Senate Standing Committee on Commerce and Consumer Protection

Foreign.

The Joint Committee on Ways and Means and Committee on Commerce and Consumer Protection. This meeting, including the audio and video of remote participants, is being streamed live on YouTube. You will find links to viewing options for all Senate meetings on liven on demand video page of the Legislature's website.

In the unlikely event that we have to abruptly end this hearing due to major technical difficulties, the Committee will reconvene to discuss any outstanding business. Thursday, February 27th, 10:31am in this rope. This is for decision making only. If you're interested in reviewing the written testimony, please go to our website.

You will find the link on the status page of each measure. Okay. First. First item is SB88. Recommendation is to pass unamended.

Any discussion if not Chair voter excused. Senator Coit. Excuse. Senator Elefante.

Aye.

Senator Hashimoto.

Aye.

Senator Inoue. Excuse. Senator Kanuha. Senator Kidani. Excuse. Senator Kim. Aye. Senator Lee. Yes. Excuse.

It's vocal. I. Yeah.

How do you vote? National Guard. Yes.

Excuse.

Okay. You know me. Okay. Pass Unamended. Okay.

Okay. CPN Same recommendation Passing unamended. Chair votes I thank you.

Vice Chair also votes I. Senator McKelvey. Yes. Senator Richards.

All right.

Senator Awa all right. Measures adopted.

Thank you. Next measure is SB 191 SD1 relating to energy assistance. The recommendation is to pass this measure on amended. Any discussion seeing none. Chair votes.

I thank you. Of the CPN Members present. Any voting with reservations or hearing none. Measures adopted.

Thank you. Ways of meet same Recommendation. Chair vote.

Mr. President, anyone voting no reservation measure.

Thank you very much. Next measure is SB562SD1 relating to invasive species. The recommendation is to pass with amendments adopting the following changes from the Department of Agriculture's testimony adding cut flowers to the definition of nursery stock and removing the requirement that registrations be posted to the website.

There also some technical, non substantive changes and defect the effective date to July 12050. Any discussion seeing none. Vice Chair passing with amendments. Chair votes.

I of the Members present, are there any voting with reservations or objections? Hearing none. Measures adopted.

Wa me same recommendation.

Mr. President. Anyone voting no reservation is reductive.

Thank you very much. Next measure is SB642SD1 relating to insurance. The recommendation is to pass with amendments adopting the Attorney General's proposed recommendations and making technical, non substantive changes. Any discussion Seeing none. Vice Chair passing with amendments. Chair votes.

I thank you. Of the Members present, are there any voting with reservations or objections Hearing none. Measure is adopted.

Thank you. What is the mainstream recommendation?

All Members present. Anyone voting?

Thank you. The next measure is SB 1133 SD1 relating to housing. The recommendation is to pass with amendments adopting the Department of Taxation's proposed amendments eliminating duplicative county requirements and clarifying the carry forward eligibility of the credit. Any discussion? If not Vice Chair Passing with amendments.

Chair votes I of the CPN Members present. Are there any voting with reservations or. Objections Hearing None Measures adopted LA recommendation.

Members present Anyone voting? No reservation measure.

Thank you very much. The last measure on this 10am agenda is SB 1569 SD1 relating to sports wagering. After reviewing the testimony, the recommendation is to defer. There are no other measures on this agenda.

Okay. Calling to order the 1002 hearing. First item on the agenda is SB933. We have energy Office Suite Energy Office. Thank you. In support the Judiciary Comments Hawaii Primary Care Association the Legal Clinic, Hawaii Youth Services Network Hawaii Non Hawaii alliance of Nonprofit Organizations, Catholic Charities, Parents and Children Together.

Aloha Chair, Vice Chair, Members of the Committee. My name is Tricia Kajimura, Vice President of Strategy and External affairs for Parents and Children Together. I want to thank you very much for working on this Bill. It's of utmost importance in these very tumultuous times.

I just wanted to share that at PACT we have a significant amount of federal funds and multiple programs that will be hurt should or when the cuts come, including our direct and indirect grants. I mean meaning direct federal grants and also federal funds that come through our state contracts.

Our largest direct grant and the largest bucket of money is for Head Start and early Head Start or early learning programs on the islands of Oahu and Hawaii Island. This will be a very critical blow to the state's Ready Keiki program should we lose the ability to serve our communities in that way.

I also wanted to support the judiciary's testimony in adding judiciary to this Bill. We have contracts with federal. We have contracts with the judiciary as well, serving families experiencing domestic violence, including offender classes, child witness services and family visitation centers. So thank you again.

Thank you. Hawaii Community Foundation Hawaii True Cost Coalition Kingdom of the Hawaiian Islands not present on Zoom Chair. Well, go ahead. Okay. Next. Okay. And then we have Alice Albin Albanida opposed and we have three individuals in support and one person with comments. Any other person wishing to testify on SB933, please state your name.

Hello, Chair De La Cruz, Vice Chair Moriwaki and Members of the Committee. My name is Melissa Miyashiro and I'm the President and CEO of the Hawaii alliance of Nonprofit Organizations or hano.

HANO is a statewide professional Association of nonprofits that works to strengthen and unite the nonprofit sector as a collective force to improve the quality of life in Hawaii. We are in strong support of SB933.

This critical financial bridge comes at a time when the federal Administration is putting millions of dollars at risk with on again off again federal funding freezes in grants and contracts to Hawaii's nonprofit organizations. Hawaii's nonprofits that receive federal funding support programs in health centers, early childhood education, domestic violence support, subsidized housing, homelessness prevention and so much more.

Aloha United Way, in partnership with Hano is collecting data about the specific local impacts to Hawaii nonprofits. And we would be happy to share that and collaborate with this Committee on and getting that specific information. This measure is also important to protect Hawaii's workforce. The nonprofit sector comprises nearly 12% of employment in Hawaii.

