House Standing Committee on Finance
- Chris Todd
Legislator
Aloha. We are convening the Committee on Finance for our 10am agenda. It's Friday, February 272026. We're in Conference Room 308 live in person and on Zoom. Some quick refreshers. If you are on Zoom, please stay muted until you're called upon. And we do stick to a two minute time limit per testify.
- Chris Todd
Legislator
We'll give a little bit of flexibility should you be extremely compelling, you know, that kind of thing.
- Chris Todd
Legislator
But otherwise, if you, if you can for the most part stand on your testimony unless there's something really critical you need to explain, or if you are going to testify and you have provided written testimony, please try your best to just summarize or provide additional context instead of reading it directly.
- Chris Todd
Legislator
But other than that, I think we're good to go. We can get started. We're going to open up with HB816 HD1 relating to emergency response.
- Garrett Hall
Person
Good morning, Chair, vice chair, Committee Members, Garrett Hall, Chief of Emergency Medical Services and Injury Prevention for the Department of Health. We stand on our written testimony and here to answer any questions you may have.
- Jenna Takenouchi
Legislator
Thank you. We have Kylie Swan in support on Zoom. Not present. That's everyone who indicated they would be joining us, Members. Also testimony and support from Council Member Kagiwata from the Hawaii County Council and two other individuals.
- Chris Todd
Legislator
Okay, Members, any questions on this measure? Seeing none, we're going to move on to HB 1535 HD1 related relating to automated external defibrillators.
- Garrett Hall
Person
Good morning, Chair, vice chair, Committee Members, Garrrett Hall, Chief of EMS at the Department of Health. We stand on our written testimony as submitted in here to answer any questions.
- Tom Yamachika
Person
Good morning, Chair, Vice Chair, Members of the Committee, Tom Yamachika for Tax Foundation. For the reasons stated in our testimony, we think it's a lot more efficient for this to be handled outside the tax system. We have subsidy programs such as High Energy.
- Tom Yamachika
Person
This could be handled, you know, much similarly to that with I think a greater impact and more accountability. Have to answer any questions. Thank you very much.
- Jenna Takenouchi
Legislator
Thank you. If we have Kylie Swan and support on Zoom still not present, that's everyone indicating they'd be joining us. Also support from one organization and one individual. zero, is there anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Okay, Members, any questions on this measure? Seeing none. We're going to move on to the next item, HB 1537 HD1 relating to mental health.
- Kaylee Okuaro
Person
Good morning, Chair, Vice Chair and Committee Members. My name is Kaylee Okuaro. I'm the administrator for the Child and Adolescent Mental Health Division. We stand in our written testimony in support of this measure and I'm available to answer any questions. Thank you.
- Jenna Takenouchi
Legislator
Thank you. We have the Hawaii State LGBTQ Commission in support on Zoom.
- Michael Golojuch
Person
Good. Good morning. Happy aloha Friday. Michael Golojuch Jr. Vice Chair of the Hawaii State LGBTQ+ Commission. He him pronouns. We stand in strong support of this measure. You have our testimony in front of you. The couple things we do want you to know.
- Michael Golojuch
Person
Earlier this year, the Lemke Institute, which tracks genocides around the world, issued a warning that the United States is in the early stages of a genocide for the transgender community. What is it?
- Michael Golojuch
Person
Since the attacks on Mahu, transgender non conforming communities have began last year, we have seen the suicide rates quadruple for this community just in the last eight months, bringing it close to home.
- Michael Golojuch
Person
In the last this year alone that we've lost three keiki that we know of, the need for access to mental health care is now, well, years ago, but the now is now more than ever.
- Michael Golojuch
Person
As already as you have in our testimony, you heard from others, we know you're probably not going to amend this Bill to include the protected classes that we requested in our testimony.
- Michael Golojuch
Person
But we do request, if you, if you won't do that, that you at least include the list of protected classes found in our testimony in the Committee report.
- Michael Golojuch
Person
So when this program hopefully goes forward and gets funded, that the those charge of the program know that they definitely need to take special consideration for these classes to end the special needs. So we encourage you to pass this Bill. We hope you amend it, but if not, put it in the Committee report.
- Michael Golojuch
Person
So moving forward, thank you and we available for any questions. Mahalo.
- Alan Johnson
Person
Good morning, Chair, Vice Chair, distinguished Members, I'm Alan Johnson with the Hawaii Substance Abuse Coalition. We now see that mental health diagnosable anxiety and depression is just out of sight, up to 40%. It's just unbelievable what's happening in schools.
- Alan Johnson
Person
And as providers with boots on the ground, we know that because we have substance abuse programs in the schools, the high schools and middle schools, and we see that many of them are coping by using substance abuse, alcohol and tobacco. And the issue is that we have this robust substance abuse program in schools and high schools.
- Alan Johnson
Person
There is no mental health program, preventive program in the schools that will deal with families and kids. And the science is there. Providers and subs abuse have evolved in the last 10 years. We now do substance and severely mentally ill for adults and kids. We and subsequent can deal with the alcohol and mental health in one setting.
- Alan Johnson
Person
We have the expertise, but here we're operating silos with no funding for mental health. We're saying this is an opportunity to evolve our state systems. We're in the schools. We've got relationships with the teachers, the kids, and the school counselors. It's the most economical way ever possible to begin for this state.
- Alan Johnson
Person
The science is there to say it's time to evolve mental health, substance abuse, together at one time, we could make a huge difference. We appreciate the opportunity to testify today and, and thank you for your time.
- Brian Baker
Person
Aloha Chair Todd, Vice Chair and Members of the Committee. As we have heard here today, what we are really missing is a coordinated approach between mental health and substance abuse prevention. Adolescence is such a critical window of development when young people experience intense emotional change, social pressure, and brain development. And.
- Brian Baker
Person
And that's also when anxiety, depression, trauma, and other mental health challenges often first appear. What we need to do is be treating those together. We cannot treat them separately because just as adults, adolescents turn to alcohol, vaping and substances to try to calm their nerves and escape emotional pain.
- Brian Baker
Person
So it's very important to treat all of these challenges at the same time. HB1537 allows us to integrate that prevention as expressed by other testifiers. We appreciate your time and we thank you for the opportunity to testify.
