House Standing Committee on Finance

Okay, we want to convene the Committee on finance for our 3:30 agenda. Today is April 22025. First up is Senate Bill 1221 SD2HD2.

First up, we have Allison Schaefers in support.

Mahalo to the Chair, Vice Chair and Committee Members. My daughter, 5 year old Charlotte Schaefers is the reason that I am testifying today strongly in support of Senate Bill 1221. Charlotte was a water baby and we called her Sharkey for her love of the water and her big truthy smiles.

She was aptly named as she died February 282004 saving a friend who was struggling in an improperly flooded detention pond. Detention ponds are designed to stay dry and only catch and release a moderate amount of water in a heavy rain. But this one malfunctioned because the drainpipe was 89% clogged.

And worse yet, the developer knew it and chose not to fix it. Their negligence turned rolling hills between the playground and backyards in our neighborhood into a sudden death pit. It took my community, many of them Navy divers, 10 minutes to find Sharkey.

The friend who pushed Sharkey's lifeless body out of the water into the hands of others could not get out of the flooded retention pond herself without assistance from other adults. This bill was modeled after recommendations released in the first Hawaii Water Safety Plan.

The plan was written by the Hawaii Water Safety Coalition, which falls under the umbrella of the Hawaiian Lifeguard Association, and many of the recommendations in this bill are taken directly from their recommendations. Retention and detention ponds are sometimes needed for stormwater control, but without mitigation, these ponds can become hidden hazards.

They are usually located in public areas of housing developments and park spaces, often near playgrounds, so they are at risk of being mistaken for recreational ponds. Retention and detention ponds also are used to make less desirable low lying and wet line areas suitable for building, so they are more often found in less affluent neighborhoods.

Making legislation and equity issue too the urgency to regulate is made greater by climate change. The latest version of the Ala Wai Flood Risk Management Project has one detention plan planned for the Alawai Golf Course. However, earlier versions had large detention plans.

Ponds planned for Oahu parks, including Kapiolani Park, Makiki District Park, Manoa Valley Park, Paloa Valley District Park. Other alternatives were selected as it was determined based on feedback from the public that the use of public parks as detention facilities could reduce acceptability by the public.

The public wants recommendations and regulations around retention and detention ponds which would help Hawaii's terrible drowning numbers. Drowning is a leading cause of death for our keiki ages 1 to 15 and our keiki under 7 are far more susceptible to drowning risks that occur outside of the ocean.

Native Hawaiians and Pacific Islanders are dying at nearly two times the rate and the deaths of Native Hawaiians and Pacific Islander Keiki are at three times the rate of this bill often is a common sense approach which has received broad support.

It does not ban retention or detention ponds and responsible owners and regulators already should incorporate these safety and maintenance requirements. I think a complete retention and detention pond safety program needs an inspection program as well as a survey of the existing retention and detention ponds and a plan to address them.

However, if the costs of any part of this plan are too high, given this year's fiscal burden, I urge our lawmakers to work together to at least pass a mandate requiring minimum safety standards such as fencing, signage and a ring buoy which would be thrown to someone in the water to buy time for a rescue.

This public health and safety issue warrants a consistent statewide solution, especially given Hawaii's high resident drowning rate. We have the second worst in the nation. After Sharkey's death, my family was awarded a $2.0 million wrongful death settlement, the largest at the time for the death of a child in Hawaii.

Today the going rate is more like 8 to 10 million. And I don't need to tell you after looking at the Maui situation that liability is one of the main things that drives up costs and of construction and rents. I should be celebrating Sharkey turning 26 this year.

Instead, I'm testifying so that no other parent meets the hell that my family has experienced. Her absence is a loss that is felt every day because to lose a child is to lose your own future.

She had a decision to make 21 years ago when she stood on the banks of a flooded detention pond and watched her friend struggling and she didn't hesitate to save her friend. Hawaii needs more water safety champions. If a five year old can be a hero, we can all be heroes.

So let's work together to help Sharkey save more lives. Thank you.

Thank you. We have testimony from Gregory Misakyan in support on Zoom

Aloha Chair, Vice Chair, Members of the Committee My name is Greg Masakian and I currently serve as the first Vice President of the Kakua Council and also as a member of the Waikiki Neighborhood Board and on both of the boards that I serve.

On both of those two boards I had the opportunity to see a presentation from Ms. Schaefers and also some of the people that she works with and we were Able to see a lot of the issues pertaining to, you know, the safety issues, the concerns related to this.

Also the fact that throughout Hawaii, where, you know, we have water surrounding us, that there's many drownings daily where people aren't really, unfortunately, they're not getting the swimming skills that they need. Something when I was younger, I didn't get as good as I should have gotten myself.

So there's many things that are being advocated for, but this particular issue is a very serious one. And in the presentations that I saw and what I understand from the safety concerns, I fully support this measure. I know there's many, many people that support it and.

And I hope at the end of the day that this measure continues forward and will pass. So that's what I wanted to say today. Thank you very much.

Thank you. That's everybody who indicated they would be joining us today. Also, testimony and support from 6 organizations and 25 individuals. Are any of them or anyone else in the room wishing to testify? Anybody on Zoom?

Okay, questions? Members, thank you. We'll move on to the next bill. Senate Bill 104SD2HD2.

First, we have the Department of Corrections and Rehabilitation in opposition.

So I'll just summarize my testimony. It's shortened from what it used to be. We're still opposed this measure. However, we do request this measure be deferred. I believe that we can work with the Oversight Commission and the other stakeholders to try to address the issues concern they have with our policy on segregation, administrative and disciplinary segregation.

So I'd ask this matter to be deferred. Allow us to sit down and come back next year. Thank you.

Thank you. Next, we have the Hawaii Correctional System Oversight Commission in support.

My name is Martha Tornay. I'm one of the commissioners for the Oversight Commission. The Commission supports this measure and we just want to use one example from the core Civic program, which is in Saguaro. The contract program that we have there. At that facility, they have a special housing incentive program.

The way you get there is through misbehaviors. The last time we visited, there were 80 people that were included in this. In that program, it is broken down into four month segments. The first four months, you get only one hour a day out of the cell. Second four months, two hours a day.

The third four months, three hours a day. That is very restrictive housing. This whole movement on changing restrictive housing or solitary confinement started as a result of terrible conditions at Pelican Bay in California.

And if any of you were able to see on PBS a couple of Months ago, the strike about the hunger strike that led to the end of the solitary confinement programs in California. You can now not be held longer than 15 days.

And we have also brought to the attention of the Department that we're concerned about restrictive housing at occc, mccc, and kccc. So we do support this Bill. Thank you.

Thank you. We have Hawaii Disability Rights center in support on zoom.

Yes, thank you very much. I'm Lou Ertischek. I'm the Director of the Disability Rights center, and we continue to be in support of this measure. We had a really good discussion at the House Judiciary Committee, and for years we've been supporting efforts to try to crack down on the use of solitary confinement.

I mean, I think that, you know, I'm not saying there's absolutely never a potential place for it, but it should be used only rarely, only under various situations, and only for a limited time. It's particularly difficult for folks that have a mental health issue.

And for years, all we've been hearing from the Department is, don't worry, we got policies in place. We're good. It's taken care of. Obviously not. You've got a lot of suicides. You now have federal overseers who are coming in. So if everything was good, all the things that the system is finally doing wouldn't be occurring.

And just as one quick example, if you look at page five on the policies that they provide, they talk about what happens when you have to place somebody with a mental health issue in segregation. And under number four, it says, well, go back and check on them within 24 hours.

I mean, they certainly shouldn't be left alone for 24 hours. So that doesn't make sense. And then it says that if they're placed in segregation during a weekend where they just don't have anybody on staff, then just check on them next time you're back on the facility.

That makes even less sense, because first of all, there should never be a time when there's no mental health worker on staff in the facility. And how you can have as your written policy something that says, well, just leave them there, and if it's the weekend, just don't sweat it until Monday morning.

So if that's an example of the kind of policies that they're saying are adequate to protect the people of our state, then I would submit that you, as the Committee, ought to be very concerned and that the Legislature ought to be imposing greater oversight.

And that's why we think that codifying the provisions in this Bill make a lot of sense so thank you very much.

Thank you. We have Hawaii Friends of Restorative justice and support on Zoom not present Community alliance on Prisons in support.

Aloha Chair Yamashita and Vice Chair Take no Uchi. Kat Brady testifying in strong support of this Bill for Community alliance on Prisons. You know, this Bill really highlights some of the darkest corners of public policy in Hawaii. And the Bill actually provides light for transparency and accountability. That is something the community has asked for repeatedly.

So we are in strong support. We've been researching this for over a decade, and all around the country and the world, people are talking about this as torture. And this does not comport with who we are in Hawaii. The Bill started out as solitary, but now there's all sorts of euphemisms. Restrictive housing, disciplinary segregation, administrative segregation.

It's all the same thing. We isolate people. Human beings need social contact, and they need stuff to keep their minds going. So right now, just throwing somebody in solitary with nothing is not good. I've heard the Department testify. It's not solitary. There's two people in a cell.

And actually, that could be worse because there was an incident in Saguaro with a young man from Maui who had developmental problems, and his cellmate threatened to kill him. He was really scared. He went to the Acos and said, I'm really. He threatened me. I'm afraid. Can you put me somewhere else?

They denied his request, and he was killed by this guy. So we know bad things happen in solitary or in isolation, and it's not good for human beings. There's been all sorts. 135 years ago, the Supreme Court acknowledged how devastating this practice is, and yet it still is in place today. So since 1980, there's just been.

Since 1880. Sorry. Researchers have learned more and more about the impact of solitary or isolation on people's brains. So, please, we ask that you put this in statute so that it becomes more public. Nobody really knows what's happening in solitary now, so I think it's really, really important that it be in statute. Thank you.

Thank you. Next we have ACLU of Hawaii in support.

Thank you, Chair. Vice Chair. ACLU of Hawaii is in support. The only thing we'd like to kind of echo from previous testimony is the both international and national standards have made clear that solitary confinement, more than 15 days should be considered a form of torture.

Further, the research shows that solitary confinement is extremely costly and does not deter violent behavior or help with recidivism outcomes. And so we think that this Bill is a kind of common sense Measure not only from a fiscal standpoint, but also from a moral, ethical standpoint.

And we especially have those concerns for people in Saguaro who are part of the SHIP program or other types of administrative segregation.

Given the kind of tenuous oversight policies that are already in place for Saguaro and given the violence that, you know, just as recently as last year has been occurring in segregated housing, we believe this Bill is a necessary step to ensuring that there are checks and balances to what CoreCivic can do to the people in Saguaro.

And so we ask that you pass this Bill through. Thank you.

Thank you. That is everybody. I have checked in for this Bill. Also, testimony in support from the Office of Hawaiian Affairs, Easter Seals Hawaii, and three individuals. Is there anybody else in the room wishing to testify? Anybody on zoom questions?

Members?

Vice Chair, Director Johnson. Sorry, I just wanted to clarify a point you made in your testimony about your conversation with the Oversight coordinator. So is there consensus with the Commission that I just emailed her yesterday regarding.

So she reviewed the policy and compared it to the national standards. She emailed me some information, recommendations. I emailed her back. I tended to agree with some of the recommendations. Others were up for discussion. Unfortunately, she's on the Big island today at the Kulani Correctional Facility, and there's no cell phone coverage up that high.

So we amended our testimony to make it Shorter, to say we think the Bill should be held, should be deferred to allow us to sit down with the Commission and the stakeholders, the ACLU, Cat Brady and others who want to provide input so we can come up with a policy.

We may not all agree, but we have to understand safety and security in the facilities is first and foremost.

Okay, thank you for that clarification. Yeah, I mean, I think it would be good. Yeah.

At some point, when she's back into cell service area something, if, you know, the Committee and all the Members might be able to get that confirmation from the Commission side just because it is kind of conflicting right now as it's provided on the record. But thank you for that work and your willingness to work with the Commission.

Thank you.

Okay, thank you. Thank you, Chair. Okay, thank you. Further questions. Okay, thank you. Moving on to the next Bill, Senate Bill 1381 SD1.

First up, we have the Hawaii Air National Guard in support.

Good afternoon, Chair, Vice Chair and Committee Members. Colonel Nagatani. I'm the Director of Staff of the Hawaii National Guard, representing Major General Logan, Major General Harris. We're here in support and we're standing on our written testimony. And here to answer any questions you might have.

Thank you Members. That's everybody who indicated they'd be joining us. Also, testimony and support from the Department of Defense and one individual. Is there anybody else in the room wishing to testify? Anybody on Zoom?