And this has a ripple effect too given that nonprofits also provide services so such as childcare, elder care, transportation to medical appointments and more that enable others to remain in the workforce. Along with Hano, there are 75 other Hawaii based nonprofit organizations that have signed on to support this measure. Thanks so much for hearing this important Bill.

Thank you. Anyone else wishing to testify?

Aloha Chair Dela Cruz, Vice Chair, Milwaukee. Members of the Committee, Brandon Kimura, Judiciary's. Department Director of Policy and Planning. Apologies for missing it earlier when you called. Stand on our testimony and support and requesting inclusion and we'll be available for questions. Thank you.

Thank you. Please go forward. See your name.

Aloha Chair Members of the Committee, Nate Hicks with Hawaii Public Health Institute in strong support of this Bill.

As we know, nonprofits are hugely important to our state, provide many social services and I want to highlight the return on investment a lot of these services provide, whether it's child care, food access, mental health services, housing services, upfront investment for a dollar now can give us 510, $15 down the line.

And so when we're talking about being fiscally responsible, if we don't step up and Fund these services now, we're going to pay down the line and so definitely hurts in the short term making sure we put this investment in but down the line it's going to pay huge dividends. Mahalo.

Thank you. Anyone else wishing to testify? Next item, SB934BNF.

Good morning chair, Vice Chair Louis Oliveira, Director of Finance for the State of Hawaii. You have our testimony in front of you. We will stand on our written testimony asking for the increase in the ceiling for the mass Transit Special Fund. Be happy to answer any questions that you may have.

Thank You. Anyone else wishing to testify? Next item, SB 935, Office of the Governor. EUTF, DLIR, B&F, Judiciary, ERS.

Good morning. Chair Dela Cruz, Vice Chair Moriwaki, and members of the committee. I'm Tom Williams, the executive director of the Employees Retirement System. You have our written testimony providing comments. We stand on that testimony. However, we did observe through a subsequent reading that there is one section that we would suggest an amendment to. Very modest.

But on Section Nine, page 34, line four, we're asking or suggesting that it be amended to read members that have five or more years of service as opposed to. It currently reads fewer than five. We've provided revised testimony to the committee and we have hard copies here to distribute if you wish. And of course, I'm available to answer your questions.

Thank you. HSTA, AFLCIO. Anyone else wishing to testify? Okay, we will go into decision making.

One quick question for B&F. So B&F. They left?

So that. So that last bill, though, that's because if the Salary Commission does increase the judiciary salary to, you know...

It's on the ceiling. I'm on the wrong one.

Oh, yeah, we passed that one. Yeah, but we can go back to that.

Okay, real quick. So you're asking for the ceiling to be increased for the Mass Transit Special Fund.

Sorry, let me catch my breath. I ran back. Yes, we're asking for a increase in the ceiling.

Is that because we're gonna give them more money or what?

So actually, what we have been is we have been accumulating carryover balances in the special fund because the ceiling is not high enough for us to disperse all of the money that's going.

Yeah. So it's actually in the budget. But what I did was short form this bill instead of leaving it in the budget so that we could have a better discussion.

Okay. Okay. We're going to decisions. Well, that's a good sign that he could run. Okay, first item. SB 933 recommendation is to pass with amendments inserting a new section that explains the eligibility requirements for organizations to be funded under this act shall be identified as providing crucial programmatic aid and outreach in the health and human services sector as receiving substantial federal funding for the purposes of program operations and who are considered at risk of loss or decrease of federal funding in the event of funding freezes or cuts, and requiring that recipients shall provide a report to the Legislature and will defect the date to 2050. And we'll also include a section for the judiciary per their testimony.

Got it. Thank you.

Question, Chair. So what happens if there's no cuts by federal cuts.

No. So it's the defective date.

Okay.

This is because if not, we don't have options if we don't need to put something in. Okay. Chair votes aye.

[Roll call]

Thank you. Next item. SB 934. Recommendation is to pass with amendments blanking the appropriations inserting provision into the appropriate section that the City and County of Honolulu must complete the development of the minimum operating segment identified in the full funding grant agreement and the development of the Pearl Highlands Park and Ride facility in order to access the funding and effect the date to 2050. Any discussion? If not, Chair votes aye.

SB 934. All members present. Oh. Pass with amendments. All members present. Anyone voting no? Anyone with reservation?

Thank you. Last item. SB 935. Recommendation is to pass with amendments. Adopt LRB tech amendments and per testimony of the ERS, deleting fewer than five years and replacing it with five or more years to relieve administrative burden to the agency and insert the preceding to Section 10 of the bill and move it from part two to part three to ensure that it applies to the entirety of the bill and will effect the date upon approval. Any discussion? If not, Chair votes aye.

SB 935. All members present. Anyone voting no? With reservation. Measure adopted.

Calling to order. The 1005 Agenda, Joint Committee on Ways and Means and Judiciary. First item is SB 11. Recommendation is to pass with amendments. We'll be adopting the DLNR's amendment to assign enforcement to the Office of the State Fire Marshal or County Fire Department based on whether the easement is on state owned or private land.

And include IBEW's amendment to become consistent and in compliance with the national minimum safety standards and to ensure that all work near high voltage transmission and or distribution lines are performed by properly trained and qualified workers. And we'll remove section B1 on page three and subsections G and H on pages 7 and 8. Any discussion? If not, Chair votes aye.

[Roll call]

Thank you, ma'am. For JDC, same recommendation. Any questions or concerns? If not, Senator Gabbard.

[Roll call]

Thank you. Next item, SB 148 recommendation is to pass with amendments adopting LRB tech amendments. Any discussion? If not, Chair votes aye.

All members present. Anyone voting no with reservation? Measure adopted.

Same recommendation for JDC with amendments. Questions or concerns. If not, Senator Gabbard.

Any no votes or reservations on SB 148? Measure passes.

Thank you. Next item, SB 717, recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All members present. Anyone voting no with reservation? Measure adopted.

