Keywords: 910, house, all

Keywords: 910, house, all

Summary: The House Finance Committee held an informational briefing with the University of Hawaiʻi, led by new President Wendy Hensel and Vice President for Budget and Finance Calbert Young. Hensel outlined the university system’s scope, student demographics, research activity, and campus missions, emphasizing four strategic priorities: serving Native Hawaiians and Hawaiʻi, student success, workforce development, and economic diversification through innovation and research. She highlighted the system’s enrollment, research funding, and the roles of Mānoa, Hilo, West Oʻahu, the community colleges, and specialized institutions such as JABSOM and the Cancer Center. Young then reviewed the budget request, focusing largely on making prior one-time appropriations permanent and supporting recurring needs. Items included funding for Mānoa athletics, the Hawaiʻi Institute for Marine Biology, K-12 teacher education, Pamantasan Council support, Hilo programs, Windward’s mental health technician certificate, Maui’s practical nursing bridge program, and student support positions such as financial aid and admissions counselors. He also described workforce-related requests tied to nursing expansion at Mānoa and West Oʻahu, as well as facilities support at West Oʻahu. A major portion of the testimony addressed the university’s two Kakaʻako medical facilities. Young explained that declining tobacco settlement and cigarette tax revenues are no longer sufficient to cover debt service for JABSOM and the Cancer Center, so the governor’s budget includes general fund support to supplement those obligations. He also described a regents-approved request not included in the governor’s proposal: expanding the Hawaiʻi Promise financial aid program to the four-year campuses, estimated at about $11–12 million. No votes or formal committee actions were taken during the briefing.

Keywords: 910, house, all

Summary: The Committee on Education held an informational/budget briefing with presentations from the State Library System, the School Facilities Authority, and the Department of Education. The chair opened the meeting by outlining the order of presentations and noting that members would hold questions until after all three agencies had testified. The discussion focused on each agency’s priorities for the upcoming biennium and their budget requests. State Librarian Stacy Aldridge described library usage and services, emphasizing strong demand for physical and digital materials, internet and Wi-Fi access, programs, Kanopy streaming, and PressReader. She highlighted digital literacy classes, RFID self-check and smart shelving improvements, and the role of libraries as community hubs. The library’s budget request included an additional $1.2 million for security guards, $48.484 million for FY 26-27 to support popup libraries during temporary closures and other needs, $500,000 for repair and maintenance, $2 million for Kap planning and design, and $25 million each year for lump-sum capital funding. Mallerie Fujitani said the lump-sum funding is needed to keep roughly 50 projects moving and to avoid delays in construction. School Facilities Authority Executive Director Ricky Fujitani explained the agency’s startup history and its programs for preschools, Central Maui schools, and workforce housing. He said the authority is using standardized, prefabricated, programmatic approaches to speed delivery and improve maintainability, citing prior preschool renovations as a successful model. He reported that of $389 million appropriated, $106 million was released, with $81 million for preschools, $20 million for Central Maui schools, and $5 million for workforce housing; he also noted the workforce housing program was reduced after Maui fire-related reallocations. He said the pilot workforce housing site at Mililani High School has been awarded and pointed to University of Hawaiʻi student housing projects as a model. Superintendent Hayashi then began the Department of Education presentation, introducing DOE leadership and outlining the department’s mission to support academic achievement, character development, and student well-being. He noted the department serves more than 152,000 students in 258 public schools and employs over 42,000 people, with nearly 54% of students facing significant challenges. He framed the budget request around the department’s strategic plan to prepare graduates for college, careers, or military service. The transcript ends during the DOE presentation, before any committee votes or formal actions are taken.