Okay, questions. Thank you. Moving on to the next bill, Senate Bill 1042 SD1HD1.

First up, we have the Office of Wellness and Resilience in support.

Aloha Chair, Vice Chair, Members of the Committee, Tia Hartsock, Director, Office of Wellness and Resilience. Thank you so much for hearing this measure. This measure creates a pathway for those in need to have access to innovative and life saving treatments. We are very honored and excited to help lead this charge.

As we shared in our written testimony, given the uncertain times of the Federal Government restructuring, establishing a programmatic framework may require flexibility considering likely disruption to federal and other agencies and processes.

Therefore, we are requesting an amendment to provide a longer timeline and flexibility by changing the proposed two year pilot program into a program which our office is authorized to establish and implement. We outlined our our suggestions for an amendment in the testimony and available for any questions. Thank you so much for the opportunity to testify.

Thank you. Next up, we have Clarity Project in support.

Aloha Chair, Vice Chair, Members of the Committee, My name is [unintelligible], Project Manager for Clarity Project. Our Director Ashley Lukens is traveling.

So I'm testifying on behalf of the organization in strong support, standing on our written testimony and just sharing that even given pending FDA approval of some of these breakthrough therapies like Psilocybin and mdma, what we're hearing from other states is that there still needs to be clinician training, patient education and preparation for FDA approval when it happens so that the state is actually prepared to be able to provide access.

So that's why programs like these are really important so that Hawaii is prepared if and when the FDA does approve some of these breakthrough therapies. And Clarity, through our network of supporters and donors, can commit $500,000 through private donors in 2025 and 2026.

So just sharing that we're going to be working really hard to make sure that the Office of Wellness is supported in being successful with this effort. Thank you.

Thank you. Next, we have Reason for Hope and support on Zoom.

Thank you, Chair. My name is Jesse McLaughlin speaking on behalf of Reason for Hope. This is a really important bill for a number of reasons. Psychedelic assisted therapies represent no less than a tremendous breakthrough in our ability to treat mental health and substance use disorders for the American people.

But the question remains, why is it that state governments need to get involved in clinical research, psychedelic assisted therapies. This is normally something handled by the Federal Government and private industry.

The reason is because of a abject failure on behalf of the Federal Government to meaningfully support research of what might be one of the next greatest breakthroughs in our ability to combat mental health and addiction disorders in this country. And that's a reason that we have a difficult time wrapping our heads around.

But it falls down to decades old war on drugs, the politics of getting involved in Schedule 1 research and the difficulties that Washington is having in its current state. What has also held this research back is the fact that Big Pharma has yet to find a way to monetize it properly.

We're talking about therapy, not take home drugs that Big Pharma normally gets behind. And so the responsibility and the public benefit falls to the states. And this is what we're seeing. We're seeing states across the country pick up where private industry and the Federal Government should be leading and they're leading instead.

And that's why I'm so proud of this bill. I'm so proud that the Legislature has gotten this bill this far and that we're hearing it today. I'm so proud of the advocates that have fearlessly shared their stories and have worked to bring this issue to light. I also understand that states are grappling with difficult budgetary scenarios.

I would point to creative programs like that in Connecticut that passed their psychedelic assisted therapy pilot program within available appropriations. And then we're able to in later years figure out how to pull state resources together to make it a reality that program is now up and running and treating patients.

So I stand ready to answer any questions and assist the Committee in this process. But I offer you my thanks and commend the leadership here for hearing this issue.

Thank you. Next we have the Veteran Mental Health Leadership Coalition in Support on Zoom.

Mr. Chair, Madam Vice Chair, Members of the Committee, my name is Martin R. Steele and I'm proud to offer testimony on behalf of the Veteran Mental Health Leadership Coalition in strong support of SB 1042, now amended to establish Mental Health Emerging Therapies Pilot program.

As a retired lieutenant General in the Marine Corps, I served nearly 35 years in uniform rising from an enlisted private to three star General. From 1995-97, I was stationed in Pearl harbor where I served as the J5 Director of Strategic Planning and Policy at U.S. Pacific Command. Hawaii holds a very special place in my heart.

Since retiring from active duty, I've dedicated my career to combating the veterans mental health and suicide crisis. SB 1042 is a timely and necessary response to this crisis. The pilot program will support clinical research into FDA designated breakthrough therapies like MDMA and Psilocybin assisted therapy for PTSD and treatment resistant depression. It will Fund public private partnerships.

It will provide education and training for mental health professionals. It will establish patient access pilot programs so that veterans and others in need can receive care in a supervised, regulated setting. Importantly, these treatments require a new clinical model, preparation sessions, full day dosing experiences and post treatment integration. This requires infrastructure, training and insurance coverage. Without early action.

FDA approval alone will not ensure success. By acting now, Hawaii can build that foundation. I also want to commend the Legislature for its foresight in including language that allows for philanthropic contributions to support the pilot program. I am confident that your approval of this legislation will result in in matching philanthropic funds as enabled in the bill's language.

I respectfully urge your support to advance this legislation and appropriate funding to operationalize the pilot. This is investment in lives, families and communities. Thank you very much for your time and I'd be honored to answer any questions.

Thank you. Next we have Tai Cheng in support on Zoom not present do we have Lauren Myers in support on Zoom? Not present. Christina Rodriguez in support on Zoom?

Yes. Hello. Greetings Chair, Vice Chair and Committee Members. My name is Christina and I'm a registered nurse specializing in psychedelic assisted therapy and education living here on Maui. In strong support of this measure.

I had the distinct honor of serving on the Task force last year for the Psilocybin Bill and I'm currently on the Board of Advisors for Clarity Project. I'm trained in the Clinical Western medical model, psychedelic therapy and research, and in traditional Indigenous medicine cosmologies to work with psychedelic plant medicines. I'm also a MAPS MDMA trained facilitator.

I have developed and currently teach curriculum in the use of plant medicines from the historical, ritualistic, spiritual and ceremonial perspective in the State of Oregon. As such, I've had the opportunity to learn from and teach some of the brightest minds and hearts in the psychedelic plant medicine field.

Ultimately, I'd like to inform or remind you that while some of the medicines in question for research funding are considered emerging and breakthrough therapies, science and the medical community are only now substantiating what Indigenous communities have known and practiced for millennia.

Psychedelic plant medicines have traditionally been used to help people heal from addiction, trauma, illness, and in the preparation for the death and dying process, among many other therapeutic applications that nourish and Heal individuals and communities.

Personally, my own experiences with psychedelic medicines have deepened my empathy, expanded my resilience, and allowed me to process and heal PTSD in ways traditional therapy never could. While not appropriate for everyone, with proper education, regulation and medical oversight, psychedelic medicines can revolutionize mental health care, providing hope and healing to countless individuals in need.

I personally am prepared to help train and support Clinicians and patients here in Hawaii. Please support this bill. Thank you. And I'm available for questions.

Thank you. We have Megan Vaughn in support on Zoom.

Hi. Alright, so my name is Megan Vaughn. I'm a military spouse and a clinician with over a decade of experience working with special operations soldiers.

And when you sit across from a man who has given everything to his country and he tells you that at least this time they didn't take away shoelaces like they normally do because of suicide risk, it leaves an impact. And I wish like conversations like this were a rare thing.

And it's like when you have to go and do therapy outside and walk with someone because they're so activated and they can't sit down, it really leaves that continuing question of is this what it's always going to be like?

But during my time as a clinician, I've had the rare opportunity to work with special operators for years before the breakthrough therapies. And I've had the rare opportunity to work with them in the form of psychedelics. And I did not seek out working with individuals post psychedelics. So I did not bring in bias to this.

I was brought into this because of my experience with these individuals. My specialty in brain injury and post traumatic stress disorder. And then what I saw was astonishing. My therapy approaches haven't changed much that I've done additional education within psychedelics, but really that's not what the the magic part is.

What is so astonishing is the changes post the psychedelics and what you see in these individuals, they're making changes faster, there, is sustaining the changes longer.

They're suddenly more mentally flexible and you're even seeing changes within brain injury and they're ready to engage in interventions and these life changes that will have these sustainable changes on the brain that will maintain the changes that happened post psychedelics for a lifetime because they're doing these different activities that they were never willing to engage in before.

They were just so very stuck. And so that's why I want to be here today, to be able to speak on behalf and in support of this, because this is something that is a game changer.

And I can tell you just from years of experience and from my own personal experience as a spouse that this is something that is going to save lives and families and have an impact on generations to come.

Thank you. Next we have Joe Hudak in support on Zoom.

Yes, thank you Committee for taking the time and attention to this matter. My name is Joe Hudak. I'm a retired master sergeant with the U.S. army. I spent 20 years on active duty as a Green Beret and I was deployed to Afghanistan and Iraq with five and a half years of combat time.

I was medically retired in 2015 for combat PTSD and my last couple of years on active duty I was actually an inpatient and military psychiatric facilities, it took them that long to stabilize me enough to medically retire me. And when I did, I still had day to day struggles with PTSD and anger and depression and fear, honestly.

And I went through a multitude and myriad different types of treatment modalities. I continued on. And after about a decade of all kinds of therapies through the military, through the va, some experimental, I was introduced to psychedelic assisted therapy. I went and did that four day program.

It was just one dose of one medicine and one dose of another medicine in four days. And it completely changed my life.

It didn't erase any of the trauma or the combat or the memories, but what it did is it shifted my perspective on things such that I could let things go and I could allow for some healing to happen. I was part of the Stanford study that was looking at magnesium ibogaine assisted therapy in special operations veterans.

I would urge the Committee to look up the data on that study. The results are fantastic and it is a therapy that is going to save many lives ultimately. So I appreciate your time and attention to this. Thank you.

Thank you. We have Amanda Lillabridge in support. Thank you. Robin Martin in support on Zoom.

Aloha Chair, Vice Chair, Members of the Committee, My name is Dr. Robin Martin. I'm a assistant clinical faculty with Jabsa Medical School and a psychiatrist in private practice in Honolulu. And I stand by my written testament testimony in support of this bill.

And I'd also just like to add that I personally have had patients suffering from major depression and PTSD who have tried and failed every standard psychotherapeutic approach. Many medications have fought to the very bitter end and still died of suicide.

I believe that these patients would have a fighting chance of being alive if these treatments were available in our state. I thank you for your consideration in supporting this bill.

Thank you. Thank you. Excuse me. Next we have Lynette Averill in support on Zoom.

Hi, thank you Chair Representative Yamashita and Vice Chair Takenouchi and all Members of the Committee for the Opportunity to speak to you today and expand upon my written testimony. Testimony my name is Dr. Lynette Averill and I strongly support SB 1042.

This issue is deeply personal for me as it is for many of the people who are here today. My father, a U.S. marine, died by suicide after years of struggling with ineffective treatments and his life and subsequent death have certainly shaped me significantly personally and professionally.

As a researcher and a practicing psychologist specializing in ptsd, depression and suicidality, I have worked with many patients, veterans and civilians alike who did not find adequate healing through traditionally available interventions such as SSRIs or gold standard talk therapies or perhaps have found relief only to the point of tolerating existence. That is simply not enough.

I have had the opportunity to lead multiple studies on novel rapid acting therapies like MDMA and Psilocybin, as you know, both of which you have been designated by the FDA as breakthrough therapies for their ability to provide safe, fast acting, robust and long lasting relief. And has been noted previously, these are not brand new interventions.

These psilocybin especially has been being used for millennia. So there's so much more research, even or anecdotal research than we're even discussing really.

I can tell you firsthand that this legislation is very timely, important and feasible as I have the great opportunity of leading a similar program in Texas that is supported by House Bill 1802 which passed in the 87th legislative session that funds a psilocybin trial for veterans with ptsd.

And we have recently started dosing for that and have had hundreds of veterans from across the country reaching out, quite desperate honestly, for something that might provide healing. And the results so far have been nothing short of remarkable.

These are veterans with very chronic and severe PTSD complex comorbidities and within 5 to 6 hours generally are noting very significant improvements.

Something really exciting about this bill is that not only does it provide care immediately for those people in need, but it provides the opportunity to create a groundswell in terms of professionals who have some experience and training in offering these sorts of interventions in a safe and ethical manner.

These do represent a bit of a paradigm shift in terms of our approach to traditional mental health care and even incredibly well trained and expert Clinicians and providers just don't have expertise in these things.

So having the opportunity to get training in those prior to FDA approval and then be able to better prepare post approval and be able to scale is huge. We do have to consider under treated or untreated mental health concerns as life threats, illnesses, just as we would a cancer diagnosis, for example, because that is what they are.

