House Standing Committee on Economic Development & Technology

Welcome to the Committee on Economic Development and Technology. We are here on Friday, February 7th, 2025 at 10:03, and we are at conference room 423. Before we go to the top of the agenda, I want to read out some guidelines, especially for those on Zoom.

If you are disconnected unexpectedly, you may attempt to rejoin the meeting. If discontinued while presenting testimony, you may be allowed to continue if time permits. Please note that the House is not responsible for any bad Internet connections on the testifier's end.

In the event of a network failure, it may be necessary to reschedule the hearing or schedule a meeting for decision making. In that case, an appropriate notice will be posted. Please avoid using any trademarked or copyrighted images. And for everybody here, let's definitely have a civil hearing and try to do good for our state.

Moving on to our top of the agenda item HB 1405. Our first testifier is going to be from DBED in support. Thank you. Moving on to our next testifier on Zoom, Hawaii Food Industry Association in support. Moving on to our next testifier in Zoom, we have NFIB.

Aloha Chair Committee Members Mike Iosua. On behalf of NFIB, we stand in support. Thank you.

Thank you. Not in Zoom, in person. We also have in person the Chamber of Commerce of Hawaii in support. Standing your testimony, thank you. Moving on to the per. To our next in person, Housing Hawaii's Future. Okay. Moving on to Hawaii Housing Finance and Development Corporation in support in person. Stand in support.

Moving on to Public Utilities Commission in person in support.

Chair and Vice Chair. Members of the committee. Leo Asuncion, chair of the PUC. We stand on the written testimony in support.

Stand under written testimony in support. Moving on to Zoom. Again, Hawaii Food Industry Association. Actually, we're good now for those who wish to testify. We have 16 testimony in support, zero in opposition and zero comments. Is there anybody else in the room wishing to testify? Anyone on Zoom? With no comments and question.

Any committee members wishing to make any comments, questions? All right, let's move on to our next item. HB 1406. We have Hawaii Housing Finance and Development Corporation in support. Thank you. We have DBED in support. Thank you. We have Public Utilities Commission in support. Thank you. We have in Zoom Hawaii Food Industry Association.

Thank you, Chair. We'll stand on our testimony and strong support. Mahalo for introducing.

Thank you. Moving on to NFIB in person.

Chair Mike Iosua. On behalf of NFIB, we'll stand in support.

Thank you. Moving on to our next testifier in person, the Chamber of Commerce Hawaii. Thank you. Housing Hawaii's Future in person. All right, we have for HB 1406, 16 testimonies and support and zero in opposition. Is there any other testifiers in person? Any in Zoom? With no testimony person in Zoom.

Any members and committee with questions and comments? No questions and comments. We're moving on to our next bill, HB 1407. We have in person Hawaii Food Industry Association in support.

Thank you, Chair. We'll stand on our testimony and support. Mahalo.

Thank you. Moving on to NFIB in support. Thank you. Moving on to the Chamber of Commerce of Hawaii in support.

Chair, Vice Chair, Members of the Committee, thank you so much for introducing this bill. I really appreciate it. We launched a 2030 blueprint for Hawaii, an economic action plan and identified how it's challenging for small businesses. Obviously I think it's no surprise we continue to be one of the worst in the nation to do business.

But there's it also identified an opportunity and that is to sell support an entrepreneurial ecosystem. So we really appreciate you supporting chambers of commerce, especially the neighbor island chambers, who are the local chambers, tend to be smaller and really represent most of the small businesses.

So we believe this grant program will definitely help our small local chambers in providing the services to support our local small business communities. Thank you.

Thank you, Chair Menor. In support by the Chamber of Commerce. Moving on to Zoom. Kapolei Chamber of Commerce in support.

Aloha Chair. Vice Chair. Kiran Polk, CEO of the Kapolei Chamber of Commerce. And we stand in strong support of this measure. And I would also like to add and emphasize the comments that my colleague Sherry just mentioned about the smaller chambers.

We are a regional chamber in the fastest growing region in the state and the small businesses in our region certainly need the support and we just appreciate the opportunity to, you know, limited on resources and funding as a regional chamber independent and we just see this as a great opportunity to help our small businesses in our in the West Oahu region grow.

And we mahalo you for the for the the measure being introduced.

Thank you. Is there any other testifiers in person wishing to testify? Please proceed. DBED with comments.

Hello. Our position was to support the intent. Sorry if you didn't get a copy of it. We thought we submitted our testimony.

Thank you. And please state your name.

Dane Wicker, Deputy Director of DBED.

Thank you, Dane. Any others? Any in Zoom? With no testifiers wishing to testify in person and in Zoom, is there any questions or comments from committee members? None at this time. That's the end of our agenda. We will take a short recess. Recess. Welcome back.

We are back from recess and it is time for us to make some decisions. And at this time we are on the top of the agenda.

HB 1405 so the chair's recommendation is going to be an HD1 and our first amendment is going to add an additional requirement that could be approved not just by two state permits to go through this process, but also those who have one state permit and one county permit can request the DBED Director to initiate this process.

This will open up more opportunities to go through this process and it doesn't just limit two state permits to go through this streamlined process under dbed. The second is we're going to add a reporting schedule every year from DBED to the Legislature to share the status of the program and any recommendations for improvements.

We also looked over the testimony from DBED and we do understand we need positions into this bill. So we are going to add in one full time position and a total of appropriation of 125k and we're going to add that into the Committee notes. We will blank out the FTE and also blank out the appropriation.

We're also going to defect the date to 7-1-3000 and that's the recommendation of the chair. Any Members of the Committee wishing to make any comments? Questions? All right, Vice Chair, please take the vote.

Okay. HB 1405 Chair's recommendations to pass with amendments. [Roll Call] Chair, your recommendation is adopted.

Thank you, Vice Chair. Moving on to the next item, HB 1406, the chair's recommendation is going to be an HD one. What we're going to do is we're going to change the Department where this task force is going to be established.

This is going to change from the Department from DBED to the house Legislature where the intergovernmental task force for permit simplification will be established. This is going to be efforts of simplifying the permitting process. We're also going to add a Member to the task force appointed by the speaker and that Member will chair the task force.

We're also going to add to the Committee notes and appropriation of 125k. And the bill already has a blank appropriation amount. We're also going to defect the date to July 1, 3000. That's the amendments. Is there any questions or comments, Committee Members? No questions. Comments? Vice Chair, could you please take the vote?

HP 1406 Chair's recommendation is to pass with amendments. [Roll Call] Chair your recommendation is adopted.

Thank you, Vice Chair. Moving on to Our last item, HB 1407 Chair's recommendation is going to be an HD1. And we're going to change the Bill from a grant process to a request for proposal process. This will make it so dvet's able to do their work on this funding.

We also are going to add amendments stating that upon approval of the funding award, there shall be a match of 1 to 5, which is 20,000. And on their award of 100,000, this match will allow chambers to fundraise and organize and have skin in the game to receive the 100,000.

And that will help push this effort of increasing entrepreneurs throughout the state. We will also add a blank appropriation amount. We're also going to defect the date to July 1st, 3000 and any technical amendments needed for clarity, consistency and style. That's the amendments. Any questions or comments, Committee Members? No comments and questions, Vice Chair.

