Transcript Highlights:

• Furthermore, the California Highway Patrol reported that from the year... ...tunnels.
• Furthermore, the California Highway Patrol reported that from 2021 through 2025, there were 3,240,000
• Like you would see more highway patrolmen.
• I rarely see a highway patrolman on the highway when I'm on the highway, and people are driving in L.A
• Lori Bonds, an ALS volunteer, and I support this bill.

Summary: The committee heard several insurance-related bills. AB 69, AB 1554, and AB 1680 all focused on California’s insurance market and the Fair Plan. AB 69 would require clearer notices to Fair Plan policyholders about coverage options, quarterly public reporting on clearinghouse programs, and additional broker/agent training to help depopulate the Fair Plan while preserving consumer choice. AB 1554 would require the California Earthquake Authority to post its annual report online and send it to relevant committees, and would direct the Insurance Commissioner to convene a working group on incorporating hazard mitigation into risk-transfer recommendations. AB 1680 would require the Fair Plan to comply with CDI examination findings, hire more staff, and improve clearinghouse operations; the Fair Plan moved from opposition to neutral after amendments, and the department said the bill would strengthen accountability and consumer protections. These bills were held pending quorum or taken up later, with authors requesting aye votes. AB 2198, by Assemblymember Rodriguez, would clarify title insurance rate-filing rules by specifying that title insurers file title rates and underwritten title companies file escrow rates, reducing duplicative filings and requiring rate schedules to be posted online. The California Land Title Association supported the bill, saying it codified longstanding practice and improved transparency, while the department continued discussions about possible revisions. The bill was left open for further questions and a later vote. AB 1795, by Assemblymember Gibson, would create statewide standards for inspecting, testing, and remediating smoke damage in wildfire-affected homes. The author and the Department of Insurance said the bill would establish science-based standards, protect survivors from unsafe reentry, require training and certification for relevant professionals, and improve claims handling; the department also described serious gaps found in its Fair Plan examination and recent wildfire claims. Insurers and some residents opposed or opposed unless amended, arguing the bill was still too broad, could raise costs, relied too much on industry standards, and left unresolved issues about legal standards, timing, and coverage. The bill remained under discussion, with the author saying negotiations would continue. AB 311, by Assemblymember McKinnor, would create an optional telematics-based auto insurance program to reward safer driving and improve road safety. Supporters, including road-safety advocates, victims’ families, and some insurance representatives, argued telematics could reduce speeding and distracted driving and save lives. Opponents, including privacy and consumer groups, argued the bill would create opaque surveillance pricing, undermine Prop. 103, and raise privacy and fairness concerns. After extensive debate, the committee passed the bill on a 3-0 vote and placed it on call. AB 1798, by Assemblymember Wilson, would bar life and disability insurers from using non-diagnostic genetic information from direct-to-consumer or other predictive genetic testing to deny coverage or raise premiums, while preserving use of medical history and family history and allowing consideration of certain high-value policies above $1.5 million. Supporters said the bill would reduce genetic discrimination and encourage testing; insurers argued genetic information is relevant to underwriting and warned the bill could raise costs and create inconsistencies. The committee chair and members noted the bill was close to agreement but still needed work, and the bill was moved with a 3-0 vote and placed on call.

Transcript Highlights:

• The bonds and the bond interest are paid out of the budget, correct? Well, INS, yes. Mm-hmm.
• It's interesting you say voter-approved bonds.
• Charter schools are included because bonds are included.
• Okay. ...Same thing with revenue bonds.
• That's not from bonds; that's out of the general funds.

Bills: HB26 , HB73 , SB 14 , HB46

Committee: House Intergovernmental Affairs

Transcript Highlights:

• This bill has $50 million in housing infrastructure bonds to build more homes, a necessity if we hope
• And we seem to be able to come together and have nonpartisan, bipartisan votes on bonding bills.
• </c> same criteria that we use for bonding. same criteria that we use for bonding.
• We should be able to have bonding bills.
• Thank you members for attending the I-90/Highway 14 party last night. Much appreciated.

Transcript Highlights:

• Yes, we did just pass a bill for bonding, but that is to address projects from start to finish.
• The bonding bill will help with construction.
• So as the bonding package, I didn't like the bonding package because I didn't think the bonding package
• Some of it comes from bonding. Some of it can come from general fund money that we have.
• Some of it comes from bonding. Some of it can come from general fund money that we have.

