Senate Standing Committee on Labor and Technology

Hey, good afternoon. I hope where weather is good outside, but it sure feels like Mauna Kea Mountain today. Good afternoon and welcome. Our Committee on Transportation and the labor and Technology Committee is on its agenda today. The notice of hearing Tuesday, February 10th.

And for those testifiers, we ask that you stand on your written testimony or limit your oral testimony to two minutes. The live and archival video of this hearing can be found on the Senate's YouTube channel. So just remember, whatever you say is going to be following us forever once somebody gets on the Internet.

And decision making certainly will follow after the hearing from all the testifiers, time permitting. And welcome Committee on Labor. Our first joint meeting today. Let's proceed with SB 25773 and let's see. And this is relating to Administrator administrative driver's license revocation.

This authorizes administrative driver's license revocation hearings to be conducted using interactive conference technology, including teleconference, video conference and voice over Internet protocol. Or the VOIP systems clarifies that evidence in hearings conducted via interactive conference technology may be submitted and exchanged electronically. Judiciary. On Zoom. Kerry Lee, is that you? Aloha.

Yes. Hi. Hi. Good afternoon. Chair Inouye, Vice Chair Elefante Chair Elefante Vice Chair Lamosao and Members of the Committee. I'm Carried Harada, Chief Adjudicator at the Administrative Driver's License Revocation Office and I do stand on my written testimony.

I just wanted to highlight that this measure provides for Zoom hearings as an alternative to in person and Telephonic Hearing hearings. This bill is not a mandate. It's just another option for those who prefer Zoom. Zoom has been used successfully at our office since 2021 in response to the Covid pandemic.

In fact, Zoom has become the platform of choice among all parties involved in our hearings. Since all parties can easily attend the hearings from any location, it makes it more likely that parties will actually appear at the hearing. It is efficient, effective and saves the judiciary time and money. Thank you for the opportunity to testify.

Thank you very much. And truly, I think our residents, particularly on the Big island when the all have to travel to Kona for court hearings as well as the reverse from Kona residents over to the Big Island.

So during that time, my understanding, matter of fact, I believe my mother in law was one of those that was traveling as well and she was kind of so happy that they were able to do it on Boom. Yeah, right. Okay, thank you. And this is a judiciary member's bill before us today.

And this is to simplify their work and happy you're doing It.com Ed Sniffin or B.

Thank you, Chair. Vice Chairs Tony Le, the Department of Transportation Deputy Director. We stand on our written testimonial. Okay.

Thank you. Mahalo for being here. Is there anyone else wishes to speak to SB 2573 Members, any questions of Judiciary? Okay. Hearing none. Shall we move on then to the next one? SB3215 relating to harbor safety.

And this repeals the sunset provisions of Part 3 of Chapter 266 hrs, thereby making permanent the requirement that DOT ensure that the securing of mooring lines from vessels to commercial docks, wharfs, piers, quays and landings being performed by labor subject to. Subject to collective bargaining. Is there anyone else duty or any comments on this measure?

Thank you, Chair. We didn't submit testimony. Okay. Thank you. Anyone else wishes to speak on this measure? I know this measure has been supported by the longshoremen as well. And this was just started a couple of years ago and would like to actually make this a little more permanent. So hence the. Let's see. Deleting the sunset date.

Okay. Any questions, Members? Okay, let's see. I do have qu.

Do you have qu. No, we don't have quorum. Shall we take a vote for transportation?

Okay. Shall.

Now. Now I have quorum.

Okay, good. There's no recommendation for amendments. Measure. So. I have it. You have it. Okay.

That's what I have. Okay. Okay.

All right. IT. We will go into decision making. We're not taking breaks, so we have a small agenda. Chair's recommendation on SB 2573. And this is relating to administrative driver's license revocation. Chair's recommendation that we pass this measure with just technical, non substantive amendments. Any discussions? Members of the water. I mean, the Committee on Transportation.

Chair's recommendation then is to pass with amendments. Any discussions? Vice Chair for the vote. Chair goes Aye.

Chair's recommendations to pass SB 2573 with amendments. [Roll Call]

Madam Chair, recommendations adopted. For the Committee on Labor and Technology. Same recommendation as transportation to pass with amendments. Any further discussion? If not, Vice Chair Lamosao for the vote. Chair votes Aye.

Members voting on SB 2573. Recommendation of the Chair is passed with amendments. [Roll Call] Chair, your recommendation is adopted.

Okay.

Thank you.

For the SB3250 relating to harbor safety, Chair's recommendation is to pass this measurement as is. And this is removing repealing the sunset provisions of Chapter 266 any discussions on the Committee on Transportation? Any discussions? Vice Chair for the vote. Chair goes Aye.

Okay Charge Recommendations to pass Senate Bill 3215 unamended. Of the five Members present. Any no votes or voted Reservations? Hearing none. Madam Chair recommendations adopted. And for the for the Committee on Labor and Technology same recommendation as transportation to pass as is any further discussion if not Vice Chair Lamosao for the vote. Chair votes Aye.

Voting on SB3215 recommendation of the Chairs to pass unamended. Noting the excused absence of Senator Ihara and Moriwaki. Anyone voting with reservations or no? All Members present. Chair your recommendation is adopted.

Thank you. This concludes the Committee on Transportation and labor and Technology on its Feb. 10 Tuesday's agenda at 3pm Isn't that nice? We have discussed agenda items. Very efficient Chair okay. All right then. This concludes the joint hearing.

Good afternoon. The committees on Transportation and Economic Development and Tourism on its agenda notice of hearing February 10th Tuesday at 3:01pm as noted, it's 3:13pm and again, welcome to many of you who has been here since the first hearing. We welcome you again.