Please take the vote.

Okay, HB 1407 recommendations to pass with amendments. Any votes in opposition? Any votes with reservations noting the excuse the absence of Representative tam. Chair, your recommendations adopted.

Thank you, Vice Chair. Thank you, Committee Members. The meeting is now adjourned.

Welcome to the Committee on Economic Development and Technology. It is Friday, February 7th, 2025 and the time is 10:22 am. We are at Conference Room 423. Before I start off with our agenda, I do want to provide some guidance for everyone. And this is mostly for those in Zoom. Bear with me. This is something I have to do.

If you are disconnected unexpectedly, you may attempt to rejoin the meeting. If disconnected while presenting testimony, you may be allowed to continue if time permits. Please note that the House is not responsible for any bad internet connections on the testifier's end.

In the event of a network failure, it may be necessary to reschedule the hearing or schedule a meeting for decision making. In that case, an appropriate notice will be posted. Please avoid using any trademark or copyrighted items. Thank you everyone. And for those who are here in person, let's be civil and have a productive meeting.

Moving on to our top of the agenda, we are now on HB 796, and our first testifier is going to be in person, the Department of Taxation, with comments.

Morning Chair, Vice Chair, Members of the Committee. Winston Wong, on behalf of Department of Taxation. The Department has submitted written comments and testimony on this Bill. Available for questions on that testimony. Thank you.

Thank you. Moving on to DBEDT, with comments.

Hello, Chair, Vice Chair, and Members Committee. My name is David Keliiholokai. I am the Incentives and Exemptions Manager. So, I manage the...Tax Credit and the R&D Tax Credits and—with DBEDT. So, we stand by written testimony. Available for additional questions.

Thank you. Moving to—can somebody please? Thank you. All right, moving on to our next testifier in person. SAG and AFTRA, Hawaii, in opposition.

Hi, good morning. My name is Mericia Palma Elmore and I'm the Executive Director of the Screen Actors Guild, an American federation of television and radio artists here in Hawaii, and we are in opposition to this. I stand on my testimony and also am available for questions. Thank you.

Thank you. Moving on to our testifier in Zoom, Hawaii Children's Action Network Speaks, in opposition.

Aloha, Chair, Vice Chair, Members to the Committee. Tax credits for working families help families afford to live here and stay here.

Can you say your name?

We are also opposed to this Bill because of the sunset or automatic cuts that it would put on tax cuts—tax credits. Thank you.

Thank you, Nicole Woo, in opposition. Moving on to Zoom, Catholic Charities Hawaii, in opposition.

Aloha. Betty Lou Larson with Catholic Charities Hawaii. Catholic Charities opposes this Bill because we feel it would create additional tax burdens on our residents. We know that people are leaving the state, and the shocking news is between 2021 and 2022, over 60,000 people left the state, and thousands leave each year.

AUW's recent report stated that 27% of all our households are worried about having to leave, and among the...population, that goes up to 41%. So, we feel these tax credits really are the ones that are used by workers, and they use it for paying off bills and for immediate need.

So, they really do need these tax credits. And if there's some that individually you don't like, discuss that one. But I think this massive overall expiration date is not appropriate for the needs of our people. So, thank you very much. And we know the Legislature is looking at this issue very strongly about how to keep people here.

So, thank you for your concern there.

Thank you. Moving on to Zoom, again, with the Tax Foundation of Hawaii, with comments.

Thank you, Chair, Vice Chair, Members of the Committee. Tom Yamachika from Tax Foundation of Hawaii. We would note that there is already a mechanism in place under HRS Chapter 23, where tax credits a reviewed on a five-year rolling basis—at least that's in theory, because new credits haven't been added to it since 2017.

But if that's cleaned up, that may accomplish the purposes of this Bill. I'd be, I'd be happy to answer any questions.

Thank you. We have zero in support with HB 796, and we have 12 in opposition, with three comments. Is there any person in the room wishing to testify with this Bill? Any in Zoom? With no other testify in person and in Zoom, Committee Members, any questions and comments?

With no questions or comments, we're going to move on to our next Bill, HB 303. We have Department of Health in person in support.

Good morning, Chair, Vice Chair, Members of. The Committee, I'm Wanda Naonishi with the Department of Health. We stand on our written testimony in support and I'm available for questions. Mahalo.

Thank you. We have the Department of Taxation with comments.

Good morning, Chair, Vice Chair, Members of the Committee. Garrison Kurth, Department of Taxation. The Department stands on its written testimony providing comments. I'm available for questions.

Thank you. University of Hawaii System in support.

Hi. Good afternoon and sorry for being on Zoom instead of in person. My name is Laura Reichhardt. I am the Director of the Hawaii State Center for Nursing and in this particular instance also representing the, UH system. The, UH system stands on its written testimony in support and is available for any questions. Thank you.

Thank you. Moving on to in person, Hawaii State Chiropractor Association in support.

Aloha, Ann Chung speaking for Dean Shivers, representing the Hawai'I State Chiropractors Association. And we were hoping if you would. Consider including chiropractor in the eligibility for the Bill. Thank you.

Thank you. Moving on to Queens Health System in support. Are they in Zoom? Moving to Zoom. Hawaii State Center for Nursing in support.

Good morning, Chair, Vice Chair, Members of the Committee. My name is Laura Reichhardt and in this instance I'm representing the Hawaii State Center for Nursing. We are one of the administrators along with the University of Hawaii Jabsom Area Health Education Center. We are very proud to have successfully implemented this program for the past five years.

We have increased capacity of our health education system over time, but we also have room to grow. And so we have been in an analysis of the programs that are currently in the Bill and the capacity within the tax credits, there's $1.5 million or which equates to 1,500 tax credits eligible annually.

We're giving around 670 tax credits annually. And so looking at the additional programs and specialties that would be included under the current, current version of the Bill, there's capacity it wouldn't, would not exceed, but then would be much more inclusive of the professions that are not currently represented. And I'm available for any questions. Thank you.

Thank you. Moving on to the next person in Zoom, the Tax foundation of Hawaii with comments.

Good morning, Chair, Vice Chair, Members of the Committee, Tom Yamachika, Tax foundation of Hawaii. We will stand our written comments and be available for questions.

Thank you. We have for HB3 303, 17 testifiers in support, 0 in opposition with 2 comments. Is there any other Members in here today wishing to testify? Any in Zoom? With no others wishing to testify and in Zoom, any comments or questions for Committee Members? With none.

Let's move on to our next item which is going to be HB 577, our first testifiers in person. Department of Taxation with comments.

Good morning again, Garrison Kurth, Department of Taxation. The Department will stand on its written testimony for writing comments. I'm available for questions.

Thank you. In Zoom, we have the retail merchants of Hawaii in support. Let's move on to the next person in Zoom. Tax foundation of Hawaii with comments.

Thank you, Chair, Vice Chair, Members of the Committee, Tom Yamachika, Tax Foundation of Hawaii. We will stand our written comments and be available for questions.

Thank you. Tom, I'm not sure if it's your end, but you're quite soft today and it might just be your mic. Just a note. Thank you.

Thanks. My equipment's kind of old.