Bills: SB251 , SB150 , SB154 , SB73 , SB111 , SB172 , SB76 , SB181 , SB235

Committee: Senate Senate Tax, Business & Transportation

Transcript Highlights:

• 1519 modifies the definition of an all-terrain vehicle by increasing the unladen weight of an off-highway
• district governing board spend the proceeds from the lease of school property for the payment of bonded

Summary: The meeting reviewed a long list of Senate and House bills, mostly from Appropriations and Education, with staff describing strike-everything amendments and whether the amended language matched other bills. Topics included electronic monitoring in care facilities (SB 1041), dental board complaint forwarding and licensure exemptions (SB 1168), revitalization district contracts (SB 1189), timeshare salesperson licensing (SB 1274), veterinary telemedicine prescriptions (SB 1286), insurer zero-estimated-exposure policies (SB 1428), advanced air mobility funding for border security (SB 1457), death benefits for law enforcement pilots (SB 1503), ATV definitions (SB 1519), pet and fowl restrictions in planned communities (SB 1582), pharmacist independent testing and treatment (SB 1713), school district self-insurance quotes (SB 1497), and a housing/historic district measure tied to SB 1118. Most of these were presented as technical or policy changes, often noting that the strike-everything language was identical to a House bill already passed. The caucus then moved through several blue-sheet concurrence items. HB 2120 received a technical Senate amendment to align property-tax disability language with updated statute, and the sponsor concurred. HB 2174 was amended to require a modeling and data organization to file models used by insurers, with concurrence noted. HB 2203, aimed at reducing duplicative ADE and school reporting, was amended so ADE must review each statutory reporting requirement and report back to the legislature; the sponsor concurred. HB 2383 was amended only to name a trampoline court law as “TIE’s law,” with no substantive policy change, and the sponsor concurred. On the remaining House bills, HB 2877 was changed from timeshare licensing to create an alternative education pathway for certified veterinary technicians, and the sponsor concurred. HB 2875, dealing with unmanned aircraft and drone delivery, was amended to adjust airport-related local authority limits from one mile to 2.5 miles and to reference consultation with airports; members raised questions about FAA preemption and local authority. HB 2428 on emission reduction credits was amended to emphasize voluntary participation and limit new credits if participation later becomes mandatory, and the sponsor concurred. HB 2176 on health care institution licensing and complaint investigations was amended to allow older abuse-related complaints, and the sponsor concurred. HB 2050 on radiologic technology standards and radiologist assistant supervision drew the most discussion; the Senate narrowed the supervision change to rural counties under 500,000 population and critical access hospitals, and the sponsor concurred while members questioned the geographic scope. Finally, HB 2010 on refunds for digital goods was amended to shorten the refund window from 10 years to five, but the sponsor refused concurrence due to a drafting error, indicating a conference committee would be needed. The caucus then concluded.

Transcript Highlights:

• Cody Boyles, on behalf of the California Association of Highway Patrolmen, in support. Thank you.
• I'll just say the association represents about 90% of the billboards along state highways, and it is
• Today, California requires reverse performance and payment bonds on nearly all public works projects.
• Performance bonds protect project owners by guaranteeing completion even if the contractor fails to fulfill
• Payment bonds ensure that subcontractors and suppliers are paid, significantly reducing the risk of liens