In reality, we know that many people will not survive years or decades before they may be able to access interventions like these. And supporting this bill not only supports those individuals that are struggling with these symptoms, we know that these experiences never happen in isolation.

And the ripple effects to family, friends, community and public health economics simply cannot be overstated. Other states, Texas, Connecticut, Maryland have already taken action and Hawaii really has an incredible opportunity to lead. And what an opportunity it is.

We're talking about saving lives here and I think not just saving lives to the point of tolerating existence, but really offering a foundation that people can build lives that they truly want to live.

I urge you to pass this bill and invest in an improved future for all of the citizens of Hawaii and provide a model for other states to follow. Thank you so much for the time and I'm happy to answer any questions.

Thank you. Next we have Kirsten Cashman in support on zoom.

Hi there. Good afternoon, Chair and Vice Chair and all Committee Members. My name is Kirsten Cashman and I'm a senior at the University of Hawaii at Manoa where I'm pursuing my Bachelor's degree in social work. I'm here today to testify in strong support of Senate Bill 1042.

This bill and others like it address the urgent need to improve mental health services across Hawaii, especially for veterans within the islands. Hawaii is home to a large number of service Members according to the defense economy.

According to the Hawaii defense economy, Hawaii homes more than 250,000 military personnel, a non significant, a non insignificant number of which are struggling with mental health challenges. These challenges are compounded by the limited access to comprehensive care and the stigma that often surrounds seeking help for mental health issues.

Our state's large veteran population faces critical obstacles including difficulty transitioning back to civilian life and a heightened risk for conditions such as PTSD or cpsd, depression and anxiety.

Unfortunately, many veterans do not seek the help that they need, often because they fear being stigmatized or feel isolated due to lack of mental health resources that specifically address their experiences. As a college student, I've witnessed many struggles with my friends who've served in the military.

Many of them are using their GI Bills benefits to pursue higher education. They continue to grapple with the emotional and psychological challenges of transitioning out of the military, the mental health struggles they faced before, during and after Their service are all commonly shared among service Members, and the lack of proper mental health support exacerbates these issues.

SB 1042 is a much needed solution. This bill's emphasis on emerging therapies offers a promising alternative for those who do not have for those who have not responded to conventional treatments. These therapies, recognized by the FDA for their breakthrough potential, have shown remarkable results in clinical trials, particularly among veterans, potentially saving lives.

The Emerging Mental Health Therapy pilot program provided by this bill will also enhance research and clinical trials, ensuring that these new treatments are delivered safely and effectively. By providing the funding for education and training for mental health professionals, the program will also help create a more informed and capable workforce to support veterans in need.

Public education and harm reduction efforts are also vital components of this bill, as well as vital to community health, ensuring that all residents of Hawaii, including our veterans, have access to the most advanced and effective mental health care.

I urge you to support this bill and help ensure that our community members and veterans have access to the mental health care that they deserve. Thank you for your time and your consideration.

Thank you. Next we have Robert Farmer in support on Zoom.

Hello Chair, Vice Chair and Committee Members. Thank you for allowing me to speak today. Like some of our other veterans that spoke earlier, I spent 22 years, 14 of them were in suppressor operations. I have seen the worst that human beings can do to each other. I've had my part in that also.

Those things come home with us and the the Veterans Administration does the best that they can right now. I did everything I did from group therapy to pet and horses to art therapy to music therapy to try and, and bring myself home for more. I struggled and I struggled every day from the day that I got out.

The only thing I really found relief from was was plant medicine. Like Mr. Huduk spoke, I got almost eight years on the ground in Afghanistan. Not at a big base, at a small, small fire base, on the front lines every single day. Those things are very hard to come home from.

And to be a husband and be a father and be a friend and be an uncle is very hard to come back and assimilate back into society.

Plant based medicine is the only thing that ever brought me home and made me feel like I'm home 100% and take that urge away from wanting to end my life to, from not finding help and having to beg to get help. To be honest with you, Please. I ask you to support SB 1042.

It's, it might be seem foreign to a lot of folks but I had to leave the land that I served and the land that I love to go get help outside of this country to get these therapies.

I'm asking you to consider this please because this is going to help bring us to the forefront and we are at a public health crisis. I wish I could jump up and down on everyone's desk right now but 50 veterans a day, it's unacceptable. It really is unacceptable.

And you have the the way and the means right now to bring us to the forefront to help save human beings lives. That's what this is about. Not Republican, not Democrat. This is to save human beings lives. I ask you to please consider. Thank you for your time. I'm available for any questions.

Thank you. Thank you. That's everybody. I have checked in for this measure. Also testimony and support from two other organizations and about 35 individuals. Is there anybody else in the room wishing to testify? Please come forward.

Please just state your name and position for the record.

My name is Melvin Amaral. I have somewhat of what they call a mental health issue, but not exactly diagnosed with adhd. I have tbi, and I've been through trauma. And bear with me. I have asd, Autism Spectrum Disorder. I have ocd. I have no one to represent me.

Well, my question is, I'm trying my best is I need someone to brief me about this situation with the use of psychedelic drugs. Am I correct? The use of psychedelic drugs.

The Bill would be setting up a pilot project to look at emerging before.

There was a briefing on that that I didn't have time to answer because no one, it went really quick. So I'm asking to see if I can get briefed on that so I can answer the question.

This is for the public to provide testimony. That's what I'm doing.

I'm actually providing testimony as a person with disability. That's what I'm asking. What happened was you guys talked about that. So basically what I wanted to say is this. With the use of psychedelic drugs, it can also be very dangerous.

There's also other psychedelic drugs known as ketamine, too, which they actually prove to be useful and safe for children. So what I'm trying to say is that if you're going to actually use psychedelic drugs, it has to be for the most severe of severe cases. There needs to be oversight.

Now, I'm trying my best to have a lot of information also, too. I just wanted to say that if they're going. If we are going to proceed with this, there needs to be a lot of research and a lot of data. Now, maybe some things I say, probably they went through, they didn't hear.

But it's very important to know how these affect the people, because we don't want to turn people into drug addicts. There are a lot of alternative scientific research, medical breakthroughs. As a person with ADHD and autism, then you know that we are very intelligent people. So basically what I'm just trying to say is just hear me out.

That really need to do a lot of research. And at this time, I'm just going to say this. I'm undecided. Thank you very much.

Okay, thank you. Anybody else in the room, please come forward. You can just state your name and position for the record.

Edith Garcia. Aloha Share Vice Chair and Committee Members. My name is Edith Garcia and I'm a combat Navy veteran. I traveled from Hilo to Testify today for SB 1042. Like many service Members, I struggled with PTSD, anxiety and depression. Pain that followed me long after my service. I turned to the VA for help, hoping for healing.

Instead, I found a system that retraumatized me. I was overmedicated, dismissed and left feeling broken. I began to lose hope and desperate for relief, I sought treatment overseas. I am alive today because of those therapies. SB 1042 is a vital step towards expanding evidence based treatments.

Treatments that are showing immense promise for mental health challenges veterans face every day. The science this far is clear and now it's time for Hawaii to lead in providing safe, regulated and effective options. No veteran should have to leave their home to access life saving care.

We deserve access to treatments that work, especially those backed by research and real world outcomes for conditions like PTSD, depression and traumatic brain injury. SB1042 offers hope. It supports research into these therapies so that Hawaii can be a leader not just in innovation, but in compassion and care for its veterans and first responders.

I fought for this country and now I ask you to fight for veterans right to heal here in our homeland. Please pass Bill 10. Sorry. Please pass SB 1042. Mahalo for your time. Thank you. Anybody else in the room, please.

Please come forward. Please state your name and position for the record.

My name is Vicki Farmer. My position is in support of this Bill. Aloha Chair, Vice Chair, Members of the Committee. My name is Vicki Farmer. My husband provided testimony over Zoom and I traveled from Kona to be here. This is my first legislative session providing written and in person testimony for a Bill. I'm a military spouse.

My husband served 22 years in the US army as a Special Forces Green Beret. He completed 10 combat deployments. He left the VA on 13 medications. A cocktail that left him numb, disconnected and barely present. We tried everything. Nothing worked. Several years ago, we found ourselves in crisis. A place no one wants to talk about.

No one wants to face suicide. My husband survived the war abroad, but almost lost the war at home. That same year, I kept seeing headlines about psychedelic medicine for veterans. At first I thought it was crazy. I was very skeptical. So I read the research, documentaries, podcasts, the data, study after study.

That's when I found Vet Solutions, a non profit founded by Marcus and Amber Capone to help veterans and their spouses. We applied, we received a grant, we got on a plane, we traveled outside the US for treatment because safe, effective options weren't available here. For the first time in decades, my husband experienced profound relief.

This was not a miracle cure. It wasn't an overnight fix, but it was A catalyst for healing. It gave him neuroplasticity, the space to breathe, and more importantly, the ability to process his trauma. Because here's the truth. Post traumatic stress doesn't just affect the veteran. It affects the entire family. We also carry the weight of war.

But healing. Healing ripples out. It spreads through a family like a wave across the ocean. Yet to find safe and effective treatment, my husband had to leave the country. The one he served for 22 years. This is unacceptable. And this is why SB 1042 matters. Since 20017,000 service Members have died in combat.

In that same time, 140,000 veterans have died by suicide. Let that sink in. This is not just a statistic. It's an epidemic. Every veteran I know can name at least one friend they've lost to suicide. Some can name many. My husband was almost one of them.

We tell veterans, thank you for your service, but what does that really mean if we fail to provide them with real, effective treatment? This is not a partisan issue. This is not red or blue. It is a human issue.

We already know that psychedelic assisted therapy is both safe and incredibly effective, with minimal side effects compared to traditional SSRIs. My message to the last Committee was hope and light. They heard me. They passed that torch to you. I'm asking you to carry the beacon forward.

Chair Yamashita, Vice Chair Takenucci, and Members of the Committee, you have the power to enact meaningful legislation. You have the power to change lives. You have the power to save lives. Veterans deserve healing. First responders deserve healing. The people of Hawaii deserve healing. Now, my message to this Committee is to let Hawaii shine the light.

Let Hawaii be a beacon. This is a historic day. Please pass SB 1042. Lives depend on it. Mahalo. Mahalo. Mahalo for allowing me to talk story.

Thank you. Anybody else in the room wishing to testify? Anybody on Zoom wishing to testify?

I would like to testify, if it's still available.

Sure. Yes. Please just state your name and position for the record.

My name is Angela Graham. I'm a co founder and Executive Director at the Siren Project. We Fund and facilitate retreats for first responders and with PTSD. We are strongly for 1042. I can tell you that as of now, the suicide rate for first responders, specifically firefighters, is five times that it was 20 years ago.

There's absolutely a mental health epidemic going on right now, and I think it's showing itself in the most vulnerable populations, which would be first responders and military. I can personally tell you, with the almost 70 first responders we put through our program that the results are profound.

We do agree that there needs to be regulation so there can be safe access to these medicines, that they are not for everybody. However, everyone deserves the right to effective mental health therapies. And this is ridiculous. It's not already available federally and federally protected because it is saving lives and it is saving families.

As Vicki stated earlier, it's not just the first responders or the veterans that are traumatized. It's the family unit as well, which is why we also send spouses as well as first responders.

I think it's imperative that we come together as a community and look past the red and the blue and the political issues and recognize that there are people who are dying or suffering greatly because they don't have access to the mental health therapies that they need.

And what is astronomical to me is how many suicides we have nowadays versus the last 20 years, when we have access to more therapy and more therapeutic modalities than ever before. And yet the numbers are rising. This is a crime against humanity if these medicines are not accessible safely for everyone to find peace of mind.

Thank you so much for letting me speak today. Thank you.

Thank you. Anybody else on Zoom? Please state your name for the record and your name and position for the record.

Yeah, how's it. My name? Leonard Nakoa from Maui. Lahaina, Maui. I just was listening to this thing about the mental health. The people here in Lahaina, Yamashita and Miyake, you guys know the people of Lahaina. The first responders over here on Maui, they had to go through that. Through that stuff over here in Lahaina.

I was here from the. From the beginning, and I seen them. So we need help. Please, if you can help these buggers out. Because I see them. I see them every day. I'm on the ground every day, helping out the whole arena.

But I also see the first responders, the public works guys that have been there from day one, going through all this mental health stuff. So please. Yeah, come on, man. This is an easy one. Please support this Bill. I came first testifying the other Bill, but I know passionately we need to support this Bill. Yes, sir.

Marlowe, thank you.

Anybody else on zoom?

Okay, Members, we'll open up to questions. Okay, Representative Deloy, thank you.