I hear you. So is the government's. HB 5500, HB 577. We have three support testimony, zero in opposition with two comments. Is there any others wishing to testify on this item in person? Any in Zoom? With no testifier in person or in Zoom, any comments from our Committee Members or question?

Let's move on to our next Item which is HB949. The first person is going to be in support the Hawaii Housing Finance and Development Corporation. Thank you. Moving on to the Chamber of Commerce. In support, in person. Okay. Let's move on to our next item.

I mean next person which is going to be in zoom, the Tax foundation of Hawaii with comments and thank you.

Chair, Vice Chair, Members of the Committee Tom Yamachika Tax foundation of Hawaii. Our comment is just technical and we have a proposed amendment to address it in our testimony. Be happy to answer any questions. Thank you for the opportunity to testify.

Thank you. Is there any other testifiers in the room wishing to testify?

Well, that Chair, I'm on zoom. I put my testimony in late so I guess I didn't get on the list. But I am in the packet I think.

Please proceed.

Hello Chair, Vice Chair, Members of the Committee. I'm Nicole Woo from Hawaii Children's Action Network Speaks. We also put in comments looking at this bill. There's some like really great stuff and there's also stuff that we're concerned about. I have four pages of testimony that over.

It's a good overview, summary of some of our concerns and also the stuff that we like about it. I think our number one urging to lawmakers is that we really need a better understanding of what this tax would do, tax bill would do and wouldn't do.

We support the intent of tax equity and addressing the cost of living here, but we are not sure that that's what this bill would do. We hope there's a good fiscal analysis that's provided not just to you but to the public.

So we understand what this bill does and it looks at who benefits, who pays for it and who benefits from it. Not just residents and non residents, but also lower income families, middle income families and high income families.

The most concerning part is the 50% increase in the get here in Hawaii which we know burdens lower income families, working class families the most because they spend almost every dollar of their income on items and services that are taxed by the get.

So again, a summary of a pretty long testimony and I hope you'll take a look at my comments. Thank you.

Thank you. Moving is there any others in zoom with no further testimony in person and yes. zero we do have one.

Sorry.

Proceed.

Tommy Lowmon. I'm the Director of Housing Policy for Sugar Creek Capital. We are in support of House Bill949. I do just want to make an additional comment. It does not offset the gift the get tax. So it is not the tax credit is not claimed against the get tax.

Just point of clarification but we are in support of this bill and I'm here for questions. Thank you.

Is there any others in zoom all right. Oh we do have a person in here who wish to testify. Please proceed.

Good morning chair. Vice Chair.

Thank you. Department of Taxation stands under comments. Is there any others in person wishing to testify and last call for zoom with no testimony in zoom and in person Committee members, any questions and comments with no questions or comments. Let's move on to our next Item which is HB933. We have the Department of Taxation with comments.

Thank you. Moving on to DBED with comments.

Morning Chair, Vice Chair Members of the Committee Joe Rose with the Department of Economic Development and Tourism Research and Economic Analysis Division. And we stand on our written testimony with comments and available for questions.

Thank you. Moving on to Zoom Tax Foundation of Hawaii with comments.

Thank you Chair, Vice Chair Members of the Committee Tom Yamachika Tax foundation of Hawaii. We will stand our written comments and be available for questions.

Thank you. We have testifier in person, Hawaii Food Industry Association in support.

Thank you Chair. We will stand on our testimony in strong support. Just noting that our testimony indicates multiple studies over the past several decades that indicate that taxing groceries dramatically increases food insecurity in our state. One in three individuals suffer from food insecurity on Hawaii island, it's 40%.

So we think now is the time to take bold action. We think it's planned possible to fund this measure without increasing the GET we talk about more, that more in the very long testimony, 30-page testimony I submitted on the next Bill.

But please take an opportunity to read through that and just understand that this is actually a Bill that would increase revenues as shown by other states that it would decrease food insecurity and it would just have a lot of positive effects for the state. So thank you very much.

Thank you. That's Lauren Zerbel from HFIA in support. Moving on to the Chamber of Commerce in Support. We have 6 testimony in support, 0 in opposition with 3 comments for HB 933. Any other Members in person wishing to testify? Any in Zoom? With no testifiers in Zoom and in person, is there any comments or questions from Committee Members?

No questions and comments from Committee Members. We're going to move on to our next Item, which is HB 959. Our first testifier is going to be Department of Taxation with comments.

Good morning again. Garrison Kurth, Department of Taxation. The Department submitted comments on this, mostly technical suggestions. I did want to point out we were concerned about the definitions of drug and non-prescription drugs, just maybe tightening that up to make it very clear what would be exempt and just complex Bill with lots of changes.

So we would recommend it be if passed, it be effective January 1, 2027. Thank you.

Thank you. Moving on to Ironworker Stabilization Fund in support.

Morning, Chair, Vice Chair. Thank you for the opportunity to support this measure. My name is Cody Sula with the Iron Workers Stabilization Fund, and we submitted written testimony, which we stand wholeheartedly on. I just want to highlight a couple portions of our testimony to you.

Reason why we put this Bill together and we're supporting it is this Bill represents a crucial step towards reducing the financial burden and promoting recovery and economic stability during a difficult time for Hawaii's residents.

Hawaii is one of the most expensive places to live in the United States currently and it imposes one of the highest tax burdens on low-income households in the nation.

According to the Institute on Taxation and Economic Policy, the state's lowest income households pay more than 14% of their income in state and local taxes on average, compared to just around 10% for the highest earning households.

Also, the National Low-Income Housing Coalition's Out of Reach 2023 Report reveals that a minimum wage worker in Hawaii must work almost 100 hours per week to afford a one-bedroom rental at fair market prices for two-bedroom residents, at an hourly wage about $44.60.

Because of the high cost of living, high taxes, and lack of affordable housing has resulted in a lot of local families, especially Native Hawaiians, being forced to move and leave their homes and families here, with a steady population decline since 2016.

Reason why we help support this Bill—we believe that HB 959 adopts a multi-prong approach to alleviate tax burden and enhance economic equity, by one, exempting groceries and nonprescription drugs from the General Excise Tax, or the GET, removing tax liability on the first 100,000 of individual income, 200,000 for couples, and for unemployment compensation benefits, increasing the minimum income threshold for low-income household renters, income tax credit from $50 to $500, establishing a Maui Recovery Fund. For the first three years, $100 million would go to Lahaina to help rebuild and also, incrementally increasing the GET rate, over four years, to 6%.

So, we know that tax breaks and exemptions would allow families to redirect their resources towards housing and education and critical needs, when it helps stimulate the economy through increased spending.

Although the GET increase over four years might seem counterintuitive, reason why we put that in is because we know the money got to come from somewhere, and if we're going to provide relief for the residents, we also cannot just kick the tax liability down the road for our kids and our grandkids. So, please.

HB 959 reflects a forward-thinking—a forward-thinking approach to tax policy. We believe it prioritizes fairness, affordability, and resilience, by addressing the regressive nature of Hawaii's current tax system. By reducing the cost of living and providing target relief for Maui residents, this legislation demonstrates a commitment to the wellbeing of Hawaii residents.

So, I strongly urge the Committee to support this Bill and recommend its passage to ensure a more equitable and prosperous future for the people of Hawaii. Thank you.