- Catherine Abellera
Person
Aloha. Good morning. Thank you. Chair. Vice Chair Committee Members. My name is Catherine Abellera and I stand strongly in support of this field. And I am a mother of a daughter who lost with death by suicide. Sorry. I just want to show you that my daughter was 28 years old. She was a PhD student at UMass.
- Catherine Abellera
Person
But these things didn't start as an adult. They started early on, probably middle school, high school. And there's really limited access to resources. And I think if we have more preventative and more accessible services, I think a lot of this could be addressed early, caught early. And I really, I really hope that you.
- Catherine Abellera
Person
That you pass this field. And I am strongly supportive. Thank you for letting me be here.
- Myah Pupilis
Person
Oh, hi. Aloha Chair, Vice Chair and Members of the Committee. My name is Myah Pupilis and I'm a student at Kalaheo High School and I'm in strong support of HB1577. As someone who has firsthand, we experienced high schools and middle schools in Hawaii. Our youth is in a mental health crisis.
- Myah Pupilis
Person
Over a quarter of middle schoolers have considered suicide. And I have dealt with my peers dealing with those thoughts and I've even had one commit suicide. And I don't think we can afford to wait for a total breakdown of these issues before we offer them any help.
- Myah Pupilis
Person
And I think this Bill focuses on the window of ages 10 to 19 and community based early intervention. And I think that addressing the trauma before it turns into substance abuse or long term disabilities is something we need to focus on. And I think this is a proactive investment for Hawaii's future. And please pass HB 1537.
- Jenna Takenouchi
Legislator
Thank you. That's everybody who indicated they would be joining us today. Also testimony and support from the State Council on Mental Health, three organizations and five individuals. Is there anybody else in the room wishing to testify? Fine. Anybody on Zoom?
- Daisy Hartsfield
Legislator
Hi. Thank you. I just wanted to make sure that we're all on the same page in terms of adolescence. Like, could you let us know exactly what ages that will cover should this bill pass?
- Kaylee Okuaro
Person
Sure. So the Child and Adolescent Mental Health Division, we serve really ages 3 through 21 and except for our first episode psychosis program, which goes through age 24. But we are working closely with our partners who also serve adolescents.
- Kaylee Okuaro
Person
Department of Education, Alcohol and Drug Abuse Division, Family Health Services Division, Office of Youth Services, Injury Prevention Branch, which is the seat of our suicide prevention activities. So it would be in that age range. But I'm proposing a coordinated, or, you know, through 21. And I'm proposing a coordinated approach across the different child serving agencies.
- Kaylee Okuaro
Person
Several people have noted that the system, while I think we provide a lot to support adolescents, it can be sometimes siloed or fragmented because of the way it's organized. So across those adolescent serving agencies, I think we would want to come together to agree on the most impactful programming for adolescents.
- Daisy Hartsfield
Legislator
I'm sorry. So to clarify, if passed as is, this Bill could cover ages 3 to 21. However, the Department would work with the community agencies to determine what ages would fit into the adolescent needs. Did I get that correct?
- Kaylee Okuaro
Person
Yeah. So when we, when we. Yes, sorry, I know it's. I wasn't very clear. So when we go through the competitive procurement process.
- Kaylee Okuaro
Person
As we start to define scope for community programming, when we do our requests for information, oftentimes we'll learn from the providers who are providing services, you know, what age ranges should be targeted for specific services, for example.
- Kaylee Okuaro
Person
So I think if we do get an appropriation to provide community based preventive services, we're going to listen to the provider agencies through that RFI process to build scope that's kind of targeted and impactful for the age range that those services are built for.
- Kaylee Okuaro
Person
So without having gone through, through that process, I don't want to say, you know, that we're going to include or exclude any particular group of adolescents. I think what we'll learn through the competitive procurement process is how to tailor services as effectively as possible.
- Daisy Hartsfield
Legislator
Thank you so much. That was very helpful. Thank you. Thank you.
- Chris Todd
Legislator
Members, any additional questions? Seeing none, we're going to move on to HB 1541 HD2 relating to the Department of Health.
- Jenna Takenouchi
Legislator
We have the Department of Health in support. Thank you. And HGA in opposition.
- Jenna Takenouchi
Legislator
That's everyone. That's all the testimony we've received on this measure. Anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Additional questions on this measure? Seeing none, we're going to move on to HB 1562 HD1 relating to youth
- Kaylee Okuaro
Person
Good morning, Chair, Vice Chair and Committee Members. I'm Kaylee Okoro. I'm the administrator for the Child and Adolescent Mental Health Division testifying in support on behalf of the Department of Health. We stand on our written testimony and I'm available for questions. Thank you.
- Jenna Takenouchi
Legislator
I have the Hawaii State LGBTQ+ Commission and support on Zoom.
- Michael Golojuch
Person
Aloha again, Michael Golojouch, Jr. Vice Chair of the Hawaii State LGBTQ+ Commission. He him pronouns we stand in strong support of this measure. Like I said earlier, access to mental health is long overdue for our especially. We need to destigmatize it. We need to be able to meet the kids where they're at and it's online.
- Michael Golojuch
Person
This would be a great way. We know it's a pilot project, but if our community is left out at the inception, we tend to be forgotten when it comes to talking about Mahu LGBQI plus Cutie Pie community.
- Michael Golojuch
Person
We again, we, we realize you probably will not amend this, this bill to it specifically include our community in this, but we do hope you will continue the practice that was started in the previous Committee by listing it in the community Committee report to ensure that when this project is being, if this project should come to fruition, which we hope it does, that we are part of the DNA of this program and so that we are woven into it to making sure that the needs of our community and other minority communities are served because we all, they each have different needs and they need to be looked at it from a different perspective and lens.
- Michael Golojuch
Person
So we encourage you to pass this bill. We encourage you to make this happen. And we look forward to this no longer being a pilot project in, in the near future, but a permanent part part of this program. So thank you and available for questions. Mahalo.
- Chris Caulfield
Person
Morning Chair and vice chair and Committee Members. I'm Chris Caulfield with the Hawaii Public Health Institute. We're in support of this measure because mental health is essential to public health.
