Transcript Highlights:

• You've got three. big budget priorities that you've set in your budget guidelines, and that's reflected
• in the budget proposal before you today.
• For effectiveness and efficiency in both the recurring budget and the non-recurring budget, leaving you
• with over 30 reserves.
• Okay, you have a budget, Mr. Chairman. We have a budget framework. Everyone, um, okay. Thanks.

Transcript Highlights:

• </c><00:40:44.160><c> is</c> the funding in the budget is the funding in the budget is sufficient<00:
• </c> fund but in the executive uh budget fund but in the executive uh budget request<00:41:01.400><c>
• Member Amato voting with reservations. Any other members voting with reservations?
• Any with reservation?
• Any with reservation?

Committee: House Health

Summary: The Committee on Health heard testimony on several bills. On SB 1441, which would repeal the transfer of the Oahu Regional Health Care System from HHSC to the Department of Health, the Department of Health said it strongly supports the measure and requested clarifying amendments. HHSC/Oahu Region also supported the bill and said it had no objection to the department’s amendments. In response to questions, witnesses said the agencies have been working on an MOU to support transfers of long-term care patients to Leahi, with the current goal being about 10 to 15 patients, but transfers would occur only as space and staffing allow; one patient was reportedly being admitted at the time, and the process was described as slow and case-by-case. The committee then heard SB 1443 on payment rates for state hospital patients and related Department of Health services. The hospital administrator said the bill would allow rates above Medicaid for community or foster-home placements if patients cannot be placed at Leahi or elsewhere, and would set Medicaid-level reimbursement for outside medical services used by state hospital patients. He said at least one provider was interested in offering services at that rate and that the population involved is largely non-ambulatory long-term care patients. Members asked about availability and training, and the witness said special training could be provided. SB 1322, a broad mental health bill, drew mixed testimony. The Department of Law Enforcement supported giving crisis-intervention-trained officers more discretion to transport people to medical care instead of arresting them. The Attorney General supported the bill but recommended revisions to emergency-transport language and restoring liability protections. HHSC and Queens Hospital supported the overall goal but sought amendments to preserve the mental health emergency worker role in decision-making and to avoid negative impacts on emergency departments. The Disability Rights Center and ACLU opposed parts of the bill, arguing that it weakens due process, reduces protections in involuntary treatment and transport, and should retain a three-person treatment panel rather than reduce it to one. A Queens representative said the current program works well and reported that more than 90% of MH1 cases once went to hospitals, but that figure has dropped to about 60-70%, with about 20% now diverted to community settings or the behavioral health crisis center. No votes or final committee actions were taken in the portion provided.

Transcript Highlights:

• RESOLUTION 1908 ON BUDGET STABILIZATION FUNDING AND SENATOR HOOPER.
• WE HAVE A BUDGET STABILIZATION FUND AS YOU KNOW AND HAVE DISCUSSED.
• WE ARE LOOKING AT FEDERAL BUDGET CUTS.
• AND MONEY THAT WE DON'T ALLOCATE EACH BUDGET YEAR AND THEN THE BUDGET STABILIZATION FUND THINK OF IT
• THIS IS A HUNDRED 50 MILLION DOLLAR BUDGET.

Transcript Highlights:

• </c> budgeting solution. budgeting solution.
• Seeing none, reservations or no?
• Are there any reservations or noes?
• </c><02:11:04.320><c> Seeing</c> there any reservations or no? Seeing there any reservations or no?
• Are there any reservations or members. Are there any reservations or no?

Bills: HCR13 , HCR61 , HCR136 , HCR185 , HCR155 , HCR68 , HCR174 , HCR178 , HCR179 , HCR91 , HCR103 , HCR115 , HCR199 , HR15 , HR128 , HR175 , HR147 , HR62 , HR164 , HR168 , HR169 , HR83 , HR95 , HR107 , HR189

Committee: House Water & Land

Summary: The Committee on Water and Land met on March 31, 2026, and heard testimony on several resolutions. HCR 13/HR 50, which asks DLNR to work with DOE and the Public Charter School Commission on a student coral stewardship program, drew comments from DLNR, which said it stood on written testimony and had proposed amendments, and from supporters in the room. HCR 61, urging investment in reforestation policies, workforce, nursery capacity, and related support for public and private lands, received strong support from DLNR and multiple testifiers, including members of a reforestation policy hui, a resident, and others who emphasized watershed protection, flood and fire resilience, and the need to upgrade nursery infrastructure and staffing. Committee members asked questions about nursery modernization, staffing, island-specific needs, and whether reforestation could reduce wildfire impacts; the DLNR witness said all islands need investment, with especially large opportunities on Hawaiʻi Island, and that healthier forests improve resilience though they cannot eliminate climate-related risks. The committee then heard HCR 136/HR 128 on wildland-urban interface safety standards for Maui plantation towns, but no one testified. It also heard HCR 185/HR 175, which urges denial of permits for ICE detention-related warehouses; Chris Coffey of Immua Alliance testified in support, saying migrant survivors of exploitation are harmed when ICE detains people and that Hawaii would not be the first place to take such action, citing examples from other states and cities. In questioning, members explored whether a local facility would keep people closer to families and services or instead increase local detention; Coffey said detention generally cuts off access to services and can intensify fear, and that a local facility could incentivize more detention and make survivors less likely to come forward. Finally, the committee heard HCR 155/HR 147 supporting the Hawaii Water Safety Coalition’s Hawaii Water Safety Act. Testifiers included Allison Shapera, who described the statewide water safety plan, Hawaii’s high drowning rate, the economic and human costs of drownings, and her personal loss of her daughter in a preventable drowning; Kirsten Hermstead and Kalani Vierra of the Hawaiian Lifeguard Association said the plan’s recommendations need legislative recognition to help with implementation and grant funding; and Jessamine Town Horner testified by Zoom as a co-founder and bereaved family advocate. The transcript provided does not show any votes or final committee actions on the measures discussed.