JC same recommendation for SB 717 unamended. Questions or concerns? If not, Senator Gabbard.

Any no votes for reservations on SB 717? Hearing none, the measure passes.

Thank you. Next item, SB 802 recommendation is to pass with amendments. Adopt the AG's amendments to add two new sections after Section Two by inserting that this act does not affect rights and duties that matured, penalties that were incurred and proceedings that were begun before its effective date.

And that this act shall not be applied so as to impair any contract existing as of the effective date of this act in a manner volatile of either this of the Constitution or the State of Hawaii or Article 1, Section 10 of the United States Constitution. Any discussion? If not, Chair votes aye.

All members present. Anyone voting no with reservation? Measure adopted.

On SB 802. Same recommendation for JDC. Questions or concerns? If not, Senator Gabbard.

Any no votes or reservations? Hearing none, the measure passes.

Thank you. Next item, SB 1002, recommendation is to pass with amendments. We'll be adopting LRB tech amendments but we'll note in the committee report amendments requested by DLNR and SHPD since they are quite a bit of amendments and we don't we have to meet the deadline. We'll have the. Hopefully the next committee can take those amendments up. Any discussion? If not, Chair votes aye.

All members present. Anyone voting no with reservation? Measure adopted.

JDC. Members, same recommendation on SB1002. Questions or concerns? If not, Vice Chair.

Any no votes or reservations? Hearing none, the measure passes.

Thank you. Next item, SB 1033, recommendation is to pass unamended. Any discussion?

Mr. Chair, is there clarification on this on.

Language that you had? Recess. Okay, going back to SB 1033. So recommendation is to pass with amendments and we'll add language clarifying that individuals are not legal entities. So this is strictly for corporations, companies and not individuals.

That's better. Thank you.

Any discussion? If not, Chair votes aye.

But it'll still cover family corporations. So.

So if it's companies, then they're covered.

Thank you.

What's your concern?

Yeah, basically that's my concern is that there's a number of closely held family corporations and that which will be affected. Yeah. By this.

Okay. So we can add that into the committee report and hopefully the next committee can take a look at that. Any further discussion? If not, Chair votes aye.

[Roll call]

On SB 1033, same recommendation for JDC. Members, any questions or concerns other than those already stated? Seeing none, Senator Gabbard.

All members present. Are any no votes or reservations?

Reservations.

Measure passes.

Thank you. Next item, SB 1166. Recommendation is to pass with amendments, adopt LRB tech amendments and we'll amend the measure by blanking the year on page 11 and 10. And we'll let the committee report reflect the Attorney General's concerns. Any discussion? If not, Chair votes aye.

All members present. Anyone voting no with reservation? Measure adopted.

Same recommendation on SB 1166 for JDC. Questions or concern? If not, Senator Gabbard.

Any no votes or reservations? No vote for Senator Awa. Measure passing.

Thank you. Next item, SB 1249. Recommendation is to pass unamended. There's quite a bit of amendments that were requested by the Hawaii Cattlemen Council, so we'll include that in the committee report. We don't have time to actually amend the bill to meet the deadline.

Can we also include in the committee report that there's a number of ag crime bills moving forward and we're, from our analysis, some of them conflict with each other or potentially do. Can we just point out to the next committee that they need to look at the whole thing?

It's still passing unamended.

Passing unamended. Yeah. Any discussion? If not, Chair votes aye.

All members recommendations are passed unamended. All members present. Anyone voting no with reservation? Measure adopted.

Same recommendation for JC for SB 1249. Unamended. Questions or concerns? If not, Senator Gabbard.

Any no votes or reservations? Hearing none, the measure passes.

Next item, SB 1257. Recommendation is to pass unamended and we'll also include in the committee report the amendments requested by the Hawaii Farmers Union United. Again, because we have the deadline, we won't have time to make those kind of substantial substantive amendments.

And can we put the same kind of language in about multiple ag crime bills moving forward?

Any further discussion? If not, Chair votes aye.

All members present. Anyone voting no with reservation? Measure adopted.

Same recommendation for JDC on 1257. Any questions or concerns? If not, Vice Chair.

Any no votes or reservations? Hearing none, the measure passing.

Thank you. Next item, SB 1432. Recommendation is to pass with amendments adopting LRB tech amendments. And on page 3, line 9, page 21, line 13, remove Ka 'Ohana O Kalaupapa and replace with a community organization in the Kalawao County that is designated in federal statutes. We'll also include in the committee report some additional issues that need to be looked at at the next committee. Any discussion?

Mr. Chair, if the committee report can reflect the plan that was supposed to go forward. The transitions of the three state departments DNLR, DOA, and DHHL. Sorry. Thank you.

Okay. Thank you. Any further discussion? If not, Chair votes aye.

Recommendation is passed with amendments. All members present. Anyone voting no with reservation?

Thank you. Same recommendation for JDC. Members, on SB 1432. Questions or concerns. If not, Senator Gabbard.

Any no votes or reservations? Hearing none, the measure passing.

Okay. Moving on to SB 137 relating to electric utilities. They'd like to make the amendments requested by the IBEW require the retention of covered employees and to borrow reduction in force after an acquisition or merger consistent with the collective bargaining agreement.

Enforce and would replace sections subsections A through C to require the PUC to consider whether approving or a proposed merger or acquisition would or would not further the state's policy goals. And we do have prior concurrence. Questions or concerns? If not, Senator Gabbard for the vote on SB 137 with amendments.

Any no votes or reservations? Hearing none, the measure passes.

Ways and Means, same recommendation.

SB 137 passed with amendments. All members present. Anyone voting no with reservations? Measure adopted.

Thank you. Next up is SB 157. This has to do with relating to antitrust. We'd like to pass with some amendments. We'll narrow the first violation to prohibit only the provision of coordinating functions by coordinators. And we'll narrow the second violation to prohibit a coordinator to facilitate an agreement among rental property owners that restricts competition with respect to the pricing, lease terms or ideal occupancy levels for residential dwelling units. Questions or concerns. If not, Senator Gabbard.