- Chris Caulfield
Person
And just to put some data behind the amazing testimony that you've heard today, there one in three public school students in grades six to 12 are facing mental health challenges. Yet less than 25% of those are able to receive care, a number that drops to less than 20% just for high school students.
- Chris Caulfield
Person
And there's research that shows that 26% over 26% of students in grades six to eight have seriously considered attempting suicide. Youth or digital natives. This is going to be a digital platform. So we think this makes sense.
- Chris Caulfield
Person
We just wanted to note that in some states like Louisiana and Washington, there's already efforts being made around programs like this to ensure that Medicaid programs can provide coverage determination processes to make sure that digital mental health tools are fully incorporated. So we think this is a great idea. We'd love to see it before.
- Jenna Takenouchi
Legislator
Thank you. That's everybody who indicated they would be joining us. Also testimony with comments from the State Procurement office and one organization, as well as support from the State Council on Mental Health, five organizations and two individuals. Is there anybody else in the room wishing to testify?
- Chris Todd
Legislator
Members, any questions on this measure? Seeing none. We're going to move on to HB 1574 relating to the Healthcare Education Loan Repayment program.
- Jenna Takenouchi
Legislator
We have the University of Hawaii in support on Zoom. Oh, in person, actually.
- Unidentified Speaker
Person
Hi, Kelly with the University of Hawaii. I stand on my our testimony and strong support.
- Jenna Takenouchi
Legislator
Thank you. State Health Planning and Development Agency SHPDA in support.
- Jack Lewin
Person
We stand on our testimony. Chair, Vice Chair and Members, Jack Lewin. And we, we think this has been an extremely successful program. Nearly a thousand participants like to see it continue. It's very important. Thank you.
- Jenna Takenouchi
Legislator
Thank you. We have Navient Hawaii in support. The Hawaii Affiliate of the American College of Nurse Midwives and support on Zoom.
- Margaret Reagan
Person
Aloha. My name is Margaret Reagan. I'm the legislative contact for the Hawaii Affiliate of the American College of Nurse Midwives. We stand on our testimony. I would like to additionally discuss the practice environment for graduates for midwifery graduates. We appreciate the fact that midwives have been named as potential recipients of these loan opportunities post graduation.
- Margaret Reagan
Person
In Hawaii there are no residency programs for fellows. There are such programs for nurses. There are such programs for MDs. But for the Hawaii graduates there is not an opportunity to go from school directly into a full scope practice. Hospitals do not hire in Hawaii recent graduates. This is a barrier.
- Margaret Reagan
Person
I don't know how it can be addressed through an amendment, but I do want to bring it into to the attention of all who are involved in this loan project because it's a wonderful opportunity and we do have a chronic provider shortage and midwives could be a part of the solution.
- Margaret Reagan
Person
They are on all islands and working in all environments. The other barrier though proposed that could be addressed is the requirement of a 30% clientele that is receiving public insurance. That has not been addressed in, in this Bill.
- Margaret Reagan
Person
There are a number of private practice midwives across the state who provide care, but for a number of reasons they are not providing it to 30%. So recent graduates potentially could be employed with one of these private practices or even larger institutions such as Kaiser do not accept Medicaid.
- Margaret Reagan
Person
So though there may be jobs available, it would prohibit these midwives. We hope you will consider and I'm available for any questions. The final comment, I guess I would say is the fiscal implication of including these midwives is small. We're talking about a few very key providers who potentially are from Hawaii who could stay serve their communities.
- Margaret Reagan
Person
So I, I genuinely hope you'll consider this recommendation. Thank you.
- Margaret Reagan
Person
So I have to be careful. Sorry, one moment. My name is Margaret Reagan. I have to be careful because I wear a number of different hats.
- Margaret Reagan
Person
I testify on behalf of a private practice, Ohia Midwifery and Wellness, and as the founder of what will hopefully be the first nonprofit licensed freestanding birthing facility on the island of Hawaii, Lehua Community Birth Center.
- Margaret Reagan
Person
I am speaking on behalf of all three credentials of midwives as they will all be employed and I currently contract with all three credentials through my private practice at Ohia Midwifery and Wellness.
- Margaret Reagan
Person
I stand by our written testimony and the only part that I would like to reiterate is that There are currently 21 locations that are employing APRN CNM's. None of these locations yet are available to of the institutions are available to employ CM LMS as they needed to.
- Margaret Reagan
Person
They need to be added to bylaws, but we are actively working on that. A number of these sites potentially could hire Hawaii based students, but it's all in process and it will take years. The CPMs that are working across the state are generally all in private practice and I contract with some of them.
- Margaret Reagan
Person
No one is currently able to take Medicaid though the majority of them are capable of hiring a new grad. And so we really hope that you will consider the benefit of some kind of an adjustment to the 30% public insurance requirement of the loan.
- Margaret Reagan
Person
I don't know how that could be addressed in this Bill, but I did try to reach out to the Chair to discuss prior to hearing. Thank you for considering our suggestion. Mahalo.
- Jenna Takenouchi
Legislator
Thank you. That's everyone who indicated they'd be joining us. Also testimony and support from the Office of the Governor, the Office of Hawaiian Affairs and nine other organizations. Is there anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Members questions on this measure? Seeing none. We're going to move on to HB 1591 HD1 relating to health care.
- Unidentified Speaker
Person
Oh, University of Hawaii stand on support. But I think Laura Reichardt was maybe going to testify.
- Jenna Takenouchi
Legislator
Thank you, DCCA Board of Nursing and support. Thank you. Hawaii State Commission on the Status of Women in support.
- Unidentified Speaker
Person
Yes, good morning everyone. I stand on my written testimony and support. Thank you for your consideration.
- Chris Caulfield
Person
Chris Caulfield from the Hawaii Public Health Institute. We're very much in support of this measure as well. As you're all very well aware, there's a massive doctor shortage in the state of Hawaii that's grown to over 800 positions.
- Chris Caulfield
Person
And on Hawaii island, which is the most acute you have, Hawaii island has to would have to grow its position supply by 43% to meet demand. Maui's just behind that at 35%. And this program, when it was originally evaluated showed that There was a 77% increase in active preceptors, which is phenomenal in terms of its effectiveness.
- Chris Caulfield
Person
We're particularly interested in this because it includes social workers and we talk about the doctor shortage and medical professional shortage a lot.