Transcript Highlights:

• </c> budget planning and management lead. budget planning and management lead.
• </c> &gt;&gt; no, he cut their budget. &gt;&gt; no, he cut their budget.
• The governor's budget. &gt;&gt; Did they cut it? The governor's budget.
• But I think we agree with them: reserves are... ...reserves are.
• </c> said were for the budgeted? said were for the budgeted?

Transcript Highlights:

• So you were through its budget process.
• </c> &gt;&gt; Uh will DIT attempt through its budget &gt;&gt; Uh will DIT attempt through its budget
• Seeing none, objections or reservations?
• </c> objections or reservations? objections or reservations?
• Seeing none, the reservations?

Committee: Senate Labor and Technology

Summary: The joint hearing covered SB 2120, which would allow certain state and county employees rehired within one year to transfer accrued vacation and sick leave and extend the break-in-service period for health benefits. Testimony was split: the Department of Human Resources explained current leave payout and pension credit rules and raised concerns about the long transfer window, while labor representatives supported the measure. During decision-making, both committees recommended passage with amendments. The amendments narrowed the bill by changing the break-in-service period to 180 days for leave beginning on or after July 1, 2026, making the benefit transfer voluntary with a 90-day notice deadline, and changing the effective date to January 1, 2077. The recommendations were adopted by vote. The committees also heard SB 2523, an appropriation for the City and County of Honolulu Department of Information Technology to modernize the driver’s license and motor vehicle system. DIT described the current COBOL-based mainframe as decades old, said the project would use a code-share arrangement with Arizona, and estimated a $10 million, two-year conversion and rollout. Members questioned the cost, the city-state funding arrangement, and the feasibility of the project, including whether it would move to a cloud-based system. After testimony, both committees deferred the measure. In the Energy and Intergovernmental Affairs portion, SB 2032 on consumer protection for solar sales drew broad support from the Hawaii Green Infrastructure Authority, the Office of Consumer Protection, the Hawaii Solar Energy Association, and others. Testifiers said the bill was needed in response to misleading solar door-to-door sales and urged amendments to clarify “contractual affiliation,” exclude balcony/portable solar devices, and require disclosure of cash and financed prices. The committee then moved on to SB 2079 on vehicle titles, which had one supporter and one opponent but no testimony in person or online, and SB 2241 on zero-emission vehicles, for which the Hawaii State Energy Office submitted written support. The hearing also began discussion of SB 2579 on water-related grants, where agencies said any program would need clearer statutory standards and likely a feasibility study before implementation.

Transcript Highlights:

• </c><00:53:57.200><c> budgeting</c> transfer the budget budgeting transfer the budget budgeting administrative
• Any with reservations? Reservations. Reservations.<01:53:13.600><c> Reservations.</c> Reservations.
• Reservations. Reservations. Reservations.
• Reservations for Shimizu. Reservations.
• Reservations for Reservations.

Committee: House Judiciary & Hawaiian Affairs

Summary: The committee heard testimony on SB 83, which would require hotel keepers to give adequate notice of service disruptions to guests and third-party vendors. The Department of Commerce and Consumer Affairs Office of Consumer Protection supported the bill but asked for amendments to restore remedies and add a nonwaiver provision, arguing that without penalties the measure would lack consequences and that consumers should not be able to waive the notice rights. Supporters, including Unite Here Local 5 and individual testifiers, said guests deserve transparency and meaningful recourse when disruptions occur, especially for labor disputes, construction, or other service interruptions that affect the experience they paid for. Hotel industry representatives, including the American Hotel and Lodging Association, the Hawaii Hotel Alliance, and hotel workers/testifiers, opposed the bill in its current form while offering amendments. They said the measure was too broad, difficult to implement, and could interfere with collective bargaining, third-party booking systems, and existing contracts. They also argued that some disruptions are not easily known in advance and that the bill unfairly singles out hotels compared with other industries. One testifier emphasized that notice should be required only for actual, known disruptions rather than potential events, and another raised concerns about applying the bill to properties not directly involved in a labor dispute. After the SB 83 testimony, the committee moved on to SB 2798, which would make permanent and expand statewide the agricultural enforcement pilot program created in 2025 and rename it the agricultural enforcement program. The chair introduced the measure and called on the Hawaii Department of Agriculture and Biosecurity as the first testifier, but the transcript excerpt ends before testimony or any vote on SB 2798.