Summary: The committee heard several bills, with extensive testimony and debate. AB 2507 by Assembly Member Wynn would strengthen state consultation with federally recognized tribal governments by requiring clearer tribal liaison roles, a tribal advisory committee, and more consistent early engagement across agencies. Support came from Wilton Rancheria and the California Tribal Business Alliance, with members praising the bill as improving respect, coordination, and outcomes for tribes. AB 2024, also by Wynn, would require the Outdoor Advertising Act permitting process to reach a determination on submitted applications, aimed at reducing delays and uncertainty; it drew support from the outdoor advertising industry and the California Association of Realtors, with members describing it as a technical cleanup measure. Both bills were later moved to Appropriations, along with a consent calendar of several other measures. AB 1585 by Assembly Member Connolly would require wine labeled as American to be made from 100% American-grown grapes, aligning the federal “American” label with California’s existing 100% state-origin standard. Supporters, including California wine grape growers, family wineries, consumer advocates, and several local agricultural groups, argued the bill would improve truth in labeling and help struggling growers. Opponents from major wine companies and industry groups warned it could reduce flexibility, create labeling complications, and limit the ability to list varietal and vintage on some blended wines. After a lengthy debate over labeling standards, consumer expectations, and impacts on interstate wine sales, the committee passed the bill to Appropriations. AB 1605 by Assembly Member Ransom would allow judges to place a no-alcohol-sales notice on the licenses of repeat or serious DUI offenders, restricting their ability to purchase alcohol as a preventive measure. Supporters, including the California Police Chiefs Association, the Safe California Roads Coalition, and the California Association of Highway Patrolmen, said the bill would give courts another tool to reduce recidivism and save lives. Retailers and restaurant representatives raised concerns about implementation and ID-checking burdens, but the bill was amended and passed to Appropriations. AB 2211 by Assembly Member Hoover, which would allow craft distillers to operate a second tasting room, also advanced with support from the California Distillers Association. Finally, AB 1578 by Assembly Member Jackson, presented by Assembly Member Solache, would require anti-hate speech training for local and state elected officials; it drew strong opposition over First Amendment and definitional concerns, and members pressed for a clearer definition of hate speech before further action.

Transcript Highlights:

• Message 133, House Bill 41, Wyoming Highway Patrol, DCI and Warden retirement benefits amendments.
• Message 133, House Bill 41, Wyoming Highway Patrol, DCI and Warden retirement benefits amendments.
• </c> House Bill 41 engrossed Wyoming Highway House Bill 41 engrossed Wyoming Highway Patrol<00:35:36.720
• We will take up House Bill 5, oil and gas bonding pool investment and earnings. Thank you.
• investment and gas bonding pool investment and earnings.<01:56:36.480><c> Thank</c><01:56:36.639><c>

Transcript Highlights:

• Um, but this seems like a<00:03:52.560><c> bonding</c><00:03:53.040><c> project</c><00:03:53.680><c>
• and</c><00:03:54.000><c> not</c><00:03:54.159><c> an</c><00:03:54.400><c> energy</c> a bonding project
• and not an energy a bonding project and not an energy project<00:03:55.120><c> and</c><00:03:55.280>
• or county state-assisted highway.
• or county stateass assisted highway or county stateass assisted highway. highway. highway.

Committee: House Energy Finance and Policy

Transcript Highlights:

• my good friend, the distinguished chair of the Committee on Ways and Means, has indicated that our bond
• And that bond rating has benefits whenever we seek to borrow money because it reduces our cost of borrowing
• which is the fact that, as I mentioned earlier today, our friends on Wall Street increased the state's bond
• Tarr: traffic study of State Highway Route 114 in the town of Middleton.
• visiting Russia, Cuba, Vietnam, Malaysia, and especially her beloved Ireland, where she felt a deep bond

Summary: The Senate considered a fiscal year 2025 close-out supplemental appropriations bill and a series of amendments, many of which were withdrawn, adopted, or rejected. Early debate focused heavily on funding for the 2026 FIFA World Cup in Massachusetts, with Senators O’Connor and Feeney arguing for restoring money for transportation, safety, and event readiness, citing projected ridership surges, economic benefits, and the need for Boston and the Commonwealth to invest. Senator Driscoll also won adoption of an amendment directing the MBTA to study and report on its local assessment formula, using Milton and Quincy as examples of perceived inequities in how communities are charged relative to service received. The Senate then took up several other amendments, including measures on fire survivor support, vaccine liability, mental health and sidewalk projects, council on aging and public safety items, disaster relief, service dogs, and MBTA assessments. Senator Tarr offered amendments on driver record transparency and energy cost reporting, but those were not adopted. A major roll-call vote rejected Tarr’s amendment to restore a larger share of excess capital gains to the stabilization fund; supporters argued for stronger rainy day reserves, while the Ways and Means chair defended the bill’s use of a deficiency reserve fund and warned of revenue losses from federal tax changes. The Senate also adopted an amendment on shelter and Home Base spending transparency, requiring renewed reporting on emergency shelter and housing assistance programs. Later, the chamber adopted Senator Edwards’ amendment creating a Massachusetts Federal Employee and Service Member Civil Relief Act to protect federal workers and service members in the event of a shutdown, including relief from eviction and foreclosure-related harms. The Senate also adopted Senator Rodrigues’s Ways and Means amendment, then approved the underlying supplemental budget as amended and ordered it to third reading. After the final roll call, the bill was passed to be engrossed by a 39-0 vote. The Senate concluded by agreeing to adjourn and by honoring Mrs. Anne Lee in memory, with a brief communication from Senator Cyr noting a prior remote-vote error for the journal.