And just a reminder, the testifiers, we ask you that you stand on your written testimony or limit your oral testimony to two minutes. The live and archival video of this hearing can be found on the Senate's YouTube channel. Decision making will follow after hearing from all the testifiers, time permitting as well.

Okay, let's proceed with the agenda of February 10th Tuesday again in room 229. SB 2693. This is relating to capital improvement projects for aerospace infrastructure and this authorizes the issuance of $15 million in GEO bonds to finance the planning, design and construction of a 50,000 square foot aerospace hangar and related facilities at Hilo International Airport. Htdc.

Thank you very much. Jason Lee, Phoenix Space Inc. You're on Zoom.

Yes. Inoue and A Coit and Vice Chairs Elephante and Wakai and Members of the committees, mahalo for the opportunity to testify. My name is Jason Lee and I'm speaking on behalf of Phoenix Space as founder and CEO in support of SB2693 and I stand on my written testimony.

Phoenix Space is an aerospace company developing an aircraft based on demand space access system and we are actively evaluating future operating locations. From our perspective. Hawaii and Hilo in particular has unique geographic and aviation advantages for advanced aerospace activities. SB2693 invests in shared use infrastructure that can support a range of aerospace and advanced aviation users.

Facilities like this often determine whether companies can realistically operate in a location. We appreciate that the bill requires matching private or federal funds. Ensuring public investment is paired with real market commitment. While any future tenancy would follow normal leasing and approvals, infrastructure like this makes Hawaii far more competitive for aerospace investment and skilled job creation.

We respectfully support the bill and thank you for your leadership in positioning Hawaii to participate in the rapidly growing aerospace sector. Mahalo.

Thank you very much. One moment since you are on Zoom and not in Hawaii as well. Members, if there's any questions you want to ask, please feel free to do that while he is still on. Thank you so much. Can I ask you though, is there any other state that is doing this project?

Yes, we are talking to the State of Alaska at the moment.

Okay. But there is no viable industry right now.

It's in the planning stages. Yes, that's correct.

Can I ask as well because knowing my district where the airport is as well, how much of an acreage would you need?

Yes, we are needing 50,000 square foot flight operations center in terms of a hangar space. It will house, you know, 1,000 square feet of class, 1,000 clean room for, you know, payloads, 1,500 square feet of office secure IT infrastructure.

You know, it will require, you know, a 30 foot by 30 foot class, 10,000 clean room for advanced electronics manufacturing also.

Okay, so it seems like it's more an internal within a building kind of a business rather than external.

And we need a runway to be able to conduct our operations, which is that one of the Hilo, which is at Hilo Airport International Airport.

At the outset, what type of personnel in the workforce would you require?

Yes, we require engineering technician personnel as well as operations, you know, pilots and maintenance people.

Okay, thank you very much. Any further questions, Members that you may need? Thank you so much.

Thank you very much.

We'll continue the hearing. University of Hawaii Mohammed Rashid sends testimony in support. Hawaii Space Flight Laboratory. Matthew Maday. Okay. In support as well, Hawaii Space Flight Laboratory Miguel Nunes in support and matter of fact, we have several other support communications. Hawaii Science and Technology Museum. And these are all in support.

Piper Klein, Kevin Miyashiro with the Pacific Impact Zone. Eric Basie, Makana Silva, Daniel Hong, Amber Imai Hong, Kristian Anderson and Katie Tallady. I think that's it. Is anyone else wishes to speak to SB2693 or IT. Anyone else on Zoom?

No one on Zoom Chair.

Thank you. Shall we just proceed for the next question for dot? Okay, dot.

Thank you. So if we construct this aerospace facility with the 15 million GEO bond authorization, do we have any assurances from the Federal Government that they have an interest in providing the dollar for dollar match?

No. And my understanding, I have to check with the airports whether or not FAA funds can be used for this purpose. We are monitoring this measure, so. But I can get back to you on whether or not FAA would be participating.

So as you heard, gentlemen, speaking on Zoom, Jason Lee, the amount of space that he's asked for and on hangar and on separate Runway, do you guys have capacity for that as well? Senator, I will have to check with the airports. I. I'm not sure. Can you find out?

The only reason why I ask you is because I do know that when Mokulele reached out for extra hangar space which was used to move passengers, there was. We were told that there was no availability for any more hangar space. Okay, got it.

And then finally, do you know of any agency or private entity that may be interested in doing aerospace research, testing, and launch related activities?

No, I do not. Thank you.

Thank you.

Sure. Can you check with HDDC as well, because they're the proponents working with the private company. I will. Okay. For any more information you need. Okay. Thank you. Thank you very much. Shall we proceed then? Let's proceed then with SB 2698 relating to transportation.

This requires DOT to assess a per passenger head fee against cruise ships docking in the state's commercial harbors. This establishes the cruise ship special Fund, repeals existing law imposing the TAT on cruise ships, effective retroactive to January 12026. Attorney General, good afternoon.

Good afternoon. And Members of the Committee. Deputy Attorney General Yvonne Shimura. We've submitted written comments. I'm available for questions. Thank you for the opportunity to testify.

Okay. Thank you for your presence here as well. DOT.

Hi. Hi. Aloha chairs, vice chairs and Members. DOT submits testimony in strong support of this measure. We understand that this measure will address some of the legal matters that were raised with Act 96, and it also creates a mechanism for cruise ships to deposit revenue into a special Fund.

And then DOT can use that revenue to improve facilities, including address some of the matters that were intended to be addressed by green fees. But, you know, DOT will do that in our commercial port.

We do offer a couple of important clarifying amendments, and I think of greatest importance is clarifying that this fee does not supersede or replace and is collected in addition to the existing passenger fees that we collect. And those fees, including passenger fees, port entry and dockage, will continue to be assessed against cruise ships and their passengers.

And those fees are set forth in our Hawaii administrative rules. And then we also have a request to increase that per head fee from $6.50 to $10. Year over year, we see about a million passengers move through our port facilities.