- Chris Caulfield
Person
We don't often talk about social workers as much but there was a report that came out from UH's Thompson School of Social Work that showed the demand for healthcare social workers in Hawaii is going to grow by 18% over the next decade, and for specifically, mental health and substance abuse social workers by 22%, which is a big need in our population as well, and one that we often work with at hifi.
- Chris Caulfield
Person
So we're in strong support of this, and we we are hopeful that it moves forward this year. Thank you so much.
- Jenna Takenouchi
Legislator
Thank you. We have Tax foundation of Hawaii with comments on Zoom.
- Tom Yamachika
Person
Thank you, Chair, Vice Chair, Members of the Committee, Tom Yamachika from Tax Foundation. We had some very short comments, and we'll stand on those, and we'll be happy to answer any questions.
- Unidentified Speaker
Person
Hi, good morning. We stand on our testimony. We'd like to add that the importance of the preceptor tax credit is ultimately to support healthcare workforce development.
- Unidentified Speaker
Person
Today PAs have not been included in this preceptor tax credit, but we now have PA students from Hawaii who are attending Hawaii based institutions for PA school and it's important that we support these students so that they can have clinical education experiences in Hawaii and ultimately stay in Hawaii.
- Jenna Takenouchi
Legislator
Thank you. Kaiser Permanente in support, present. Ohia Midwifery and Ohia Midwifery and the Wellness and Lehua Community Birth Center in support on Zoom.
- Unidentified Speaker
Person
Aloha. Thank you for this opportunity to testify. I speak on behalf of a private practice and developing birth center. We stand by our testimony.
- Unidentified Speaker
Person
I want to reiterate that the benefit of consideration of the addition of a clause that has been utilized in SB2491, the landmark Bill that revised statutes regarding health care to use provider neutral language where applicable. We just as the previous testifier for PAs, we wish that midwives could be included.
- Unidentified Speaker
Person
There was a clause in that massive bill which was midwives license under Chapter 457j. We wish to be included in this opportunity. Even then, we also want to reiterate that there is no midwifery based program in Hawaii. Though There are currently 70 plus midwives serving the community and a number of them available to precept.
- Unidentified Speaker
Person
All of their students are in remote programs. None of those programs have a 50% Hawaii student base. These programs are very familiar with the medical community.
- Unidentified Speaker
Person
They include Frontier Nursing and Georgetown University, Thomas Jefferson University and there is a new program starting through the University of Colorado Anschutz that has incredible rural health scholarship programs for both certified nurse midwives and certified midwives who are dedicated to serving their communities. Last year we asked for consideration of this barrier for midwifery preceptors.
- Unidentified Speaker
Person
It's very difficult for Hawaii based students, number one to enroll in a rural program and then number two to secure a clinical site. The clinical sites currently are Kaiser, Tripler and Queensland. During the government shutdown I was directly in touch with students at Tripler where their ability.
- Unidentified Speaker
Person
They've been trying to finish their program for years and their clinical experience kept getting interrupted by the shutdown. This student had tried to secure a place in Kaiser, had tried to secure a place in Queens. On any island there are three private practice midwifery groups that also precept students.
- Unidentified Speaker
Person
So we very much hope that you will consider it. This is very much a social justice issue for the APRN. CNMs and the CMS in Hawaii, there is only one Native Hawaiian provider. And for the CPMs, LMS, that of the 40 licensed providers, there is only one who was born and raised in Hawaii. So.
- Unidentified Speaker
Person
So we really hope that somehow we can address the need to grow providers from Hawaii and to support them. It's wonderful that this preceptor program is going. It seems to be very effective. I think it's important to understand that the two credentials of the aprn, CNM and the CMLM are advanced practice credentials.
- Unidentified Speaker
Person
They both act as primary care providers, so already they were in alignment with the first initiative. And it's wonderful that there's consideration of other credentials. Thank you so much.
- Jenna Takenouchi
Legislator
Thank you. Thank you. Members. That's everybody who indicated they'll be joining us today. Additional testimony from 18 organizations and 16 individuals. Anybody else in the room wishing to testify?
- Unidentified Speaker
Person
Hi. I'm sorry, I wanted to testify as an individual outside of the, UH testimony. You guys are brilliant. To start the preceptor tax credit.
- Unidentified Speaker
Person
You guys are brilliant. Starting the preceptor tax credit program five years ago, we've only used half the funds allocated and less every year. And while I'm a physician and I do the physician workforce research, only physicians, nurse practitioners and pharmacists can actually make use of this. And as you've heard, we now have way more programs.
- Unidentified Speaker
Person
We have occupational therapy, physical therapy. We have two PA programs we're just developing wonderfully in the state. And now we have some rural health transformation money that will pay tuition for these programs and it'll pay for the travel to do work, rural training. So I really encourage you.
- Unidentified Speaker
Person
It's a cheap way to get these trainings done because it'll only cost. The money's already in there. You know, if we could maximize the preceptor tax credits, I think it would go a long way to training our healthcare teams together like we need to do. Thanks.
- Jenna Takenouchi
Legislator
Thanks. Thank you. Anybody else in the room? Anybody on Zoom?
- Chris Todd
Legislator
Members, any questions on this measure? Seeing none, we're going to move on to HB 1853 relating to dementia.
- Jenna Takenouchi
Legislator
We have the State Health Planning and Development Agency, SHPDA, in support.
- Jack Lewin
Person
Hi, Jack Lewin, SHPDA Administrator. Thank you Chair, Vice Chair, Members. We stand on our testimony in support.
- Caroline Cadirao
Person
Morning Chair, Vice Chair, Members of the Committee. My name is Caroline Cadirao. I'm the Director of the Executive Office on Aging and we support the intent of this bill and wanted to offer some comments. This bill requires the Executive Office on Aging to establish and operate the HANAI Memory Network.
- Caroline Cadirao
Person
That will include hiring the project manager, the Dementia Care Specialists, coordinate services, create the clinical partnerships, provide training, collect data, and to report back annually to the state Legislature. EOA is currently leading the Hawaii Dementia Initiative, which we've done a lot of good work around.