Keywords: 910, house, all

Summary: The Committee on Finance received an informational briefing from the Department of Education on its budget request for the upcoming fiscal year. The Superintendent and staff described the department’s mission, enrollment and staffing scale, recent gains in NAEP reading and math, persistent attendance problems since the pandemic, and the need for resources to support student recovery, middle school math, and other strategic priorities. The department said its proposal is intended to be aligned with its 2023–2029 strategic plan, fiscally balanced, and reliable for schools, while also addressing inflation, workforce needs, and uncertainty in federal funding. Assistant Superintendent and CFO Brian Hallet reviewed federal grants, non-general funds, and the budget development process. He said federal funds make up about 11% of the department’s FY25 appropriation and warned that House budget proposals could threaten predictable funding for core programs. He also explained that the department began its biennial budget work in April 2024 and used an internal review group to identify possible reallocations. The department characterized its request as a “flat” budget proposal overall, with a large share devoted to continued funding for existing recurring needs, and noted challenges including a projected state funding decline, inflation, lingering pandemic impacts, recruitment and retention, and uncertainty about future federal support. A major topic was the department’s capital improvement program. DOE officials argued for a risk-based, proactive approach using lump-sum “buckets” to manage facilities and deferred maintenance across more than 21.5 million square feet at 268 sites. They said this would allow more efficient prioritization of projects and better coordination with complex area superintendents, principals, and legislators. Members asked about how legislative priorities would fit into the bucket system, county-versus-state property jurisdiction issues affecting school facilities, enrollment decline and staffing ratios, and how the department plans to adjust facilities and human resources to shifting enrollment patterns. DOE said it is studying enrollment trends, will brief the Board of Education next month, and is willing to provide further briefings to legislators. No votes or formal actions were taken during the informational briefing.

Keywords: 910, house, all

Summary: The Committee on Finance held informational briefings first with the Department of Defense on its FY 2026 budget request, then with the Hawaii School Facilities Authority. Major General Steve Logan outlined the Department of Defense request for $40.5 million in state funds, which he said would leverage about $74 million in federal matching funds and support 411 open projects that could attract up to $2.3 billion in additional federal grant money. He said the budget focuses on sustainment, safety, and reorganization in light of lessons from the Maui wildfires. Key requests included $1.3 million to sustain IT systems, $2.7 million for 32 HEMA emergency management positions, three new Hawaii Army National Guard positions plus four upgrades, and $1.9 million for the Youth Challenge Program to cover state-mandated fringe costs and staffing needs. He also reviewed capital improvement projects, including Youth Challenge facility upgrades, siren modernization, ADA improvements, building retrofits for disaster resilience, Army facility upgrades, a third state veterans home on Maui, HEMA EOC improvements, and a maintenance/fuel building at Diamond Head. Members asked about the siren modernization timeline, and HEMA said roughly 26 to 31 sirens would be modernized this year, with 15 on Maui, eight on Oahu, and eight on the Big Island. Questions also focused on Youth Challenge and Job Challenge enrollment and vacancies, with the department saying the Hilo Job Challenge Academy is growing and that combining Youth Challenge recruiting statewide into one Kilauea program has helped enrollment. Logan also answered questions about the New Year’s Eve medical transport mission, explaining the Hawaii Air National Guard’s relationship with active-duty Air Force assets and saying the flight cost is about $20,000 per flight hour, though the final bill had not yet been determined. On the Maui veterans home, staff said the University of Hawaii site was no longer viable after faculty senate opposition, so the department is now focused on a 10-acre Puna District site; the project remains tied to a certified $35 million state match and August 2025 and August 2026 federal suspense dates. Logan said the veterans home remains one of the department’s highest priorities, but it could not be moved higher in the submitted CIP ranking. The department also discussed a Governor’s add-on for a fire marshal/Office of Recovery and Resiliency proposal. Logan said the fire marshal position was reestablished last session but has not yet been filled, and that if the function is transferred to the Department of Defense, the department wants funding ready to move quickly. Staff later said the request would include about $1.1 million for seven positions and about $2.2 million for operating costs, though details were still preliminary. The committee then reconvened for the School Facilities Authority briefing, where Executive Director Ricky Fujitani described the agency as a startup created in 2020 to improve school and workforce housing development through standardized designs, prefabrication, best-value procurement, and public-private partnerships. He said Hawaii’s single school district still functions like 15 different districts because of its 264 schools across 15 complex areas, and that the authority’s goal is to create more efficient, maintainable, and cost-effective facilities.