And so if you take a million dollars times whatever the fee amount is, that will give you a sense of the revenue stream that we would expect to realize. So I think for $10 million, there's quite a bit of work that we can do year over year. But at 6.5, it's fairly limited.

And so if we're talking about shore power, which is one of the improvements that's referenced specifically in the Bill, I don't think we'll make it very far with a $6.5 million revenue on an annual basis. That's our testimony and available for any questions from the Committee. Thank you.

3. The either the disembarking or the embarked fee structure right now is not 650, though, isn't it around $8?

So for Honolulu, when cruise passengers are arriving At Honolulu, it's $15. And for our neighbor island facilities, so Kahului, Nauiliwili, and Hilo, it's $8.

Okay. That's the current. So this is in addition, this measure would be in addition to what we're already collecting, and that goes into a special Fund for hubbers. So I assume that the $10 per passenger then will go into the special Fund.

This Bill proposes the establishment of a new special Fund, so a cruise ship Fund, which is separate and apart from the harbor special Fund. So I just want to make that clarification.

All right.

Thank you so much. Members, any questions for DOT at this moment? Okay. Yes. Senator Elefante.

Deputy Director Kalili, thank you for your testimony on your Harper Special Fund. Currently, how much is in that fund and then what do you use that fund for?

So I don't have a total sum available, but we on average, year over year will generate between 220 and 240 million dollars a year. And that's across the whole system. That is our warfage for cargoes that are discharged at our port. It's report entry, dockage and rentals of our facilities and other fees like storage.

So that, that gives you a rough order of magnitude. And basically, we're solely funded through the special Fund. We don't get General funds. We don't have a formula like federal formula funding compared to our highways and our airports counterpart. So everything that we generate is basically what we have available to run our operations.

So it pays our staff salaries. It covers all our operation and maintenance costs. It includes our capital improvement program. So for example, the Kapalama Container Terminal, that's about a $555 million project.

We characterize it as the largest project that Harvest has undertaken in its history, but it won't be once we start the redevelopment of Staten Island Container Terminal.

We're expecting that that is going to cost between 2 and $3 billion, especially when we're accounting for raising pier heights for sea level rise, changing sea conditions, and other improvements we need to make for resilience.

So we have significant investments that are coming up and that's, you know, we're relying solely on our special Fund as well as any discretionary federal grants that we may get to finance all those improvements.

I have one quick follow up. Chairs. Sure. Continue. Thank you, Madam Chair. So with this creation of a cruise Ship special Fund. If this Bill were to pass and become law, is the intent for HDOT to use it specifically in the cruise ship area loading and docking areas?

Yes. So that's how we're reading the Bill. And so what I testified this morning to your counterparts in the House is that when you look at our operations, 85% of that is cargo and 15% is cruise. And so when we're trying to prioritize the improvements, we almost always will prioritize cargo first.

With a dedicated cruise ship Fund, we can use that revenue source to finance improvements that are oriented for cruise operations.

And your Harbor Special Fund, you could use funds from that for cruise ship improvements.

Correct. So to clarify, for example, at Hilo or at Kahului or at Nawuliwili, the piers where a cruise ship will berth are the same that a cargo vessel will Berthat also. So when we're improving those, we're supporting both cargo and cruise operations.

But there are some facilities that are cruise only, like, like the terminal, like the covered area where luggage is screened, and passenger, like the passenger security checkpoint. In Honolulu, we have two large dedicated cruise terminals.

We're currently undergoing some big capital improvements, including replacing the HVAC, installing a secondary elevator to make sure we have a good passenger experience. It's those kind of improvements that we would rely on this fund to make sure that we are continuing to prioritize cruise operations improvements.

Thank you so much, Deputy Director. Thank you. Chairs.

Thank you.

Yes, Senator. Deputy, can you explain what the difference in what the state would collect based on the Bill passed in 2025 relating to cruise ships and how this bill will change that?

So I understand, and I'm not an expert and I don't want to speak for Department of Taxation, that a portion a care percent the tat would be applied to a cruise fare. And for each line, they charge like a different fee, a different level, a different fare.

And so that percentage would be applied, you know, across the board for some itineraries, depending on how many nights that they are in state waters, you know, their, I guess, contribution under Act 96 could be very different. What this does is it assigns a per like it kind of flattens out, I would say, the revenues collected.

And so we, we could, I think for both sides for.as the state as well as the cruise lines could, I think, more easily, I want to say, project what the, what that payment or the fee or that for US Revenue would be year over year rather than a variable revenue stream based on the fare.

And as a cruise passenger or someone who's taken cruises in the past. It looks like fares fluctuate season over season, month over month. And so I think that's what I'm trying to get to when it, when I talk about like a steady, stable fee for the cruise lines and then revenue for the state.

So based on the amount of passengers that come in, and let's use Honolulu for an example, the cruise ship special Fund that will be set up so you guys collect what, $15 per passenger at the Honolulu port. You're talking about an added $10, which would make it $25 per passenger with the amendments that DOT is asking for.

Is that the ask?

So, for example, a cruise ship that calls to Honolulu, Kahului, Hilo and Nawiliwili would pay $15, $8, $8, $8 plus $10 if the Bill passes with our amendment. So that's the, that's how we would calculate.

So you guys take on count as well. When passengers arrive to Honolulu, what is the average passengers on the cruise ships that come into Honolulu? If we just look at Honolulu.

So when I, when I mentioned earlier that there are about a million cruise passengers, that's across the system and that's not 1 million individuals, it's how many times a passenger will, like, enter one of our port facilities. So I think if we're talking about individual humans, it's like maybe 320,000 people a year.

And then on cruise ships, it really, if you're asking for an average, it really depends on the cruise ship. Some cruise ships that call to our facilities can carry 4,000 passengers. Some is 400.