Transcript Highlights:

• ,</c><00:11:59.279><c> I</c> an appointment at the Federal Reserve, I an appointment at the Federal Reserve
• </c> appropriations committee for our budget. appropriations committee for our budget.
• c><01:08:55.600><c> be</c> reserve requirement that must be reserve requirement that must be achieved
• At this point in budgeting process.
• And our budgeting taxpayer funds.

Summary: The Stable Token Study Commission held its first regular meeting, welcomed all remaining appointed members, and completed brief introductions from legislators and agency designees. The chair outlined the commission’s plan to use the first part of the enabling legislation as a “level-setting” discussion, focusing this meeting on the basics of blockchain, the current landscape for stablecoins and tokenized real-world assets, and leaving blockchain-based trust for a later meeting. No votes were taken. The main presentation came from Deanna Bario Zales of the Global Blockchain Business Council, who described stablecoins as increasingly converging toward fiat-backed or asset-backed models, with algorithmic designs viewed more cautiously. She said stablecoins are being used for payments, remittances, DeFi activity, cross-border transfers, retail use in high-inflation markets, and treasury functions, while noting risks such as peg instability, reserve transparency, counterparty and network risk, and possible capital flight from weaker banking systems. She cited growth in supply, wallet activity, and transfer volume, and said U.S.-pegged stablecoins dominate the market, with USDT and USDC leading. Zales also discussed tokenized real-world assets, describing them as digital representations of physical assets that can enable fractional ownership, liquidity, and faster settlement. She said the market is growing quickly, with institutional participation from firms such as BlackRock and Franklin Templeton, and projected continued expansion. She closed with an overview of regulatory developments, emphasizing the new U.S. stablecoin framework under the Genius Act, the proposed Clarity Act, OCC guidance, and similar regimes in the EU, UK, UAE, Singapore, Japan, and elsewhere, all of which she said are shaping compliance requirements and market development.

Transcript Highlights:

• Now if you go to page three, flip over to page three, and that is the budget reserve account, the LISRA
• It's important to remember that the BRA, the budget reserve account at the top, has been eliminated,
• It's important to remember that the BRA, the budget reserve account at the top, has been eliminated,
• </c> page three and that is the budget page three and that is the budget reserve<01:56:38.880><c> account
• c> the</c><01:56:45.280><c> top</c> The budget reserve account at the top has been eliminated.

Transcript Highlights:

• And a few of them, just a few highlights: "We budgeted responsibly and were resourceful with our reserves
• We budgeted conservatively as we have in the past.
• It's not unusual for political subdivisions to have to use reserve funds to balance a budget in any given
• So when we talk about reserve funds, there's a lot of implications.
• It's not unusual for political subdivisions to have to use reserve funds to balance a budget on any given

Committee: Joint Tax Reform and Relief Advisory Committee

Summary: The committee met to receive updates from the Tax Commissioner’s office on property tax relief programs and related compliance work. Commissioner Brian Croshys reviewed the Homestead Property Tax Credit, Disabled Veteran Credit, and Primary Residence Credit, noting that the Homestead program expanded significantly after HB 1158, that some households are “adjusting out” of eligibility as incomes rise, and that the committee may want to consider indexing income thresholds. Members asked for additional data on bracket breakdowns, possible costs of eliminating income limits for seniors, and how many households are zeroed out by the combined programs. Croshys also discussed the simpler administration of the disabled veteran credit, the growth in participation, and the heavy workload and auditing safeguards built into the new primary residence credit system. He said the department found no material compliance findings and that the program is designed to be digital-first, with county auditors and the Tax Commissioner’s office both involved in review and notification. The committee recessed for lunch and later reconvened, with the chair noting that more detailed PRC information would likely be available at a September meeting. Shelly Myers then presented the statewide property tax increase, or “zero growth,” report and the 2025 statistical report. She explained how county auditors report levy and valuation data, how increases and decreases are counted, and which jurisdictions showed the largest percentage changes in countywide, citywide, school district, and park district levies. In the statistical report, she summarized recent trends in assessed values: agricultural values remained relatively flat, while residential, commercial, and centrally assessed property values increased over the past five years. She also reviewed statewide tax levies by property class and clarified that centrally assessed growth figures were annual averages. Members discussed how shifts in land use and annexation can make it appear that tax burdens are moving from ag to residential/commercial property. Myers then summarized the interim study on the 3% levy limitation under HB 1176, saying most counties complied without budget changes, while some used hiring freezes, deferred purchases, or reserve funds; 23% of counties had to reduce levies, and the affected funds were mainly general, road and bridge, and weed control. She said 12 counties reported zero new growth in the data and that 35 counties reported not using all of their cap. The committee also received an oil tax presentation from Croshys on the stripper well extraction tax exemption. He outlined the number of active stripper wells, the production and revenue implications of the exemption, and projections for future biennia under different tax scenarios. He said the exemption represents substantial savings to operators but also corresponds to production tax revenue that would otherwise be collected, and he emphasized that future outcomes depend on oil prices, well counts, and technology such as CO2 enhanced oil recovery. Nathan Anderson of the Department of Mineral Resources briefly answered a question about why Red River wells have a different production threshold than Bakken wells, explaining it was tied to completion costs and lateral length. The committee then heard from Charlie Gorecki of the EERC, who presented an analysis of typical Bakken well decline curves and argued that most oil is produced before a well reaches stripper status, but that keeping wells open and investing in refracturing or other interventions can recover additional production. No votes were taken during this portion of the meeting; the main actions were receiving reports, asking for follow-up data, and scheduling further discussion for a later meeting.