Thank you. Moving on to our next testifier, OPCMIA Local 630, in support.

Chair, Vice Chair, Members of the Committee. My name is Mike Yadao with OPCMIA Local 630. On behalf of Peter Iriarte who is here today, our Business Manager, and the members of Local 630, we stand in strong support of this legislation. You have our testimony in front of you, so I don't feel the need to recite it.

But I do want to highlight just a couple of things. It's very rare for us to comment on legislation that isn't directly construction related, but we feel that this is construction related. We have members that work and play and live in your districts, that are suffering. They're having great difficulty making ends meet.

They're leaving Hawaii in droves. Because they're leaving Hawaii, we're facing projected worker shortages that are quite large. We believe that this measure is a great first step in ensuring that these families can make it, that they can provide, and that they can work, play, and live.

We strongly urge you to support this legislation and we thank you for your time.

Thank you. Moving on to our next testifier, Iron Workers Stabilization Fund Local 625. We have Dwayne Bautista, in support.

Morning, Chair, Vice Chair, Members of the Committee. My name is Dwayne Bautista. I represent Hawaiian Iron workers Stabilization Fund 625, under the direction of our Managing Director, George Paris. We strongly support House Bill 959.

This Bill is critical for working families of Hawaii who are struggling under the weight of Hawaii's tax system and crushing cost of living. For too long, Hawaii tax burden has unfairly impacted those least able to afford it. Adding to the problem is Hawaii's overpriced cost of living, especially when it comes to housing.

The rising cost of groceries, utilities, and other essentials compound this issue. The result—families are moving to the mainland to find better living, cheaper living, and also jobs.

This Bill, House Bill 959, offers a balanced and much needed approach, in multiple angles, eliminating—first, eliminating the General Excise Tax essential, like groceries and nonprescription drugs, providing immediate relief to the families, remove income tax liability for the first 100,000 earned and for unemployment compensation. Third, increase the access to the Low-Income Renters Tax Credit.

And fourth, establish a Maui Recovery Special Fund to aid those impacted by the devastation of the wildfire. These measures will free up much needed resources for working families, allowing them to invest in housing, education, and other critical needs. This, in turn, will stimulate our local economy and create a more sustainable and equitable future for our Hawaii residents.

House Bill 959 addresses the core issue facing our communities and offer real solutions. I urge the Committee to support this Bill and recommend its passage. Mahalo.

Thank you. Moving on to our next testifier, we have Hawaii Apples Seed Center for Law and Economic Justice, with comment.

Good morning, Chair, Vice Chair, and Members of the Committee. Thank you for the opportunity to provide comments on this Bill. We support a lot of the provisions in here.

Please state your name.

My name is Devin Thomas. Sorry. On behalf of Hawaii Appleseed, and we, we do support the—many of the provisions in this Bill because they would help working families with the cost of living. One, one thing that I would like to point out is that it's difficult for not only analysts, but for the public to evaluate a Bill of this magnitude, when we don't have access to fiscal notes, because this state doesn't have fiscal notes for bills.

It makes it difficult for us to understand, on balance, how this is going to benefit people across the income spectrum.

So, that's just one challenge that I want to point out to folks, is that with a Bill of this length, this size, it's important, we think, for the public to understand how it affects them, and it's important for everybody who's testifying in support of this Bill, as well. That's one point that I wanted to make.

Another is that we, we appreciate the discussion around tax credits and reducing tax burden. We think it's fantastic. We would urge the Committee to keep this discussion going, and as far as we see it, the more conversation we can have about ways to help families through tax credits, the better.

Which is why I also want to, you know, humbly request that this Committee also hear the number of other tax credit bills that have been introduced this session, such as the Child Tax Credit Bill, HB 694. Yeah.

Stay on topic. Thank you.

Okay. Sorry about that. I just had to make my pitch, sorry. But, but in short, we are in support of reducing the GET burden on working families, especially those under the Alice Threshold, but we would urge caution around raising the GET, even if it's intended to, you know, sort of offset the, the funding deficit there for, for messaging reasons as well. It seems to be quite an unpopular sentiment among the public to raise it.

Thank you for the opportunity to testify.

Thank you, Devin. Moving on to our next testifier in Zoom, we have the Tax Foundation of Hawaii.

Thank you, Chair, Vice Chair, Members of the Committee. Tom Yamachika from Tax Foundation. We have submitted lots of written testimony but let me say that our main concern is with raising the GET by 50%. Many of the testifiers, thus far, have told you that Hawaii's tax system falls disproportionately on those least able to afford it.

That's called regressivity. According to a number of studies that have been cited by the people who have testified, especially that one that came out of the ITEP, the Institute of Taxation and Economic Policy, I believe, the primary reason for the disproportionality and the regressivity in our state is GET, because the GET is a regressive tax.

It is imposed on whatever people buy, whenever they buy it. It doesn't care about how much income you have or don't have; it's just imposed. And yes, the Bill, as drafted, will exempt groceries and it'll exempt nonprescription drugs, but what will remain taxable and what will have a GET increase of 50%?

You got gas, you got electricity, you got rent, you got everyday expendables like toilet paper, towels, furniture. And the cost of the tax is embedded in other products and services. So, there are going to be tradeoffs. We can't really tell what they're going to be.

But I think a major increase in the GET like this must be approached with extreme caution. We'd be happy to answer any questions. Thank you for the opportunity to testify.

Thank you. Let's move on to our next person. We have the Hawaii Building and Construction Trades Council, in support.

Good morning, Chair, Vice Chair, Members of the Committee. My name is Gino Soquena. I'm the Executive Director of the Hawaii Building and Construction Trades Council, which represents 18 construction trade unions here in Hawaii. Although we normally testify on construction and labor issues, this issue is very important to us.

It affects not only our residents of Hawaii, but our members, also. As you heard, they are leaving in droves, and we believe, and we are committed—the Hawaii Building and Construction Trades Council is committed to supporting or coming up with solutions to preventing that and helping Hawaii's residents. So, I'm available for questions.

You guys have my testimony. Might have been late, but thank you, Chair.

We received your testimony. Thank you. Moving on to the next person, Hawaii Food Industry Association, in support.

Thank you, Chair. Support with amendments. So, of course we support removing taxes on groceries and over the counter medications. That would bring Hawaii in line with the vast majority of states in the United States who have much lower tax burdens overall than our state.

So, I think it's possible to figure this out without increasing the GET by 50%. Our testimony is very long, because—actually, I'm sorry for just cutting and pasting this massive dissertation in here and I really hope you guys read it, but it's something I've been working on for a while regarding, you know, how do we stimulate economic growth and how do we pay for removing grocery taxes?

Which, if you kind of scroll down to the bottom of it, we have estimated the cost of removing taxes on groceries to be $256 million.

And that actually, sort of, you can double check the math on that because USDA actually puts out the gross, the nominal at home food expenditure, and they put that at 5.51 billion, and then if you add up basically the...Food Plan versus our population, you get to actually a pretty similar number.

So, I think this is somewhat, you know, Department of Taxation can weigh in, but I think that it's a reasonable estimate, okay?

So, then, I also did another estimate on what would be the economic generated tax, on removing the permitting delay issue, which, in my opinion, is the single largest factor increasing the prices of not only groceries, but pretty much anything else in the state.