Chair, Office of Wellness. Please, while you get up there, I just want to thank all the testifiers for their courage for stepping up on this Bill. Thanks for being here. Tia.

We have a blank appropriation, but the Committee report notes $1.0 million but in your letter it mentions Office of Wellness Requests Committee to consider amendments to extend the program authorization, you know, the ability to contract regulatory approvals.

But it goes on to say in addition, it appears that receiving future private and non state funding may be likely once the program services are established. How confident are you in that? What does that timeline look like and is it a dollar for dollar match?

So thank you for the question, Rep. Leloy. We are working with advocates to actively identify private funding opportunities if this legislation passes.

The authority to be able to look at training opportunities for Clinicians and look at clinical trials to be done here in Hawaii to implement this type of and to really to ready and develop a workforce and a framework to ready the workforce to be able to receive this type of training to implement these types of interventions when the time comes is really what this is looking at is for us to prepare best as a state to not be reactive and too late to the game if and when the Fda, which is already designated a breakthrough treatment, approves this process.

But this is really a mechanism to be able to start the process to prepare the state to develop a framework to get the workforce ready and to be able to establish and develop clinical trials. So private funding looks very promising.

If this passes with this authority, I think we'll be able to get more secured funding from private sector. The one for one I think it would be amazing, but it's not contingent is what I've been told.

Thanks Tia. And then talk to me a little bit about that development of workforce as far as Clinicians and the various medical staffing needed. What does that ramp up look like and timeline for developing this type of workforce?

Yeah, I think some of the details in that would have to be developed over if this legislation passes. But I think what we're looking at is working with the established programs across the country that have created these kinds of training mechanisms and the evidence based approaches on what the training looks like.

There's national organizations that have developed and created evidence based trainings and approaches to implement this type of intervention on a clinical level. And so we would be partnering with them to look at how that looks on not only the lessons learned on a national level, but also how we would implement it here in the state.

I'm hoping if this passes and we receive not only state appropriations and the confidence from the Legislature to be able to utilize the private funds to start the process immediately. Training doesn't have to be developed per se, it's already existing.

And then it would be working with partners, working with stakeholders and working with advocates to identify the Clinicians that are, that are interested and ready. And as you've seen from the testimony, we've already, some have already self identified.

We've been in talks with not only University jabsom, but other organizations across the country that have been implementing on, on the University and research levels.

So I'm going to ask one more time. $1.0 million. You know this a biennium 24. Is this a 24 months? Is this something we can get up running and established within the 24 month period of a biennium?

From the examples that have been given in different states, it looks like that is. That's the timeline that was set to be able to.

But we are extending, we are asking for an extended timeline in order to be able to get that framework in place, secure the funding, start the clinical trials and at the same time look at the possibility and the implementation of the training mechanisms across the state with Clinicians.

So that was what was recommended to us, that has worked across other jurisdictions. And so that was what we were looking at. But we didn't want to have the authority expire after the two years to see if there was more that needed to be done. And that's why we were looking to request the extension. Okay, great, thanks.

Thanks, Chair. I yield.

Okay, thank you for the question, Representative. Lamosal, followed by Vice Chair.

Tia, actually, this question is for you. So along those lines. So it sounds like this work can already be done in the private sector because they're already administering psilocybin and also mdma, is that correct?

In the private sector? It's not. It's because.

Do you want to talk to that deray. I'm asking you.

It's not necessarily, it's not necessarily legal to do certain types of Administration.

They are doing psilocybin. They're doing clinical trials.

Yeah, clinical trials, yes.

Not clinical trials. To those that already qualify, they can already administer psilocybin in certain.

My understanding is that it's in certain types of.

I'm asking you.

No.

I'm asking you.

Not that I know of.

Okay.

Clarity Project would be so better. Okay. To answer the question.

So since they already are and we can kind of gather some of this information, why do we need to codify this into law?

Why do we need to codify this into law?

I'm sorry?

So this is looking at the authority to establish the framework and an entire mechanism to see how the state would be able to best function when this authorization comes down from the Federal Government so that we have a process in place and that we're able to have oversight and regulation on the state level for it.

But in the Bill it also says that you can can contract other a third party to do this type of work. So why do we need to give you the money, the Office of Wellness and Resilience when you are just going to give it to somebody else to do the work?

Because we wouldn't do clinical trials ourselves. But we are asking as an amendment to the Bill to zero the.

So what would you do then in regards to this Bill? You would just facilitate the discussion.

So yes, part of it is facilitating the discussion. The other part is developing a framework. The other part is creating the mechanisms to get the trainings going. Another part is looking at getting the identifications for the state regulatory operations.

So those kinds of framework pieces that should be in place before this approval comes down from a federal level. Yeah, thank you.

Okay, thank you.

Vice Chair, quick follow up to you. So how, how many years are you looking to get an extension for?

We were looking at a five year extension. Like the five year total. Total. Five year total.

And so three year extension. And then you anticipate never needing state funding or just for this startup year because of the talks you're.

So for the startup year and looking at the opportunity to receive private funding, we're asking for the appropriations to be blanked out. That's what our testimony stating because we recognize the limitations.

But we would love to be able to start on the framework with the authority of the state to be able to do that to look at the clinical trials with the University. It's a authorization piece and formality piece to establish the framework.

So I guess. And then so no additional costs necessary for staffing. We can run it out of Office of Wellness and Resilience as is. And the. So then you're just coordinating. You just be. So if there's no more state money going into this, you guys are just coordinating, helping the private sector coordinate where the money's going because.

Right. Because you're not. They're not going to be giving the money to the state necessarily. Correct. So I'm also a little unclear about what we're codifying because most of these things in the Bill look like it's to Fund things which is I guess.

Is it okay if I bring up my deputy? She's been doing the research primarily on this piece.

Could you just state your name for the record?

Sure. I'm Trina Orimoto, Deputy Director at owr. So it's an excellent question because really. The Scope of the Bill is multifaceted. Right. As you were mentioning, it's partnerships and. Collaboration at the state level, training and. Education program development to be able to do the research and in addition, the. Report out to the Legislature.

So really it's kind of beginning to develop the infrastructure to be able to launch this on a larger scale. Our goal really is to start this. And get it moving and be able to serve the many folks who spoke about it today. We do recognize as Tia was mentioning.

The nature of federal funding and funding overall this year. So that's why we linked out the appropriations.

Okay. Any idea? I guess about what? That maybe, I guess the next thing, I think if we're not doing straight funding from the state, would I guess to be some of this work to. To train people and set up some of those mechanisms. What's the anticipated funding request over the next five years?

Do you guys think if it's not going to be for years 1 and 2? Do you have any idea about what we might be expecting if we were to authorize the extension? What kind of costs are we going to be expecting in those coming years?

So when we're looking at Connecticut's pilot as a benchmark, $1 million is likely to treat about 25 patients and provide training for about 15 clinical therapists. So that's what the Connecticut pilot is looking like. Clinical trial costs are mostly around training the therapists and administering in DEA approved settings. It's also definitely.

This is not a drug development study. This is a study to expose Clinicians specifically around the therapies and the Administration. So the large part of the cost goes to training, not only training the therapist, but creating the opportunities to have the discussions and the framework on how to operationalize receiving this approval from the Fda.

And that would be the cost that you guys would probably be looking at later, like this year, four, year, five. Correct. Okay. Okay. But again, I'm still a little clear because it seems like we can do most of these things and your staff has capacity to do. Do a lot of this coordination now anyway.

And if the funding piece is gone.

And we're really the authority, it's really the authority to be and the authority to be able to legitimately do it with the other state agencies.

So if we have legislation and the support from the body to be able to say this is an appropriate use of the time, an appropriate use of the mechanisms of our office, people will, you know, University will be more likely to do MOAs with us, that kind of a piece.

Okay. Okay, thank you.

Okay. Representative Gareni.

Thank you. Is Reason for Hope still online or. Yes, we are. Thank you. I'm just wondering if you could tell us a little bit more about the Connecticut pilot program and the relationship between the Connecticut Department of Mental Health and Addiction Services and Yale that's administering the clinical trial.

Absolutely. Happy to chair. Thank you. My name is Jesse Mclaughlin. For the record, Reason for Hope? The Connecticut Legislature authorized the creation of a psychedelic assisted therapy pilot program within the Department of Mental Health and addiction services in 2022. It was an off year in the biennium, so not a budget year. So the Bill passed.

The program passed in state law within available appropriations, no direct line item attached to it at the time, enabling the Department to work directly with a State University, medical system or medical University.

They had an existing labor contract with the Yale Department of Psychiatry, making contracting relatively easy for them, and so delegated the Administration of the pilot program to Yale. The purpose of the program was to create, by funding, a clinical trial, create training opportunities for Clinicians.

Since psilocybin and MDMA are still Schedule 1 drugs, they are not commercially available to the public.

They are not allowed to be prescribed, except for the very rare cases of the FDA's compassionate use program, of which I know of less than probably 5050 or less patients who have, in the entire country have received MDMA or psilocybin through an expanded access protocol. So virtually no patients have access to psilocybin or MDMA until approval.

That means no Clinicians have access to hands on training opportunities unless they're able to participate in a clinical trial. And so what we're trying to solve in Connecticut is the workforce problem.

Once psilocybin is approved and MDMA is approved, we're going to have long patient backlogs of folks who are treatment resistant to currently available interventions waiting to be treated, but they would be forced to either wait or leave the state in order to find a clinician who is able to provide, prescribe, and deliver the care.

And so we're trying to fix that problem by opening up that patient bottleneck and workforce shortage before FDA approval. And other, other states are following suit as well.

Thank you. And so the state kind of continues to provide funding and program support in partnership with Yale.

I'm sorry, Madam Chair, please.

Sorry. The state continues to provide funding support in partnership with Yale.

That's correct. The state allocated $1.0 million over two years in the 2023 biennium. It's considering in this current budget cycle an additional $1.0 million to continue the study and expand the study. It's received a lot of attention.

It's received a lot of interest from the donor community as an opportunity to forge a public private partnership in order to solve this workforce development problem that the field sees as an urgent threat to equitable access to a potentially lifesaving intervention.

So is there a lot of private funding kind of involved in the program too, or not?

It's something we're currently working on in order to bridge funding gaps in the current study from institutional philanthropy. I just want to add that the psychedelic space in General, particularly the medical development of psychedelic assisted therapies, has been largely and almost entirely supported by philanthropy.

Okay, thank you so much. Appreciate it.

Thank you. Further questions? All right, thank you. We're going to move on to the next bill, Senate Bill 732, SD 2, HD 1.

First up, we have DBEDT in support.

Good afternoon, Chair and Vice Chair and Members of the Committee. Thank you for this opportunity to testify in strong support of SB 732. You have my testimony. I just wanted to add a couple of things to the testimony. And, you know, the industry is in a crossroads right now.

You know, prior to NCIS leaving Hawaii, our studios were full. We have two huge studios for the size of the capacity that we have productions for, and they're both vacant right now, and they have been ever since NCIS Hawaii left. Yesterday, you had...

Well, I'm sorry. The other day you had a big group of people in the industry that came to talk with you and show the support for the industry because there's nothing going on right now. I say nothing, but we have Rescue: HI-Surf. They do everything on set. They're not in the studios. They still do hire a lot of local people, which is a good thing.

In fact, it's a great thing. There's local producers that are on Rescue: HI-Surf. Some of the actors are in here right now. Kekoa, who is one of the lifeguards. I mean, you know, it's awesome to see productions like that, and a lot of that happens from the support that they get from all of you right here. And Chair Yamashita, I really want to thank you for getting this bill this far in the process. But they need help.

When we talk to producers, they follow the tax credits, they follow the things that can help them make their shows profitable. A lot of it, a lot of the industry has changed with the way content is created now. You see Netflix, you see Amazon. You don't see the big productions in the movies anymore as they used to be.

Right now, in the history of Hawaii we've not had a better situation than two of the biggest stars in Hollywood being local boys. And I can tell you from firsthand experience in talking to them, they want to film in Hawaii. You know, they, when they talk to the producers that contract them, they'll tell them that they want their shows to be filmed in Hawaii because they know how important it is to the industry.

So I just ask for your support in moving this along. Some of the amendments that we have in our testimony, myself and Georja Skinner's is hopefully something that can be added to this, if not in conference. But we greatly appreciate the opportunity to testify, and thank you for getting this bill this far. Mahalo. And I'll be here for questions if you do have any.

Thank you. Next we have Department of Taxation with comments. Thank you. Maui Film Office in support on Zoom.

