RELATING TO THE STADIUM DEVELOPMENT SPECIAL FUND.

SB1589

THE SENATE

S.B. NO.

1589

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO THE STADIUM DEVELOPMENT SPECIAL FUND
.

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

����
SECTION 1.
�
The
legislature recognizes the new aloha stadium entertainment district as a
critical project for the State.
�
The
project promises significant benefits to the community and serves as an
exemplar for large-scale public‑private partnerships within the State.

����
The
State is deeply committed to ensuring the success of the new district.
�
The State's project team, which comprises the
department of accounting and general services and the stadium authority, has
meticulously procured and contracted with a master developer.
�
The objective is to complete the new aloha stadium
and the first phase of the district development by summer 2028.
�
This process includes several key milestones
to be achieved throughout 2025.

����
The
purpose of this Act is to amend section 109-3.5, Hawaii Revised Statutes, to require
the stadium authority to meet any condition set by the legislature on an
appropriation to the stadium development special fund, and to appropriate
moneys from the stadium development special fund to the stadium authority for
fiscal year 2025-2026, subject to the completion of specific project readiness
conditions.
�
The amendment also provides
safeguards to ensure that unexpended funds are returned to the general fund if
the project is terminated.

����
SECTION

2
.
�
Section
109-3.5, Hawaii Revised Statutes, is amended to read as follows:

����
"
[
[
]
�109-3.5[
]
]
�
Stadium development special fund;
established.
�
(a)
�

There is established in the state treasury the stadium development
special fund, into which funds collected by the stadium authority shall be
deposited, including:

����
(1)
�
All revenues from the stadium
development district, including but not limited to agreements or actions
generating revenue related to stadium operations, lease or rental of facilities
or land, concessions, food and beverage, parking, sponsorship and advertising,
utilities and infrastructure, and development;

����
(2)
�
All gifts or grants awarded in any form
from any public agency or any other source for purposes of the stadium
development district;

����
(3)
�
All proceeds from revenue bonds issued
for the purpose of the stadium development district; and

����
(4)
�
Appropriations made by the legislature
to the fund.

����
(b)
�
Moneys in the stadium development special
fund shall be used by the stadium authority for the payment of expenses arising
from any and all use, operation, repair, maintenance, alteration, improvement,
development, or any unforeseen or unplanned repairs of the stadium development
district, including without limitation:

����
(1)
�
The development, operation, and
maintenance of a new stadium;

����
(2)
�
Food and beverage service and parking
service provided at the stadium facility; the sale of souvenirs, logo items, or
other items; any future major repair, maintenance, and improvement of the
stadium facility as a commercial enterprise or as a world-class facility for
athletic events, entertainment, or public events; and marketing the facility
pursuant to section 109-2(4) and (8); and

����
(3)
�
Contractual payments to developers or
contractors engaged by the stadium authority for the purpose of redeveloping
the site and related on- and off-site infrastructure that benefits the stadium
district and its development guidance policies.

����
(c)
�
Any condition imposed by the
legislature on a legislative appropriation to the stadium development special
fund shall be met before expenditure of the appropriated funds; provided that
the legislature intends for the condition to be met prior to expenditure.
�
Any unexpended and unencumbered funds in the
stadium development special fund shall be immediately lapsed to the general
fund if the project is terminated.
"

����
SECTION
3.
�
There is appropriated out of the stadium
development special fund the sum of $49,500,000 or so much thereof as may be
necessary for fiscal year 2025-2026 for the purposes of the stadium development
special fund pursuant to section 109-3.5, Hawaii Revised Statutes; provided
that the development timelines set by the stadium authority have been met for
the new aloha stadium entertainment district.

����
The sum appropriated shall be expended by
the stadium authority of the department of business, economic development, and
tourism for the purposes of this Act; provided that all moneys remaining in the
special fund that are not expended or encumbered by the new aloha stadium
entertainment district is terminated before completion shall lapse to the
general fund.

����
SECTION 4.
�

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

����
SECTION 5.
�

This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.

����
SECTION
6.
�
This Act shall take effect on July 1,
2025.

INTRODUCED BY:

_____________________________

Report Title:

Department
of Accounting and General Services; Stadium Authority; Stadium Development
Special Fund; Appropriation

Description:

Requires
conditions placed on appropriations to the Stadium Development Special Fund to
be met before expenditure.
�
Subjects expenditure
by the Stadium Authority of an appropriation out of the Stadium Development
Special Fund on the completion of specific project readiness conditions.
�
Appropriates moneys.

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