Keywords: 910, house, all

Summary: The Committee on Finance held an informational briefing with the Department of Labor and Industrial Relations on its budget, staffing, and operations. The director reviewed department leadership and reported on recruitment and retention efforts, including a 14% vacancy rate, a 10.5% workforce increase from filling 189 positions, and the Hela Imua internship program, which has placed 516 interns since inception and led to 62 permanent hires. The department also described modernization efforts, including the UI Huakai project and the Disability Compensation Division’s electronic case management system, and said the unemployment compensation trust fund exceeded $71.5 million, triggering Schedule C for calendar year 2025. The department’s main budget requests included $2.9 million for fiscal year 2026 to support maintenance and operations of the electronic case management system, plus restoration of two enforcement specialist positions. Officials said those positions are needed to address a decline in investigators from 11 to six since 2009, improve compliance, and handle Hawaii Compliance Express certificate work. Additional requests included two human resources specialists to address recruitment backlogs, two labor enforcement specialists to reduce a backlog of Chapter 104 prevailing wage and wage cases, and two positions for the Office of Community Services to expand immigrant services and access centers. The department also discussed federal funding for unemployment insurance and workforce programs, including National Dislocated Worker Grants and Workforce Innovation and Opportunity Act funds, and said some funding is received in increments and may require extensions. Members asked about Kauai inspection coverage, federal funding uncertainty, the size of the special unemployment insurance fund, and whether the department could ramp up staffing during a future crisis. Officials said Kauai is currently served by inspectors from Honolulu and there are no plans to open a permanent island position because of staffing constraints. They said the department is meeting federal guidelines and is not in jeopardy, and that the special unemployment insurance fund has about $10 million, with current UI operations funded at a little over $15 million, meaning the fund may need to cover roughly $5 million if federal support declines. The director said the department would use the special fund to supplement shortfalls, but noted that federal funding cuts and the loss of ARPA support have already affected operations.

Keywords: 910, house, all

Summary: The Committee on Finance received an informational briefing from the Department of Law Enforcement on its priorities following the January 1 transfer of law enforcement assets into the department, including the sheriff’s division, narcotics enforcement, criminal investigations, homeland security, and the inspector general’s office. DLE said its goals are to improve public safety, accountability, communications, training, and standards. The department outlined planned initiatives such as stronger federal partnerships, narcotics and gun-violence enforcement, an agricultural crime unit, traffic and commercial vehicle enforcement, an explosive/fireworks enforcement section, gun buybacks, new police facilities in the airport area, Aahu, and the leeward side, a state training center, upgraded law-enforcement IT, and efforts to narrow salary gaps with county departments to improve recruitment. A major portion of the discussion focused on illegal fireworks enforcement after the recent explosion tragedy. DLE said its current task force is small and relies on ad hoc support from HPD, the Attorney General’s office, criminal investigations, and sheriffs, which is not sustainable. The department requested eight FTEs for the effort—one administrator, two clerical staff, and six investigators—plus funding for a laboratory, equipment, storage, disposal, vehicles, safety gear, and a criminalist. DLE said the explosive enforcement section would use an existing facility and that the initial lab startup cost is about $2 million. Members asked for follow-up materials, and DLE said it would send the explosive enforcement forms and additional details to the Finance and Judiciary chairs. Members also questioned staffing vacancies, interagency coordination, and whether new specialized units could be filled. DLE said it has about 119 vacancies and that recruitment is hindered by a roughly $28,000 starting pay gap with county police departments; academy classes are down to about 12 to 14 recruits. The department said it is streamlining hiring, using QR-code recruitment, and hopes specialized units will attract applicants. On coordination, DLE said it works closely with HPD and other agencies on operations such as fireworks enforcement and public events, and that DOCARE remains a case-by-case partner but is not currently moving into DLE. The committee also received updates on the Silver Alert program, which is nearing rollout with county MOUs and a coordinator expected later in the month, the special duty officer program, which is being moved to a web-based vendor-managed system at no cost to the department, and the SaferWatch school safety system, which is being deployed statewide with annual software costs of $3,500 per school in the first year and $2,500 thereafter. No votes or formal actions were taken.