On SB 157, to pass with amendments. Any no votes or reservations? Hearing none, the measure passes.

Ways and Means, same recommendation.

All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next up is SB 252 relating to invasive species. I'd like to pass with a defective effective date April 23, 2057 and techs only. Questions or concerns? If not, Senator Gabbard.

SB 252 pass with amendments. Any no votes or reservations? Hearing none, the measure is adopted.

Ways and Means, same recommendation.

All members present. Anyone voting no with reservation? Measure adopted.

Thank you. Next up is SB 336 relating to defense of state employers, employees for legal challenges. Recommendations to pass as is. Questions or concerns? If not, Senator Gabbard.

Recommendation is to pass SB 336. Unamended. Unamended. Any no votes or reservations? Hearing none, the measure passes.

Ways and Means, same recommendation.

All members present. Anyone voting no with reservation. Measure adopted.

Thank you. Next up is SB 536 relating to the Hawaii Community Development Authority. I think we've reached an agreement. Oops. I'm sorry. Did I skip one? 534. Is that right? 534. I'm sorry. Relating to Hawaii Community Development Authority.

I think we've reached an agreement to go ahead and there are some major changes that some members would like to have, and we've agreed to go ahead and propose an SD1 and hear it on Friday. Is that a minimal? And I don't know what time yet, but 10:15? 10:15. And we'll be requesting a, be requesting a waiver tomorrow. So that is deferred. I guess it's deferred indefinitely. Right. Do we have to repost it completely?

I would just say defer till Friday.

Okay, we'll defer till Friday 10:15.

Question.

Yeah.

Okay. So the amendments that I had concurred last night. So you're adding more than.

No, no, no.

Exactly.

Just felt. My feeling was that we needed to let people weigh in on those amendments.

Exactly. Because it's pretty substantial. Yeah. So, thank you.

Okay.

And what time is the meeting?

10:15.

Okay, thank you.

Next up is SB 1064 relating to medical cannabis. Quite a number of amendments, so bear with me. Cannabis cultivator license to authorize the one, acquisition and cultivation of cannabis plant seeds, cuttings from clones, and two, the distribution of cannabis plants and cannabis flowers to license real dispensaries. There will be a limit on the canopy size or number of mature plants per cultivator license.

A blank limit of total cultivator licenses to be made available to the public, a limit of one cultivator license issued to any person or entity, a limit on the fee charged by a certifying physician for certification, up to three times the total medical cannabis license fee and a blank appropriation to be appropriated for from the Cannabis Regulation and Enforcement Special Fund to the Department of the Attorney General for Enforcement of the chapter on mitigation of nuisances. And I believe it has a bad date. If it doesn't have a bad date, we'll put a different bad date on April 23, 2057.Questions or concerns? If not, Vice Chair for the vote.

Recommendation is to pass SB 1064 with amendments. Any no votes or reservations?

No.

No Senator Awa. Measure passes.

Ways and Means, same recommendation.

All members present. Anyone voting no with reservation?

Thank you. Next up is SB 1150 relating to health care. My understanding is don't want to move forward on this minute. The measure will be deferred. I believe that concludes our business or adjourned.

Okay. Calling to order the 10:03 Ways and Means Agenda. First item, SB 119. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservations? Measure adopted. Oh, pass...

Unamended.

...unamended.

Recommending. Next item, SB 124. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

SB 124, pass unamended. Anyone voting no? With reservations? Measure...

Reservations.

Oh, reservations for Fevella.

Next item, SB 264. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting with reservation? Voting no? Measure abopted.

Next item, SB 345. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

Members present, anyone voting no? With reservations? Measure adopted.

Next item, SB 361. Recommendation is to pass with amendments, adopting testimony from the AG to remove all references to an Attorney General and delete the appropriation section in Section 7. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservations? Measure adopted.

Next item, SB 422. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All members present. Anyone voting no? With reservations? Measure adopted.

Next item, SB438. Recommendation is to pass with amendments. Adopt LRB tech amendments and amendments from Department of Health to redefine buffer zones and insert definition of a landfill unit. Remove If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Next item, SB 441. Recommendation is to pass with amendments: banking the appropriation, defecting the date to 2050. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Next item, SB 494. Recommendation is to pass with amendments. Blank the appropriation and adopt amendments from BNF to designate the State Auditor as the sole party responsible for conducting the audits outlined in this act.

And clarify that the scope of the financial audit shall include an audit of each charter school under the Hawaii Charter School Commission. And require the Charter School Commission to take action based on the State Auditor's recommendation and findings within one year of receiving the information.

Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Thank you. Next item 659. Recommendation is to pass with amendments. Adopting amendments from the Procurement Office for purposes of preventing parceling of contracts.

And adopting amendments from Department of AG to clarify that the Department of Education will establish guidelines with a county level geographic preference for locally sourced products when procuring products. And to reinstate fresh meats and produce and animals and plants to exhibit A, chapter 3-120 procurements exempt from Chapter 103.

And amend the Bill to increase the purchase limit exemption from electronic procurement system from 100,000 to 250,000. Any discussion? If not, Chair votes aye.

Adopt amendments from Kauai Farmers Union United to require the purchase of locally sourced products when within 10% of the lowest out of state option and recognize discretionary purchases up to 15% higher than the lowest out of state option with justification.

All Members present. Anyone voting no? With reservation? Measure adopted.

Thank you. Next item, SB 732. Recommendation is to adopt- pass with amendments. Adopting LRB tech amendments, blanking the credit amounts. And per testimony from Island Film Group's amendment to change the definition of ship streaming platform to not require a paid subscription.

Delete the extension of the sunset date in Section 4. Delete language in 235-17N that allows the claim to be applied to subsequent years. And add language that would require the counties to waive fees if productions qualify for the tax credit.