Transcript Highlights:

• this recently is in 2024, you passed a bill that limited our long-term debt in our severance tax bonding
• General Obligation Bond Package.
• We're going to sell bonds to pay for this project, which is, in my view, just tiny considering all the
• Just for a severance tax bond and general fund.
• That should be on our airport, should be all over our highways And we should be advertising that every

Bills: HB1

Committee: Senate Senate Finance

Transcript Highlights:

• We also in August have some large bond payments and other things that also, and the payouts to cities
• </c><00:41:05.040><c> I</c><00:41:05.080><c> mean,</c> needs across our highway system.
• I mean, needs across our highway system.
• </c> Uh in the two uh 2026 enacted highway Uh in the two uh 2026 enacted highway plan,<00:48:42.040><
• And that program provides funding for 36 projects spread across all 12 highway districts.

Summary: The Budget Review Subcommittee on Transportation met for its first meeting and received an overview from Transportation Cabinet officials on the governor’s executive order responding to high gas prices. Deputy Secretary Mike Hancock and budget director Shawn McKiernan explained that the order declared a state of emergency, reduced the state motor fuels tax by 10 cents per gallon, froze the tax rate for FY27, and urged Congress to suspend the federal gas tax. They said the emergency regulation would remain in effect until the war in Iran ends or Kentucky gas prices fall below $3 per gallon, and that any transportation budget shortfalls could be covered by the state budget reserve trust fund if requested later by the governor. McKiernan estimated the 10-cent reduction would reduce the road fund by about $26.8 million per month, with roughly 44% flowing to county road aid, rural secondary, and municipal road aid. He said the immediate impact to counties and cities would be about $11.8 million for one month, while the cabinet would see about $15 million per month less available for its own use. He also said the freeze on the FY27 motor fuels tax rate would prevent a scheduled increase and, compared with the budget assumption, would produce about $42 million in net additional revenue, split between local governments and the cabinet. He added that if the reduction lasted through December, the major transportation programs could be down about 16.9% from budgeted levels. Members focused on the effect on local governments, the road fund, and the cabinet’s cash management process. Several senators and representatives criticized the executive order as short-sighted or political, while others emphasized the need for a long-term solution to transportation funding. Questions were raised about how make-whole payments to counties and cities would be handled, how the cabinet manages cash flow, and whether the state should continue relying on general fund transfers to support the road plan. Cabinet officials said they would work with lawmakers, explained that project authorizations are managed based on cash flow and seasonal spending patterns, and noted that construction and maintenance costs have risen sharply, making revenue adequacy a continuing concern.

Transcript Highlights:

• valiant veterans of the Korean War, which my uncle was one of them, and to celebrate the enduring bond
• The Korean War in particular forged a lasting bond between the United States and the Republic of Korea
• The bond endures today as a strong alliance and economic partnership grounded in shared endures today
• Diana Webb, a longtime resident of the Pacific Coast Highway community, who will be missed dearly by

Summary: The Senate convened with a quorum, approved the journal, and took up Senate Concurrent Resolution 106 by Senator Choi, which designates January 13, 2026 as Korean American Day in California. Senator Choi and many members spoke in support, highlighting the history of Korean immigration, the contributions of Korean Americans in business, public service, culture, education, health care, and civic life, and the significance of Korean American communities across the state. Several members also shared personal and district-specific examples, including Koreatown, the Korean Friendship Bell, Pachappa Camp in Riverside, and Korean American organizations and businesses affected by the recent wildfires. The resolution was adopted on a 38-0 roll call vote. After the vote, Senator Choi introduced Korean American guests visiting the chamber, including the Consul General of Korea in San Francisco and other community leaders. The Senate then returned to motions and committee announcements, including notices that the Energy, Utilities and Communications Committee and the Human Services Committee would meet after adjournment. Senator Smallwood-Cuevas also requested that SB 626 be removed from the inactive file and returned to the Assembly for amendments. The remainder of the session was devoted largely to adjournment memorials. Senator Umberg honored Monica Lynn Martinez-Hays, a longtime legislative staffer and artist. Senators Pérez and Allen jointly memorialized the 19 people who died in the January 2025 Palisades and Eaton fires, describing the devastation, the community’s recovery, and the names and lives of many victims. Senator Menjivar also asked for adjournment in memory of Marine Corps Sergeant Adrian Carrillo, who died in a December traffic collision. The Senate announced its next floor session for Friday, January 16 at 9 a.m. and then recessed.