So, if you were to do something like what Arizona, Florida, lots of parts of California do, where you do like a stopgap where you say okay, after 30 days we're approving the permit, we can do post audits, has to be submitted by licensed contractor, something like that.

And you calculate that based on the number of delays in each county, the cost of the construction, what you value the construction to be at, times the corporate tax and the GE tax, you actually get $2.14 billion in extra state tax revenue.

So, it would be a monumental increase in tax revenue if you could just get rid of the permitting delays alone. We are, you know, as the UHERO Report states, we are the worst state by a long shot. You know, we're looking at three years for a lot of these permitting delays.

So, it is a massive just drain on our state, overall. So, we think that's the better way to raise the money. And we do just want to reiterate that increasing the GET would make Hawaii—we're already the worst place to do business, everyone will leave.

It would not be possible to function as a business. With any other state with a Gross Receipts Tax, which is what this really is, it's not a sales tax. It's below 1%.

With the one exception of certain services in Washington state and most of the states that have a Gross Receipts Tax, they actually exempt out the first several million dollars of income. In Hawaii, we tax every penny.

You just can't overstate—I do a lot of modeling in this testimony about the impact for businesses with high expenses and low margins, for the GET, and you can tell, you know, Hawaii, even compared to the highest corporate tax state is head and shoulders tax, tax wise, so much worse.

I mean we're looking at like a 50% tax burden for corporations with large overhead, which is not unusual. So, that's my testimony. I'm available for comment. Thank you.

Thank you. Lauren Zirbo from HFIA. And moving on to our next testifier in Zoom, Hawaii Children's Action Network Speaks, with comments.

Aloha Chair, Vice Chair, Members of the Committee. I apologize, I did not have enough coffee today.

My prior testimony, which was 949, I got confused with, with this Bill, HB 959. So, again, my apologies. I'll just reiterate some of what I said. This is a massive Bill. It has some good and bad stuff.

We really hope that there's an analysis that looks at not just like residents versus nonresidents, but how this Bill affects low income, middle income and high-income people and that it's available to the public to look at. As other testifiers said, we're very concerned with the 50% increase in the GET, because that is so regressive, as Tom explained.

There's another part of this Bill that seems to bring in revenues, which is changes to the standard deduction for personal income taxes. It basically removes some of the future income tax cuts through the Standard Deduction, which are in Act 46 or HB 2404 from last session.

One thing to note about that is that most high income taxpayers don't even take the standard deduction because they itemize. So, it seems, again, I would love to see a big real analysis, but it seems like middle class families would be most impacted in paying the most for this section of the Bill.

So, that's just one example that I have in my testimony, trying to start sussing out what all the different sections would mean to different types of people in our state. So, again. we have comments and I hope you take a look at that. Thank you.

And that's Nicole Woo, with comments from Hawaii Children's Action Network Speaks. We also have testimony in support by Marcia Palma Elmore—Marisha—apologize Marisha.

So, thank you for hearing this Bill. And I'm here and you may know me in my professional capacity and that's why I submitted testimony as me, just a regular human. My name is Marisha Palma Elmore and I'm a mom and I've lived in Hawaii for over 20 years.

And I—the fact that the conversation is going still and has been started about the GET that we pay on groceries, etc., I am so grateful for that.

And I'm also grateful to be sitting in a room with a bunch of big minds to talk and think about how we can best, you know, do what we can to help folks like me live here.

And I was thinking, oh, do I want to testify with my professional hat or my other professional hat or my other professional hat as a Professor? And then I realized, that's part of the problem. I live in a multi-generational house with multiple jobs for all of us, just to live here.

And so, I'm hoping that this show of me as a human, and a little bit of vulnerability outside of my professional realm, will really hit hard, as far as this is affecting all of us, and whatever we can do to help alleviate the burden on all of us working families here, and what it is, is commendable.

So, thank you for hearing it and thank you for all the smart people in the room with your amendment suggestions. And I'm just, I'm grateful that we're talking about it. Thank you.

Thank you, Marisha. Moving on to Mel Kahele, in support.

Thank you, Chair, Vice Chair, Members of the Committee. You know, I was just going to stand on my written testimony, but you know, there's—going to take the gloves off.

Feel free.

I work for the Iron Workers Union Stabilization Fund. Read the article this morning from Civil Beat. All kinds of stuff in there.

We got Apple Seed Center coming out. We got a Professor from University of Hawaii. You know, pick and choosing what stuff is good, what stuff is bad. But I don't see anybody making and finding solutions to the problems that we're having—and been ongoing for years.

I got family members, I got grandkids that moved up to the mainland, cannot afford living here, couldn't rent a home, had a problem with not keeping a job, but staying employed for 12 months. They work in the construction trades. They work six, seven months. They get off the job, project ends, we got rain, they don't work.

So, they average six or seven months a year. We're not government workers. We don't get that steady eight hours. So, we struggle out there. I've been personally affected by this. My grandkids up there, with my great grandkids up there, living up in Texas, up in Seattle, Washington, just so they can make a living.

This Bill, I'm in strong support of and, and this Bill gives us so many tax breaks, right? First $100,000, you don't pay no income taxes, state income taxes. You're collecting unemployment, which many of our members do after the six, seven months of employment, they go out on unemployment.

They're being taxed, they're being taxed on the benefits that they should be enjoying. There was a study done in 2021. 67,000 of our residents here, and mostly native Hawaiians, moved up to the mainland. They left Hawaii because they were out—and priced out of paradise.

The Study also stated that we average 15,000 of our residents each year that's going to be moving up to the mainland. Why? They cannot afford living here, can't afford rent, how to buy food. I'm so fortunate that I got a job where I'm working at now that I can help them out.

I can help some of my grandkids. I can help my daughters out. Many of us out there aren't able to do that. So, we have been priced out of paradise. Many of them are the blue collar, working class, hardworking people that lives in Hawaii. I strongly urge you to pass House Bill 959. Thank you.

Thank you.

We have, we have 12 testifiers in support, two in opposition, and eight with comments for HB 959. Is there any other testifiers in person who wish to speak? Hold on. Let's start with—please say your name. I'd like to ask you a question.

Good morning, Mr. Chair, co-chairs, and Committee Members. My name is Cliff Leboy. I'm with the Ironworkers Union Local 625 Stabilization Fund. Under the direction of our Manager, T. George Perry Paris, we decided to put this Bill together. So, we went out in the community. I just want to summarize.

You heard all the stories, you heard all the complaints, you heard how bad it is out there. When we talked about the Building Trade Council supporting this, I just want to give you an idea of how much people supporting this Bill. We couldn't get them all in the room today, okay?

We're talking about the electricians, the elevators, the palasters, the insulators, the bricklayers, the plumbers, the sheet metal, Hawaii teamsters, IBEW boilermakers, painters, glazers, floor lasers, drywall, tapers, roofers, operating engineer. When you put all the numbers together and look at the families and everybody involved, you're talking about 140,000 people. We couldn't get them in here today.

We need you guys' help. People hurting out there. They're losing their homes, moving out. This Bill that we have in front of you does not just ask you to reduce the tax on certain items, it comes with a component that will work with you and show you what you need to do to make it happen.