Transcript Highlights:

• </c> budget items in the federal budget budget items in the federal budget &gt;&gt; it<00:16:07.600><
• </c> public affairs [snorts] budget. public affairs [snorts] budget.
• &gt;&gt; Reservations. &gt;&gt; Reservations. &gt;&gt; Reservations. &gt;&gt; Reservations.
• Um, any with reservations? >> Actually, I will be with reservation.
• </c> Um, any uh with reservations? Um, any uh with reservations?

Bills: HB676

Committee: House Public Safety

Summary: The committee heard three public safety bills. HB 2235 would appropriate $1.3 million for the Military Affairs and Community Relations Office to strengthen coordination on military and defense issues. Supporters, including the Hawaii National Guard and DBEDT’s military relations office, said the office helps Hawaiʻi understand federal contracting, USA Jobs, and military-related economic impacts. One member questioned why the state should fund a DoD-related office while Hawaiʻi remains under-reimbursed on impact aid; supporters responded that the office serves Hawaiʻi communities and helps prepare residents for federal jobs. The chair said she intended to recommend the bill pass with a HD1, a blank appropriation to be filled in the committee report, technical amendments, a defective effective date, and updated office title language. HB 2263 would expand Hawaiʻi family leave law to cover qualifying military exigencies. The Department of Labor and Industrial Relations, DBEDT’s military relations office, and the Hawaii National Guard supported the measure, saying military families often face short-notice deployments, relocations, briefings, and urgent family arrangements that require time away from work, and that aligning state law with federal standards would provide clarity and consistency. The chair said she would recommend passage with a HD1, a defective effective date, and technical amendments. HB 2291 would clarify that certain National Guard Youth and Educational Programs employees are excluded from collective bargaining, rename the program, and codify its Hawaiian name. The Hawaii National Guard said it was a housekeeping bill with no appropriation, but requested an amendment to align the bill with updated authorities and program references; the chair asked for proposed language before the later decision-making. She said she would recommend passage with a defective date and the requested amendment if provided, and then recessed the hearing until 11:30 a.m. for decision-making on all three bills.

Transcript Highlights:

• The cost could be addressed and put in the budget or something like that.
• Do you have any sort of cost, a budget for implementing this?
• Currently, no, we don't have a budget.
• We have a budget for existing contracts, um, but for any new types of contracts, I don't have a budget
• Any members voting no with reservations?

Committee: House Human Services & Homelessness

Summary: The committee heard several Human Services measures focused on Medicaid access, long-term care benefits, home health reimbursement, SNAP administration, trauma-informed child welfare, and child abuse reporting. HP 702 would increase funding for Medicaid in-home services if federal matching funds are secured, and testimony from disability advocates supported the measure as needed to help people with disabilities cover medical expenses. HB 1477, described as a correction to a prior session’s mistake, would clarify that the monthly needs allowance for certain long-term care residents does not replace state supplemental payments and would raise the ceiling by $25 to fix the prior issue and by an additional $20 as a new benefit; DHS supported it with amendments, and the committee indicated it would amend accordingly. HB 713 would fund a DHS rate study for home health services, with the Healthcare Association of Hawaii strongly supporting it and describing rising labor costs, losses on Medicaid patients, and access concerns if agencies cannot keep serving Medicaid clients. HB 1099 would appropriate emergency funds to DHS after a USDA penalty tied to SNAP response times, with supporters including Catholic Charities Hawaii, Hawaii Public Health Institute, and others arguing the money should be reinvested in staffing and systems to improve access and avoid further penalties. HB 1079 would direct the Office of Wellness and Resilience and DHS to create trauma-informed assessments and training for Child Welfare Services staff; testimony from state offices and advocacy groups supported it, citing the Mālama ʻOhana Working Group, staff burnout, and the need for a sustainable train-the-trainer model. Finally, HB 239 would narrow when failure to provide a child’s needs constitutes abuse or neglect, but DHS raised concerns that the current wording could broaden abuse findings and leave families in poverty without a clear safety net, while the Honolulu prosecutor’s office opposed it, warning it could weaken mandatory reporting and hinder investigations of child abuse. No formal votes were taken in the portion provided, though the chair said HB 1477 would be amended and several measures were left open for further questions and testimony.