Transcript Highlights:

• In recent times, we've seen increases in certain counties of, for example, 73% for highway stripers,
• In total, the net spending change is $611,000 in additional bonds and an additional $3 million in spending
• In total, the net spending change is $611,000 in additional bonds and an additional $3 million in spending

Summary: The committee first heard Substitute Senate Bill 5901, which would change the School Construction Assistance Program formula for school facilities on military bases. Staff explained that the bill would exclude instructional space on military bases from a district’s available inventory and add an extra 15% to the state funding assistance percentage for projects located on a military base. Senator Leonard Christian said the bill was intended to help districts such as Clover Park and Medical Lake, where base facilities reduce eligibility for off-base school construction funding. Testimony was strongly supportive from OSPI, Clover Park, and Medical Lake, while one citizen raised broader concerns about school funding and common school trust lands. The hearing on the bill was then closed. The committee then heard Engrossed Second Substitute Senate Bill 5061, which would require annual adjustments to prevailing wage rates in most public works contracts, with exemptions for small works, residential construction, and certain other projects. Staff described the bill’s delayed effective date of July 1, 2028 and reviewed fiscal impacts, including significant L&I operating costs and an indeterminate but potentially substantial capital cost impact. Senator Steve Conway said the bill was a technical fix to align contract wages with regularly updated prevailing wage rates and noted that the bill had been amended to exempt small works and low-income housing projects. Proponents from labor and mechanical contractors said annual updates would better reflect negotiated wage schedules and help retain skilled workers, while opponents from contractor groups warned of unpredictability, higher project costs, and the need for a change-order safeguard if wage increases exceed 5%. L&I testified that the fiscal note reflected the need to rework its IT system to track annual adjustments. The hearing was then closed. The committee also received a briefing on a proposed substitute to House Bill 2295, which would add funding for several new projects and make technical and language changes. Staff said the substitute would increase spending by $611,000 in bonds and $3 million from the Waste Tire Removal Account. The committee then moved into executive session and, by a vote of 18-0 with one excused, reported proposed substitute House Bill 2295 out of committee with a do-pass recommendation. The chair also announced plans for future executive sessions, including one on Substitute Senate Bill 5901, and adjourned the meeting.

Transcript Highlights:

• ends in this image, but we've actually had experiences where the line goes even further into the highway
• Additionally, the bill lowers the population threshold of a county that must be met to approve an IDA for bond
• It's going to reduce taxes and change the bonding rates.

Bills: HB2113 , HB2237 , HB2824 , HB2926 , HB2939 , HB2950

Committee: House Rural Economic Development

Transcript Highlights:

• Development, HB 1519 by Schofield, willing to the election date for the authorization of the issues of the bonds
• relating to the authority and local authority to install a temporary traffic control device on certain highways
• by Canales relating to a special bill to review of reform a final judgment of forfeiture of a bail bond

Transcript Highlights:

• So, for example, is there any limitation that this cannot be used for a 50-mile-long highway?
• So, for example, is there any limitation that this cannot be used for a 50-mile-long highway?
• Their bridges, their roads, their highways, that's what you're really seeing.
• Their bridges, their roads, their highways, that's what you're really seeing.
• fantastic bill and another step in an effort that you've been running point on, including on the climate bond