You know, a 2% tax GET increase in four years is not a lot. I can promise you guys as we stand, and you guys sit here today, that the GE taxation Bill or percentage will go up within the next 3, 4 years. It's just how, it's just how it goes. It has to be done.

But we're taking a better approach to this. We've taken half a percent a year for four years. And if you look—if you do the numbers and you look at what's involved, it works out. You guys need to really look at this Bill very well and not just panic because there's a GET tax increase.

We understand, you talk about GET tax increase. No politicians want to go there. We understand that. But this is what we need to do. We're not worried about—we will support you guys in every way we can. If we need to bring 140,000 people here, we will do that. We need you guys to pass this Bill.

Thank you very much.

Thank you.

Good morning, Chair, Vice Chair, Members of Committee. Jason Bradshaw, Government Relations Specialist with HSTA. I just want to thank you for hearing this Bill. We believe this is going to provide vital tax relief for working families in Hawaii. We do want to emphasize a couple points with the Bill.

The first point is, as one of the previous testifiers mentioned, this will bring an additional 2 to $2.1 billion for the State of Hawaii. And this is more important than ever with the current Administration and the threats in federal funding being cut for the State of Hawaii.

And we do need to be able to find ways to bring in additional revenue for the state. The second point we want to make is that here in Hawaii, we're losing, on average, about 1200-1500 teachers every year. We need to figure out how to make it more affordable for teachers.

We need to be able to figure out how to raise the pay for teachers, and we do believe that this is one way to help make it more affordable for teachers and maybe be able to recruit and retain more of them in Hawaii. So, thank you for scheduling this important Bill and we look forward to any questions.

Thank you.

Thank you. There was also a testifier in the back and then we'll go after.

Aloha Chair, Vice Chair, and Committee Members.

My name is Patrick Coronis. I'm the President of the Mason Union Local 1, the Bricklayers Alley Craft Workers. The International Union of Bricklayers and Alley Craft Workers Local 1 is a trade union of over 700 ceramic tile and block masons.

For nearly 70 years in Hawaii, we have actively fought to improve our members' quality of life, on and off the job, through access to fair wages, good benefits, and safe working conditions. Local 1 is proud to represent its members in all matters related to the construction industry, while improving the quality of construction and protecting the public interest.

Financial Secretary, Treasurer, and Business Manager of IUBAC Local 1, Jeffrey Rinellis, who is here today and the members of IUBAC Local 1 stand in strong support of HB 959, which exempts the sale of groceries and nonprescription drugs from the General Excise Tax.

Incrementally increases the General Excise Tax. over four years, with the increased proceeds during certain fiscal years to be deposited into the General Fund and removes the state income tax on unemployment compensation insurance benefits.

The state's cost of living continues to be burdensome for its residents and in particular for our members who are hard work—or who are hard at work—doing their best to provide for themselves and for their families.

The rising cost of housing and cost of utilities, groceries, and other everyday items have also increased significantly within the last five years, making the struggle even more difficult. Eliminating the General Excise Tax on groceries and nonprescription drugs would ease the tax burden on residents and lessen the burden on our members and their families.

Thank you for the opportunity to submit testimony in support of HB 959.

Thank you. Proceed.

Aloha. Thank you very much, Chair, Vice Chair, and all the board. My name is Scotty Rees Moniz. I'm with Friends of Waimanalo. We're a nonprofit organization. We are a workforce development program. Our goal is to always train and certify our members to going into the unions, so they can be a better qualified candidate.

We want to help because we feel the industry and the unions is the only way, or one of the best ways, to be able to survive in Hawaii. I work with one of the largest employees out there, which is Hawaiian Electric. My family members are from Hawaiian Electric.

The number one thing they say out there, going on in Hawaiian Electric the last two years, is one word, exodus—everybody leaving. One of my nephews personally left and his number one comment he said was—I go, "How's things going on over there? How's things making it?" He said, "My dollar can go farther."

So, I think you guys should look at some of the things that we're trying to provide. This is one of the great solutions directly impacting our employees out here. So, we are in favor of the Bill.

Thank you. Please proceed.

Hi, good morning, Chair Greggor Ilagan, Vice Chair Ikaika Hussey, Members of the Committee. My name is Art Tolentino, but I'm going to kind of interject of my, my testimony. I'm the Business Manager, Secretary Treasurer of the Sheet Metal Workers in Hawaii, second General Vice President that represents the United States and Canada.

So, I get to, you know what, I get to have the feel of what goes on in the United States and Canada, and I just came back from an economic meeting. But, you know, hearing the other guys and gals here testifying, you know, I wanted to articulate and get a sense of what we're trying to accomplish.

So, in my mind, I feel like I'm at a cliff. I'm leaning over and I'm extending my hands and I'm trying to pull people out. Okay. So, you know, each and every one of them represent a thread that contributes to our fabric of society. And my thing right now is, I think we're in desperately—we're in need of a seamstress.

Okay. So, we need some repairing. But for me, it's more of a humanitarian effort and this Bill provides that. So, I'll continue with my testimony. I want to take this opportunity to stand before you here today in support of HB 959.

I want to specifically speak about the preservation of our people and culture. This Bill would directly—approximately—impact 750,000 Hawaii residents, representing 50% of the state's total population that earns less than $100,000 annually, which includes 245,000 of our kupuna who rely on fixed incomes. Recent surveys indicate in 2023, approximately 60,000 people left Hawaii—moved to other states.

The state's cost of living is a leading factor. Hawaii is ranked number one behind the District of Columbia, Massachusetts, and California, on the cost-of-living index. The leading factors of white people leaving Hawaii are the cost of living.

House prices in 2024—the median home prices in Hawaii exceeds 1 million, which is double the national median price. Utilities are three times the national average price. Groceries and goods are imported, driving up prices in Hawaii. Limited economic opportunities.

We experience low wages and lack of diversification, quality of life, traffic congestion, and isolation. Loss of community and culture. Identity is deeply rooted in people and traditions. There are many ways to reverse this trend. Increasing housing availability, diversify the income, improve the quality of life, provide tax relief, emphasize cultural and preservation. These come from studies.

This Bill covers two of the five—suggested solutions to reverse this trend. In summary, my motivation is to preserve our population, our culture, and to improve the quality of life for all the people of Hawaii. Thank you for your time and opportunity to present my testimony. Thank you very much.

Thank you.

Morning, Chair. Good morning, Vice Chair.

Good morning.

Thank you for this opportunity to give testimony last minute. My name is Wayne Kaivi and I serve as the Executive Director for the Masons Plasters Fraternal Association.

And as it was stated earlier, we don't usually come to these types of hearings, but because our membership is affected by, by these types of bills, I strongly support, and I hope that you guys will support, too, for the reasons that you've heard earlier.

I don't need to go over it, but we all know the situations that happens here in Hawaii. I live out in the Kapolei area in Ho'opili, and there's the biggest population there, in Ho'opili, is native Hawaiian, in Kapolei today. And those people out there are affected by these types of bills.

And I just wanted to urge you guys to support.

Apologize for interrupting you for a moment. It's 11:15 and we have 15 more minutes till 11:30. I want to let everyone know, because morning hearings must adjourn prior to floor session, not all testifiers may have the opportunity to testify, and in that event, please know that your written testimony will be considered by the Committee.