Transcript Highlights:

• Um, and any portion of the general fund not expended for this purpose would lapse to the budget reserve
• Um, and any portion of the general fund not expended for this purpose would lapse to the budget reserve
• Um, and any portion of the general fund not expended for this purpose would lapse to the budget reserve
• Um, and any portion of the general fund not expended for this purpose would lapse to the budget reserve
• Um, and any portion of the general fund not expended for this purpose would lapse to the budget reserve

Summary: The House Budget Review Subcommittee on Primary and Secondary Education and Workforce Development met for an information-gathering session and opened by clarifying that the subcommittee would not be voting on budget requests. Because there was no quorum at first, the committee did not take up approval amendments. The first presentation focused on a budget request to incentivize national certification for school social workers and school psychologists. Rep. Vanessa Gracal, along with Amy Oats and Leslie Gilpin, argued for a $500,000 annual appropriation to provide $2,000 salary supplements to nationally certified school social workers and school psychologists working primarily in their certification areas. They said the stipend would help recruit and retain professionals amid shortages, noted that current Kentucky certification numbers are low, and explained the rigorous certification and renewal requirements. In response to questions, they said there is currently no appropriation for this purpose in HB 500 and none they were aware of in HB 6 in 2024. The next topic was school facility funding needs, led by Rep. Bob McCool, Johnson County Superintendent Tom Cochran, Commissioner of Education Robert Fletcher, and other district representatives. They described the “gap funding” issue for school construction projects that had already started before COVID-era inflation sharply increased costs. Johnson County and Harrison County were highlighted as examples of districts that had already committed local funds, passed nickel taxes, and begun construction but now need additional state support to finish projects. Speakers emphasized that many projects were audited and approved, that the state has already funded about half of the gap, and that roughly $130 million more is being sought in HB 500 to complete the remaining work. They stressed that unfinished projects would leave districts with half-built schools and that completing them would bring long-term savings and better facilities for students. The committee then turned to testimony from KASA representatives on the impacts of HB 500 as introduced. The witnesses discussed the importance of school psychology and school social work certification, the benefits of advanced training for student services, and the need to recognize and support highly qualified staff. A member asked whether HB 500 or HB 6 included an appropriation for the certification stipend, and the witnesses answered no. The meeting also included a motion to approve the minutes from the prior meeting once a quorum was present, and the minutes were approved by voice vote.

Transcript Highlights:

• All right, we'll reserve your right to close. Thank you, Mr.
• We'll reserve your right to close. Chair calls Robert Schmidt.
• I reserve the right to close. Thank you very much for reserving your right to close.
• If you have no questions, I reserve my right to close.
• If you have no questions, I reserve my right to close.

Bills: HB875 , HB1667 , HB2369 , HB3844 , HB4415 , HB4479 , HB4483 , HB4676 , HB5118 , HB5400 , HB5545

Committee: House S/C on Workforce

Keywords: workers' compensation, municipal construction, bidding requirements, small municipalities, contracting policies, first responders, PTSD, mental health, emergency services, medical expenses, injury claims, insurance carriers, opportunity youth, workforce development, employment, education, federal funds, employment discrimination, immunity waiver, public employees

Summary: The subcommittee heard testimony on a broad agenda of workforce, labor, and workers’ compensation bills. HB 4676 would require political subdivision workers’ compensation networks to follow the same notice, access, and complaint rules as certified TDI networks; supporters said public employees and first responders deserve equal access to care, while municipal risk pool representatives opposed added regulation and said existing 504 networks already perform well. HB 4479 would create a rural workforce development grant program at TWC to support college-and-career readiness and local workforce alignment, and HB 3844 would define “opportunity youth” in state law to improve data, coordination, and access to services for disconnected young Texans; both drew strong support from rural, education, and chamber witnesses. HB 5545 would clarify federal tax treatment for wage-replacement benefits in non-subscriber injury benefit plans, with proponents calling it a win for employers and injured workers. HB 5118 would direct TWC and DIR to study AI and automated employment decision tools in hiring, including bias and oversight concerns. HB 1667 would move existing PTSD workers’ compensation language into a broader Labor Code chapter so more first responders, including state and campus officers, could qualify for benefits; supporters called it a technical fix to extend coverage more evenly across agencies. The committee also heard several first-responder and workers’ compensation bills. HB 2369 would speed up claims handling for injured first responders by allowing a single medical evaluation, giving carriers 60 days to accept or deny a claim, and letting workers seek treatment while disputes proceed; law enforcement supporters said it would help injured officers return to work faster, while opponents warned it would revive extent-of-injury waiver problems and increase litigation. HB 4483 would reclassify certain workers’ compensation maintenance taxes as surcharges to reduce retaliatory taxes imposed by other states on Texas-domiciled carriers, and HB 875, as revised by committee substitute, would create a small-project exception to municipal workers’ compensation and bonding requirements for certain low-value construction contracts in small cities; both were presented as cost-saving measures for Texas employers and local governments. HB 4415 would extend anti-retaliation protections for workers’ compensation claimants from first responders to all public employees and expressly waive sovereign immunity for those claims, with supporters describing it as closing a loophole that leaves public workers without the same remedy available in the private sector. The committee also took testimony on HB 5400, which would expand remedies for sexual harassment victims by removing the requirement to first file an administrative charge, extending the filing deadline from 300 days to two years, clarifying retaliation, and eliminating current damages caps. Supporters, including employment lawyers and a parent of a victim, said the current deadlines and caps prevent many survivors from obtaining counsel or full relief, especially younger workers and those in small workplaces or franchises. Across the agenda, witnesses repeatedly emphasized access to care, fair treatment for injured workers, rural workforce development, and stronger protections for vulnerable employees. After each bill was laid out and testimony heard, the chair generally closed the public hearing and left the bill pending; no final votes were taken, and the subcommittee adjourned after completing the agenda.