- Caroline Cadirao
Person
We have delivered statewide dementia education training, over 6,300 community members and 2,600 professionals. Our public awareness campaign, that just wrapped up in December, reached over 56 million impressions and we launched the Healthy Brain Tracker.
- Caroline Cadirao
Person
And we also are trying to fulfill the Mandate of Act 286 from last legislative session, which requires us to collect data on early initiatives around dementia. And despite all of these accomplishments, we're currently at capacity.
- Caroline Cadirao
Person
I have a lot of staff vacancies and despite all of this, we just ask that either we are allowed additional time to implement this project or looking at a time when both our infrastructure and the state's economy is in a better position to launch this project. But on a personal note, my dad had dementia.
- Caroline Cadirao
Person
He since passed, a few months ago. My mom just started adult daycare this past week because she has dementia also. So this is personal too, but just wanting to take it off my director's hat and just saying this is a good project. Just maybe the timing and I'm available for any questions. Thank you.
- Coby Chock
Person
Hello Chair Todd, Vice Chair Takenouchi, Members of the Committee. I'm Coby Chock with the Alzheimer's Association and we're in strong support of this bill. This bill is a cost saving measure. The Alzheimer's Association has been fighting for decades against this disease and the state has too, but we've been fighting it on the back end as a state.
- Coby Chock
Person
As of 2020, the annual spend on Medicaid for people living with Alzheimer's and dementia was about $240 million a year. As of 2025, the number was up to $309 million per year. So it's a $69 million increase and we're expecting that number to double over the next 25 years.
- Coby Chock
Person
At this pace, our state's going to be paying nearly a billion dollars in Medicaid costs for people living with Alzheimer's disease, if we don't do anything. New treatments and advancements in medicine now allow earlier detection and very excitingly treatment. These treatments slow down the progression of the disease significantly.
- Coby Chock
Person
But aside from just slowing down the disease, creating a care plan also benefits both people's pockets, as well as, their ability to work and support their families. The measure that you have would establish a memory clinic on the neighbor islands where support is needed the most.
- Coby Chock
Person
When someone is diagnosed with the disease, they need to make it to a specialist. About 40% of PCPs weren't trained on dementia care, and about 60% weren't trained on or aren't comfortable making a diagnosis. So it's important that people have access to specialty care to receive these treatments so that this is equitable for the entire state.
- Coby Chock
Person
We kindly ask for your support in moving this bill forward so that we can continue to help people in the state access treatment earlier and bring the cost of this disease down. Thank you.
- Jenna Takenouchi
Legislator
Thank you. That's everybody who indicated they'd be joining us. Also testimony and support from the Disability and Communication Access Board, four organizations and 18 individuals. Anybody else in the room wishing to testify? Anybody care? Yes. Yeah. Just state your name and stand for the record and you can proceed.
- Kaili Swan
Person
Good morning, Chair, Vice Chair, this Committee Member. This is Kaili Swan. I'm in written. I mean, strong written testimony support this bill. And please leave me a quick if you want to testify. Sorry for being late, Chair.
- Chris Todd
Legislator
Okay, Members, any questions on this measure? Seeing them Moving on to HB 1854, HD1 related to community behavioral health clinics.
- Jenna Takenouchi
Legislator
We have SHPDA in support, Not present, and HGA in opposition.
- Unidentified Speaker
Person
HGA stands on its testimony in opposition. It's just limited to the civil service language. Thank you.
- Jenna Takenouchi
Legislator
Thank you, Members. Also testimony. That's a run to indicate they'd be joining us. Also testimony and support from the Hawaii State Council on Mental Health. Is there anybody else in the room wishing to testify?
- Unidentified Speaker
Person
I thought we are. Did you not receive our written testimony? DOH in support. 1854.
- Jenna Takenouchi
Legislator
Sorry, I skipped. Oh, I read it wrong. Sorry. Yes, it is you guys. Thank you. Okay. Yeah. Anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Thank you. Members, any questions? No. We're going to move on to HB 1871 HD1 relating to health Department of Health with comments.
- Jenna Takenouchi
Legislator
Thank you. Hawaii Commission on the Status of Women in support.
- Unidentified Speaker
Person
Yes. Maintaining. For the Commission on the Status of Women. We stand on our written testimony in support of this measure and appreciate the committee's consideration. Thank you very much.
- Jenna Takenouchi
Legislator
The Hawaii Affiliate of the American College of Nurse Midwives and support on Zoom.
- Margaret Reagan
Person
Aloha. My name is Margaret Reagan. I am the Hawaii Affiliate of the American College of Nurse Midwives. Legislative contact. We stand in strong support of the intent of this bill.
- Margaret Reagan
Person
We stand by our testimony and Want to reiterate when we when the state is considering a pilot project regarding prenatal and postpartum care, we would hope the state would consider including midwives in the that project. So please consider naming the from the affiliate we represent APRN CNM's SO Advanced Practice registered nurse, certified nurse midwives.
- Margaret Reagan
Person
And the other credential is a certified midwife licensed midwife. They are advanced credentials and additionally there is another credential of a midwife that could be engaged. It makes very good sense. We are regularly dealing with seeing clients with hypertension and diabetes or gestational diabetes. We do follow up. It makes complete sense to include us.
- Margaret Reagan
Person
So please consider including us within the healthcare provider definition and the remote monitoring clinical care team. Mahalo for your time. Suggested amendments have been provided in our written testimony.
- Jenna Takenouchi
Legislator
Okay, thank you. That's everyone indicating they'd be joining us. Also testimony and support from another one other organization and one individual. Anybody else in the room wishing to testify?
- Brian McKee
Person
Hi, I'm Brian Vic here on behalf of Acting Executive Director Christine Pagano and the Disability Education Access Board. We are in support of this bill. Know that these can have an impact also not only on the bombs, but also potentially on the children. So we would urge you to pass this. Thank you.
- Jack Lewin
Person
Good morning, Chair Todd, Vice Chair Takenouchi and honorable membership. SHPDA did not propose this bill. It's companion bill 292690 was identical. It proposes to increase financing for primary care in Hawaii. And I feel the need to discuss the comments.
- Jack Lewin
Person
We didn't propose it, but hundreds of Clinicians, jabs and faculty members, health centers and patients reported the need for us to put some attention on primary care in this state. We're sad that the original purpose of the bill didn't proceed.