And we'll also include in the Committee report testimony from the Teamsters requiring that the Hawaii Film Office to provide proof of contact with all supporting Union Hall official signatory or non-signatory. Right. Any discussion?

Chair. Just a quick one. We had this come up before and thank you for putting this in the committee. But I want to reflect that we know what besides the non-signatory with IASI is one of the union, SAG, IBEW, DGA and of course AFM and Teamsters.

Just to put that in there because you know, we, we have, we try to get this thing done so that we can have more of our people. I know that's what Senator DeCoite and you guys worked on previously, which was a great Bill. It didn't go through.

But we want to make sure that these parameters that this just doesn't go to just anybody without contacting the right local neighbor that's here that's going to provide for our families and our industry here in, in Hawaii. Just wanted to note that. Thank you, Chair.

Any further discussion? If not, Chair votes aye.

No? With reservation? Measure adopted.

Thank you. Next item, SB 741. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Thank you. Next item, SB 747. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

Anyone voting no? With reservation? Measure adopted.

Thank you. Next item, SB 819. Recommendation is to pass with amendments. Adopting amendments from the AG to replace references to the term educators in the term - in the Bill - with the term teachers. Any discussion? If not, Chair votes aye.

Anyone voting no? With reservations? Measure adopted.

Thank you. Next item, SB 867. Recommendation is to pass with amendments. Adopting LRB Tech amendments. Any discussion? If not, Chair votes aye.

Anyone voting no? With reservation? Measure adopted.

This item we will defer til Friday. What time is the agenda? 10:31.

878?

878. Next item, SB 894. Recommendation is to pass with amendments, and amend the preamble section for clarification of bills purposes. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? Rservation? Measure adopted.

Thank you. Next item, SB 946. Recommendation is to pass with amendments and on page one, line five, remove "no person, including any public body" and insert "no treatment plant shall." On page one, remove lines 14 and 15. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With-

Reservations.

Measure adopted.

Thank you. Next item, SB 1057. Recommendation is to pass with amendments. Adopt LRB Tech Amendments. Will also adopt amendments from DAGS in subsection C1 to read "shall be entitled to restitution for non performance or liquidated damages and or to find the contractor in default as appropriate."

And adopting union stakeholder testimonies to require all subcontractors utilized on the job to utilize all apprentices in the state registered apprenticeship program. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure passes.

Okay. This item we'll defer till Friday. 10:31. SB 1146. Next item, SB 1185. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservations? Measure is adopted.

Thank you. Next item, SB 1221. Recommendation is to pass with amendments. Adopting LRB tech amendments. Any discussion? If not Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Next item, SB 1225. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? Reservation?

[Inaudible]

Reservation for Kim. Anyone else?

No vote.

No?

No.

Measure adopted.

Next item, SB 1233. Recommendation is to pass. Oh, excuse me. Is to defer indefinitely. Any discussion? If not, Chair votes aye.

Next item, SB 1304. Recommendation is to pass with amendments. Blanking the appropriation, including a section to require the study be in compliance with the EPA's regulations. Insert language to include an end date for the study and a report to the Legislature in 2026. Defect the date to 2050. Any discussion?

All Members present. Anyone voting no? With reservation? Measure adopted.

Thank you. Next item, SB 1316. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? Reservation? Adopted.

Next item, SB 1364, we'll be differing.

Next item, SB 1462. Recommendation is to pass with amendments. Adopt LRB tech amendments. Defect the date to 2050. Any discussion?

All Members present. Anyone voting no? With reservation? Measure adopted.

Thank you. Next item, SB 1581. Recommendations to pass through amendments. Adopt LRB tech amendments. Defect the date to 2050. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Adopted.

Thank you. Next item, SB 1585. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Adopted.

Okay. Okay, we're going to defer 1589 to the end of calendar.

Next item, SB 1622. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

Members present. Anyone voting no? Reservations? Measure adopted.

Next item, SB 1624. Recommendation is to pass unamended. Any discussion?

All Members present. Anyone voting no? Reservation? Measure adopted.

Thank you. Okay, we'll go back to SB 1589. I'm not sure if anyone from stadium Authority is here.

Hello. Brennon Morioka, Chair of the Stadium Authority.

Morning. So, I just had a couple of questions. What we've heard publicly is that the developer may not have enough financing to do the project. And so I just kind of want. I want to get on the record from the Stadium Authority and the contractors what the real situation is and what the real timeline is.

Sure. Well, and you can hear from the horse's mouth directly if you wish, but...

...if I call him a horse.

No, but from, from the Stadium Authority's perspective or the state's position, you know, going through the qualifications phase and selecting AHDP as our developer.

Their team as a whole has the financial capacity to build the minimum requirements that are set out in the RFP for a stadium and all, you know, the 25000 seats, 16 luxury boxes, the football, soccer, rugby kind of things.

But what the process we're going through right now with Aloha Development Partners is that they are trying to develop a financial plan on how to best finance the project. Not just the stadium, but their overall project through the development as well.

And that's a part of that that's always been contemplated as a part of this progressive procurement to go through this negotiation and due diligence phase. And so that's kind of where we at.

We still have a target date of this summer to execute our contracts, and that includes. That's inclusive of a number of agreements inclusive and which includes their financial plan or forecast as well.

Members, questions?

Thank you. I have questions for the horse. The horse. Brennan and Stanford, can you, like, tell me, like, what are the milestones that have been established and have been met and what milestones are to come.

We're four months away from having a deadline to sign this deal and not getting some really good positive respons as to how this, this project is progressing.

Well, the rumors hurt you more than the truth. That's why I'm here today to address any questions or concerns that this body may have. Let me back up a little bit. We started pursuing this endeavor from 2019, the first round. So it's been six years. March of 2019, the RFQ was issued in 2020.