Aloha. I am Brian Kohne. I am an independent motion picture producer responsible for the first two feature films on Maui, 2010's Get a Job, 2017's Kuleana. Over the last seven years, I was responsible for building Academy for Creative Media at UH Maui College, and I am now Maui's film commissioner.

Our office has been very, very busy working to align with county's efforts which pertain to the recovery from the Lahaina fires and the Kula fires of August 23. We're working to synergize education and industry, and we recognize that our resident industry is suffering as it is statewide. Furthermore, our visitor industry is also struggling, and motion picture production historically is a driver for our visitor industry.

People on Maui know this. People in the Hotel and Lodging Association recognize this. And most recently, White Lotus Season 1 was responsible not only for opening up the Four Seasons, but other properties here on Maui. So I speak in firm support of this measure as well as the testimony of my colleagues and peers in industry and government, and appreciate this measure being heard. Mahalo.

Thank you. Next we have the Honolulu Film Office in support.

Aloha, Chair, Vice Chair, Members of the Committee. Walea Constantinau with the Honolulu Film Office. I stand on my written testimony, but I wanted to add a couple of other things. I can't underscore enough the urgency of this right now. We have historically had a stable credit, something that industry could count on, and now we do not.

And what we're seeing right now, the number of shows that are shooting right now, which as Director Tokioka mentioned is zero, is what the result is when they don't have confidence in the credit and they don't think that they can plug those numbers into their budgets to come here.

The changes that are being requested would give back that stability and give back that confidence to be here. What kind of numbers are we talking about? I gave to the staff the economic impact information that Rescue: HI-Surf provided to us. This is just one show. The numbers are just one show. They spent over $65 million here.

31.75 million of that was local wages, 33.85 was for local vendors, and that amounts to 788 local jobs and 1350 local extras. And that's just one show. The urgency and the timing that we have right now is that we have three shows in the balance. Rescue: HI-Surf, as Director mentioned.

In August, Chief of War will premiere on Apple TV, which is a unique project of immense scope and importance to us because it is our story. It's one of those stories led by Jason Momoa, who fought very hard to get pieces of it done here. We need to restore that credibility.

We need to restore that consistency so that they can plan properly to come. The other thing I wanted to share is I heard yesterday talk of... Well, it's not just been yesterday, but there's a strong concern about a recession. And the industry has historically been recession resistant. So we have a moment that we can capitalize on.

We have three major projects that are going to be in the public's eye over the next 24 months. That's Lilo and Stitch, that's Moana, that's Chief of War. We have hanging in the balance these other shows, including the untitled Martin Scorsese film that just got announced. And if we're able to get this bill enacted this year, we have the opportunity to retain and attract that kind of business that's going to make a real impact.

We have the people, we have the knowledge, we had the credibility. Now we need to restore that business certainty so that all of these great people who you've seen over the last few days can get back to work. So thank you so much for the opportunity to provide these comments and for getting this bill to where we are right now. Thank you.

Thank you. We have the Hawaii Teamsters Local 996 in support.

My name is Hale Gualdarama. I'm a business rep at Hawaii Teamsters Local 996. We are also in strong support of the bill. I recently came back from Washington DC, and it's a rippling effect not just here in the State of Hawaii, but all over in the United States.

A lot of the film industry is going overseas because it's cheaper there. You know, they don't even have a tax credit. You know, at the end of the day, that's one of the big topics that we had throughout the training. Oh, what are your state doing to help bring these movies in?

Louisiana lost theirs and everything went to Georgia. And even LA as it stands right now is in dire straits. As I'll echo a few words with DBEDT as well as Walea that, you know, this industry, it drives a lot of people to come here as well with the tourist industry. I don't know how to express the importance of the tax credits, how important that is for the industry itself.

It's a different beast from every other industry, including like we have like over 61 contracts in the Teamster world. And this one particular, the movies, is just a different thing altogether. But we really appreciate you guys hearing the bill and we appreciate the support, and we thank you, Chair, Vice Chair, and the rest of the committee. Mahalo.

Thank you. Next we have IATSE 665 in support.

Aloha, Chair, Vice Chair, Members of the Committee. My name is Tuia’ana Scanlan. I'm the President of IATSE Local 665, representing nearly 800 technicians and artisans and behind the scenes workers in the State of Hawaii. I am also an IATSE International Trustee. We stand on our written testimony in strong support of SB 732.

I'd also like to point out that it is demonstrably false that productions will film here without a stable and strengthened tax incentive program based on results with our empty studios and the lack of work. I will also point out that in 2022 this industry was directly responsible for one billion dollars in tourist spending, 4.5 million visitor days last year alone, even though last year was a slow year.

Responsible for $324 million of economic impact and nearly $75 million in household wages. These are thriving wage jobs that cannot be replaced by any other industry. And in the face of bleak national economic forecasts, this can be a driver for Hawaii's economy. Most notably the additions in this bill of the designation to manufacturing, the inclusion of language regarding streaming projects, and the additional uplift for local hires.

And when we empower an industry like this with this kind of support, we will see growing economic impact and household wages for all of these thousands of working families that are supported by this industry. Thank you for the opportunity to testify, and available for questions. Thank you.

Thank you. We have the Motion Picture Association in support on Zoom.

Thank you. Yes. Aloha, Chair, Vice Chair and Members of the Committee. My name is Melissa Patack. I'm with the Motion Picture Association, and thank you for the opportunity to speak on SB 732. We will stand on our written testimony, with one item I'd like to emphasize. We appreciate the inclusion of most of the amendments that we have been advocating for along the way as this bill has been considered.

There's one more issue we hope that you can address which is important, and that is to strike some language that was added in 2022 to this program that requires the payment of the highest level of GET, the general excise tax, in order for production expenditures to be qualified. There's other provisions in this bill that make this program more competitive.

But without striking those couple of phrases, it doesn't allow those provisions to take effect and make this program more competitive and restore its competitiveness. So we appreciate your consideration and we would hope that you could strike those few words that's pointed out in our memo. And we look forward to working with you, and thank you for getting the bill to this point. We appreciate all the support in the room, and I'm happy to answer any questions. Mahalo.

Thank you. We have the Kapolei Chamber of Commerce in support on Zoom.

Aloha, Chair, Vice Chair, Members of the Committee. Kiran Polk, CEO of the Kapolei Chamber of Commerce. And I like, we do stand on our written testimony. I do have a few things I want to highlight and point out. You know, representing West Oahu, the businesses from Waipahu to Makaha, I just want to point out the impact on our small businesses.

It was mentioned earlier about the vendor revenue, but this has a ripple effect on our economy. We have so many businesses struggling, restaurants closing, and just to have this influx of extra revenue to help support our small businesses, this is a time we need it the most. So I think that that should be top of mind. I also want to point out that Bill 59 was passed in the City Council, and that was in support of a film studio in West Oahu.

And I know that there was ask of just, you know, support from the Legislature, and I just urge for that consideration just to really support that project as well. We've been fortunate on the west side to have so amazing productions and, you know, it's really, it really does impact on so many levels. So I thank you for the opportunity to testify, and I'm available for questions. Mahalo.

Thank you. We have the Tax Foundation of Hawaii with comments on Zoom.

Good afternoon, Chair, Vice Chair, Members of the Committee. Tom Yamachika from Tax Foundation. I had to submit our comments a little bit late. I'm sorry about that, but they're very detailed. We have comments about the technical comments and history of each of the major parts of the bill. I'd be happy to answer any questions that the committee may have. Thank you very much.

Thank you. We have Complete Tent Rentals LLC in support on Zoom. Not present. Okay. Sorry. Okay. Next we have Shereen Balles in person in support.

Aloha mai kakou, Chair Yamashita, Representatives. Mahalo nunui for hearing bill 732 today. I am in full support of this bill. I have come to all hearings of this bill and have supported it up until today. Our whole Hawaii film industry members are in dire need of work.

Some are having to sell their homes, their cars, and move away from the island to make ends meet and find work elsewhere. In case you want to know what I am, I'm an actress, a producer, independent filmmaker. I got to make my own movie after NCIS Hawaii canceled. And I was very, very fortunate to be able to utilize all of the members of the crew and cast.

They were all from here. To see a film like Chief of War have to film somewhere else about Kānaka people. That's something that's just not okay. We need them here because it will help the crew and the cast and the talent that is here in Hawaii. It is imperative that you hear and to understand the impact not filming here in Hawaii has had on all of our members of the film industry.

Having big productions like Rescue: HI-Surf, NCIS Hawaii, Magnum PI, And Hawaii Five-0 put every person standing outside awaiting you to pass this bill. There is over 350 pages of testimony in support of this bill, and we're so grateful that you're hearing it today. I want to see people like me on screen and behind the camera to see our Hawaii film industry thrive and show the world the beauty and talent of all the aspects of crew and cast and productions.

The group supporting the industry at large up into and including all of the places like food restaurants and clothing. They're all impacted right now because they cannot sell things to us right now. And it's very important for you to hear us because we need your support. Thank you so much for hearing this bill. Mahalo nui loa. Aloha.

Thank you. Next, we have Kamakani Froiseth in support on Zoom. Not present. Do we have Jess Cole in support on Zoom? Not present. Shaun Skinner Wolfe in support. Shaun Wolfe. Okay, we have Bryan Phillips in support on Zoom. Not present. Do we have Armani Makaiwa in support?

Aloha. My name is Armani Makaiwa, and I'm a 16 year old Native Hawaiian actor and a proud member of the SAG-AFTRA union. I'm reaching out to share my experiences regarding the challenges we face in our industry. As productions are increasingly going away from Hawaii to other states and countries, the opportunities of local talents like myself are diminishing.

I can't thank, I can't thank Kyle Yamashita enough to support this bill to enable Hawaiians to showcase our rich culture, our undeniable talent, and the beauty of our home. Together we can ensure that our voices are heard and that Hawaii remains a vibrant home for the art of our storytelling. Mahalo.

Thank you. Next. We have Faith Fay in support. Okay, do we have Alexander Sundquist in support on Zoom? Not present. Kimmy Luong in support on Zoom. Yeah, Kim Luong on Zoom.

Yes, I'm here. Thank you. Finance Committee Chair Kyle Yamashita and Vice Chair. Thank you to the House Finance Committee for your continued support of Hawaii's valuable and well known TV film industry. I am grateful for the integral work that you do on the foundation of hope and service. Thank you for hearing SB 732, SD 2, HD 1.

I'm Kimmy Luong, and I'm in support of this bill. I've been a SAG-AFTRA union member since 2018 when Magnum PI the reboot started filming. I'm an alternate member of the National Asian Pacific American Media Committee. My voluntary participation in this committee with SAG-AFTRA gives Hawaii a voice as money and resources are allocated to the growth of Asian Pacific Americans on screen and behind the scenes.

As a resident of Hawaii, I have been able to contribute positively to our TV and film industry by representing Hawaii's professionalism and pure aloha to every person I encounter. Oftentimes we have visitors on set who don't live here, although they wish that they did.

These producers, directors, cameramen, cast, and crew come with 20, 30, and 40 plus years of experience in the film industry worldwide. They all love working on our sets. They love working with our local community and professionals. They rely on us, as we have knowledge of the islands, the weather, resources, and solutions.

As a stand in and background actor, I am grateful to have been able to work on and in almost every production that has filmed that has filmed on Oahu. For Magnum PI, Hawaii Five-0, Disney's Doogie Kameāloha MD, Disney's Lilo and Stitch, NCIS Hawaii three seasons, Rescue: HI-Surf first season, hoping for more.

American Idol for four seasons so far, Hallmark movies, Southwest Airlines commercials, Hawaiian Airlines commercials, and more. Please know that people around the world are seeing Hawaii. They know about us. They know about our culture, our values, and our humility.

They see our grace and they save up for years or a lifetime for a four night trip to experience a taste of what they see on screen. The current state of Hawaii's TV film industry is quite bleak, and I am an optimistic person. There's zero productions on our island, as you have heard, for the first time in 20 plus years.

Our industry not only employs 5,000 plus people, the filming productions require resources like restaurants, food, transportation, flights, security, local vendors, caterers, creatives, schools, locations, musicians, and niche products and professionals that otherwise do not have an influx of business if it wasn't for us. You have heard of brain drain when there's an exodus of talent.

Our local talent is moving on to other careers. And if and when productions come back to Hawaii, we may not have the talent available to work for them. Thank you for the willingness to apply the general excise tax rate for manufacturers of 0.5% to productions.

Please consider the benefits for productions to choose filming here in Hawaii, as we know that they have other choices and they are choosing other places. Historically, we have lost productions to other locations, US and international. This does not need to continue to be the case.