- Jack Lewin
Person
It was to expand the funding from what we estimate right now is 3 to 4% for a lot of insurance. And there's so much misinformation about how much we're investing in primary care. We're calling primary care urgent care clinics, which are not continuity of care. We're calling primary care a bunch of other things, contracts and so forth.
- Jack Lewin
Person
We're really not spending enough money here. The Federal Government that offered the AHEAD grant to this state specifically said we need to increase primary care funding in our state from their data to at least 12% over the course of the AHEAD grant. So there's just a lot of misinformation. Insurance companies have different views of what they're spending.
- Jack Lewin
Person
Some are doing better than others. But this is really important because we got to think about this in terms of just the rest of the world and, and our country. If we look at the OECD nations in the world, there's 38 of them. We're the only one that has. We're spending 17% of our GDP.
- Jack Lewin
Person
The rest of these 37 are paying 7% on average. We have poorer health outcomes than all the other 37 nations. They have greater longevity, better cancer, better heart disease outcomes. And so we've got to look at what's the cause.
- Jack Lewin
Person
And a lot of it really is just the absence of primary care to screen the early parts of, of, you know, illness. In the beginning. I don't want to go on too long about this, but I think that in this Bill we kind of pushed away the original intent to get up to 12% over years.
- Jack Lewin
Person
And we have a working group which is really saddening, I think to the people that proposed this. We'll make that working group dynamic. We'll come back with data next year. We're asking only for $100,000 though to help us because we're going to need some data acquisition and a part time person to help us with that.
- Jack Lewin
Person
And we really think that this will make a big difference in not only improving population health in Hawaii, but actually reducing health care costs over the long run significantly. So thank you for hearing the bill and we'll be back next year. Thank you.
- Jenna Takenouchi
Legislator
Thank you. Hawaii Association of Health Plans with comments.
- Rachel Wilkinson
Person
Chair, Vice Chair, Members of the Committee, Rachel Wilkinson on behalf of the Hawaii Association of Health Centers and, and on our written testimony providing confidence.
- Moani Rayben
Person
Good morning, Chair, Vice Chair, Members of the Committee. I'm Moani Rayben, also with HMSA. We're here in support today of House Bill 1965. This is a very important issue and yet very complex.
- Moani Rayben
Person
And so we very much so appreciate the previous committee's approach to establishing a primary care working group which ensures that all stakeholders are together at the table with a voice to have a better collaboration and to provide a meaningful recommendation next year. Thank you very much.
- Scott Grosskreutz
Person
Good morning. This is Scott Grosskreutz. I'm a breast cancer specialist and President of the Hawaii Healthcare Task Force. I'd like to thank the Committee for hearing this bill. Many of the healthcare heroes who provided primary care during the Covid pandemic are now on the verge of fiscal insolvency.
- Scott Grosskreutz
Person
Only about 3.6% of Hawaii's health care funding from CMS is being used to pay primary care providers who provide about 80% of the health care visits in Hawaii. This is extraordinarily shortsighted as adequately funding primary care with lower global health care costs and improved patient outcomes.
- Scott Grosskreutz
Person
Our research shows that the Hawaii insurance companies are spending about $100 million annually on third party contractors who are mostly on the mainland and provide no patient care. There are many states that are passing laws enforcing regulatory targets or issuing Executive orders to force insurance companies to adequately Fund primary care.
- Scott Grosskreutz
Person
It would be pono for all Hawaii insurance companies to publicly pledge to Fund primary care at 6% by January 2027. And the Hawaii health care task force calls upon our insurance industry to do so. It's illogical for insurance companies to argue that this cannot be done in Hawaii.
- Scott Grosskreutz
Person
It's already happening in many other states today in the entire continent of Europe. Another major regulatory challenge that we have is that there are six state laws and three federal laws that require DHS to report key performance indicators such as primary care spending.
- Scott Grosskreutz
Person
But when the task force requested report 601 which documents primary care spending from DHS, there was no primary care spending report. It was a blank report. How can Hawaii enforce adequate funding to primary care unless we keep track of it?
- Scott Grosskreutz
Person
And thus I echo Dr. Lewin's request to get some adequate funding for ship to carry on this important research. We ask that the Committee passes Bill and also recommend that our insurance company fund primary care addict. At least we do not lose more primary care clinics. This is so critical. We're so short of providers.
- Jenna Takenouchi
Legislator
Thank you. That's everyone indicating they'd be joining us today. Also testimony and support from seven organizations and eight individuals. Anybody else in the room wishing to testify?
- Kylie Swan
Person
Chair. Good morning. Chair. Vice chair. Committee Members. I'm Kylie Swan. I'm strong supporters built because health care provider is most important in the community setting and I have a Medicaid provider So I go doctor every day. I Dr. Kapilani Medical center for Women Children to check on my eyes.
- Kylie Swan
Person
I go to the dentist, check on my teeth and go to my primary doctors at the Queen's urgent Care. They called it Empower Health. It's about like 10 minute walk from my house to the to the facility.
- Kylie Swan
Person
So I'm very proud to support this Bill and please pass this Bill in the future so that we can get this show going and they cannot testify. They. Please send me question. Sorry for being late.
- Chris Todd
Legislator
All right, thank you. Members, any questions on this measure? Thank you. Rep Kusch.
- Matthias Kusch
Legislator
Chair HMSA, thanks for coming out. You know that Dr. Grosskreutz pointed out some figures in Dr. Lewin, what do you, what do you think? Because it seems externally that it would be in both the insurers and the industries best interest to support primary care providers. And you know, I can viscerally see their decreasing numbers.
- Matthias Kusch
Legislator
Is it not an HMSA as the largest insurer's best interest to kind of see the longevity in the industry or do you. I mean, I'd just like to hear your perspective on that.
- Moani Rayben
Person
Oh no, we absolutely agree. Primary care is a critical and foundational component of our healthcare system. We believe definitely in investing in our primary care network and all of our providers. I think, you know, as Dr. Lewin also pointed out previously, it's just very complex. As we look at how do you define primary care?
- Moani Rayben
Person
There was a lot of complexities I think in the original Bill. We would very much so appreciate the effort of this working Committee to be able to sit together and develop the plan of how do we better invest and really look at the numbers across the board.