Transcript Highlights:

• Speaker, reserve. The gentleman from Texas reserves.
• </c><02:45:41.040><c> The</c> I reserve. The gentleoman reserves. The I reserve.
• </c> Reserve. Gentleman from Texas reserves. Reserve. Gentleman from Texas reserves.
• </c><03:09:56.080><c> The</c> Reserve. Gentle from Texas reserves. The Reserve.
• Reserve. Gentleman from is recognized. Reserve. Gentleman from Texas<03:14:05.840><c> reserves.

Bills: HB2987 , HB2931

Keywords: small business lending company, SBLC, SBA lending, Small Business Administration, section 7 loans, small business loans, loan guarantee, lender cap, financial institutions, credit access, small business finance, nonprofit lenders, business lending, CEASE Act, House passage, Senate Small Business and Entrepreneurship Committee, sanctuary jurisdictions, office relocation, immigration policy, government operations

Transcript Highlights:

• We do have some reserved slots that are reserved for individuals who maybe leave the waiver program for
• We do have some reserved slots that are reserved for individuals who maybe leave the waiver program for
• </c><00:09:02.560><c> for</c> um and I that that are reserved for um and I that that are reserved for
• budget budget um it the 2022 2024 banial budget budget um it allowed<00:13:30.399><c> for</c><00:13:
• the confines of the budget and with the the confines of the budget and with the what<00:17:37.080><c>

Summary: The Budget Review Subcommittee on Health and Family Services met with a quorum still coming together and first handled roll call and minutes. The main presentation came from the Department for Medicaid Services, with Commissioner Lisa Lee and CFO Steve Beckle giving an overview of Kentucky Medicaid, its federal-state financing structure, and the department’s 1915(c) home- and community-based waiver programs. They explained FMAP funding levels for traditional Medicaid, administration, IT, expansion adults, and CHIP, and noted the size of the program, including more than 600,000 Kentucky children eligible for Medicaid or CHIP, about 485,000 expansion adults, over 69,000 enrolled providers, and $18.5 billion in 2024 expenditures. A major focus was the waiver system, including the acquired brain injury waivers, model waiver, independence waiver, Michelle P. waiver, and Supports for Community Living waiver. The department said these waivers are intended to keep people with physical or developmental disabilities in home and community settings rather than facilities, and that many services are not covered by Medicare or commercial insurance. Officials described participant-directed services, interagency administration, and eligibility rules, including that some waiver programs use the child’s income only rather than family income. They also reported an unduplicated waiver wait list of 13,930 people and said the General Assembly had added waiver slots in the last budget, including 650 ABI slots and 1,275 more to be allocated July 1, 2025. The department also discussed a waiver rate study conducted by Guidehouse, explaining that CMS requires a defensible rate methodology because there is no Medicare or commercial benchmark for many waiver services. They said the study used cost and wage surveys, provider and stakeholder input, and aimed to improve transparency, provider stability, and rate parity. Officials reviewed prior COVID-era Appendix K rate increases and budget-driven increases, and said the budget ultimately funded rates at about 70% of the benchmark study, while preserving higher existing rates where needed so no provider would be cut. They highlighted larger differences in behavioral support and case management rates, and said a public report is available. Members asked several questions about the potential impact of federal FMAP changes, especially possible reductions in the enhanced match for expansion adults and Medicaid IT/admin activities. DMS said any FMAP reduction would require more state general fund dollars, estimating about $75 million for each 1% drop in the expansion match, while impacts on administrative IT funding would depend on the systems being built or implemented in a given year. Members also pressed for clarification on waiver wait-list procedures, funded versus filled slots, and what happens when someone on the wait list is later found ineligible. DMS said people on the wait list may not yet have been assessed, can be reevaluated if conditions change, and are still eligible for regular Medicaid state-plan services if they qualify, even if they are waiting for waiver services.