The we submitted our RFQ in 2022 which is the deadline. So the first go round they allowed 22 months for the RFQ RFP process. This second round, which the RFQ was issued on December 14th, gave us 60 days, two months to to submit, which is February 14th.

We were notified end of March that we're a priority listed offer and we have to submit at the RFP by July 31st. That gave us four months to submit and plan and design a 98 acre urban community that has also a stadium.

And since then we've been providing supplemental information requested and requests for clarifications. And end of October we're officially designated as a preferred offer.

Since then we have been working on all the projects agreements, the legal documents we received, the pre development agreement that is set forth the business terms between the time of the priority award until June of 2025, which is when the master development agreement, the ground lease, stadium operating management agreement as well as the infrastructure allocation agreement and reciprocating easement agreement should be executed by June 2025.

We only received the master development agreement in the stadium operating agreement, a draft of it for the first time on December 20th of 2024. So we lost four months there because none of these agreements were drafted or prejacked and given to us beforehand.

Although we did notice on the version of this, the development agreement, it was version 47, so it seems like it went through 47 iterations prior to being issued to us. On January 20th we received the form of the ground lease and the infrastructure allocation reciprocating easement agreements. Now all of these four documents are called the project documents.

They all fix and tie together. That's necessary in order to have a financeable project to have meaningful conversations with financial institutions, whether it be private equity, commercial banking, commercial financing and bond financing. We have in the spirit of making up time and in good faith, we do not have a signed predevelopment agreement as of yet.

We just received comments from the state attorneys yesterday, some red lines we this is after having a one-on-one in-session meeting with lawyers last week, Tuesday to try to resolve all the issues.

So we need to get the business issues resolved because we're going to go at risk for tens of millions of dollars, you know, in expenditures to the community for development. There's a lot of architectural engineering work we've got discretionary approvals yet to overcome.

We still got to go back to the City Council and the Planning Department to allow us to execute and build what we've designed. Because what we designed included buildings that don't meet this current building height that are limited to 150ft and 90ft. It's BMX 3, but there was limitations on height.

So there's a lot of moving parts to this as you can see. And we're going to have to spend tens of millions, which we're looking forward to.

But again our focus has been on the business deals, the, the form of the ground lease, the master development agreement, stadium stadium operating management agreement and infrastructure allocation that needs to be tied down first. We've had an hour conference call with DOGS this morning, the stadium authority as well as their consultant wt. So we're working towards it.

The most important question Stanford is how confident are you that you're going to get the financing to accomplish this and build the stadium?

Okay, well we. You amended a Bill that would have provided for a gaming within the property. That would have been a shot of adrenaline to accelerate the entire project.

Not only the stadium but, but all of the ancillary buildings as well as the housing to create the critical mass almost instantaneously so that it is a success as a going to get a casino this year. So we've always been proposing that was submitted in our proposal to utilize community facilities district bond financing and tax increment financing.

And, and that is a form of financing used in many P3 projects throughout our country. In fact, our partner Portage Company has worked with Ballpark Village in St. Louis, Missouri. Cardinal Nation.

The development of the stadium, the hotels, the, the ancillary entertainment, sports venues and restaurants were financed utilizing all of the taxes generated from that venue used to service the bonds that was used to pay to build the stadium.

You get tax increment financing, you have enough financing to build us a nice stadium right now.

The gap is. Let me just give you the magnitude of the gap. There's $32 million of existing infrastructure relocation because when the stadium was built, it was built as a single purpose use. So all the infrastructure follows the perimeter of the circular stadium that needs to be relocated.

Because now we're designing a 21st century urban community with a hierarchy of roadways and pedestrian systems and pathways, housing, retail and so forth.

We have $147 million of infrastructure that needs to be installed as part of phase one, including the infrastructure for the stadium to serve the stadium as well as the entertainment and residential uses that will enable us to move that promenade from the transit station to about a thousand foot pedestrian promenade to the stadium.

Stanford that's all phase two.

No, that's, that's, that's phase one. That is phase one. That's 147 million is a phase one plus a $32 million in at infrastructure relocation. Then we have a gap to.

If you really want to build a stadium that's aspiring to professional sports to bring back preseason NFL, the Pro Bowl, as well as accommodate professional soccer and rugby which we are in conversations with them.

There's a big interest and they're doing the feasibility to bring that to Hawaii as a result of this program opportunity. It would cost about 650 million and the $300 million more than what was appropriated by this body.

What we need to do is to do the financial analysis with the bond underwriters as to how much debt can we support with the tax increment financing the CFD to generate the additional GDT and real property tax to service the bonds.

We want to plan a workshop after this session to provide the opportunity of the appropriate committees and bodies both in the city and county as well as state level to illustrate how this type of public financing has been utilized in other states and how we should be leveraging private capital to invest in public improvements and sports facilities and venues such as what we're working on here.

But Senator if I can just quickly interject because Stanford threw out a 600 650 million dollar number on the stadium. That's more of the aspirational stadium and not the basic stadium that is required under the RFP.

That is a significantly lower number. So when he talks about gaps, he's talking about. It's not always the same. He's targeting the aspirational. We're, we're in our conversations, we're trying to focus in on the basic stadium.

Yes, at this point. Yes, you're right.

...for the basic stadium.

450. Okay. We are doing, we're vetting the qualifications of the scope right now with AECOM, Hunt, Orange Regime. Our architects, Populace, and our consulting engineers to preserve the north and south casting place structures to not demo that to preserve those and to work on a phase development utilizing the west side and eventually building out the west side.

But aspirational $650 million stadium is still a goal that we are working towards.

Sorry, one quick question. You can be very brief on your response Stanford. You're chasing between 100 million and $300 million. Tell us how confident are you that you're going to get either of those two numbers?

Well, in order to be able to, we're going to run the financial analysis. We're using bond council bond underwriters to do such. So we need to get working on those financial models. We need to close the drawings further along than the conceptual plans we have.