- Matthias Kusch
Legislator
Okay, so you think that this bill would help kind of provide a pathway forward to support primary care providers. And you know, obviously I know the intent of the original bill is to give them better reimbursement rates instead of directing some of that money to third party. I don't know, I'm going to use it the wrong word.
- Matthias Kusch
Legislator
I'm sure there's an industry word for people who make decisions about pre authorizations and stuff along that line. Do you think it will lead to a better outcome from our primary care providers?
- Moani Rayben
Person
I think together with the working group, yes, that in the end we will come to a conclusion that is going to be in the best interest of our community as a whole because we're not looking at just reimbursement. We want to ensure that there's quality of care, that there's future investment into our community. Community.
- Moani Rayben
Person
And so again I think the working group is the best approach forward because we are going to have everyone together to understand all sides of the perspective.
- Chris Todd
Legislator
Okay, thank you Chair. Thank you. Thank you. Thank you Members. Anything additional? Seeing none. We're going to move on to HB 1966 HD1 relating to the Emergency Medical Services Special Plan.
- Jenna Takenouchi
Legislator
We have the Department of Health and Support. Thank you Tax foundation of Hawaii with comments on Zoom.
- Tom Yamachika
Person
Thank you Chair Vice Chair Members of the Committee Tom Yamachika from Tax Foundation. We think this bill is good.
- Tom Yamachika
Person
It aligns the revenue source better with what the special fund is, but we think that concomitantly with that we should get rid of the earmarks on the vehicle reg fee and the tobacco tax because those have no nexus with emergency services in our view. Thank you for allowing me to speak. Happy to answer any questions.
- Laura Mallery-Sayre
Person
Good morning to Chairman Todd and Vice Chair Takenouchi Committee Members. My name is Laura Mallery-Sayre. I am the co founder of the Daniel R. Ser Memorial foundation and for the past 28 years I have served as the Executive Director of this nonprofit which provides life saving equipment and training for our Fire Department personnel through default.
- Laura Mallery-Sayre
Person
I have become a bit of an expert on the difficulties surrounding the acquisition of emergency equipment to meet the needs of our first responders, particularly by the state and the counties due to the lack of funding and the onerous procurement processes that are currently mandated.
- Laura Mallery-Sayre
Person
I'm speaking to you today to urge you to modernize the Emergency Medical Services Special Fund to allow adequate funding for necessary medical vehicles and training to be made available in immediately by exempting the procurement process for this Department for these needs.
- Laura Mallery-Sayre
Person
It often takes up to two years or more to simply apply for these needs through the existing procurement process and then you need to add on that to that time frame the backload of vehicles available nationally which can add on to another three or four years.
- Laura Mallery-Sayre
Person
If we're going to be truly responsive as a state, we need to be able to order needed vehicles immediately to serve our communities. Technology has changed significantly since 1984 when the statutes, rules and regulations governing the Department were last examined. We need to be proactive instead of reactive when there are lives at stake.
- Laura Mallery-Sayre
Person
This means that our first responders should be provided with the very best equipment and training that is available. I urge you to pass this Bill and to exempt the DOH Emergency Medical Services Department.
- Laura Mallery-Sayre
Person
With the exception of the existing procurement process, our needs on the Big island are extremely dire and we don't have enough ambulances and when one does break down we can't get another one quickly.
- Laura Mallery-Sayre
Person
We don't have the support for the personnel to add on new ambulances and it sometimes takes an hour and a half in one direction to get to people who need EMS care and then another hour and a half back when minutes count.
- Laura Mallery-Sayre
Person
This is critical so I urge you to support the Emergency Medical Advisory Report and To get those procurement processes eliminated for them. We need to get our equipment correct quickly. And I really appreciate the time today. I apologize for being late with my written testimony.
- Laura Mallery-Sayre
Person
I know those of you are on the Committee for the from the Big Island know exactly what we're talking about. I appreciate it. Thank you for your time.
- Jenna Takenouchi
Legislator
Thank you. That's everybody who indicated they would be joining us today. Also testimony with comments from the state procurement office. Anybody else in the room wishing to testify?
- Kylie Swan
Person
Good morning Chair to me Member this is Kylie Swan. I'm a big supporters bill because emergency services vehicles is most important. The last testifier was saying because if one vehicle breaks down and it ruins a whole 91 ruined a whole 911 emergency response.
- Kylie Swan
Person
So can you please pass this bill and please and please get this Bill forward and the client testified and please let me have any question.
- Chris Todd
Legislator
Members any questions on this measure saying none. We're going to move on to the next item. HB 1969 HD2 relating to colorectal cancer.
- Jenna Takenouchi
Legislator
Have the Department of Human Services with comments on Zoom.
- Meredith Nichols
Person
Aloha Chair, Vice Chair, Members of the Committee I'm Meredith Nichols on behalf of Department of Human Services and will stand on our testimony. Mahalo.
- Justin Chu
Person
Morning Chair, Vice Chair Members of the Committee I 'm Justin Chu from the Insurance Division stand our written testimony providing comments.
- Jenna Takenouchi
Legislator
Thank you American Cancer Society Cancer Action Network and support.
- Cynthia Allen
Person
Thank you Chair, Vice Chairs and Committee Members Cynthia Allen on behalf of the American Cancer Society Cancer Action Network and we testify in strong support of this measure. Mahalo for considering this bill. Cost remains one of the most significant barriers to preventive cancer screening.
- Cynthia Allen
Person
Uninsured adults are far more likely to get diagnosed in late stages when treatment is more complex and expensive and less effective for colorectal cancer.
- Cynthia Allen
Person
Late stage diagnosis often cost over $100,000 as Hawaii anticipates the increase in uninsured adults with changes in access to Medicare coverage beginning at the end of this year, this public assistance program becomes even more critical to ensure access to preventive screenings. We respectfully urge the Committee to consider
- Cynthia Allen
Person
this as a dedicated funding for early cancer prevention for uninsured adults. And no one in our community should forego life saving access because of costs of concerns or lack of insurance. Thank you. I'm available for questions.
- Jenna Takenouchi
Legislator
Thank you. That's everyone who indicated they would be joining us. Also comments from the Department of Health and testimony and support from 5 organizations and 13 individuals. zero a chair. Sorry Ky, can you hear that?