Transcript Highlights:

• And then we have Budget and Finance with comments.
• Any voting members voting with reservations? Any members voting no with reservations?
• Any members voting with reservations? Any members voting no?
• Any members voting with reservations? Any members voting no? All voting aye?
• Any members voting with reservations? Any members voting no? All others voting aye.

Committee: Senate Housing

Summary: The Committee on Housing heard testimony on several housing-related measures. Senate Bill 65 would appropriate funds to the Hawaii Public Housing Authority for rehabilitation and repair of public housing units. Testifiers from the Department of Human Services, HPHA, Catholic Charities Hawaii, and Roar Cares supported the bill, emphasizing that repairing vacant units is a fast, cost-effective way to increase available housing for homeless and elderly residents. HPHA later told the committee it had 139 vacant units, with an estimated average repair cost of about $73,000 per unit. In decision-making, the committee recommended passage of SB 65 with amendments, including an appropriation of $10,147,000, and the motion passed. The committee also considered Senate Bill 40, which would allow HHFDC to secure a line of credit or other indebtedness for the bond volume cap recycling program. HHFDC supported the measure and explained that Act 35 had provided a $150 million line of credit for fiscal year 2025 only, so this bill would extend that authority; HHFDC said the bonds involved would be revenue bonds. Roar Cares supported the bill, while the chair asked whether the Legislature would need to pass such a bill annually. In decision-making, the committee recommended passage with amendments to specify revenue bonds and noted the administration should study other ways to secure the line of credit without annual legislation. For Senate Bill 35, which would create a Housing Efficiency and Innovation subaccount within the rental housing revolving fund and allow fund transfers without legislative approval, HHFDC and several others supported the measure, arguing that more flexible fund movement would improve efficiency. The committee adopted a recommendation to pass SB 35 with amendments, including language prioritizing projects on state or county land or projects by entities required to reinvest surplus into housing, and noting nonprofit developers could qualify for prioritization. Senate Bill 42, which would repeal certain 30% AMI set-aside and preference requirements for rental housing revolving fund projects, drew opposition from Catholic Charities Hawaii, which argued the bill would reduce the supply of the most vulnerable housing units, while HHFDC warned it could reduce production of 30% AMI units. The committee deferred SB 42. The final bill discussed was Senate Bill 75, which would establish a working group to revise the state’s qualified allocation plan and related rental housing revolving fund loan terms and report back to the Legislature. HHFDC and others offered comments, while Catholic Charities asked that the bill be deferred, saying HHFDC already had the capacity to work with the community without a new law. Roar Cares supported the concept but urged broader stakeholder inclusion. In decision-making, the chair said the committee report would note concerns about prior QAP revisions and the need for more transparent, ongoing stakeholder participation, and the committee recommended passage of SB 75 without amendments. All recommendations were adopted, and the hearing adjourned.

Transcript Highlights:

• Do you have a budget or a proposed budget appropriation for you folks to be able to do this, not for
• Member Alos reservations. Member Garcia reservations. Chair, your recommendation is adopted.
• Member Alos reservations. Member Garcia reservations. Chair, your recommendation is adopted.
• </c> any members voting no with reservation any members voting no with reservation chair<00:51:07.440
• </c><00:53:55.119><c> chair</c> no any members with reservation chair no any members with reservation

Committee: House Health

Summary: The House Committee on Health heard testimony on several measures. On HB 1233 relating to storm water management, the Attorney General’s office said the state may need to share costs with counties for any new inspection or regulatory program. Testifiers strongly supported the bill, including the Hawaiian Lifeguard Association and a community member who described her daughter’s death in a poorly maintained detention pond and urged statewide inspections and a comprehensive approach. A member asked the Attorney General about the cost-sharing issue, and the office said state appropriations would be needed if counties are required to take on new duties. The committee then heard HB 245 on student heat exposure safety. The Department of Education, Department of Health, and the Hawaii State Council on Developmental Disabilities supported the measure. A physician testifying for the Climate Change and Health Working Group described children’s vulnerability to heat and cited examples from other states that adopted stronger heat guidelines after school heat deaths. The Department of Education said it could do the feasibility study without additional funding and preferred to wait for the study before deciding on equipment needs. The Attorney General’s office later testified on HB 903, authorizing schools to maintain bronchodilators, supporting the concept but warning that the bill’s definition of school was broad and that DOE may not have jurisdiction over all covered entities; it suggested changing “protocol” to “guidelines” and involving the Public Charter School Commission. On HB 1314 relating to youth mental health, the Department of Education testified in opposition, though no additional testimony was offered. The committee also heard HB 1334 on meat donation, with DLNR and the Hawaii Farm Bureau supporting the measure. HB 799 on health care drew support from HMSA and the Hawaii Association of Health Plans, while the Department of Health said it supported the intent but wanted amendments, including limiting the bill to Maui, adding a sunset, and requiring a study of quality and access impacts. On HB 952 relating to Parkinson’s disease research, the Department of Health said the proposal would require additional appropriations and staffing and suggested a public-private partnership approach; the Hawaii Parkinson Association, Queen’s clinicians, and other supporters testified that a registry would help identify the number of patients and improve care. Finally, SHPDA strongly supported HB 1431 establishing an oral health task force, saying the state lacks sufficient dental oversight and that both keiki and kūpuna need better access to services.