Keywords: 910, house, all

Summary: The informational briefing focused on the City and County of Honolulu’s effort to site a replacement landfill for Oahu before the Waimanalo Gulch landfill closes in 2028. Chair Nicole Lowen and other legislators opened the meeting by framing the issue as important statewide and encouraging recycling, composting, and proper use of the curbside bins. The city’s Department of Environmental Services, led by Director Roger Babcock and Deputy Director Mike O’Keefe, then presented the background and siting process. ENV explained the legal and technical constraints that shaped the search, including the 2019 Land Use Commission decision requiring closure of Waimanalo Gulch by March 2, 2028, and the 2020 Act 73 restrictions on landfill siting near residences, schools, hospitals, conservation districts, airports, and tsunami inundation areas. They said a landfill advisory committee reviewed six candidate sites in 2021-2022 and rejected them because they fell within the Board of Water Supply’s no-pass zone. After further evaluation and an extension of the naming deadline, the city selected a site in central Oahu near Wahiawa, on agricultural land currently used as a Dole pineapple field. City officials said the selected site was chosen as the best of the evaluated options and, in their view, could be permitted under state and federal law. They described planned environmental protections, including a modern sanitary landfill design with double liners, leachate collection systems, monitoring wells, and post-closure monitoring, and said the existing Waimanalo Gulch landfill has operated for 35 years without leachate leaks. They also emphasized that the site would still require a special use permit, Department of Health approvals, an environmental impact statement, and other public permitting processes, and that public engagement would continue over the next several years.

Keywords: 910, house, all

Summary: The Committee on Finance held its first informational briefing for 2025, beginning with member introductions and then hearing an economic outlook presentation from Dr. Eugene Tian of the Department of Business, Economic Development and Tourism. Dr. Tian said Hawaii’s economy was in relatively good shape in several areas, especially construction, which he described as at a historical high, with construction employment above 40,000 monthly and building permit values and contracting tax base both up sharply. He also noted real estate sales had rebounded in 2024, the labor market had stabilized with unemployment around 2.9%, and initial unemployment claims were below 2019 levels. At the same time, he highlighted challenges including inflation running above the national rate, a shrinking labor force, lower employment compared with 2023, and continued weakness in visitor spending and arrivals. He said future growth would likely come from health care, professional services, construction, tourism recovery, and diversified sectors such as renewable energy, aquaculture, creative industries, and technology. Dr. Tian also discussed Hawaii’s economic structure and recovery, saying the state remains more concentrated in a few industries than the U.S. overall, with government and hospitality making up larger shares of the economy. He said non-tourism sectors had recovered, but tourism-related jobs and output were still below pre-pandemic levels, with Maui and the visitor industry still affected by the wildfire and COVID-19 impacts. He projected tourism and non-agricultural wage and salary jobs would not fully recover until 2027, and said population trends remain a concern because of aging, the likelihood of deaths outpacing births in coming years, and reliance on in-migration. After his presentation, the chair said questions would be taken later and the committee took a short break. After the break, Dr. Carano of the Hawaii Executive Director’s office presented a second outlook, saying Hawaii’s economy in 2025 looked better than 2024 overall, though he emphasized substantial uncertainty tied to the incoming federal administration. He said possible changes to tariffs, tax policy, immigration, and federal spending could raise inflation and keep interest rates higher than previously expected, which would affect housing, consumer debt, the dollar, and Hawaii’s visitor industry. He noted that U.S. visitors account for roughly three-quarters of visitor spending in the state, making federal policy especially important. He also said deregulation could be a long-term positive but would not likely have much effect in 2025 or 2026. As an additional risk, he pointed to bird flu and its effect on livestock, poultry, and egg prices. No votes or formal actions were taken during the briefing.