I want to make sure you finish, Wayne. But I just want to let everyone know that we'll be cutting off testimony and moving on to making decisions on these bills at 11:30. Wayne, proceed.

I just want to summarize, sir. I just wanted to encourage you guys to support this. Thank you.

Thank you. Is there any others wishing to testify on HB 959? Any in Zoom? With no testifiers in person and Zoom, we're going to move on to the next—actually, before we move on to the next item, is there any questions?

I have some questions, if I may.

Yes, of course.

Well, just wanted to say real quick, thank you very much to everyone who came today to testify, including Uncle George, who just left the room. But I wanted to ask—I guess I wanted to say that I believe that this Bill might be the most important Bill of this entire session.

Because what we're looking at from the Federal Government is massive cuts to our basic safety net, like for instance, just one item is a cut of maybe a $1.5 billion out of Medicaid, which is health care for our most disenfranchised individuals.

So, I mean, this conversation around revenue and how do we take care of our people, I think is the most important question for this legislative session. And I do think that this Bill deserves, it deserves a lot of attention and a lot of work and there's some great testimony.

I wanted to ask for the individuals from Appleseed or HCAN Speaks, how much time do you think that you would need in order to prepare the economic models for a really full analysis?

I believe they're outside. They'll be coming in.

We can circle back to it, but I know we're running really short on time.

Hi there, Rep. Hussey. Sorry about that. Hawaii Appleseed and Hawaii Children's Action Network Speaks works with the Institute on Taxation and Economic Policy, which is actually cited in part one of this Bill. They help a lot of different states during legislative session, and this is a massive Bill.

And so, we actually have put in a request to them, but they are not—they have not been able to tell us how long it would take to do a good analysis of the costs and benefits for different types of residents here in Hawaii. Sorry, I don't have a clearer answer.

Okay. Well, we do have deadlines. Yeah. So, today's, you know, this is legislative day 15. It's a 60-day session. We have 45 more days to figure this out, but I think we can get it done. Thank you all very much.

Thank you. Any other committee members? With no questions and comments, we're going to move on to HB 454. First testifier is Hawaii Island Chamber of Commerce, in support. Yeah. We have Purple Mai'a Foundation, in support, in Zoom.

Yes. Aloha, everyone. This is Kelsey Amos from Purple Mai'a Foundation. Thank you for allowing me to testify. We support HB 454. We especially support the goal in--the goals in the bill to pursue economic development through participation in the digital economy and through innovation and activity to reduce and mitigate climate change.

We included in our written testimony the suggestion that the words 'adaptation to climate change' be inserted. Adaptation includes actions to adjust and minimize the harm from the oncoming impacts of climate change, not just mitigating climate change, which refers more to reducing greenhouse gas emissions. And we also support the funding included in this bill for HTDC accelerated programs.

We as an organization have benefited being able to run several of our accelerators which support women and Native Hawaiian and Pacific Islanders. It's critical to our startup ecosystem and to local businesses and entrepreneurs that we support, and as we all know, the federal funding outlook for supporting sort of targeted groups in need of equity is looking pretty bleak. So those are my comments, and support. Thank you for, thank you for allowing me to testify.

Thank you. Moving on to Blue Startups, in support. They are not present in Zoom. The Chamber of Commerce, in support.

We stand on our written testimony in support.

Thank you. Holomua Collective. Holomua Collective, in support.

Josh Wisch, Holomua. We'll stand on our testimony in support. Thank you, chair.

Thank you, Josh. Moving on to the Art Source Inc, in support. They are not present. Hawaii HCDC, in support.

Hello, chair. Members of the committee, Wayne Inouye, Hawaii Technology Development Corporation. We stand on our written testimony in strong support. Here for any questions. You do have our written testimony outlining the impacts for this bill.

I think this bill is a critical catalyst for our manufacturing industry, our advanced technology development for the State of Hawaii, and I think these are the types of activities that are really going to help promote workforce development, new jobs, and high paying jobs for the State of Hawaii so we can have a thriving economy supporting advanced manufacturing and technology. Thank you, chair.

Thank you. We have Trung Lam, in support.

Aloha, chair and members of the committee. I'm Trung Lam, here representing La Tour Bakehouse, want to testify in support of this bill. There's funding there to support local manufacturing which helps create good paying jobs, keeps the cost of food down, and allows us to compete and with competitors from the mainland, so wanted to share my notes. Thank you.

Thank you. We have Hawaii Food Industry Association, in support.

Thank you, chair. We'll stand on our testimony in strong support. Mahalo.

Thank you. We have Ann Chung, in support. Thank you. Is there any testifiers wishing to speak in person? Proceed.

Aloha, chair. Matthew Sullivan from Oceanit. I'd just like to testify in support of this bill. This is the opposite side of some of the previous bills and this is focused on job creation of good jobs so people can stay here with a living wage. Thank you. Thank you, chair.

Thank you. Any others? Zoom? We have two in Zoom. Let's start with Omar.

Aloha, chair, vice chair, members of the committee. Omar Sultan, Managing Partner of Sultan Ventures. We stand on our testimony in strong support. I'd like to also add as a beneficiary both directly and indirectly, many of our programs have been supported by HCDC through some of the things that are included in this bill, and I cannot stress enough the importance of this bill in allowing programs such as ours and others throughout the state to be able to support in turn other companies throughout the state.

And so just in our program alone, we we support small businesses, we support high-growth businesses, we support Ag tech businesses, I mean, you name it, and they are generating real revenue in the State of Hawaii, which is obviously helping to create jobs as well. So very strong support, and I hope you will consider our testimony and those of others in support. Thank you.

Thank you, Omar. Moving on to Mr. Sultan.

Hi. Excuse me. My name is Tarik Sultan, Managing Director of Accelerate Hawaii. Accelerate Hawaii stands on our written testimony in strong support. I apologize that we're on Zoom right now and not in person, but we're actually overseas in Saudi Arabia, so it's approaching a little after midnight over here right now, but I wanted to be present because the work that HCDC does with their MAP, SBIR accelerator programs are extremely important for the economic well-being of Hawaii. So again, I wanted to make sure I was present to show my strong support for them.

I cannot stress enough how important this work is for Hawaii, the small businesses, any entrepreneurs that are the founders and business owners of these businesses. So happy to answer any questions and I thank you for the opportunity to testify.

Well, thank you for staying up and testifying. Is there any others in Zoom? Nope? And no testifiers in person. We are going to move on to questions from committee members or comments. None at this time. And so let's move on to our next bill, which is HB 1176. We have Ann Chung.

Actually we have Parmac Technologies and Makai Ocean Engineering in support.

Aloha, Ann Chung. I represent Pacmar Technologies as well as Mackay Ocean Engineering. To be brief, the local tech companies that are doing business here bring high paying, high value, high skilled jobs. And this is a very important bill that we hope that you will consider supporting.

I do want to recognize that there are two amendments that I suggest in the bill and I've outlined that in my testimony to replace the first come, first served issue with a 24 hour one day hold as well as deleting the performing arts section. Thank you so much.

Thank you. We have Hawaii Food Industry Association in support.

Thank you, Chair. We'll stand on our testimony in support. Mahalo.

