomputing observatory on the island of Maui, the university of Hawaii's institute for astronomy and Hawaii institute of geophysics and planetology on the island of Oahu, and the Pacific missile range facility on the island of Kauai.

     The legislature further finds that establishing an aerospace and aeronautics development program in the State will provide a focal point within the state government to facilitate dialogue and coordination among Hawaii's public, private, and academic sectors and between state-based entities and public and private overseas organizations, and promote the growth and diversification of Hawaii's aerospace and aeronautics industries.  By establishing the aerospace and aeronautics development program, the State can more efficiently direct its resources to address the needs of the aerospace and aeronautics fields.

     Accordingly, the purpose of this Act is to establish the aerospace and aeronautics development program within the department of business, economic development, and tourism.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to title 13 to be appropriately designated and to read as follows:

"Chapter

Aerospace and aeronautics development program

     §   -1  Definitions.  As used in this chapter:

     "Director" means the director of the aerospace and aeronautics development program.

     "Program" means the aerospace and aeronautics development program.

     §   -2  Aerospace and aeronautics development program; establishment.  (a)  There is established an aerospace and aeronautics development program within the department of business, economic development, and tourism for administrative purposes only.

     (b)  The program shall be headed by a director who shall have experience, knowledge, and expertise in space-related activities and development.  The director shall be nominated and appointed by the governor without regard to chapter 76.

     (c)  The director shall hire staff as necessary to carry out the purposes of this chapter.

     (d)  The director and employees of the program shall be included in any benefit program generally applicable to the officers and employees of the State.

     §   -3  Director; powers and duties.  In addition to any other powers and duties provided in this chapter, the director shall:

     (1)  Oversee, supervise, and direct the planning, evaluation, and coordination of space-related activities and identify and promote opportunities for expanding and diversifying aerospace-related industries in the State, including:

          (A)  Applied optics;

          (B)  Astronomy and astrophysics;

          (C)  Aviation;

          (D)  Dual-use technology;

          (E)  Environmental monitoring;

          (F)  Meteorology;

          (G)  Remote sensing; and

          (H)  Robotics and unmanned aerial vehicles, including drones, satellite communications, and commercial space launch;

     (2)  Initiate discussions for private and international involvement in space-related activities in the State;

     (3)  Serve as a catalyst in forging partnerships between the university of Hawaii and businesses in the State to:

          (A)  Improve the relevance and quality of university training to support the growth and diversification of the State's aerospace industry;

          (B)  Identify entrepreneurial opportunities to commercialize basic research; and

          (C)  Facilitate the transfer of technology from the university of Hawaii to the private sector to expedite commercialization;

     (4)  Assist the university of Hawaii, local companies, research institutions, and other stakeholders in establishing partnerships with corporate, government, and university entities overseas that can promote and enhance the State's aerospace industry;

     (5)  Leverage aerospace and related technological capabilities in the State's academic, public, and private sectors to enhance the State's ability to procure federal and private research and development grants, and to increase the State's competitiveness in national and global aerospace markets;

     (6)  Promote innovative education and workforce development programs that will enhance public awareness of the State's aerospace potential and enable residents to pursue employment in the State's aerospace industry;

     (7)  Monitor national and global trends in the aerospace industry and recommend programs and policies to support aerospace industry development statewide;

     (8)  Serve as a central point of contact to respond to inquiries concerning the State's aerospace-related interests and activities;

     (9)  Review the effectiveness of present publications, pamphlets, and other sources of information produced and distributed by the State about its space-related activities;

    (10)  Serve as a clearinghouse for information on the State's space-related activities, including the activities of the university of Hawaii and federal agencies located in the State;

    (11)  Target existing businesses that can provide important products or services to the space industry to support the expansion of space-related businesses in the State;

    (12)  Increase and maintain contact with the National Aeronautics and Space Administration and other federal agencies and facilities;

    (13)  Institute procedures by which citizens can offer input on proposed space facilities development at the earliest possible point in the development process;

    (14)  Adopt, amend, and repeal rules, pursuant to chapter 91, as necessary to carry out the purposes of this chapter;

    (15)  Contract for services as necessary for the purposes of this chapter; and

    (16)  Do all other things necessary to carry out the purposes of this chapter.

