HB1608 • 2026

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

Budget Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: ILAGAN, KEOHOKAPU-LEE LOY, KILA, MATSUMOTO, SHIMIZU, WOODSON, Amato
Last action: 2026-02-11
Official status: Passed Second Reading as amended in HD 1 and referred to the committee(s) on TRN with none voting aye with reservations; none voting no (0) and Representative(s) Holt excused (1).
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details about the inclusion of offices, clean rooms, and hangar space with special equipment as part of the project.

Special Purpose Revenue Bonds to Help Fenix Space, Inc.

This bill allows the state to issue special bonds worth up to $40 million to help Fenix Space, Inc., build a launch platform system and flight operations facility at Hilo International Airport.

What This Bill Does

Allows the Department of Budget and Finance to issue special purpose revenue bonds for up to $40 million to assist Fenix Space, Inc. in planning, designing, procuring, and constructing their facilities.
Specifies that these bonds can be used for a launch platform system and a flight operations facility at Hilo International Airport.

Who It Names or Affects

Fenix Space, Inc., a Delaware corporation
The Department of Budget and Finance

Terms To Know

Special Purpose Revenue Bonds: Bonds issued by the state to fund specific projects that generate revenue.

Limits and Unknowns

The authorization to issue these special purpose revenue bonds will expire on June 30, 2031.
It is not clear how much of the $40 million bond issuance limit will actually be used or when it will be issued.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment authorizes the issuance of special purpose revenue bonds to help Fenix Space, Inc., build facilities at Hilo International Airport.

Allows the department of budget and finance to issue up to $ amount in special purpose revenue bonds with the governor's approval for Fenix Space, Inc.'s project.
Specifies that these bonds can be issued until December 31, 2028, under certain conditions set by previous laws.

The exact dollar amount of the special purpose revenue bonds is not specified in the amendment text.
The full details and implications of federal tax exemptions for these bonds are complex and not fully explained here.

Bill History

2026-02-11 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on TRN with none voting aye with reservations; none voting no (0) and Representative(s) Holt excused (1).
2026-02-11 H
Reported from ECD (Stand. Com. Rep. No. 143-26) as amended in HD 1, recommending passage on Second Reading and referral to TRN.
2026-02-04 H
The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo, Yamashita, Gedeon; Ayes with reservations: none; Noes: none; and Excused: none.
2026-01-30 H
Bill scheduled to be heard by ECD on Wednesday, 02-04-26 10:00AM in House conference room 423 VIA VIDEOCONFERENCE.
2026-01-26 H
Referred to ECD, TRN, FIN, referral sheet 1
2026-01-21 H
Introduced and Pass First Reading.
2026-01-16 H
Prefiled.

Official Summary Text

RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST FENIX SPACE, INC.
SPRB; Fenix Space, Inc.; Hilo International Airport ($)
Authorizes the issuance of special purpose revenue bonds for the planning, design, procurement, and construction of the Fenix launch platform system and Fenix Space Hilo flight operations facility. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB1608

HOUSE OF REPRESENTATIVES

H.B. NO.

1608

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

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

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

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

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SECTION 2.
�

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

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

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

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SECTION 5.
�

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

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

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

INTRODUCED BY:

_____________________________

Report Title:

SPRB; Fenix
Space, Inc.; Hilo International Airport

Description:

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

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