So I don't really have an average for you per ship, but I can tell you roughly it's about a million passenger counts a year and then about 300 some odd thousand per, like individual unique passengers. Thank you. Thank you, Jeff.

Okay. Thank you. Thank you very much. Thank you as well. Any further questions for DOT otherwise, did we call DOTAX? Okay. Okay. Thank you very much. Norwegian Cruise Lines holding. Sandra Weir.

Hi, Sandy Weir with Norwegian Cruise Line Holdings. Thank you. Chairs. Vice Chairs for voting has testified to. I stand on my comments in support of this bill.

If there's any questions, why don't, Sandy, since you're here, why don't you come on up. We'd love to talk to operators. You've come a long way. All right. Okay. Well, you've heard some of the questions raised as well and the response from dot. Any comments to that as well?

So we're talking about the cost factor, is that correct?

Yeah, it's correct. So it would be an additional $10 per port is what is. Is what Dre's saying. So currently I'm going to speak on behalf of our ship that's here year round, which is the Pride of America. So she. So she spends seven days in the ports, and currently just passenger wharfage is $41 per port.

So it would essentially double to $81 for each of those ports that she visits for commercial ports, and then for Kona, because it's a DLNR port, it's $2 per passenger. So in essence, we're doubling that. And that's what's proposed this morning and got adopted by the house.

And then in addition to that, there is the port entry, there's dockage, there's utilities and other things that we pay for for every time we come into the port facilities. Including the pilots, the pilotage. Including pilotage.

And also including there is on the Pride of America, there's get on every ticket that we sell as well, because we are home ported here and we sail in and out of Honolulu. So that's. That's part of our cruise fare as well.

But that GE goes into. Get. Goes into the General Fund. Onto the General Fund. Yes. And. And not to the special Fund. Correct? Correct. Okay. Any questions of. Thank you. Thanks for being here as well. Thank you. Okay. Yes. Senator elefante.

Thank you, Ms. Ware. So in your testimony, you mentioned with Act 96 that was passed. I know that's still going through litigation. It is. You did indicate in the testimony that fees that acts as a charge. Wouldn't this be sort of the same in the interpretation or what's your analysis of it?

This is different because it's going directly to a cruise ship special Fund. It's going to be spent in improving facilities, which extends to improving our, you know, the experience of guests and of the ship itself.

So anything that those fees have to translate into either harbor improvements that benefit the ship, benefit the passengers, which is exactly how Deputy Director Kahili laid this out. So it is different in that regard.

Thank you. Thank you.

I noticed this morning Hilo harbor, we had two cruise ships. And matter of fact, aside from Pier 2 here is Hilo, the only neighbor island port that can take. Can handle two at one time.

Two of the size ships that you saw this morning in port? Yes. So Niwili Willi can take one larger ship and kind of one kind of smaller vessel, maybe 500 passengers or something like that. But yes, Hilo's the only one that we can take A double ship day.

I noticed that the smaller size ships are more the. Is that the international ones or the European ships?

International. We have. We have two brands that are kind of luxury smaller. Oceania Cruises and Regents. Zero, that's yours. So those are Norwegian Cruise Line holdings too? Yeah. Okay. So they visit very regularly as well.

All right. Okay, thank you. Any further questions? Hearing None. Honolulu Ship Supply.

Good afternoon. Chair.

We supply cruise ships with provisions. So mostly.

Excuse me. You know what? Come on up. So others that are on zoom, that can also.

And also have an accent, but. Okay. All right. Your name again, please? My name is Maxime. I'm the owner of Honolulu Ship Supply. We are a local company based in Kalihi. We have 50 employees and we supply cruise ships when they come to Honolulu or other islands of Hawaii.

So tomorrow, for example, I will be in Hilo supplying a ship that's there. And so what I want to highlight is the impact that cruise ships have on the local economy. So we partner with local farmers on all islands of Hawaii.

And so we bring a lot of food products from Maui, from Kauai, from Oahu as well, Big Island. And so it has a really good impact on these farmers that don't have maybe so so many customers they can sell locally, and so they are able to showcase what Hawaii has to offer.

So most of the supplies that you provide to the cruise ships, they're all locally local products?

It's a lot of local products, yes.

Okay, now this name is familiar. Were your company one of the those that also took part in the filing of the suit?

Yes, we are part of that.

And why was that?

Because we think that the tat is not going to benefit the cruise industry. And so we think that it's going to negatively impact the local economy and our business specifically. So we are located in Kalihi area. We give a lot of jobs to people both in Honolulu, but also on outer islands with our suppliers.

And so we think that continuing to encourage cruise ships to come to Hawaii is going to be beneficial for everybody.

So for Norwegian as well and their ships, do you do the others?

Yeah, we do most of the cruise ships that come to Hawaii. Yes.

Okay. Any questions? Yes.

How much produce do you purchase from the state of Hawaii from local farmers?

Maybe about 30% of. So we bring some produce from the mainland. Right. Because some produce is not growing in Hawaii, obviously, but I don't know, like watermelon, sweet potato, pineapple. We're going to try to bring that from Hawaii because we have that here locally.

And so part of our value Proposition is that it's fresher for the ships and local. Right. They are always happy to showcase local fish, local produce, local eggs to their guests.

So 30% is how much in poundage?

In poundage. I mean, it's thousands of pounds. Because, I mean, cruise ships, on average maybe it's 2,000 passengers. So it can quickly go up. These people are eating good food.

Yeah, thank you. They're eating well. Yeah. Eating very well. Okay. And drinking well. I hope so. Zero, okay.

So does that include the alcohol too that you purchase from Hawaii? Like whatever. Maui Brewing, we sell a lot of beers, for example. Thank you.

Thank you. Okay. Thank you. Jamie Barrett, Polynesian Adventure Tours.