Summary: The committee heard and advanced a series of natural resources and climate-related bills. AB 70 would codify a definition of pyrolysis and allow procurement credit for projects using organic waste to generate pipeline biomethane; supporters said it would help divert organic waste from landfills, reduce methane, and support energy reliability. AB 30 would authorize E15 fuel sales in California, with supporters arguing it could lower consumer fuel costs and emissions, while opponents from boating and marine groups raised concerns about engine damage and the need for clear labeling and continued E10 availability. AB 66 would create a CEQA exemption for emergency evacuation routes in high fire-risk areas; supporters emphasized wildfire evacuation safety, while some members worried the bill lacked sufficient guardrails and environmental review. AB 399 would let the Coastal Commission consider blue carbon sequestration in coastal permitting and authorize blue carbon demonstration projects; environmental groups supported it, while business groups objected to new costs and regulatory uncertainty. AB 491 would codify California’s nature-based solutions climate targets for lands and wetlands, with supporters citing climate and adaptation benefits and the Farm Bureau opposing statutory targets. AB 580 would extend Metropolitan Water District authority related to the Colorado River Aqueduct, and AB 43 would make permanent state authority to protect federally designated wild and scenic rivers if federal protections are weakened. The committee also considered AB 436 to streamline siting and permitting of composting facilities and AB 539 to streamline certain Coastal Act procedures and reporting. Most measures received due-pass recommendations and were reported out on roll calls, with several bills also moving on consent; AB 404 was pulled at the author’s request.

Transcript Highlights:

• to pass with amendments, amend the transfer of funds for Central Services expenses from only the highway
• Central Services expenses from only for Central Services expenses from only the<00:11:05.680><c> highway
• fund</c><00:11:06.360><c> airport</c><00:11:06.800><c> Revenue</c><00:11:07.279><c> fund</c> the highway
• fund airport Revenue fund the highway fund airport Revenue fund and<00:11:07.600><c> harbor</c><00:11
• Insert language allowing contributors to bond fund their initial payments into the trust fund via securitization

Committee: Senate Ways and Means

Summary: The joint Ways and Means and Judiciary committee met in decision-making mode and took up a long list of measures, mostly recommending passage with or without amendments. Early actions included S.B. 414, which was amended to blank the appropriation, draw funds from the major disaster fund, and change the effective date to 2050, and S.B. 223, which would require fire breaks in hazardous fire areas and create or expand wildland fire prevention and protection programs with blank appropriations for FY 2026 and 2027. The committee also advanced S.B. 1009 on state reserve parking space enforcement, S.B. 1149 on reported hate crime definitions and reporting, S.B. 402 on mooring-line requirements for certain vessels, S.B. 1441 on the Oahu regional health care system transfer, S.B. 1442 on child and adolescent mental health responsibilities, S.B. 1478 on harbor evacuation orders, and S.B. 493 on written notice for emotional support animal sales or verifications. Members generally raised little opposition, and most measures were adopted without reservations. Some bills drew brief discussion or committee-report notes, including S.B. 1149, which referenced a Hawaii Civil Rights Commission report encouraging policy-level hate crime data reporting, and S.B. 1442, which was amended with a far-future effective date and a committee-report note about whether mental health services should be expressly subject to funding. S.B. 1441 was substantially revised to require a memorandum of agreement between the Oahu Regional Health Care System and the Department of Health by November 30, 2025, with patient care to begin by December 31, 2025, and a report to the legislature before the 2026 session. The committee also considered several finance and energy-related measures. S.B. 897 on the wildfire liability trust fund prompted questions about whether costs would be passed to consumers; the response was that the proposal contemplated cost sharing and that some amounts were still blank. S.B. 1395 and S.B. 1396 were amended to remove special-fund structures, direct revenues into the general fund, and require the governor to include equivalent amounts in the executive budget for climate-related projects. S.B. 501 was amended to expand step-in agreement provisions for future PPAs and establish a fund outside the State Treasury, and S.B. 1589 was amended so private donations to the stadium authority would go into the NID special fund for stadium infrastructure and sod, with members discussing accountability and the source of stadium-related consultant spending. The committee adopted the recommendations on all measures considered, with some members noting reservations on a few bills, and one item, S.B. 1418, was deferred.