My friends and colleagues have already left and continue to leave Hawaii to find work. Please keep Hawaii's TV and film industry alive. You really do have the power to make a difference. And from my grateful heart, with extraordinary love, thank you. And I'm happy to answer any questions.

Okay, thank you. Do we have Gregory Williams in support on Zoom? Not present. Leonard Nakoa III in support on Zoom? Please go ahead.

Yeah, okay, hold on. I made my video. Yeah, okay. I not want film. I don't work for the film industry. I don't do nothing like that. You know, I support these guys though. I get full work on the Temptation Island when, during COVID, when they had the lockdown and I was locked up for two months on a production. And I get to see firsthand what this industry does. They so professional, so pono, so unreal that when open up my eyes to this industry.

In the same aspect, they also support local businesses. I mean from rental cars to rent vans to wash the clothes and to laundry to everything. So whatever you can do to bring these buggers back. Here in Lahaina, we're suffering. Yeah, we need something else other than tourism. Even though everybody talking about tourism, tourism.

Us guys got bombarded here in Lahaina by tourism. I would gladly accept the film industry for Kamuya because their profession is to be undercover. Gotta make sure nobody noticed them as much as possible. But. And then, but while doing that, they give money to the schools. I seen on firsthand. Go to schools, go to mom and pop's businesses, go to local restaurants.

I mean all the guys, all the haoles, all the mothers, they ask me, oh, where we can go eat? Where you eat? And I told them and they always go to the local places. They never go to the McDonald's and all that kind of stuff. They went to the local businesses. So let's figure out, okay, figure out how we can stimulate our economy and try to take little bit of break from the tourism and then smash this thing with the film industry doing what they do, do their magic.

And I don't get name all the shows, but I like the Rescue Hawaii one. The Hawaii Rescue one. Hold on. Bugger is mean. I tell you guys right now, support this bill. I 100% support them. I not one film guy I know. Yeah. I look and do the hard work they do. I watch them. No ways I can do that. The grip guy. The grip guys. They unreal, but okay. Yeah. Junior Nakoa from Lahaina. Support these bugger. I tell you, these guys badass. Okay.

Okay, thank you. Next we have Casey Alicino in support. Casey? Casey Alicino. We have Victor Lozano in support.

Victor Lozano. Thank you, Chair, Vice Chair, Committee, for your time. I know I'm going to try to make this short because I know you guys are going to be here a long time. Uncle said it best. You can't top that one right there. The one thing I want to, I'm in support of this bill. The one thing I wanted to really bring home is the trickle effect that happens. I work in the industry, but the trickle effect throughout the community is immense. And I know you know this, so I'm asking for your support. Thank you.

Thank you. Next we have Tiare Lawrence in support.

Aloha, everyone. First off, I want to mahalo Chair Yamashita for putting this important bill on today's schedule. Mahalo. My name is Tiare Lawrence. I'm a lifelong resident of Maui, originally from Lahaina, currently residing in Pukalani. My career in entertainment began with hula at local luau shows and then I had the opportunity to work at Tokyo Disneyland.

After that, I progressed into aerial acrobatics, theater. I had the privilege of performing in a theatrical show in Lahaina called Ulalana and recently played a wahine warrior where I got to scrap and kill one big Brada. And it was the funnest thing ever in my life and I would love the opportunity to do that again.

Storytelling is my passion and I believe in the power of film and theater to preserve our Moulelo and our cultural integrity and our beautiful stories that we have. Growing up, I rarely saw people who looked like me on screen. But when my children and I watch Hawaii 5o, NCIS rescue high surf, they immediately recognize our family members.

Uncle Brian Keaulana, their uncle Jason Momoa, our cousins Chad and Haa Keolana. My son once turned to me and said, if uncle can, I can too. Yeah, Mom. That moment reinforces why representation matters. It's about visibility, opportunity, and inspiring the next generation. That's why I strongly support SB732, which will strengthen this industry.

Rescue High Surf has done an amazing job at showcasing Hawaii's culture and our beautiful landscapes and sustainable tourism. If given the opportunity, I'm not going to lie, I would love the opportunity to work on Rescue High Surf and Chief of War one day. And I'm putting it out there. To Brian Carolina, but Mahalani, for you guys, time.

Aloha.

Thank you. Next we have Dean Dean Des Harless in support. Oh, thank you. Okay, we have Aubrey Lee Staley in support.

Hi, Mahala, everyone. Thank you so much again for putting this on for today to take a look at because it's really important to, to our people and our industry. I do just want to say that I'm here for support, to speak in support of SB 732. I'm the owner of a talent agency called ALA Hawaii.

I was born and raised here. I moved to LA, New York, OkLahoma, North Carolina. So I have firsthand experience on seeing how a thriving film and television community industry can really help sustain local businesses, economies and residents, especially in small town, smaller towns where their economy was dependent solely on the industry.

Because no tourist is going to go to Oklahoma sometimes. So we are at a pivotal time where locals, Native Hawaiians are gaining visibility. I've been in the industry as far as theater and commercial and all that stuff for a very, very long time. And when I moved to the mainland, I was told I didn't fit.

I didn't fit in a box. I didn't fit. I wasn't white enough, I wasn't dark enough, I wasn't brown enough, I wasn't Asian. I'm an Asian mix Hawaiian. Nobody knew what to do with me. So right now is the time that our people are being seen with the upcoming Chief of War. Live action Lilo and Stitch.

Live action Moana Rescue. High Surf. Our people are on the rise and representation is so important, especially for our keiki to see people on these big screens who look like them.

And we have so many programs out there for Keiki right now that are developing talent, acting, self taping, even learning how to do, you know, editing, all kinds of things. So Lilo, the Liliokalani Trust is coming up with a bunch of programs that are going to help support voiceover and film.

And what are they going to do when they are graduating and they have to move away to find a job in something that they have developed a love for?

It is important to have the ability to share with the world our stories, our people and our culture as we are so unique to the rest of the United States. And a lot of them don't understand us or our people.

If we have a thriving film and television industry, it gives us more opportunities for our people, opportunities for our culture. Marketing that goes into, you know, helps with the tourism. But we are at a detrimental time where the future of the industry is going to make or break our industry and our people.

And it's going to be devastating to see if some of our people will have to leave. I put my trust in all of you that you'll do what's best for us. So thank you again. Mahalo.

Thank you. We have Moses Goods in support.

Aloha Mai Kakou. My name is Moses Goods, originally from upcountry Maui, where I grew up a very shy and introverted kid. It's funny you mentioned Pukalani.

My dad used to love telling this story about how when I was little, he took me to Pukalani Superet, gave me money to buy a newspaper and I came back and told him they sold out, only to have him go back into the store, pick up the newspaper, put it into my lap without saying a word.

I was that shy. I was that terrified of using My own voice. And it wasn't until I became an actor, spent time in the industry that I realized I not only had a voice, that voice was my source of power. And I can use that voice for my community.

So that's what I did for the last 30 years, almost 30 years, excuse me. I've been working as a professional actor right here in my home, the place that I love. I never moved to la, never moved to New York. And that was intentional.

I wanted to prove what was possible to my community and to the next generation of actors. And that's what I did on August 1st. First, when Chief of War drops, the voice of that shy little kid in Pukulani Super Red parking lot will be amplified in a way that we've never heard, telling our stories.

So I've proven what's possible. Here's what scares me. What message will the next generation of actors be hearing? Is that message going to be sure you can do what you love? You just can't do it in the place that you love for the people that you love?

For the first time in almost 30 years, I might have to leave. I might have to go to La, New York, Atlanta. And the sad part is not for me that I have to go.

The sad part is for the next generation of actors and filmmakers and industry workers that want to do this but can't do it here. So that's going to be the reality unless we make the change. And the change starts with Bill SB732.

Thank you. We have Brian Wallace in support.

Aloha, everyone. Brian Wallace, thank you guys for hearing us today. Really grateful for this and grateful for the careers that we've all made up until this point in the film industry. I'm born and raised here.

I worked in the film industry for almost 20 years, but I've been in the industry my whole life as my dad just retired this past year after 40 years. Single dad living in Kali with two boys. He worked in this industry and was able to send me to Iolani and later on University of Hawaii.

I too was told that if you're going to make it in this industry, you're going to probably have to go la. But fortunately, I've been able to stay here the whole time.

And while I've been here, we've had legends like Les Tomito, who works for guys like Michael Bay, come back home and teach me and all the local guys that work here how they do it to be the best. And we have gotten that knowledge like we just got it. And we're ready to run with it.

But our future looks, you know, sketchy and I'm hoping I get that opportunity to continue teaching the younger guys what they taught me so that we can be successful. And the reason why I was in this industry getting all that knowledge for so long is I want to tell our own stories.

I want to take the knowledge that we have and then apply them to our own stories. And I'm just asking you guys to support this and I appreciate you guys listening. Thank you. Open for questions.

Thank you. We have Grace hall in support.

Aloha. And thank you for listening to us. I stand on my written testimony and. Support but I also wanted to add that this is a very lucrative industry that is self sustaining and we're all out of work right now. We're dependent on unemployment, we're dependent on food snaps and programs and we're really. Draining the local economy.

And I just want you to see that we have nothing to lose with these tax incentives. Offering these tax incentives the state isn't losing money. We, we're actually gaining. I hope you've heard all these stories. Of everything that we're gaining and the, the local economy is gaining from the. Money that comes in.

So I just want to reiterate strong. Tax incentives that are competitive and thank you for hearing us. And we have everything to gain. Thank you.

Thank you. We have Kekoa Kekumano in.

Hello Chair, Vice Chair, Members of the. Committee. Appreciate you guys letting us come out here today. Talk story. When I was young, my tutu she always told me hey Kikuy, don't be a nobody, be a somebody. Through movies and television I was able to be a somebody and make a name for myself.

I'm just hoping that I can be a somebody for the next generation. Really pushing for this bill. I've been able to work in the film industry here for 10 years. 90% of the films and TV shows. Have been a part of have been here.

And so I really really appreciate you guys time and being able to let us vouch for our workers and for our community means a lot. Mahalo.

Thank you. We have Dylan Davis in opposition.

Hello Kennedy on finance chair and Vice Chair. I oppose 732 because it's not the path forward. I suggest that a state film budget is better than a refundable tax credit.

So the problem with a refundable tax credit is it's dependent upon out of state investors as well as foreign investors, whichever way you want to call it and you want to compete on a new platform. And New Frontier, upon which streaming services are going foreign flag. And there's no way to compete with that.

So in order for the industry to survive, you actually have to go and Fund the industry on a state level and have a state fund film budget. You know, not.

This is not the statement that I'm about to make is not to put down our state film Commissioner or our city film Commissioner, but they've had 20 years, they've done it in this system of doing a film tax incentive to lure investors to come out here to film.

And all they did is actually bring people with bad habits. And then on top of it, NCIS Hawaii was brought what the film crew that was brought here for them was the NCIS New Orleans.

So if they were canceled in New Orleans, what are the chances they were going to get canceled on their production here in Hawaii regardless that they spent so much money on redeveloping Diamondhead Studios?

The point being is the systems that was supposed to be in place with the Hawaii film tax incentive and the safeguards that were supposed to be there to develop the industry to vendor list, to develop things that would actually make the film industry thrive never came to fruition whatsoever over the last 20 years.

With a state film budget, it would be easier to vet projects that come into Hawaii that we don't have. Other disparity things happen when independent filmmakers come down and try to do films.

We have a film, we have a couple films that came through here and they were disastrous and they actually hurt most of the people that worked on their film. I worked on one of them and then the other one I passed.

And everybody, when the independent film people come down and do things, they do everything they can to negate paying livable wages. And everybody's just doing their productions and then they mitigate and reduce the amount that's owed to vendors that worked on the films. So it's not just the big blockbusters that you have to worry about.

It's also the other people who are lured here through the film tax incentive that are not properly vetted that affect the community locally here. One instance of a movie that a tax credit was paid out on actually put Hawaiians in a bad light. I'm not going to name names, not going to say what movie it was.

People who worked on it knows what it is. It's a terrible movie, whatever it is, was. It is. But then do we want our film tax credit, which at the time, why there was opposition in giving them through their paperwork is because it was a bad film and it Wanted to put wines in a bad light.

They were having opposition on getting the film tax credit. Ultimately, they went to the person, the producer of the film sued. They ended up winning. And the point being is it was kind of in contradiction with the values of why the Hawaii Film Tax Credit was in place in the first place.

And it didn't want to provoke negative things that they wanted to do through art that reflected poorly on the people of Hawaii. So the path forward isn't through a tax credit, which is a refundable tax credit, which basically means that if they can, you know, come up with the expenses, they have a couple options.