Good afternoon, Chairs and Vice Chairs and Committee Members. I stand on my testimony that I sent in. However, I just do want to reiterate. We support this bill. We have over three.

Excuse me, now you have to come and speak into the. Your name again, please.

Jamie Baruta with Polynesian Adventure Tours. And we support this bill. We have over 340 employees statewide, Kauai, Maui, Honolulu and in Hilo. And we also support Kona side as well. So 340 employees truly depend on getting cruise ship business on a weekly and a monthly basis to keep them employed.

We also work with a ton of vendors, local vendors. Millie's in Hilo, Maui Distillery, you know, all over the state. So that's my. Okay, that's my stuff. Thank you.

Thank you so much. Thank you. Kauai Kilohana Plantation. Aloha. Good seeing you again. You got a nice, nice place out there on Kauai. Thank you very much.

And I want to thank the chairs and the Committee Members for hearing this today. My name is Fred Atkins and I have Kalihana Partners, Kalahana Plantation on Kauai. And he asked a very good question.

And I'm also on the lawsuit with Act 96 and I want to explain why I felt that our employees needed a voice in this matter we employ along with our venues. You know, we have about 100 something employees, about 350 total between the two. And they're always asking me, what do you think?

If Act 96 goes in the favor of the state, then are some of them really going to leave or are they just bluffing? And I can't speak for NCO. I'm not here to speak on CLIA, but I can give you facts. What happened in 2008 because NCO came to Kauai looking for a place to do a luau.

We built the facilities and we had a group put on an incredible. It Took me a year. And the day we opened, they came to us and said, you know, everything's great, the people love it, but a ship's going to be leaving in a month because that was during the recession. And so they had to leave.

And then three months later, another ship left. So it's all about roi, return on investment. And I'm hoping through this Bill, and I strongly support it, that it can spend this year hearing with all the stakeholders and trying to come up with a compromise that is good for the industry, the hotel industry.

That gets a lot of pre and post, the cruise ship industry and especially the employees, because, you know, especially our, our people at the Luau, they're nervous because they've seen it happen. They've seen it, you know.

So you do the luaus?

We do the luaus, yeah. What we do to the cruise ship, because they have one, we do it every Thursday night. It's exclusive. In the winter, we do two to the public. In the summer we do four. And the show has been quite successful.

But during the winter, that extra show with Norwegian means a lot to our employees and everybody. So I'm hoping that it can pass this Committee so we can have the proper batting. If you have any questions, I'd be more than happy. Otherwise, I'm going to jump on a plane.

Thank you. Thank you. Thank you so much. Yeah, thanks for being here as well. Tax foundation of Hawaii, Tom Yamachika. Aloha, Tom.

Good afternoon. Chairs, vice chairs, Members of the committees, Tom Yamashika from Tax Foundation. We have some concerns about whether the replacement as stated in this bill, would be constitutional. And you may be able to get this past the courts if the New Special Fund is exclusively used for the harps, if it's really a user fee.

But I don't think that's what's going to happen. Number one, we have 5% that's going to go off the top for central services admin expenses. That's going to go into more a generalized. Well, it's going to go to the General Fund. Okay. Second, you.

You may have people coming to Legislature for next year or the following year saying, hey, this is part of the green fee. We need this to Fund green projects. So there's, there's going to be charges on it.

So once you start on the path of making this more like a tax than a user fee, you're gonna, you're gonna run into problems with the same constitutional provisions that this thing is attacked. Being attacked with right now. Happy to answer any questions. Thank you very much for the opportunity. Testify, Tom.

I'm not following you. We personally, I mean currently we already have a collection and paid fee on the passengers.

And so that wasn't the harbor Fund.

Right. With regards to the new fee.

No, I think you're assuming that and I'd like to believe that. I don't think that's what's ultimately going to happen. I think there are going to be demands on the fee. It won't be going just to harbors. It'll be a General tax. And if it's a General tax, you're going to have problems.

You're saying future legislators may decide to make the changes? Yes, because right now the Bill is pretty much specific.

Yeah, right now it is. That's absolutely correct.

All right. Yeah. Thank you. Thank you very much. Any questions of tax Foundation, Hawaii Transportation Association. I'm here. Zero, hi.

Sorry. Hi. I'm on Zoom today. Good, good. Hope everyone's doing good. I'm Tina Yamaki. I'm with the Hawaii Transportation Association and we stand on our written testimony. This measures establishes a clearer, fair and more workable solution and framework. So thank you so much for this opportunity to testify.

Thanks, Tina. Maritime Group Bill Annonson in support Matson Navigation in support Hawaii Hugs Group. Thought I saw Melissa here. In support Hawaii Tourism Authority on comments Go Tours Hawaii Edward Keli, Noho Moku okay. All right. Eric McClellan, Haik, Maui we have Zoom. Terry, is that you? Terry Fisher.

Yes, I'm here.

All right. Polynesian Adventure Tours proceed. Aloha.

Thank you and good afternoon Chairs and Vice Chairs and Committee Members. I testify for you today and stand on my written testimony.

But further to that, I would just like to stress one small point and it echoes what you heard earlier from Mr. Atkins that for many small and independently owned restaurants, attractions, activity providers, cruise related visitation is essential to their survival.

Cruise passengers and cruise ships provide consistent and predictable demand that helps these business sense and ours operate year round and retain our employees on our neighbor islands and cover the fixed cost of doing business in a tourism dependent economy. Importantly, this spending largely stays within the community, supporting the cultural, recreational and experiential.

That hope makes Hawaii unique for both residents and visitors. And I also want to add too that we talk about cruise ships and there's a lot of discussion with regards to environmental stewardship.

And I want to point out that cruise ships are already providing what the remainder of the rest of the visitor industry is really striving to achieve.