Keywords: Conference Notices:, 910, house, all

Keywords: Conference Notices:, 910, house, all

Keywords: Conference Notices:, 910, house, all

Keywords: House Agenda:, 910, house, all

Keywords: House Agenda:, 910, house, all

Keywords: House Agenda:, 910, house, all

Keywords: Conference Notices: AGR 2:30 PM:, 910, house, all

Bills: SB2661

Keywords: nepotism, transparency, public officials, accountability, government ethics, 910, house, all

Summary: The Legislative Management committee met to hear Senate Bill 2661 SD1, which addresses nepotism. The bill’s sponsor said it would create a uniform state standard covering the judiciary, legislative branch, and related offices such as the Ombudsman, Auditor, and State Ethics Commission, and would include a good-cause exception to allow for unique circumstances, especially in rural areas. The sponsor emphasized the value of a consistent public standard and said the measure was intended to be transparent and broadly applicable. A member asked whether the bill would apply prospectively and how it would affect current employees. The sponsor responded that it would apply prospectively but would still affect existing supervisory relationships involving related or household members, unless a good-cause exception or grandfathering provision were added. The sponsor noted that the current bill does not contain a grandfather clause and described how, in the executive branch, similar situations were handled by changing supervision or temporarily delaying enforcement to work through transitions. The committee then moved to decision-making and recommended passing SB 2661 SD1 with amendments, including changing the effective date to July 1, 3000. The acting chair, vice chair, Representative Morikawa, and Representative Matsumoto voted in favor; Representative Quinlan was excused. The recommendation was adopted and the meeting adjourned.

Bills: SB2816

Keywords: enterprise zones, economic development, innovation enterprise, job creation, Hawaii, 910, house, all

Summary: The committees heard House Bill 2195, HD1, which would replace the existing transit accommodations tax on cruise ships with a per-passenger infrastructure fee collected by the Department of Transportation and deposited into a new cruise ship special fund. Testimony included support from Norwegian Cruise Line Holdings and comments from the Tax Foundation of Hawaii warning that the bill should remain narrowly tied to harbor-related uses to avoid potential Tonnage Clause issues. The Department of Transportation testified that cruise-related harbor work includes pier repairs, dredging, terminal upgrades, and shore power, and said a dedicated revenue stream would help prioritize cruise infrastructure needs. The Attorney General’s office said it had submitted written comments but did not address questions about the litigation or constitutional background. Members questioned whether the new special fund was necessary when the existing harbor special fund already finances similar improvements. DOT said the funds overlap and suggested the bill could be amended to use the harbor special fund with a separate cruise subaccount, while still preserving a dedicated revenue stream and separate accounting. DOT also said it currently collects port entry, dockage, and per-head passenger fees from cruise ships and that existing cruise-related expenditures from the harbor special fund have not been challenged. The chair ultimately recommended moving HB 2195 forward as introduced, while continuing discussions about the fund structure and awaiting further clarity from the Attorney General and DOT. In decision-making, the committees voted to pass HB 2195, HD1, as is. They also voted to pass House Bill 916, HD1, relating to the low-income housing tax credit, which would allow certain state low-income housing tax credits to offset state transient accommodations taxes in the same county and make Act 129 of 2016 permanent. Both the Committee on Tourism and the Committee on Economic Development and Technology adopted the chair’s recommendation to pass HB 916, HD1, unamended. The hearing was then adjourned.

