House Standing Committee on Culture & Arts

Good morning everyone.

We are. Oh, I sound very loud. We are gaveling in for our 9:30am. Hold on. Technical difficulty while we figure out the echo. Test.

Okay, we're going to recess to fix the technical difficulty.

Good morning everyone. Second try. We're gaveling in for our 9:30am hearing. Today is Wednesday, February 12th and we are in Conference Room 309. This is the Committee on Culture and Arts. We have two things on the agenda and then decision making for a bill that we previously heard. We're going to.

We will be implementing a two minute time limit per testifier. And if you are on Zoom, please keep your chat function. The chat function is for technical staff only so please use the chat for technical issues only. Please keep yourself muted and let's get right into it.

So up first we're hearing HB547HD1 relating to the spaying and neutering of animals, establishes the Spay and neuter special fund to reduce pet overpopulation and the reproduction of free roaming cats and various revenue and funding sources for the special fund. It also appropriates funds. Up first we have Gary Suganuma, Department of Taxation.

Aloha Chair, Vice Chair and Committee Member Garrison Kurth on behalf of Department of Taxation. The Department will stand on its written comments specifically that we can implement this bill as far as the checkoff option on the tax returns for one of the sources of funding.

Fantastic. Thank you so much for your testimony. Thanks for being here. Up next we have Ian Robertson, Department of the Attorney General. Sorry, not Department.

Good morning. Ian Robertson, Deputy Attorney General. We submitted testimony issue offering comments that the language of the bill places a special Fund with BNF. But but it's in the chapter that relates to Department of Agriculture and we've suggested some amendments to clarify depending on which is the intended Department. Thank you. I'm available for questions.

Thank you so much. Thanks for being here. Up next we have Director Salivaria, Department of Budget and Finance with comments in person.

Good morning Chair, Vice Chair Representative Louis Silveira, Director of Finance. I'm standing on our comments but I just want to say highlight. I am a strong supporter of animal rights as well as what what this bill is trying to accomplish.

I think what Stephanie does and what the Humane Society does is, is absolutely important especially for our communities. You know, our comments really is just whether or not budget and finance is the most appropriate department to handle this very important initiative going forward. Thank you.

Thank you. I did see that in your testimony. Thanks for your for your comments. We also have DLNR with Comments via zoom. Oh, in person. Thank you so much. And we also have a testifier via zoom. Vivian Tolner in support and a Patty K. Okay. We have the Hawaii Humane Society in person in support.

Aloha Chair Capella Vice Chair Kong and Representative Garrett Stephanie Kendrick with the Hawaiian Humane Society. We are strongly in support of this measure. The need for spay neuter services statewide is critical and we are agnostic in terms of which state agency might host this. The advisory board that'll decide the expenditures of these funds.

We just want to make sure that the funding is spread to the greatest needs statewide, which doesn't necessarily correlate to the greatest population statewide as our, our neighbor islands have some intense need for spay neuter services as well. So that's why we'd love to see a state agency kind of take this kulana on.

We, we aren't partial to one over the other. We understand budget and finances concerns, but we really urge the Committee to support this measure for the prevention of animal suffering and reduction of the harms to our wildlife by the free mountain cat population. Thank you so much for your time.

Thank you so much for being here. Thanks for your testimony. We also have Tax foundation of Hawaii with comments via Zoom.

Yes, Good morning, Chair and Members of the Committee, this is Jade Mcmillan. On behalf of Tomio Machika for the SAC foundation of Hawaii, we've submitted some comments on the measure.

I'll just mention one of the points of our commentary which indicates that at least two of the criteria set by the Legislator for establishing a special fund are violated because there are no nexus between the purpose of the bill, which is reducing feral population, and the source of revenue which will be the income tax check off and license late fees.

Thank you very much.

Thank you so much. We also have, we have about 26 testimonies in support, one in opposition and five comments. I will note that we also have testimony from neighborhood cats and the Humane Society of the United States Cat Friends and the Big Island Invasive Species Council. Is there anyone else wishing to testify on this measure? Okay.

Seeing none. Members, are there any comments or questions? Okay, I do have one question. Maybe. I'm not sure exactly who to ask this question of. It's relating to. It's relating to the specialty license plates potentially. Maybe. Director. I don't know. I'm sorry. I'll try. Okay.

Chair, in the bill it talks about a fee being added on to specialty license plates. I'm not sure if that means all specialty license plates or if there's a Specific specialty license plate or if this is creating a specialty license plate.

It's my understanding, based on what, Based upon how I read the bill, that this would create a specialty license plate for the spay and neutering population. And so the pro of that particular special license plate. Okay.

Not added onto all.

Not added on to all.

Okay, perfect. Thank you so much. Okay. That's the only question that I had. We're going to move on and I also want to thank the introducer and the many advocates who are in support of protecting animals across the state.