And the fact that we have a controlled environment where we bring These visitors and our motor coaches transfer visitors throughout the islands and we keep them in a controlled environment where we're able to educate and control where and what they see and what they do and learn about the communities and the cultural heritage of Hawaii.

So we strongly support SB2698. Thank you for the opportunity to testify.

Thank you very much. And thank you for your patience as well.

Hawaii Tour consultants Eric Polk show you Hawaii LLC show you Hawaii LLC company Hannah Laziak care for INA now coalition with comments in support McCabe, Hamilton and Rennie in support as well as Hawaii Stevedores Inc. Is there anyone else wishing to speak on this measure as well?

Hawaii we have a late testimony Members Hawaii Pilots association supports SB2698 as well. Attorney General, I have a question for you.

In your testimony on your recommended recommendations amendments on the expenditure provisions on Section 5, you mentioned that you recommend it be inserted there is appropriated out of the General revenues of the state of Hawaii an unknown sum or so much thereof as made necessary for fiscal year to be deposited in the cruise ship special Fund.

This Bill does not cover that. And I don't, I wouldn't agree that this measure would have any funds from General funds into this measure. But I was just wondering why you added that.

It was added because at page two in the new Section 6, 6B and that would be leave that subsection A, paragraph two, appropriations made by the Legislature for deposit into the Fund.

Okay. So you're suggesting that at the outset that if the special Fund is created. So did you say section one or Section two?

Page two, page two, new section 266B. Okay.

Subsection A. Yeah, I see it. Yeah.

So in other words, if the Legislature wants to make an appropriation into the Fund, such as startup costs, there is an appropriation provision for that. If not, that section is not necessary. Yeah. Okay. Just wanted to clarify. Sure.

Yes. Yes. Senator Elefante.

Thank you, Deputy Attorney General. My question, I don't know if I don't believe this was in your testimony, but this has to do with actual Act 96 from last year.

I'm sorry, I can't.

I can't. Zero, I'm sorry. So I don't, I'm not sure. Can you hear me okay now? Yes. Okay. Thank you. Sorry about that.

So my question pertains to Act 96 from Session Law of last year, in particular HRS Section 37, which establishes the climate change tourism decimation management, which tat proceeds go into, and it lists the the type of areas which is I think established the Green Fee Council. So how would this Bill impact current law?

I'm not familiar with that part of Act 96. If you needed the question answered, I can check with the Department and get back with you.

Okay.

Because I think it would be good to know if we were to move forward with this bill, would now all the funds that were established and understanding that it's going through litigation, would that now not be the avenue going forward and it would just be this fee for the special Fund and then there wouldn't be any sort of TAT.

Yeah, TAT and projects that would go under hrs. 37. So if you could look into that and get back to us, I think that would be helpful.

All right, I will.

Thank you. Okay. Thank you very much. No, I think, I believe, yeah, we got Section six on the cruise ship special Fund. But nonetheless, that won't happen until the approval of this measure is finalized. If it passes, come whether it's July 1st or, you know, whatever date is. Thank you for your presence as well. Thank you. Okay.

Thank you.

All right. Thank you. Any further questions or someone you may want to ask questions of. Okay, folks, any questions, shall we go into decision? I think. Sure. Understand. Okay. All right, let's it. We're going to go into recess. And this is the Committee on Transportation and Economic Development and Tourism. Okay. We're going into decision making.

We'll take a short recess.

Thank you.

The joint Committee hearing of February, what is today? The 11th? The 10th? Remind me. 10. 10. Okay. It's going into decision making. The Committee on Transportation and Economic Development Tourism is going into decision making on both agenda items before the committees. With SB2693 relating to capital improvement projects for aerospace infrastructure.

The chairs recommended that we will approve this measure with an amendment and that amendment will be defecting the date to July 1, 2050 as this hearing. As this measure moves along into the process of the legislative hearings as well for the Committee on Transportation. Any discussion? Hearing None. Vice chair for the vote. Chair goes aye.

Chair's recommendations to pass SB2693 with amendments. [Roll Call] Madam Chair, recommendations adopted.

Committee on Economic Development, Tourism will be deferring decision making to Tuesday, February 17th at 1pm in conference from 2 to 9.

Okay, thank you. For SB 2698 relating to transportation. Chair's recommendation is to pass with amendments. We will take into consideration. Let's see. Part of the Attorney General's recommendation with their recommended amendments. Chairs recommended that we will. The questions raised about the General Fund contribution in Section 5. We will not be addressing that measure.

However, we will make the changes on page two and line six where we will be deleting these words appropriations made by the Legislature for deposit into the Fund. And that will be deleted. That will be deleted from the Bill. Okay. I think that's it. zero, yes. Yes. Dots. We will address and recommend amendments by Dot's recommendations. Okay.

And let's see. I think we're okay with. With the dates as well. Okay. Chair's Recommendation then on SB 2698 is to pass with amendments the Committee on Transportation. Any questions? Hearing None. Vice Chair for the vote Chair goes aye.

Shares recommendations to pass SB 2698 with amendments of the four Members present. Noting the excuse of Senator Lee. Any no votes? Any votes or reservations? Hearing None. Madam Chair, Recommendations adopted.

Okay, thank you. On economic development, tourism, Senate Bill 2698 will also be deferred for decision making on Tuesday, February 17th at 1:00pm in Conference Room 2 to 9.

Okay, thank you. Thank you. Committee on Economic Development and Tourism. This concludes then, the joint hearing of the Committee on Transportation and the Committee on Economic Development and Tourism. Aloha. And thank you so much for your patience. Good afternoon.

The Committee on Transportation is on its hearing notice only for the Committee on Transportation agenda of Tuesday, February 10th. We will. We got six measures on this measure. Just Some housekeeping announcements. Those testifying, we ask that you stand on your written testimony and we or limit your oral testimony to two minutes.