     §   -4  Space vehicles; prohibitions.  The program shall not authorize or facilitate the launching into space from the State's land or ocean territory any vehicle that carries weapons of destruction or nuclear waste materials, or that uses radioactive materials as a power source."

     SECTION 3.  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 establishment of the aerospace and aeronautics development program within the department of business, economic development, and tourism.

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

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

DBEDT; Aerospace and Aeronautics Development Program; Appropriations

Description:

Establishes the Aerospace and Aeronautics Development Program within the Department of Business, Economic Development, and Tourism.  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 economic development.

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

     SECTION 1.  The legislature finds that the aerospace and aeronautics fields have played a pivotal role in expanding and diversifying the national economy by forging new inroads to scientific discovery, advancing national engineering and manufacturing expertise, pioneering innovations in communications and computer technologies, enhancing surveillance of our home planet, and enabling a better understanding of weather systems and climate change.  The aerospace and aeronautics industries hold especially great potential to enable future development and innovation in science and technology in Hawaii.  Hawaii's strategic near‑equatorial location, substantial telemetry, accessible space surveillance, Moon- and Mars-like terrain, resident expertise in a broad range of aerospace- and aeronautic-related technologies, and long-standing ties with space-faring nations throughout the Asia-Pacific region are strategic assets and capabilities.  These can be leveraged to help realize humankind's full potential in space and to establish the State as a major contributor to, and beneficiary of, the global space enterprise.  Historically, Hawaii has played a seminal role in developing the nation's space program through astronaut training and the development of world-class observatories.  Today, Hawaii continues to support national space efforts through a wide range of aerospace-related activities on all major islands, including the Mauna Kea science reserve on the island of Hawaii, the Air Force Maui optical and supercomputing observatory on the island of Maui, the university of Hawaii's institute for astronomy and Hawaii institute of geophysics and planetology on the island of Oahu, and the Pacific missile range facility on the island of Kauai.

     The legislature further finds that establishing the Hawaii aerospace and aeronautics development program will provide a focal point within the state government to facilitate dialogue and coordination among Hawaii's public, private, and academic sectors and between state-based entities and public and private overseas organizations, and to promote the growth and diversification of Hawaii's aerospace and aeronautics industries.  By establishing the aerospace and aeronautics development program, the State can more efficiently direct its resources to address the needs of the aerospace and aeronautics fields.

     Accordingly, the purpose of this Act is to establish the aerospace and aeronautics development program within the department of business, economic development, and tourism.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to title 13 to be appropriately designated and to read as follows:

"Chapter

Aerospace and aeronautics development program

     §   -1  Definitions.  As used in this chapter:

     "Director" means the director of the aerospace and aeronautics development program.

     "Program" means the aerospace and aeronautics development program.

     §   -2  Aerospace and aeronautics development program; establishment.  (a)  There is established an aerospace and aeronautics development program within the department of business, economic development, and tourism for administrative purposes only.

     (b)  The director shall have experience, knowledge, and expertise in space-related activities and development.  The director shall be nominated and appointed by the governor without regard to chapter 76.

     (c)  The director shall hire staff as necessary to carry out the purposes of this chapter.

     (d)  The director and employees of the program shall be included in any benefit program generally applicable to the officers and employees of the State.