We do have rough orders of magnitudes that we've collaborated with our consulting engineers and architects and AECOM, Hunt, Hawaiian Dredging. But we need to now get down into the weeds. Now all of this is going to cost a few million dollars more in the short term and we're happy to pursue that.

But what we want to do is get the business arrangement, the contract signed before we go at risk for all of this money. It's just putting business right.

Senator Kim.

So Brennan, my question is you said that the developer has the financial capacity and working on a financial plan for the entire project, but the Legislature only gave you money for the stadium, $350 million for the stadium.

So is the financial plan going to be for just the stadium or is this financial plan sounds like the financial plan is for the entire project.

It actually needs to kind of take care of all the, or give us a sense of all of the entire outlook down the line because a lot of it is tied together right. There's initial infrastructure that has to be done up front that is also meant to help service the rest of the development.

But then other parts of the infrastructure can be developed over time and through the phasing. So we have to look at or he's developing his, he's looking at his financial analysis on how best to finance number one, that basic gap of that 100 million dollars.

Because if we're only providing 350 $1.0 million in Geo bonds and he's looking at a minimum 450 $1.0 million stadium, that's one gap that he has to demonstrate how, how we're going to close and then some of the other initial capital costs like some of the initial upfront infrastructure.

But we also want to know what, what is his outlook like for his master planning as well and how is he going to afford some of that. So, so while we're more focused on the Stadium financing. We also need to understand the overall life of the project as well.

Understand. But it's been what, six years that this whole thing is going on. And so it seems as though what the. Realistically that there's even trouble getting the extra $100.0 million. So I mean, it's clear that the Legislature provided 350 million. And yet, you know, you folks are going beyond that. Which is aspirational.

But is the aspirational going to eventually derail this whole project after all of this time? And that's what it seems like. And so, you know, you're pulling at straws like a casino, you know, you know, get more money here, get more money there.

But I think the reality has got to be can you build us a $350 million stadium?

And that's where our recent conversations has completely focused in on is just, just help us understand what it. What is the plan to build us. And it's not even. I mean, it needs to be for.

Spending all this money to all this big, big project that is going to eventually kill everything.

I mean, I don't know. Stanford can chime in on his own, but I mean, I think that they're working on both approaches simultaneously.

Stadium Authority has to give defined parameters so we can get this done.

Yes. And our focus is the 450.

And I think it's a stadium authority that has to. Has to read and create the parameters of what the project's going to be. Right. But agree, my, My take was slightly different because my understanding was it's the whole development of the hundred acres.

Who's the top-tail and who's the dog.

You got the $350 million. And that's supposed to help that with leveraging the development is supposed to help f und the stadium, whatever infrastructure you might need, because there's supposed to be some revenue opportunities from the development of the other parts of the 100 acres.

And that is how the procurement was envisioned, that a lot of the real estate development would generate revenue that can then support not just the gap of the, the capital, initial capital cost of the stadium, but also to help provide operational maintenance funds as well over the life of the 30 years.

Because the revenues generated from actual operations of the stadium is not it, it might be sufficient to cover the cost of operations and some routine maintenance, but we've always said that that's not going to be enough to cover more of the capital maintenance in order to keep the stadium up at a certain level of condition.

So is the 147 million and 32 million included in 350 million that we gave you?

No, right now, I mean, right now the 350 million is intended primarily to go into covering the state's portion of the stadium itself.

Okay, so is the 450 million. The extra 100 million includes this. So if it doesn't, that means we're looking at 450 million plus another almost $200 million.

So, yes, the infrastructure that Stanford talks about, the, the, that is all in addition to the stadium.

Yeah, but, but is it the intent of the Stadium Authority to have all that infrastructure in place? Because if it is, then that's the added cost and that there's no way. Right now you have that gap. Right?

And that's. And that's why, that's why the developer is having to look at the different financing opportunities that are out there.

But you need to leverage the entire district instead of just the stadium, because if not, you're not going to be able to get the difference.

Yes. No, it's all tied into one in the same. And that's what. And that's why while we're, we're interested in looking at the financing of the stadium right now, and that. Because that's the critical path, but we do need to understand the financing of the entire district because it's all, it's all tied in together.

Senator Inouye.

Yes, I'll make it fast. Brennan. Since this is an HCDA Community district, is an environmental impact statement required or an assessment.

So we already have a programmatic EIS that has been completed as well as the master.

Yeah, I was just kind of worried because your timing is not, you know, won't work. Now secondly, who's going to pay for the demolition of the current stadium?

That's inclusive of the. Yeah, that's inclusive of the project that's.

So that's going to happen after you do the. I mean, the completion of the EIS as well.

Well, the EIS is done, so we're. So Stanford is actually already working with the city's Department of Planning and Permitting on developing the demolition plan and the demolition permits. So we're hoping to be able to start demolition far sooner than. Than planned.

And that works out with the concerns that Senator Wakai had with regards to the timing.

You can't demolish until you guys have an agreement. I don't think there's a signed agreement yet.

Correct. That's why the agreement says no.

In the spirit of catching up, are already in good faith and proceeding with the demolition plans to get the permit.

The deadline to sign the agreement is when?

Summer, June 25.

Okay.

I mean, and a permit for demolition wouldn't be issued by then anyway...

But do you think you can. I mean, are you guys negotiating to the point where you think you can sign the agreement much sooner?

I'm hopeful of that. I suggest let's get everybody in the room with respected legal counsels and don't lock the door and get it done. You know, the sooner the better.

Yeah, I mean, we're always trying to target to do it faster, but June 30th is, right now is our target date.

Well, that's your end date. If it doesn't happen by June 30th, then what?

Well. The termination of the PDA would actually also end on that date. But I mean, we do have the ability to extend the procurement process a little further if it looks like maybe July might be, we might be spilling into July to execute final contracts.

Okay. Okay. You know what? We really gotta...we got tons of Bills that we don't want to get killed. So you need to be real quick.