The live and archival video of this hearing can be found on the Senate's YouTube channel. And we will be making decision making will follow after the hearing from all the testifiers, time permitting will proceed with SB1002. And this is relating to port pilotage.

This clarifies the consulting role and responsibilities of the DOT in the Department of DCCA Affairs. Development and implementation of the pilot licensure standards, requirements and criteria. This is an admin Bill. Let's see. Department of Transportation.

Aloha Chair and Vice Chair Dre Kalili, Deputy Director of Transportation for Harbors. We are in support of this bill. This is an area where I think one agency that regulates partnering with an agency that controls a operation and facilities can work together to ensure, you know, the pilotage licensure works as well as it should for our state.

Available for any questions. Thank you.

Okay. Makes life easier and faster.

Yes, thank you.

Yes, good. Thank you. Thanks for this bill. DCCA,

Good Afternoon, Chair. Vice Chair. DCCA stands on.

Okay, thank you very much. Okay. Meta Navigation Sense Communication in support, Bill Anderson, Maritime Group. Okay. And support as well, the Hugs group. Hawaii Harbors Users Group. In support. Hawaii Pilots Association. Good afternoon. Good see you.

Yeah, good to see you. Senator Sinclair, Brown Boy Pilots Association.

Thanks for having us. I'm here with a couple of my colleagues, other important pilots, Captain Konoa Parker, Captain Ryan Hopkins, and our attorney, Lauren. Yeah, thanks for having us. And we stand on our written testimony and support this bill. Thank.

And thanks for being here. You know, not too often. We got the pilots here and we appreciate your presence as well. And good for you to know, too, because you heard the. The cruise ship bills.

And as I always say, we all learn something new every day. Yes. Okay. All right, the. Let's see. Is there anyone else wishing to speak to SB3102? IT. Anyone on Zoom?

None on Zoom, Chair.

All right, we'll move on then to SB3152 relating to commercial port Administration. And this renames the Harbors Division of the Department of Transportation to the Commercial Ports Division and distinguishes between the terms harbor and commercial port throughout the statutes. Okay. Dre, are you going to speak on behalf of the agency on SB 3152?

Yes. Thank you, Senator. Thank you, Chair and Vice Chair for hearing this bill. This is one of DOT's admin bills, so it is in our package and the importance for us for this bill is distinguishing what we do in our commercial ports compared to what small boat harbors does at DLNR.

Consistently we get a lot of inquiries about facilities that aren't ours. And so we're hoping that maybe this change in nomenclature clarifies some of that misunderstanding and confusion. That's what we're aiming for. Available for questions. Thank you.

Thank you.

Thanks, Dre. Dovar within DLNR sends comments Maritime Group, Bill Annonson okay. Big supporter of Maritime Harbor's group A hugs group Melissa Peplet Check in support as well. Is there anyone else wishes to speak to SB3102? I think Dre, when I was reading Dre, are you there?

There's one I thought I missed, one of the words that should be underlined, underscored, that carries out the new name and I'm trying to find it now. Oh, we'll come to it, I'm sure as we move along with this measure.

I just thought there was part of the measure that when it's going by its sections that it still carried harbors instead of the underscore new lot. But it's something that SMA can look into it.

Senator, if I may just offer the clarification. So there are some uses of the term harbors in Hawaii revised statutes as it pertains to our operation that is still accurate. So harbor is a geographic feature. Right.

It's like a Bay Area, whereas the port is like the developed infrastructure used for discharging cargo and moving passengers from a cruise ship. So in some cases the use of harbor is still appropriate as it describes the areas where we work.

Okay. All right, thank you. Thank you very much. Anyone else speaking on SB 3150 to hearing? None. We'll move on then to SB 3157. This is relating to transportation. Another admin bill as well.

This requires unencumbered and unexpended revenues from the Automated Speed Enforcement Systems Program Special Fund in excess of $12 million as of June 30th of each year to lapse to the General Fund. Okay.

DOT.

DOT stands on certain testimony support.

Okay, thank you very much. Somebody the Governor is working hard. He wants to make sure that we don't over expand beyond then once it in the General Fund. But good work in a sense. Let's move on then. oh, is anyone else wishes to speak to SB 3157. Okay, going once, going twice. SB.

Oh I have a question for DOT.

Okay. Senator Elefante.

Yeah. As the chair mentioned, you don't often see departments transferring funds Back to the General Fund. So it's nice of dot. Do you know currently how much is in this Fund now?

I know how many citations we've gotten. I don't know that the funds have been collected.

Okay, what would be the amount? Yeah, citations. Yeah.

So since December 5th until the end of 2025, we. They gave out 10 citations. This year we've only had seen one citation. So depending on, you know, how much over a vehicle is going over the speed limit, fines can be anywhere from 167 to $317.

So on the high end, we probably have the potential of collecting so far about 3,487. Okay, thank you. Thank you.

For the record, you want to. Can you state your name again?

Absolutely. Tammy Lee, Deputy Director for the dot.

Thank you. Thank you so much. Okay, we'll proceed then with. zero, you know what I was gonna say. So the county's portion is not part of this right, that counties are still able to get their own. Don't we pay the counties anyway?

Well, I think there is a revision to the existing statute that would make the Fund more flexible that it doesn't have to be spent in the county that the citation was given. It will be just in that General Fund.

Okay. Okay. Thank you. We'll proceed with SB3234 relating to traffic safety. This appropriates money to DOT to install all way crosswalks at sites abutting school properties. That's 3234- DOT. Okay. Oh, sorry. Okay. All right. All right. Chair just missed the last bill on the first page. We will then speak on SB2954 relating to traffic safety.