     §   -3  Director; powers and duties.  In addition to any other powers and duties provided in this chapter, the director shall:

     (1)  Oversee, supervise, and direct the planning, evaluation, and coordination of space-related activities and identify and promote opportunities for expanding and diversifying aerospace-related industries in the State, including:

          (A)  Applied optics;

          (B)  Astronomy and astrophysics;

          (C)  Aviation;

          (D)  Dual-use technology;

          (E)  Environmental monitoring;

          (F)  Meteorology;

          (G)  Remote sensing; and

          (H)  Robotics and unmanned aerial vehicles, including drones, satellite communications, and commercial space launch;

     (2)  Initiate discussions for private and international involvement in space-related activities in the State;

     (3)  Serve as a catalyst in forging partnerships between the university of Hawaii and businesses in the State to:

          (A)  Improve the relevance and quality of university training to support the growth and diversification of the State's aerospace industry;

          (B)  Identify entrepreneurial opportunities to commercialize basic research; and

          (C)  Facilitate the transfer of technology from the university of Hawaii to the private sector to expedite commercialization;

     (4)  Assist the university of Hawaii, local companies, research institutions, and other stakeholders in establishing partnerships with corporate, government, and university entities overseas that can promote and enhance the State's aerospace industry;

     (5)  Leverage aerospace and related technological capabilities in the State's academic, public, and private sectors to enhance the State's ability to procure federal and private research and development grants, and to increase the State's competitiveness in national and global aerospace markets;

     (6)  Promote innovative education and workforce development programs that will enhance public awareness of the State's aerospace potential and enable residents to pursue employment in the State's aerospace industry;

     (7)  Monitor national and global trends in the aerospace industry and recommend programs and policies to support aerospace industry development statewide;

     (8)  Serve as a central point of contact to respond to inquiries concerning the State's aerospace-related interests and activities;

     (9)  Review the effectiveness of present publications, pamphlets, and other sources of information produced and distributed by the State about its space-related activities;

    (10)  Serve as a clearinghouse for information on the State's space-related activities, including the activities of the university of Hawaii and federal agencies located in the State;

    (11)  Target existing businesses that can provide important products or services to the space industry to support the expansion of space-related businesses in the State;

    (12)  Increase and maintain contact with the National Aeronautics and Space Administration and other federal agencies and facilities;

    (13)  Institute procedures by which citizens can offer input on proposed space facilities development at the earliest possible point in the development process;

    (14)  Adopt, amend, and repeal rules, pursuant to chapter 91, as necessary to carry out this chapter;

    (15)  Contract for services as necessary for the purposes of this chapter; and

    (16)  Do all other things necessary to carry out the purposes of this chapter.

     §   -4  Space vehicles; prohibitions.  The program shall not authorize or facilitate the launching into space from the State's land or ocean territory any vehicle that carries weapons of destruction or nuclear waste materials, or that uses radioactive materials as a power source."

     SECTION 3.  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 establishment of the aerospace and aeronautics development program within the department of business, economic development, and tourism.

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

     SECTION 4.  This Act shall take effect on July 1, 2025.

Report Title:

DBEDT; Aerospace and Aeronautics Development Program; Appropriations

Description:

Establishes the Aerospace and Aeronautics Development Program within the Department of Business, Economic Development, and Tourism.  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.

STAND. COM. REP. NO. 122

Honolulu, Hawaii

RE:    S.B. No. 581

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Economic Development and Tourism, to which was referred S.B. No. 581 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish the Aerospace and Aeronautics Development Program within the Department of Business, Economic Development, and Tourism; and

     (2)  Appropriate funds.

     Your Committee received testimony in support of this measure from the Hawaiʻi Technology Development Corporation, The Alliance for Collaboration in the Exploration of Space, and one individual.

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

     Your Committee finds that Hawaii's strategic geographical, topological, and technological assets enable the State to be an ideal place for innovation in science and technology within the fields of aerospace and aeronautics.  Your Committee further finds that encouraging aerospace and aeronautics development will provide a focal point to facilitate dialogue and coordination to further diversify the State's economy.  By establishing the Aerospace and Aeronautics Development Program within the Department of Business, Economic Development, and Tourism, this measure will allow the State to direct its resources to address the needs of the aerospace and aeronautics fields more efficiently.

Your Committee has amended this measure by:

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

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

     As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 581, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 581, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,