Transcript Highlights:

• and reserve study.
• It wasn't budgeted for.
• It wasn't budgeted for.
• It wasn't budgeted for.
• It wasn't budgeted for.

Committee: Senate Commerce and Consumer Protection

Summary: The committee opened by outlining testimony procedures and then heard SB 376 on tax credits, which would create a home fire safety improvement tax credit. Testimony from the Tax Foundation of Hawaiʻi urged that the concept would be better handled as a subsidy program and raised drafting concerns about unclear definitions and eligibility. Later, the committees agreed to pass SB 376 with amendments, including making the credit nonrefundable, clarifying third-party certification, deleting recapture-related language, and making technical changes. Members then heard SB 417, which would make unlicensed contractor work during or within five years after an emergency or disaster a class B felony. The Contractors License Board was listed for comments, and the Subcontractors Association supported the measure. The committees ultimately recommended passage with technical, non-substantive amendments and an adjusted effective date, and the measure was adopted. A substantial portion of the meeting focused on SB 782, which would require free and accessible voice communication services for incarcerated people and prohibit state agencies from profiting from those services, while also directing the PUC to set standards and providing funding for the SAVIN victim notification program. Supporters, including the Public Defender, ACLU of Hawaiʻi, Worth Rises, and others, argued the bill would reduce costs for families, improve reentry, and align adult corrections with the juvenile system. Opponents, including the Department of Corrections and Rehabilitation, the Hawaiʻi Paroling Authority, and SAVIN-related witnesses, warned that changing the funding structure could weaken victim notification and safety services. The committees deferred SB 782. The committee also heard SB 999 on fireworks, which would repeal permissible consumer fireworks uses, impose civil penalties and forfeiture remedies, and create a forfeiture special fund for safety education. The Department of Law Enforcement and Honolulu Police Department supported the bill, while fireworks industry representatives and others opposed it, arguing prohibition would be ineffective and urging stronger enforcement and education instead. The committees deferred SB 999 for further consideration, and SB 1136 on insurance was also deferred after insurers and the Department of Commerce and Consumer Affairs opposed it. In the later joint session with the Committee on Economic Development and Tourism, SB 744 on condominium loans was heard with support from the Hawaii Green Infrastructure Authority and banking groups, while one testifier raised concerns that the program could function like C-PACE financing and add risky debt to condominium associations; testimony and discussion continued on that measure.

Transcript Highlights:

• </c> care setting and about 75% of our budget care setting and about 75% of our budget is<00:48:36.480
• </c> upcoming budget. upcoming budget. Next<00:53:47.119><c> slide</c><00:53:47.440><c> please.
• Our budget and that's total billion.
• So our budget has grown 8.5 funds.
• </c> in the budget for the waiver slots. in the budget for the waiver slots.

Summary: The Health and Family Services committee heard an informational presentation on Kentucky personal care homes from representatives of the Kentucky Association of Healthcare Facilities, Management Systems of Kentucky, and Elder Care Partners. Witnesses described personal care homes as a lower-cost, 24/7 residential option for adults, often with serious mental illness, who do not meet nursing home criteria but need structured supervision, medication assistance, meals, and daily support. They said the homes are regulated by the Cabinet for Health and Family Services, are not Medicaid-funded, and are supported largely through state supplementation payments and residents’ SSI income. The presenters argued that the current reimbursement rate of about $50.70 per day is no longer sufficient to cover staffing, food, insurance, utilities, maintenance, and other costs, and said the sector has shrunk significantly over time. They cited figures showing a decline from 64 to 34 homes serving the seriously mentally ill since 2002, with 30 closures over 23 years, and said the loss of beds contributes to homelessness, hospital overcrowding, and longer psychiatric stays. They also gave examples of residents who had spent many months in hospitals before being successfully placed in personal care homes, which they said can prevent more costly institutional care. Committee members asked about staffing credentials, fraud controls, referral processes, and how reimbursement works in other states. The presenters said Kentucky does not require licensed or certified staff in these facilities, though some homes use certified medication technicians or an LPN, and they described a county case-manager-based assessment process used to set individualized rates in other states such as Minnesota. Members expressed support for the work but emphasized the need for documentation of savings and budget offsets. The presenters said they are seeking an incremental reimbursement increase over two years, roughly 25% to 50% in the first year and another 50% after that, and urged the committee to support the homes to prevent further closures.