This requires DOT to complete and publish a traffic engineering study before installing specified traffic safety devices or changing posted speed limits on state highways. Okay. DOT on this measure. Okay. Is there anyone here wishes to speak to SB2954 Members? Any questions? Okay. Hearing none. Let's proceed then with SB3234 relating to traffic safety.

And this appropriates monies to the Department of Transportation to install all way crosswalks at sites abutting school properties. DOT.

Thank you, Chair, Vice Chair, Members of the Committee, the DOT sends on its written testimony and strong support of this measure. But we would like to ask the Legislature if they could broaden the use. Of changing the funds. No. To other pedestrian safety measures. Not only to these. Always.

We would respectfully request flexibility to account for differing traffic calming needs in different areas.

Okay. You have recommended amendment?

We can provide.

Will you please. Okay. Work with staff. All right, thank you. Thank You DOE, Department of Education, Sense Communication in support. Eduardo Hernandez, Hawaii Bicycling League in support. Hawaii Public Health Institute, Nate Hicks in support. Support. We do have test testimonies in support from the ompo, the Oahu Metropolitan Planning Organization.

Michael Butel, John Rogers and Kalai in support as well. Anyone wishes to speak to SB3234 hearing? None. Let's proceed to SB2950 relating to the Hono API Lani Highway Coastal Mitigation Project. DOT. Okay. zero, that's right. There's nothing. Nobody is testifying on this measure. Okay. Is there anyone else here wishes to speak on SB 2955 hearing? None.

Will recess and go into decision making on the measures before the Committee on Transportation. It will go into recess. The Committee on Transportation is going into decision making on its notice of hearing of February 10, Tuesday in room 229. Members.

SB3102 relating to the port pilotage chair's recommendation that we pass with amendments with technical, non substantive amendments and also the recommendation that the Hawaii Pilots association is recommending that we delete the word Port Ellen because I don't think that's around anymore. Right. Okay. So that will be. Port Ellen is still around, though. Yeah, it is.

But there's pretty much no, no active porting that the pilots go there even for practicing. I think they not there anymore. So we'll, we'll. But you know what, though? I, I didn't see that Port Ellen anyway on the, on the measure because it, it highlighted, I think on the bill.

I don't remember seeing Port Ellen maybe in general one second and that would be. oh, sorry, I don't have my bill here online. Nonetheless. Okay. You know, you see it is Port Ellen there. It was in the. Where they have all the front. Yeah, there is a, there's. Okay, there's all of the. Hold on.

Go, go up somewhere. Okay. It identifies all the harbors. Yeah. Because if it's not there. Inactivity. Yeah. No, it's the, no, it's in the bill.

Look for the bill itself. And here's, here's your testimony. Look at the bill. Okay. There is a section, there is a section that has all the pie. All the harbors names like Hilo.

Okay. It's just to clean up 462.

Okay. I'm, I'm just wondering if we should do it now. Did you hear. This is what they're recommending, but it's, it's a different statute and I don't know if we have that Recognized. What was the statute? 17. Okay. Okay. I 46217. I don't see 17 in here. So if it doesn't then it. I don't think. We don't see.

Yeah. Okay. You see. You see 17. You don't. No. Okay. We won't include. Yeah. So the changes will be. Yeah. Okay. Will the recommendation for amendments would just be the non substant the technical, non substantive amendments to this measure Any discussion of Members okay. Vice Chair for the the recommendation then is to pass with amendments. Okay.

Vice Chair for the vote. Chair goes.

Side which wouldn't include the deletion of Port Allen.

No. Because it's not even like.

Yeah.

The statute is not even identified in the bill. Yeah. Okay. Okay. Chair goes Aye.

Judge recommendations to pass SB3102 with amendments. [Roll Call] Madam Chair, recommendations adopted.

Okay. SB 3152 relating to commercial port Administration and this renames the Harbor Division of DOT to the commercial parts division. The chair's recommendation is to amend this bill only with technical, non, non substantive amendments. Okay. Hearing none. Any. Any discussion? Hearing none. Vice Chair for the vote Chair goes.

Chair's recommendations to pass SB 3152 with amendments of the five Members present any no votes or voted reservations? Hearing None. Madam Chair recommendations adopted.

Okay, thank you. SB3157. This is relating to transportation and another governor's package. Chair's recommendation is to pass this measure as is? Any discussions Hearing none. Vice Chair for the vote. Chair go Aye.

Chair's recommendations to pass SB 3157 on amended of the five Members present any no voter volt or reservations. Hearing none. Madam Chair, recommendations adopted.

Thank you. SB 2954 relating to traffic safety. Chair's recommendation is. Yeah, we're going to defer this measure because DOT is already in place with their program and their dashboard on this measure. So we'll defer SB 2954. SB 3234. Relating to traffic safety. Chair's recommendation is to pass this measure with amendments.

Members the introducer of this measure, Senator Lamasal did have discussions with the Director Ed Sniffin recommending that the fund will be out of the See. Yeah. Okay. The safe routes to school. So that safe the on section one on line one, the bill did refer to the fund the appropriation out of the General revenues.

However, her recommendation for us to make the necessary changes to the safe routes to school fund. Okay, so that's passing this measure with amendments. I think that's it for now. Vice Chair for the vote Chair goes Aye.

I treasure recommendations to pass SB 3234 with amendments. Of the five Members present any no votes or votes or reservations? Hearing none, Madam Chair. Recommendations adopted.

Okay, thank you. On SB 2955, this is relating to the Hono API Lani highway coastal Mitigation Project. Chair's recommendation is to pass with amendments and it's just amending with technical and non substantive amendments. Any discussion? Hearing none. Vice Chair for the vote. Chair goes Aye.

Chair's recommendations to pass SB 2955 with amendments. Of the five Members present any no votes or votes or reservations? Hearing none. Madam Chair, recommendations adopted.

Thank you very much. This concludes then the hearing notice and the votes on the Committee on Transportation. Thank you so much.