I'll be quick. In terms of your process at the city, are you looking to come in to amend the TOD, TOD County ordinances, or are you also looking at 201H or development agreements?

But there's also the ACDA overlay. So there's opportunities for them to.

Our discussions with DPP is to project district that allows us the flexibility to choreograph different building heights and typologies and have more flexibility. This is a four phase, 25 to 30 year build route.

And I would also comment very quickly, Senator, that the. The to the city's TOD district plan was done after our master plan. And so much of our master plan was incorporated. And we did work very closely with the city on the development of their Tod plan. So it. It' coordinated. So whatever was in our RFP was already. It was. Would have already been approved by whatever the city had in place.

Thank you. Thank you. You're just talking about the zoning part.

Zoning is done. Next, the height limitations.

You can get certain exemptions on height under the city's TOD, which is what he's looking to do.

Just. Just a quick one. So this is pulling out in two bids. Two separate bids.

No, no, one. One procurement.

Okay, so you get one bid, one procurement. Then his dream is $6 million. The money that we gave him was 350 million.

So going forward, I hear him telling that he has tried to do the private partnership, but prior to this, in 2020 or 21, whatever, at the time it was brought up that had professional players that have ties here. I wanted to invest into the stadium, but I don't know who or how.

Because why didn't he reach out to those guys, other people that was interested? One of them was Dwayne Johnson.

What's your question?

No, but they might have to apply to the RFP.

Oh. They're saying private partnership. So when I go ask Donovan, you want to partner with Stanford Carr to help build a stadium? I'm not saying that he was going to build a stadium. He said private partner money. How are you gonna get somebody private partner if you're not asking all the players?

Is that a question for the stadium or is that a question for the developer?

That's more of a question for the developer, which I think Stanford is doing.

Yeah, he has a $6 million dream stadium. Yeah. 600 million. Whatever.

Between laws and budget and dreams. Right.

We got to figure them out later.

So we were invited by [inaudible] to go visit SoFi. He built SoFi for $5 billion. Don't want to invest in a stadium. A stadiumis a black hole. And it's the surrounding real estate is what they need to do to validate the, t he sustainability of the stadium. So they built rentals. They just built [inaudible].

Another, like a sphere venue for sports entertainment. And so the stadium is a black hole. It's like owning a boat, you know, and, and that's why we need to develop a stadium of the scale that'll attract more venues so that we can get national entertainers, have need for concerts and so forth. I'm sorry,

Chair, quick question. So. So. So I'll go back to the question. Have you looked at partnering up with. Others or reached out in public private partnership?

But wouldn't that be part of your team that you put together as far as applying for the.

And he's. And he's still talking to other potential partners as well. Just.

Just yes or no?

Yes. Yes.

Okay.

Yes.

Thank you. Thank you Chair

Okay. We're going to defer this item till tomorrow, 10:31. And the reason why we're going to defer is that there are talks about a potential private donation that could also help fund the project.

But I'm sure the Legislature is going to want to put some stipulations on how that private donation is going to get spent.

So we need to take some time as to where the funds would go, private donations money would go, and what would they be appropriated for? So we're gonna. We need to work on that language. Tomorrow, 10:31. Okay. This this agenda adjourned.

They're calling to order the, I guess we'll do the 10:04 agenda. That's what the Vice Chair has. Yeah. Okay. First item is SB 51. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present, Anyone voting no? With reservation? Measure- oh. Reservation for Fevella.

Starting 10:04. Thank you.

And Kim. and Fevella. Measure adopted.

Okay. Next item, SB 121. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Next item, SB 299. Recommendation is to pass with amendments, inserting language which requires service providers to commit to a blank number of years to practice full time in Hawaii. Any discussion? If not, Chair votes aye.

Anyone voting no? With reservation? Measure adopted.

Thank you. Next item, SB 304. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Thank you. Next item, SB 338. Recommendation is to pass with amendments. Adopt Charter Communication's language on page four, line 16, that GA no taxpayers that claims a credit under this section shall claim any other credit under this chapter for tax years beginning with before January 1, 2026. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Thank you. Next item, SB 428. Recommendation is to pass unamended. Any discussion? Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Next item, SB 637. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Next item, SB 662. Recommendation is to pass unamended. Any discussion? Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Next item, SB 675. We'll be deferring.

Next item, SB 944. Recommendation. Okay, we need to, I guess, work on some language. So we're going to be deferring this till tomorrow at 10:31. In this room. Tomorrow.

Next item, SB 1251. Recommendation is to pass unamended. Any discussion?

1250.

I'm sorry, 1250. Any discussion? If not, Chair votes aye.

All Members present, any...

Pass unamended.

All Members present. Anyone voting no? With reservation? Measure adopted.

Next item, SB 1500. Recommendation is to pass with amendments. Will adopt IBEW's amendments to insert the- into page 4, line 19, the following.

"The appointed receiver shall recognize and maintain the terms and conditions of any existing existing collective bargaining agreement at the time of and throughout receivership, and shall not induce or cause a reduction in force or terminate a covered employee other than for cause consistent with any collective bargaining agreement." Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Okay IT.

Okay, calling to order Ways and Means. This is the 10 a.m. agenda starting with SB 1220. SB 1220. Got it?

First item SB 1220. Recommendation is to pass with amendments. adopt LRB tech amendments and we have language from stakeholders that to adopt the Committee to adopt the PUC amendments to change the Commission's review deadline from six months to nine months and to clarify that the tariff shall not be established until no later than 30 days after the Commission determines the completeness of the application for proposed renewable gas tariff and clarify the definition for net term usage.

Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Next item, SB 828. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Calling to order the 10 a.m. agenda for Ways and Means. This is SB 1487, first and only item. SB 1487. Recommendation is to pass unamended. Any discussion? If not, Chair votes aye.

All Members present. Anyone voting no? With reservation? Measure adopted.

Thank you.