Transcript Highlights:

• But because we are thinking about a survey by industry and highway, because the minimum wage will impact
• ><00:42:51.440><c> because</c><00:42:51.800><c> the</c><00:42:52.160><c> minimum</c> industry and Highway
• because the minimum industry and Highway because the minimum wage<00:42:53.040><c> will</c><00:42:53.440
• We are going to blank out the GO Bond appropriation amount.
• </c> we are going to blank out the go Bond we are going to blank out the go Bond appropriation<01:12:

Committee: Senate Economic Development and Tourism

Summary: The Senate Committee on Economic Development and Tourism heard testimony on several bills, with much of the discussion focused on Enterprise Zones and related economic development measures. On SB 125, the committee heard support from DBEDT, the Department of Taxation, the Tax Foundation of Hawaiʻi, the Hawaiʻi Farm Bureau, and the Farmers Union. Members questioned how the bill would affect job-creation requirements and learned that existing companies and new companies are treated differently under the program, with existing companies generally subject to a 15% annual employment increase and new companies to a 10% increase, while the bill would extend the program period from seven to nine years. DBEDT also said the program has been effective, citing 1,162 jobs created or maintained at a cost of about $1.2 million, and noted that agriculture, manufacturing, and wholesaling are the main sectors involved. The committee then took up SB 729, also relating to Enterprise Zones, which would expand eligibility to better accommodate local manufacturers and value-added businesses that sell directly to retail rather than only wholesale. Testifiers from the Holua Collaborative and Hawaiʻi Farm Bureau supported the measure, saying it would help small manufacturers and agricultural producers add value and adapt to internet-era sales patterns. A committee discussion clarified that the bill would add value-added processing as an allowable activity within the zones, and DBEDT explained that the current rules were written for a wholesale-dominated market. The Attorney General’s office also testified, raising a supremacy clause concern and recommending language changes to avoid conflict with federal law. On SB 129, relating to labeling requirements for fish, the Attorney General and the Department of Agriculture both raised concerns about federal preemption and enforcement. The AG explained that federal law governs fish labeling but includes an exception for processed fish, and recommended narrowing the bill to processed fish and defining that term to fit the federal carve-out. The Hawaii Longline Association supported the bill but suggested excluding canned tuna while including products such as poke, sashimi, and sushi. The Department of Agriculture said it does not currently enforce this kind of labeling requirement and would need to determine whether another agency should handle enforcement. The committee also heard SB 581, which would establish an aerospace and aeronautics development program within DBEDT. Testimony was generally supportive, but members pressed for a fiscal estimate, and the bill’s sponsor said a prior version of the office had operated on about $400,000 annually with a small staff. No votes or final committee actions were taken during the portion of the hearing provided.

Transcript Highlights:

• And doesn't this federal gas tax go to our interstates and highways?
• funding is 814 million with another 620 million in federal highway funds for a total of 1.5 billion.
• to get rid of the collection of federal gas tax, we would have a 133% more than 100% whole in our highway
• But under the definition of critical infrastructure, we have things like roads, highways, bridges, data
• The timelines were generally, but they can always request a bond hearing.

Bills: HJR1088 , HJR1090 , HJR1091 , HB1370 , SB2154 , HJR1092 , HJR1093 , HJR1095 , HJR1099 , HJR1100 , HB3021 , SB893 , SB206 , SB248 , SB259 , SB423 , SB563 , SB604 , SB633 , HJR1077 , SB667 , SB1224 , SB1257 , SB1264 , SB1319 , SB1360 , SB1437 , SB1531 , SB1543 , SB1806 , HB3004 , SB1572 , HB4342 , SB1618 , SB2 , SB237 , SB1632 , SB1687 , SB1726 , SB1859 , SB1894 , SB1461 , HB4432 , SB1948 , SB1589 , SJR52 , SR46 , HCR1030 , SB2071 , SB2182 , SB1451 , HJR1088 , HJR1090 , HJR1091 , HJR1092 , HJR1093 , HJR1095 , HJR1096 , HJR1099 , HJR1100 , SB2185 , SB893 , HB3021 , SR46 , SB206 , SB237 , SB248 , SB259 , SB423 , SB563 , SB604 , SB625 , SB633 , SB667 , SB1224 , SB1257 , SB1264 , SB1319 , SB1360 , SB1378 , SB1437 , SB1531 , SB1543 , SB1572 , SB1618 , SB1632 , SB1687 , SB1726 , SB1806 , SB1859 , SB1894 , SB1948 , SB2071 , SJR52 , HB1370 , HJR1077 , SB2 , SB1451 , SB2182 , HCR1030