Hawaii SB 2693: RELATING TO CAPITAL IMPROVEMENT PROJECTS FOR AEROSPACE INFRASTRUCTURE.

Bill Text

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
S.B. NO. 26 5
THE SENATE
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
JAN 2 3 2026
A BILL FOR AN ACT
RELATING TO CAPITAL IMPROVEMENT PROJECTS FOR AEROSPACE
INFRASTRUCTURE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that investment in
aerospace and advanced aviation infrastructure is essential to
the State's economic diversification and workforce development,
as well as to national security objectives.
The legislature further finds that Hawaii's geographic
location, existing aviation infrastructure, and proximity to the
United States Indo-Pacific command make the State uniquely
positioned to support aerospace research, testing, and
launch-related activities.
The legislature recognizes that public investment in
supportive infrastructure at public airports, when paired with
private capital investment, can generate long-term lease
revenues, high-wage employment, and federal research and defense
activities that benefit the State.
The purpose of this Act is to appropriate moneys for the
planning, design, and construction of an aerospace hangar and
SB LRB 26-0416-1.docx
iiiiiiiiiiniiiiiiiiiiiiiiii

Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
S.B. NO. 2673
support infrastructure at Hilo international airport to support
horizontal launch, advanced aviation, and aerospace operations,
including defense-related users.
SECTION 2. The director of finance is authorized to issue
general obligation bonds in the sum of $15,000,000 or so much
thereof as may be necessary and the same sum or so much thereof
as may be necessary is appropriated for fiscal year 2026-2027
for the planning, design, and construction of an approximately
fifty thousand square foot aerospace hangar and related support
facilities at Hilo international airport; provided that no
moneys from the appropriation shall be released unless matched
dollar-for-dollar by the federal government, the private sector,
or both, in accordance with section 4 of this Act.
SECTION 3. The appropriation made for the capital
improvement project authorized by this Act shall not lapse at
the end of the fiscal biennium for which the appropriation is
made; provided that all moneys from the appropriation
unencumbered as of June 30, 2028, shall lapse as of that date.
SECTION 4. The value of the matching contribution required
by section 2 of this Act shall be documented and verified by the
department of transportation prior to final acceptance of the
SB LRB 26-0416-1.docx 2

Page 3
S.B. NO. 7693
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
project, and the match may be provided in phases concurrent with
the State's expenditure of the moneys. Matching contributions
may include moneys from the private sector, the federal
government, or both, equipment, or in-kind capital improvements;
provided that no state general funds shall be used to satisfy
the matching requirement.
SECTION 5. The appropriation made under this Act shall be
expended by the department of transportation for the purposes of
this Act.
SECTION 6. The department of transportation shall submit a
report to the legislature no later than twenty days prior to the
convening of the regular session of 2028 on the status of the
project, including expenditures, matching contributions
received, and anticipated economic and operational impacts.
SECTION 7. This Act shall take effect on July 1, 2026.
SB LRB 26-0416-1.docx
MHKHHHA
3

S.B. NO. 2073
Report Title:
Capital Improvement Project; GO Bonds; Aerospace Infrastructure;
Hilo International Airport; DOT; Report; Appropriation
Description:
Authorizes the issuance of $15 million in general obligation
bonds to finance the planning, design, and construction of a
50,000 square foot aerospace hangar and related facilities at
Hilo international airport. Requires matching contributions
from the federal government and private sector. Directs
appropriation to be expended by the Department of
Transportation. Requires a report to the Legislature prior to
2028 Regular Session.
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
SB LRB 26-0416-1.docx
HIINHHIHHHuu