SB1589 amends Hawaii’s Stadium Development Special Fund law to tighten how money in the fund may be used for the New Aloha Stadium Entertainment District (NASED). The bill specifies that gifts or grants from private sources deposited into the fund may be used only for stadium-related infrastructure and stadium development costs, rather than for broader district purposes. It also adds a safeguard that if the NASED project is terminated, any unexpended and unencumbered money in the fund must immediately lapse to the state general fund.
The bill also includes an appropriation from the Stadium Development Special Fund for fiscal years 2025-2026 and 2026-2027, but conditions that spending on the project meeting stadium authority development timelines. The 2026-2027 appropriation must come solely from private-source gifts or grants. The measure is framed as supporting a major public-private partnership and the planned completion of the new stadium and first phase of district development by summer 2028.
Impact
SB1589 would amend section 109-3.5, Hawaii Revised Statutes, governing the Stadium Development Special Fund, by narrowing the permissible use of private gifts and grants and adding a reversion provision if the project ends. It would also authorize conditional appropriations from the fund for the stadium authority, affecting how the Department of Business, Economic Development, and Tourism and the stadium authority may spend project-related funds. In practical terms, the bill increases fiscal controls over NASED funding and protects the general fund from stranded balances if the project is canceled.
Sentiment
The bill appears to have been received positively in committee, passing the Senate Economic Development and Technology Committee 5-0 and the Senate Ways and Means Committee 13-0, both with amendments. The unanimous votes suggest broad support for the project and for adding financial guardrails around the special fund. The bill text itself emphasizes the state’s commitment to the stadium project and the benefits of the public-private partnership.
Contention
The main policy issue reflected in the bill is not whether to support the stadium project, but how tightly to restrict and condition the use of private donations and special-fund balances. The bill’s private-source restriction indicates concern that donated money should be limited to core stadium infrastructure and development costs, rather than broader district uses. Another point of caution is the termination clause, which ensures unused funds revert to the general fund if the project fails, suggesting concern about fiscal exposure and accountability. No recorded committee testimony is provided, so the specific arguments for or against these provisions are not available.
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