If they, if they can come up with the expenses to eliminate and net zero their taxes, then it's money that comes out of the state.

So if you are willing to put up 50 million or even consider 60 million in tax incentives, think of what you could achieve if you have a film tax, a film budget of 60 million that supports people locally, and then on top of it, it is a direct hiring of people done in the state versus luring someone from out of state to indirectly hire 80% of the people that work on that film project.

So you have a better chance of leading the industry forward based on the changing climate and patterns that are changing by providing a film budget over a refundable tax credit. Any questions?

Thank you. We take the questions at the end. We have Peter Rod, Liberty Bell in support.

Wow. Well, thank you, Chair. Vice Chair, thank you for your time and your consideration of this bill. A lot of thoughts, especially after the previous speaker. I think that.

Let me just say that as a Kaneohe resident who's worked on almost everything since Lost that's come through here, it's been an incredible privilege and honor to work with some of the most skilled filmmakers, producers, caterers, you name it. I've worked in almost every Department, but my specialty is as a stage manager.

And so I've been lucky enough to kind of hold down the fort at the Diamond Head Studios, which is a state owned property. And it is one of the most overachieving studios you could possibly imagine. And much like the Hawaiian people, they're overachieving in almost every aspect.

So often it's said that we're competing with LA and New York. I think it's more that we are a special, specialized area. And sure, we could use some upgraded infrastructure and things like that because it's already a fairly expensive place to come and film, but from a skill set, from an equipment set, from.

And these are all local workers that have come Here and spoken before you today. They get it done and they can compete from a skill set level with anybody on the planet. I know this, and it has been my privilege and my honor to work with them. They've taught me so much.

I came from the entertainment business, but I learned and worked my way up as an apprentice, essentially.

And I've seen dozens and dozens of film school students that have finished at UH, that have come out of Leeward and West Community Colleges, come in, work humble work, work their way up, get into departments, get their union cards, and have careers.

And though my career is slowly coming to an end as I just turned 60, don't tell anybody, there's still something left in the tank. But I think that the overachievingness of our film community and our little 7.7 acre studio at Diamond Head is remarkable.

And I strongly urge you to try to support this endeavor to entice filmmakers in here. And just as a quick, impromptu aside to our previous speaker, I'm, you know, I would never just wipe anything off the table. I think every voice should be heard. That's kind of a Hawaiian way.

But I would also say that in terms of vetting producers and production companies that come here, you know, the permit process and the permit office is a pretty strict and enforceable mechanism by which the state oversees film productions, whether they're DLNR officers that are overseeing shooting films at various areas.

There are mechanisms by which the state can feel assured that people are respecting the themes of the movies. Maybe that's something that cannot be controlled. But I strongly urge you to produce this and support the next generation of me, which is, I'm not the guy that walks on the red carpet.

I was the guy that ruled it out and then cleaned it up after everybody left. But it's an important job and one that I was very proud and grateful to do. Thank you very much and thank you for your kind consideration.

Thank you. We have David Kranz in support, Scott Lisseter in support, Michael Gruikshank in support, Hypo Seals in support. That's everybody I had checked in. Anybody else wishing to testify? Please come forward. Please state your name and position for the record.

Angela Melody Young testifying in strong support of the Hawaii movie industry. Yeah, so I never got to work on reality TV, but I did do fun bottom level production assistant work in Los Angeles when I lived in Hollywood and worked for Radio Disney, was on the music video set of acdc, Rock the Blues Away.

Also got to work the red carpet for the Grammys and for Production team that produced the Oscars. And so it's been really amazing to be able to stand with this community and to request the state to provide the amendments for the extra millions of dollars for this credit.

And I've helped testify and debate to establish the film Commission by providing amendments as well as to help debate for the tax exemption at the City Council for the Honolulu Hale to build the mini Universal Studios.

And also in the town hall last night near the Kamehameha schools neighborhood, there's going to be development for music and filmmaking studio which is going to be basically an incubator to help provide infrastructure for the industry and students from University of Hawaii preparing for workforce development to get trained in a creative skill set to work with tools and equipment.

And also I think this could be a crowd favorite Hawaiian roller coaster ride is from Kamehameha schools Thilo and Stitch, the animated film. So. And.

What was talked about in Ways and Means in the last few years in raising the financial credit was the accounting process and also of course helping the movie industry by increasing the tax break incentives.

So instead of the $50 million to increase it, possibly from what I've heard, I don't want to distort the conversation is perhaps $70 million to $100 million. There were a few other discussions that I've heard about getting locally sourced crews and to hire locally sourced teams.

For example, perhaps getting crafty team to get local restaurants and to raise more awareness about Hawaiian culture and how it plays a the behind the scenes and also contributing to raising awareness about Hawaiian culture within the film industry and beyond. And so thank you so much.

And I hope that all the Dahle operators, the fashion team, costumes Department, the wardrobe and the Art Department, location managers, Executive producers and the actors and the extras can really thrive with this credit. And also. zero, actually that's all. Thank you.

Thank you. Anybody else in the room wishing to testify, please come forward. Please just state your name for the record.

Irish Barber. I'm the business representative for IATSC local 665 and I wasn't planning to testify. I was going to stand on my written testimony. However, I just want wanted to state there was an earlier testifier who was in opposition to the Bill. We have grown because of the tax incentive.

This industry has grown from $50 million to $500 million over the years. That's very impactful. Also the Fund that he mentioned, I don't see how that's going to make us competitive because who's going to loan $200 million to some of these Blockbuster films. This incentive has been doing its job.

And I thank you so much, Chair Yamashita, for scheduling it and your support and the Finance Committee's support of our industry. Thank you.

Thank you. Anybody else? Please state your name for the record.

My name is Archie Calepo. Good afternoon, Committee Members, Vice Chair and Chair Yamashita. You know, I've been involved with this industry on and off for the last 30 years. But I want to talk about a couple of things. And I got invited to Chief of War in New Zealand and incentive to film other than Hawaii.

But I want to say this is what they taught us there, the leaders, the directors, the organizations that support the film industry. They taught us that it shouldn't be outside people coming to direct movies and do things. It should be people from your land. And we really appreciated that.

Brian and I, we had a chance to sit down and talk with them, and we realize we have the talent. We have the talent. We have people that can direct, people that can lead as stunt coordinators. I mean, all of the most important pieces.

And more importantly, we can make sure that the loans to produce these films are loans that are made in Hawaii to the banks. Something happened. I'm from Lahaina. My daughter produced a short film. She edited, produced, directed and filmed this short film. I had no idea. And it was about the devastation that happened to Lahaina. But.

Her producing this film opened my eyes. And she said, dad, this is what I want to do. I love doing these. These kinds of things, but knowing where the industry has gone in the last year and a half. She's at, uh, right now, wanting to be involved with the industry.

And I had a hard talk with her, and I said, you know, I don't know where this industry is going, and I don't know if it's going to be a good place for you to go if you want to live here in Hawaii. But she said, dad, that's what I love doing. And I enjoy the work.

I enjoy the people that are involved in the industry. She only got a small taste of that.

But as a dad and as a person of this community, of this state, I'm speaking on behalf of her, that she may have a chance, that she may have a chance to work alongside good people from Hawaii in the industry in this place that we love and call home. We have so much to offer the world.

The world looks to Hawaii today. And if we can bring light in sharing a part of the place that we call home, then I want to see that happen. This tax incentive and the idea that we have to compete with not just out of state, but out of country.

I think right now, everyone in this industry realizes we have to change. We're at a paramount time in this industry, and I think we can change. We can change so that the tax incentive benefits the people of Hawaii, all of Hawaii.

This man next to me has been a big part of that and many others in this room. The stories are the same. When I look and I see these people behind me, this is a great thing for Hawaii. We need to support this. We need to invest, invest in the industry that supports other industries.

The number one industry in Hawaii, tourism. This industry can help that industry, and it's about helping each other in Hawaii. So I ask you to support this. And thank you, Mr. Yamashita. Thank you.

Thank you. Go ahead.

Aloha representatives, Vice Chair, Chair Yamashita. My name is Brian Keaulana. I've been in this industry for close to 40 years. I started after a teenager, dabbled into acting and moved on into stunts and stunt coordinating. And, you know, found out that, man, you can make really good money.

But, you know, trying to make a name for yourself here in Hawaii, like, you know, my hat's off to Moses on. On being true to himself here. But I had to go elsewhere to kind of develop my skills, my knowledge, to learn all these things.

Both me and my other Ponda terrier, we all traveled and we learned the art of stunt work, you know, and we became known not only in Hawaii and not only in America, but worldwide, in international, as the best water people in the world. Whether it's life saving, whether it's filming and all that.

So now people come to us, you know, for all those things. I also climbed up the ladder to now I direct all the water unit in, like, rescue, high surf, Chief of war. In chief of war also, too. I had this.

My little cousin that, you know, came home and he was modeling, and I had bayouach, Hawaii come here. And I told him, go and try out for this. And he did and ended up to be become the biggest star in the world.

Jason, you know, he came with me to a movie that I did in God's Hand, sat with me in the premiere, and he goes, man, I like to do this one day. And it's those kind of kids that I like, get right.

I mean, I live at Makaha, and you guys hear all the trials and tribulations we go through, you know, over there and stuff with the kids, both me, my dad and my brothers and all of us, it's a tight community and we look for the rascal radical kids because we, like, create change and we give them hard love.

Our ocean community is tight. You know, my father and mother always said we're not divided by land, but we're connected by water. It's the water that guides us, that feeds us. It's our school. But it can be your church if you don't pay attention to the details.

In the ocean, you can talk to God, you know, and that's what it is, and that's what we share to people around the world when they come here and they come here and it's like Rescue High Surf.

I give it to John Wells and to Matt Kester, who's a local boy in Kahuku, and he is the showrunner and the main writer. And what happens is they put me as a Director in the water, they put me as a producer.

And being at that high level gives us in Hawaii the opportunity to make sure that we keep local vendors there, we keep our local people working in Rescue Hire Surf. We're close to like 95% in local hires, and that's because of people on that upper end is in that place. And it's only right now that it's happening.

The only two shows that maybe gonna survive over here is Rescue High Surf and Chief of War. And it's a maybe. You know, right now I think they're waiting to see what's gonna happen because usually they would come out and say, okay, we're going to do second season here and there.

I would already have that word, but I'm not having that word, you know, and what can happen is they just going to take our skillful people, like guys like us and Archie, and we're just going elsewhere. But the hard thing I have for me myself is our knowledge.

Like Archie said, we go to New Zealand and our whole things to share, right? So we end up training everybody. So we develop their workforce and they become good. Like I went Tahiti, train all the Tasians. They become world class, you know, all that.

I want to train the next generation of people here, you know, and keep everything here, keep our film here, but telling our local stories.

And that's the thing that we need to is really we need infrastructure, we need studios, we need facilities so we can train and be competitive in all those kind of things, you know, so things are happening. We have highly skilled people in here.

If we go outside, they're all standing outside and we're telling them that, you know, we all support this bill and we really thank you guys for at least hearing us guys out, you know, so thank you.

Thank you. Anybody else in the room, please come forward.

Thank you. Chair, Vice Chair and Committee aloha. My name is Clinton Takeuchi. I'm a movie driver with the Hawaii Teamsters, and I just wanted to share my testimony and support of the Bill. The tax incentives are very important to us 2024, and this year has been really challenging for us.

As some of the other testimonies that really spoke from the heart, you know, it's because of the opportunity and the talent that we have. I mean, working in the film industry with the cast and crew, we have a special ohana, the professionalism and talent that we have.

With the ongoing support and tax credits, you know, we can attract more opportunity in business here to the islands as. As it was also shared. You know, it is a trickle effect. We're in Hawaii. The economy is tough right now. We're all struggling and trying to do our best.

And, you know, with ongoing support and your guidance and assistance, you know, we can keep Hawaii going, especially in the movie industry, with tourism and our film industry. But thank you so much for your time alone.

Thank you. Do we have somebody please come forward?

Hello to everyone. My name is Kaipu. I'm from the island of Molokai and wanna aloha everyone that's here and outside as well. And to all our families that have been affected from this bill, I support it. I made the move almost 12 years ago from Molokai to come here and to pursue film in film.

I worked my way up from being a PA on Hawaii 5O, being an extra background. And then I worked my way into stunts, and then I would, you know, begin to stand in and working and meeting the crew. And it was a. It was a sight to see. I was just background.

I was just like a nobody, pretty much. I was just trying to make my way and trying to join the union, the film union, local 665. And it was to see the brotherhood, the sisterhood and everyone's expertise and how they taught. He taught each other, you know, the crew.