We are going to move on to HB 925 HD1 relating to arts. Requires the comptroller to establish a separate arts fees account within the Works of Special Art Fund to be funded by 1% of ticket sales from concerts held at state venues.

First up, we have testimony and support from Director Ewald, State Foundation on Culture and the Arts.

Good morning, Chair, Vice Chair, members of the committee. Karen Ewald, the Executive Director of the State Foundation on Culture and the Arts. And we stand on our testimony in support.

Thank you so much, director. We also have Ian Robertson, Deputy Attorney General with comments.

Deputy Attorney General, Ian Robertson. We submitted comments suggesting including the term definition for the term concerts just to provide clarity over the application of the fee. Thank you. Available for questions.

Thank you so much for your testimony. We also have Director Salaveria from the Department of Budget and Finance. Thank you so much. Thank you for your testimony and for being here. That's all I had on my testifiers list. Is there anyone else wishing to testify on this measure? Okay. Seeing none. Members, are there any questions?

Okay, I have a question for Director Ewald.

Ready.

So the. The genesis of this bill is to be able to provide and find new funding sources for. For arts across our state. Can you elaborate if there are other states that do something similar to this and then a follow up to that?

What other options are states doing relating to finding creative ways to fund arts and performing arts?

Yeah, thank you. I can get that list to you. I just actually had a conversation with National Assembly of State Agencies yesterday to kind of go down the list of what states do for their dedicated funding sources. The majority of them do have that.

We talked a lot about just the cost benefit analysis of what we need to do of tax mechanisms and dedicated fees. Yes, some states do from big. From big concerts with big population concert fees. They do take that for the dedicated funding source.

Other states do CIP bond funding as well, and also cultural trusts, which we're really interested in pursuing. That kind of understanding of maybe being able to do that in Hawaii and also hotel lodging tax, that's also a big one. So I can get that list to you too because it's really extensive.

And I'm going to start reaching out to the colleagues in the continent to discuss.

Fantastic. Thank you, director. Members, any further questions?

Seeing none, we're going to recess.

We are reconvening our 9:30am hearing for the Committee on Culture and the Arts for the purposes of decision making. We're going to go straight into it, starting with HB 547 HD1, relating to the spay and neutering of animals. I will note that there are some concerns with the bill based on the testimony from Budget and Finance and the AGs.

But I feel that those concerns are really around the finance components of the bill, specifically the special fund and who the appropriate department is to house the special fund and lead that advisory committee. But we're going to toss this to Finance because they make the big bucks around the money. So I'd also like to note that.

I'd like to note those concerns in the Committee report and allow the Finance Committee to be able to address it since that is their area of expertise. I recommend we do move this forward with technical amendments only for clarity, consistency, and style. And then I will also note that the bill already contains a defective date. Members, are there any questions, comments, or concerns? Seeing none. Vice Chair for the vote.

Voting on HB 547 HD 1 with amendments. The Chair and Vice Chair vote aye. [Roll Call] Your recommendation is adopted.

Thank you so much, Members. Moving on to HB 925 HD 1, relating to arts. I recommend that we pass this measure with amendments. We're going to be adding a preamble to better explain the purpose of this measure, which is to expand access to vital arts and culture opportunities and education across the state. Since the intention of this bill is to establish a 1% fee on the revenues collected from concerts held at state owned venues, we will be establishing a Performing Arts Special Fund as the collection mechanism.

We will be moving, removing the reference to the Works of Art Special Fund and instead inserting new language to establish within the State Treasury a Performing Arts Special Fund. We will also be adding in a definition to define the word concerts. And then finally we will be adding a defective date of July 1, 3000. Members, any questions, comments, or concerns? Okay, seeing none. Vice Chair for the vote.

Voting on HB 925 HD 1 with amendments, with excuse of Representative Reyes Oda. Any noes? Any with reservations? Recommendation is adopted.

Thank you, Members. Finally, moving on to our last measure, HB 1378, relating to the State Foundation on Culture and the Arts. Based on the AG's testimony, I recommend that we pass this measure with amendments. We're going to be deleting Section 5, found on page five, line 15 through page seven, line four.

And we are going to be establishing within the State Treasury a, once again, the Performing Arts Special Fund. And the revenues from the special fund will consist of appropriations made by the Legislature, revenues charged by the foundation, charged by the foundation, surcharges, grants, gifts, and interest on monies deposited in the special fund.

The special fund shall be used for the coordination, planning, promotion, marketing, and execution of performing arts events. We will also be adding a definition for performing arts and outlining granting standards. Finally, we're going to be blanking out the appropriations and noting that proposed sum in the Committee report. And once again, finally, adding a defective date of July 1, 3000. Members, are there any questions, comments, or concerns? Okay, seeing none. Vice Chair for the vote.

Voting on HB 1378 with amendments. Are there any noes or with reservations? Seeing none. Recommendation is adopted.

Thank you so much, Members. We are adjourned.