Thank you. We have the Chamber of Commerce of Hawaii in support. Thank you. Is there any other testifiers in person in zoom with no testifiers in person in zoom. Any Committee Members wishing to make any comments or questions? None at this time. Let's move on to our next item which is going to be HB546.

Our first testifier is going to be from the University of Hawaii system in support.

Good morning Chair. Vassilis Syrmos. We're standing in on our written testimony in support. Thank you.

Thank you. Hawaii Technology Development Corporation in support. Okay. Stand on your Testimony. We have three testimony in support, zero in opposition with zero comments for HB 546. Is there any testifiers wishing to speak in person? any in zoom? With none, with no testifiers, any Committee Members wishing to speak? Comments?

Let's move on to our next item, which is going to be HB1370, Department of Taxation with comments. Thank you. Moving on to Maui Brewing in support in zoom. Not there. We have six testimony in support, zero in opposition with one comment for HB1370.

Is there any testifiers in person, any in zoom, any Committee Members wishing to speak or make any comments? With none at this time let's move on to our last Bill, HB1372, first testify, Maui Brewing in Zoom. We have three testifiers in support, zero in opposition with zero comments.

Is there any testifiers in person, any in zoom, any Committee Members wishing to speak questions with none at this time. We have cleared out for our testimony. Thank you, everyone. We're going to take a quick recess. Recess.

Welcome, everybody. We're back from recess and we are going to make some decisions on this agenda. We're going to go to the top of the agenda for HB 796. The chair's recommendation is going to be an HD1. We're going to defect the date to July 1st 3000.

And there's been, there's a lot of opposition on this Bill. I want to make sure that the Finance Committee is able to do their thing with this purview and give the Chair an opportunity to hear out what he wants to do. And so we're going to move this out. And is there any questions or comments, Committee Members? Proceed.

Chair, I'm going to be voting with reservations.

Thank you. Is there any other comments, Representative Tam?

Chair, I appreciate your work on this. I will also be voting with reservations. I understand the situation of our current climate and the need for state revenues, but I also recognize the testimony that was presented by DBEDT.

But in the interest of continuing this conversation how we're going to deal with the fiscal impacts in the upcoming year, I will be voting with reservations.

Thank you. Representative Matsumoto.

Based on the testimony, I'll also be voting with reservations on this Bill, watching it as it goes through.

Thank you. No further comments and questions. Vice Chair, please take the vote.

Vote is on HP 796. The. Passing with amendments. That's the.

Yes...

Excuse me. With an HD1. Chair's recommendation is to vote aye. Chair is a yes. Vice Chair votes with reservations. Representative Holt.

Okay, thank you.

...with an HD1.

Aye.

Representative Tam votes with reservations. Is that correct? Representative Templo.

Aye.

Thank you. Representative Todd.

Aye.

Ok. And represent Matsumoto. Thank you very much. Chair, your recommendations as adopted.

Thank you. Vice Chair. Moving on to HB 303. The Chair's recommendation is going to be in HD1. We're also going to adopt all of DOTAX suggested amendments from 1 to 9. We have some technical amendments needed for clarity, consistency and style. Also, the Bill does contain a defective effective date.

Any questions regarding the amendments? No questions. Vice Chair, please take the vote.

The Bill is HB303. HD1. Chair's recommendations to pass with amendments. Any votes in opposition? Any votes with reservations? Hearing none. Chair your, your recommendation is adopted. Thank you.

Thank you. Vice Chair. We are going to move on to HB 577. The Chair's recommendation is going to be an HD1. And for this Bill it does contain defective and effective date.

And we want to adopt DOTAX's suggested amendment to offer the tax credit less than 100% because the tax credits offer, that 100% of expenditures, create incentives for abuse and waste.

So in the Committee notes we're going to blank off the percentage and we'll leave it to the Committee notes to investigate what would be the best amount of percentage for this Bill. That's the amendments. Any questions and comments? Vice Chair, please take the vote.

Thank you Chair, the Bill is HB 577 HD1. Recommendation is to pass with amendments. Any representatives voting no? Any representatives voting with reservations? Hearing none. Chair, your recommendations as adopted.

Thank you, Vice Chair. Moving on to HB 949. The chair's recommendation is going to be a HD1 and we will adopt DOTAX's suggested amendments to section 235-110.8b specifying a deadline for taxpayers to report a transfer, sale, or assignment.

Also to the time frame to assist with the administration of credit. Last that effective date of the Bill be amended to taxable years beginning after December 31st, 2025.

We will also adopt Tax Foundation of Hawaii's suggested amendment to replace the word "taxpayer" with "person" to prevent confusion. Also note that the word person is defined in section 235-1HRS to include an individual trust in the state, partnership, association, company or corporation.

Bill does contain a defective effective date. That's the amendments for HB 949. Any questions on amendments? No questions. Vice Chair, please take the vote.

HB 949 HD1. Recommendations to pass with amendments. To become an HD2. Any votes in opposition? Any votes with reservations? Chair, your recommendations adopted.

For HB 933. This is actually my Bill to also do a reduction for taxes on food which also contains an HB 959. At this time there's going to be more work that needs to be done with these bills. So I will be deferring HB 933 and HB 959.

Moving on to HB 454. The chair's recommendation is going to be HD and our Vice Chair has a proposed amendment.

Thank you Chair. I'm going to be submitting language for an HD1 which would add import substitution and import replacement as another goal for the, for this legislation.

Thank you Vice Chair. Any questions on the proposed amendment? With no questions, Vice Chair, please take the vote.

Thank you. Bill is HB 454. Recommendation is to pass with amendments. Any representatives voting in opposition? Any representatives voting with reservations? Chair, your recommendation is adopted.

For HB 1176, the Chair's recommendation is going to be HD1. We're also going to defect the date to July 1st, 3000. There's going to be technical amendments needed for clarity, consistency and style. And the Bill also contains a blank appropriation amount.

Any questions or comments on amendments? No questions, comments. Vice Chair, please take the vote.

HB 1176. Recommendation is to pass an HD1 on this measurement. Any represent- any representatives voting in opposition? Any representatives voting with reservations? Chair, the recommendation is adopted.

Thank you, Vice Chair. For HB 546, we're gonna the Chair's recommendation is to move it as is. Any questions, Members? With no questions, Vice Chair, please take the vote.

Okay. HB 546 HD1. Recommendation is to pass as is. Any representatives voting in opposition? Any votes with reservation? Chair the recommendation is adopted.

For HB 1370. The chair's recommendation is going to be in HD1. We're going to defect the date and technical amendments needed for clarity, consistency and style. Any questions on the amendments? No questions. Vice Chair, please take the vote.

Okay. HB 1370. Recommendation is to pass with amendments. Any votes in opposition? Any votes with reservations? Chair, the recommendation is adopted.

Thank you, Vice Chair. For HB 1372, the Chair's recommendation is going to be in HD1 to defect the date. Any questions on amendments? No questions. Vice Chair, please take the vote.

Okay, last Bill. HP 1372 recommendation is to pass with amendments. Any votes in opposition? Any votes with reservations? Chair the recommendation is adopted.

Thank you, Vice Chair. And thank you everyone for your work. This Committee is now adjourned.