And I remember one brother, Ane, I was just background. He asked, hey, what do you do? And I was like, well, I was trying to join the union. He said, you good? I was like. He said, you know what? You get your card, I'll put you to work.

And it took me two years to get my card, and I finally did it, and I called Ane and he. He told me, can you start next week, Tuesday? And I was like, here I am, and end up from a background extra. And I forgot my uni card. And I worked my way to that point.

And I tell you, it was. I have four boys, my wife. It was a monumental time for me because I come from Nile Molokai, and I. I watched that Show Hawaii 5O with my dad and my brother and my twin brother and work on the show. And to be.

End up working, I worked on every Department except for makeup and camera. But to make it full circle, to be watching with my dad and to be in the film, call my dad dad. I'm working on the show. And he's just so proud, you know, just my dad and my mom and I made it.

And I got to work to Kung Fu circle with Uncle Brian Keolana. My dad grew up Waianae Makaha. So my mom's from Molokai. And so I became full circle when I got to work with uncle. And like, uncle said, it's the best of the best. It's learning, and everyone has their own way of teaching.

And it's just an honor to see every Department. Everyone in this film industry, in the Department has a great way. Some people maybe not so much but it was just amazing to get and then I want to reach out for HMI gave me opportunity to learn the gear and they end up. I became one of.

I'm actually one of the only guy here in Hawaii that's certified to work on the hybrid Dahle of the. Of a Fisher. And I'm the only guy but I got to a point to, I got to work up on this machines that holds this very expensive cameras and I, I went to, he sent me to California.

I got certified on these machines and I got to work on these machines and it was, it was just amazing. I'm still. But they know things happen now. And so I just came straight from work. I'm working with my cousin's toll company, just, just trying to do what I got to do, you know.

And then I just, I just you know, support the bill and I just really would have everyone have you guys just really just feel everyone's mana and their spirit about this. And I just appreciate you guys time and I appreciate having my voice here heard. And aloha. You all have a great day.

Thank you. Anybody else in the room wishing to testify, please come forward. Please state your name for the record.

My name is Canoa Din. Thank you for giving us the time to share our thoughts and feelings today.

One thing that I wanted to point out is one thing kind of unique to the film industry is regardless of what kind of is going on in the world, and I'll use say like Covid for instance, you know, is the entertainment industry, people always turn and want to watch what's going on, right? They want to watch movies.

Like during COVID a lot of us were staying stuck at home and whatnot. But there was a period where it opened up and we were still able to shoot productions like I believe Magnum and NCIS were shooting at the time, even though, you know, like tourists weren't able to come here.

So in times like that where it's kind of difficult, the movie industry is still being able to provide jobs, you know. And one thing other that's kind of unique to the industry is the ripple effect. I know we talked about this a little bit, but on 5O they had what's called the 5O effect.

And a lot of times like the businesses that would visit, whether like just an example like Leonard's and like Liha Bakery, these businesses were iconic here in the islands. But once there were aired nationally, internationally, like they blew up even more, you know, they got so much more busier, you know.

And another thing I like to highlight is in the, you know, in comparison to like the tourism industry, where the hotel workers often, I don't know, don't quote me on this, but, you know, I've had friends working there where they make like what, like 18 to average 21 bucks an hour, you know, and in the end of the year, they're probably pulling like 50,000 a year.

In the movie industry, like, the salaries allow families to make enough money where they can purchase a home and ensure the legacy of their families being here in the States. And that's a big thing. You know, we've all seen friends and families move away, and this industry provides that opportunity to be able to keep our families here.

And I'd just like to point out that, like, within these, within, with this industry, like, everyone gets a piece of the pie, you know, like the hotel industry. I feel like the money goes to the big corporations which are owned overseas for versus here because the salaries are so good.

And we spend so much money purchasing everything that we do, whether it's deck stuff, food, gas, we rent houses, we rent businesses. Like, it trickles down to merely everyone, including the little material fabric shop or floral shop on the corner. So it's really lucrative for everyone.

And you know, with the tax incentive, yeah, you guys gonna have to pay that out at the end of the year. But with production spending, like High star spending, what'd they say, like 67 million?

And then you have other productions like, you know, like Hawaii 5O, Magnum and CIS, where they're spending 80 to $100 million each season every nine months. And then all the wages are getting paid out to everyone. Like you guys are gonna recover that money.

You know, it sounds like a lot to have to pay out, and I understand that. But when you look at how much money gets pumped back into it, you guys not losing money anyway. Thank you.

Thank you. Anybody else in the room? Last call. Anybody on Zoom? Okay. Please go forward. Please state your name for the record.

Aloha, everyone. My name is Lindsay Watson. I'm an actress, director, writer. I was born and raised on Maui. Upcountry, Maui. I went to Kamehameha Schools, Maui. And I am coming from the perspective, unfortunately, of the people that were forced to move away. I'm now based in La, pursuing the industry.

And I'm just here to say that I want to come home. I miss my family. I. I miss being away. My family is getting older, my nephews are getting older, my niece is getting older. And I have to miss a lot of these moments in order to pursue My dreams.

And I was very lucky to work on projects like Finding Ohana and the Wind and the Reckoning that actually filmed here. And they gave me the insight to show that there's possibility to grow here and films that can do well here and films that can know, show the Hawaiian culture. Respect that.

And then beyond produce more films, more productions, I'm stepping into the side of directing as well and filmmaking. And it would make me so happy to be able to come home and create those films. I actually just got to shoot my first short film here, which we employed 100% local crew.

And again, that was just a little bit of glimmer of hope for me that there's possibilities. And I know everyone behind me, everyone standing outside, everyone that's been showing up, this. This is their dream, and it's what we love to do.

And it makes me happy to know that so many people want to follow their dreams because it's not the thing that everyone gets to do, especially living in a hard place like Hawaii.

So getting support from all of you, that these people can follow their hearts, follow their dreams and do what they love, but also support their family is really important to me. And like I said, I want to come home, and I want to bring the talents home and the stories home.

So thank you. Thank you. Anybody else in the room or on Zoom wishing to testify on this measure? Hello, on Zoom. I'd like to testify, please. Okay, please just state your name for the record and go ahead.

Hi, my name is Jessica Cole. I'm a location manager, producer, production supervisor. I'm a teamster and with local IATSC 665. I'm also an instructor. I've taught at the university level, including UH Maui, and I'm on the steering Committee with Good Jobs Hawaii right now. I stand by my written testimony, but I wanted to add a couple things.

Just emphasize how important it is that we be put back into manufacturing. The producer in our tax classifications. The producers, when they contact me about starting projects in Hawaii, they're actively turned away by the 4.5% rate on the payroll tax specifically, but also on kit rentals and everything else.

And I also just want to say that incentives Talk. Jurassic World 4 reached out to me to start scouting beaches and jungles, which is our specialty, and they declined to come, and they ended up filming in Thailand. And that's a major loss for us because that's a big franchise that has been totally loyal to Hawaii.

I wanted to point out that every production that I've ever worked on, I've implemented an educational component along with the producers and the rest of the crew to ensure that the future learns their craft and can choose a craft that they can continue building upon in an industry that up until recently was thriving.

And as far as money goes, I've worked on several television shows multiple seasons, and in one season of TV in the location Department alone. Location Department is one of about 15 departments in check requests and purchase orders. Money spent direct spend into the local economy. We spent $17 million. That's in one season, and that's excluding payroll.

So with no television shows, no movies here, that's $0 coming into the economy right now from film and TV. I've been working in the industry for 21 years. And as Archie was talking, I realized that my parents begged me not to go into this industry. I. Because it is so hard.

But please help me prove them wrong and let's get back to work. This bill will greatly help us. And I want to thank you both, Chair and Vice Chair for your time. Mahalo.

Thank you. Anybody else on Zoom?

Yes, I'd like to say something.

Okay. Please just state your name for the record and proceed.

Can you guys hear me okay?

Yes.

Okay. Aloha. My name is Kevin Chang. Usually you guys hear me speaking on behalf of my organization, but when I heard this bill was online, I wanted to just say something in my personal capacity. I'm a recovering entertainment attorney.

I had moved home in the 2000s because I wanted to start working in an industry, but in Hawaii, not LA or New York or Tennessee. My sister is one of those, has moved away to be involved in the industry initially.

And, you know, when I came home back then, this is when we started talking about a tax credit. So I'm just happy to hear we're talking about reviving it. I want to say that also like that brother from Molokai, appreciate his story because in the 30 years since I came home, you know, there's little opportunity then.

But since then, I've heard more stories like that brought up from Molokai, where opportunities not just to do the grunt work, but to do the creative work and to bring the passion into this work and to tell the stories of our community has increased more.

And also based on what Archie said about Aotearoa, not only do we benefit by telling the stories of our community, but we shouldn't forget about the soft power diplomacy of the people and the beauty of our community that is beyond tourism and that we can thrive on telling our stories in this world.

So I appreciate that this credit is potentially going to be revived, and I hope you guys continue to consider it and move it forward. And in the words of Junior Nakwa, yes. Mahalo.

Thank you. Anybody else on Zoom?

Okay, Members will open up the questions.

Okay. Okay. Represent Eloy, followed by Lama. Go ahead.

Thank you, Chair. I wanted a dual tax, please.

Thanks for being here. In your letter you mention a definition for entertainment payroll companies. Like there's no definition. Is there any other definitions that advanced in this bill that we would need to define specific.

Yeah, that's the only one that we spotted.

Okay, so. And then contained within the bill is local hires. How is that defined?

Georgia knows.

Georgia. Hi.

Thank you.

Aloha Chair, Vice Chair, Members of the Committee. Georgia Skinner, Creative Industries DBEDT.

Georgette, the definition contained within this bill, local hires, how is that defined? I couldn't find it. Under Section 3235. Is that in a different section or is that within the payroll contracts?

No. So the local hires specifically to. If you're referring to the 5% uplift that we've proposed that we supported the idea of within the the community, as you heard some testifiers say we look at exactly what the zip code is when we review the credit, especially during the Hawaii production report.

But also it's really critical to be notifying our labor unions early on. And so as part of that that also is mentioned in the bill. So right now that's what we do. For example, rescue high surf.

You heard the quote of about 9092 to 95% local hires in intentionally on all locations show and 100% of the water unit is hired. So what we'd like to see is more key positions in other projects coming to the state to be able to get an uplift if they are reaching 80% or more.

This incentivizes people that we hope are coming back and it also allows us to help our labor unions to expand their bench and be able to implement really a very cohesive training program and certification so people don't have to leave the island to get trained in the heavy equipment.

Great follow up question regarding the the permit process from Hawaii County Chief of War. I worked with Aulani Freidas when she was over at our film industry. That was kind of a clunky process, but as mentioned by some of the testimony, that was a nice place to kind of have some checks and balances and forgive the pun.

Right. This tax incentive will also kind of allow for some of the bad actors to enter the market and capture some of this tax credit. Share with me a little bit how that permit process actually allows for that filter.

And I just say that because we did have some bad experiences on Hawaii island with some some filming that really didn't follow the process or really just led a very bad taste in the community's mind.

Thank you for the question. I think what you're referring to is a production a couple of years ago that was also. It involved this designation of, you know, our lands are not necessarily all private lands. The lands are owned by the state and also by Department of Land and OHA, DHHL, et cetera.

So I think the issues there in terms of film permitting don't necessarily have a nexus with the film tax credit. However, if any permit is denied or there is any illegal activity, then absolutely it would be denied.

Okay, and then just a follow up to that permit process on Hawaii Island. Yes, Right. We saw Chief of War. We saw so many. I mean, I was there from Waterworld and that's actually dating myself.

You were very, very small at the time. Yeah, five.

But I was just really curious if you have any information as to how these tax incentives really kind of create that economic uplift. We see that with our local farmers, you know, just the. In the food industry, the restaurants that serve the big. That happen after that are all very local vendors.

Do you have any information as far as those. Those impacts to the local economy as far as dollars? I know you had some information earlier, but there is.

There's actually a little bit of a deeper dive. There is, there is. And I think that now that we have a fully staffed tax credit unit, that'll help us to dive even deeper and more granularly on these kind of metrics.

But for example, the economic impact that was mentioned earlier and the household impact is one thing, but when you look at 1200 or plus vendors for each production, especially television series that are shooting here in the islands and larger productions like Chief of War was mentioned, all of those things really trickle down in a very, very effective way.

We know that because the productions are required as part of the tax credit to absolutely refer every possible expense in their accounting of the credit and how the monies were spent, who it went to for how much, and ensure that they have a get license.