Bills: SCR48

Keywords: affordable housing, housing credits, perpetual credits, development, Hawaii Housing Finance, 910, house, all

Summary: The Housing Committee met on SCR 48, which declares that affordable housing credits are perpetual and remain valid until redeemed, and asks counties to recognize them without expiration dates. Testimony was overwhelmingly supportive, with speakers saying the resolution clarifies the intent of the 2024 act and provides clear parameters for the credits. No one testified in opposition or offered questions. The committee then took up SCR 48 for decision-making and adopted the chair’s recommendation to pass the resolution as is. The measure passed with one member voting with reservations. The chair noted this was the committee’s final hearing of the year and thanked advocates, stakeholders, staff, and IT support before adjourning. The transcript also included portions of the Transportation Committee and a joint Transportation/Housing hearing. Transportation advanced SCR 31 on school bus driver licensing and workforce improvements, SCR 132 urging Honolulu to prioritize the rail extension, SCR 145 on studying a demerit point system, and SCR 110 SD 1 on evaluating state-owned logistics facilities for housing projects. SCR 110 drew support from labor groups, with a request to add labor representation to the working group. The committees adopted recommendations on those measures, including SCR 110 with amendments.

Bills: SB3240

Keywords: defense, workforce development, local business, manufacturing, federal funding, economic resilience, 910, house, all

Summary: The committee heard testimony on several public safety-related measures and indicated at the outset that, because of short notice, the bills would likely be deferred to the later decision-making agenda. On SB 2645 relating to fire prevention, the bill would restructure the process for selecting the State Fire Marshal and make related changes to the Office of the State Fire Marshal. The Governor’s office, the State Fire Marshal’s office, the Hawaii State Fire Council, DLNR, Maui Fire Department, AIA Hawaii State Council, and others testified, with DLNR supporting most of the bill but opposing the provision changing the marshal’s nomination process to a governor appointee. In questions, members reviewed the relationship between the State Fire Council, the commission, and the marshal, and the Governor’s office clarified that it supported the overall intent but wanted the commission to remain the sole appointing entity. The bill was not voted on in the hearing. The committee then heard SB 3083 relating to protective orders, with support from the U.S. Defense State Liaison Office, the judiciary, the Hawaii National Guard, the Military and Community Relations Office, DBED, and the Hawaii State Coalition Against Domestic Violence. Members focused on whether the draft reflected language worked out with the judiciary and whether the bill addressed a previously identified gap in implementation. The Military and Community Relations Office said it had worked with the judiciary on amendments and wanted to ensure the statute created a collaborative process with installation partners and law enforcement. The witness also said the draft appeared to reflect the agreed language, though he noted there were multiple bills moving and that technical amendments might still be needed. No action was taken during the hearing. SB 608 relating to veterans’ rights and benefits drew both support and opposition. Support came from the Hawaii Office of Veterans Services, Veterans Benefits Guide, Aloha Independent Living Hawaii, and individual veterans and service members, who argued the bill would improve access to claims assistance and provide choice and faster help for veterans. Opposition came from the VFW Department of Hawaii and the Veterans Caucus of the Democratic Party of Hawaii, which argued the bill should be amended to align with federal law, especially on accreditation and fee caps. Testimony and questioning centered on whether third-party claims assistance should be regulated, whether fee caps are preempted by federal law, and whether there was evidence of fraud tied to non-accredited representatives. Supporters said the bill would help veterans navigate a slow system, while opponents said accredited representatives are accountable and that the bill should be narrowed. The committee also heard SB 2054 relating to public safety, which would prohibit the Hawaii National Guard from deploying to assist federal troops, federal law enforcement, or other states’ National Guard units in Hawaii when the governor objects. The Hawaii National Guard opposed the bill, while the ACLU of Hawaii, Office of Hawaiian Affairs, and numerous other organizations and individuals supported it, arguing it would protect civil liberties and prevent federal overreach. The hearing ended without a vote or final action on these measures.