- Kylie Swan
Person
That's me. Chair. This is Kylie Swan. I'm install support of this bill.
- Lola Irvin
Person
Good morning. I'm Vice Chair Takenouchi. And I'm Chair Chris Todd. And Members of the Committee. I'm Lola Irvin representing the Department of Health. So the Department of Health offers comments on HB 1969 HD2. We really promote early detection.
- Lola Irvin
Person
And so in order to do that and to help people achieve optimal health and long years of life, I like to say we like to have people start with a twinkle in their eye and end with a twinkle in their eye. Having lived a good long life.
- Lola Irvin
Person
We are putting on a Get Screened Hawaii Colorectal Cancer Screening campaign that will start March 1. So you'll see it Monday, and it'll go through June 30. And it's because our screening standards have changed. So people age 45 should start to get screened for colorectal cancer.
- Lola Irvin
Person
And what we know in the US Is it is the leading cause of death for people under age 50. And so early screening and regular screening is very important to extend those quality years of life. I do have some 2024 data. And so for our age group, 45 to 54 years of age, only 53% reported getting screened.
- Lola Irvin
Person
And for those that are 55 to 64 years old, 76% and 65 to 75 years old, 80%. So it looks like our retirement years are really good for screening. But for those who are working, they need our encouragement. And for those who are uninsured, 29% who are uninsured said they did not meet the screening standards.
- Jenna Takenouchi
Legislator
Thank you. Anybody else in the room, which she testified, please come forward. Just state your name and position for the record before you start.
- Linda Asato
Person
Thank you, Chairman Todd and Vice Chair, Members of the Committee. My name is Linda Asato, and I'm in strong support of this bill. My grandfather died of colorectal cancer, three of my uncles and my auntie. And I'm very aware of the need to have colonoscopies when I have such a strong family history.
- Linda Asato
Person
And I totally support this bill for those who are underinsured and not insured. Thank you for listening.
- Unidentified Speaker
Person
Chair, Vice Chair, Honorable Members, we didn't support testimony on this because we realized that others in the Department of Health were going to come in with a strong testimony. But we strongly support this bill. Thank you.
- Kylie Swan
Person
Chair. Good morning, Chair. Vice Chair, Community Member. I mean I'm in strong. I mean a. I'm written strong supporters. Bill, thank you for letting me testify.
- Chris Todd
Legislator
Members. Anything, any questions? If not, we're going to move on to HB 1973, HD1 relating to health.
- Unidentified Speaker
Person
Lost in my package here. Okay. Chair, Vice chair. Yes, this is Kupuna Caucus. I, I would appreciate just being able to make comments. The Kupuna Caucus idea, the Kupuna Aloha idea, came out of our Advisory Council on Kupuna at Shipta. The idea is to address that population of Kupuna who do not have home care service access.
- Unidentified Speaker
Person
And that's frankly the traditional Medicare beneficiaries. If you're eligible for Medicaid, you have access to transportation services, food support, and many other support services, including home health. If you are a Medicare beneficiary in traditional Medicare, you do not have home health services.
- Unidentified Speaker
Person
This Bill would provide, in a very inexpensive way, for less than $1,000 a beneficiary per year, the ability to have somebody visit the person at home, connect back to the primary care doctor, and monitor the patient's health and wellbeing. Where community health workers are available, we'll be using them. We're not and we have nowhere near enough community health workers to meet this need.
- Unidentified Speaker
Person
There's probably 25 to 30,000 very frail seniors who need this kind of support and there's no services available. Where those people aren't available, we're going to use volunteers.
- Unidentified Speaker
Person
We have programs like Project Dana, Hui...and others that already are doing this kind of work with no reimbursement or support whatsoever. So, we're going to expand. We've talked to a number of churches and community associations and clubs who are willing to come up with volunteers for their immediate neighborhood.
- Unidentified Speaker
Person
So, this real inefficient way, all we need to do is to fund some training and some vetting for the people that come in, a bit of support for them, give them an iPad, and allow them to go out and see their, their beneficiary in their neighborhood and then report back in as to how they're doing.
- Unidentified Speaker
Person
We know this is going to reduce hospitalizations, Emergency Department visits, state costs because we pay for some of these services in indirect ways and Medicare doesn't cover a lot of these benefits. So, this is an important area to go.
- Unidentified Speaker
Person
Half of the money for the request for this is coming out of Rural Health Transformation for our neighbor islands. But this request in this Bill allows us to put $2 million toward providing 500 to 1,000 beneficiaries in urban Honolulu where most of the people are actually going to be. So, this is a—so, we're dual funding it. Roja for the neighbor islands and this program for Oahu. Please support this Bill. Thank you very much.
- Unidentified Speaker
Person
Executive Office on Aging will stand on our comments. Thank you.
- Jenna Takenouchi
Legislator
Thank you. That's everybody who indicated they'd be joining us. Also, testimony in support from the Disability and Communication Access Board. One second, Kaili, where I'm finishing up the written testimony.
- Jenna Takenouchi
Legislator
Testimony in support from the Disability and Communication Access Board, two organizations and four individuals. Anybody else wishing to testify? Okay, go ahead. State your name and position and go ahead.
- Kaili Swan
Person
Good morning, Chair, Vice Chair, Committee Members. My name is Kaili Swan. I'm in the written—strongly written testimony support. Thank you for allowing me to testify, Chair.
- Daisy Hartsfield
Legislator
Chair, for Shipta. Dr. Lewin, the Bill proposes the pilot program to cease to exist on June 30th, 2027. So, my question is, is that sufficient time to determine whether or not this pilot project is effective and needed or should the length of the pilot project be extended?
- Jack Lewin
Person
Thank you for that question, Representative Hartsfield. It really isn't long enough. We will have to come back and show that it's working. It's going to take six months or so to just get started with the program.
- Jack Lewin
Person
There's going to be, there is, there is a home health agency that's willing to right now start the program by doing a complete assessment on anyone that's referred. The primary care doctor or clinic can refer people in. It'll take a while to set it up.
- Jack Lewin
Person
This was, this was one of the measures the Kupuna Caucus, your own Kupuna Caucus, has strongly recommended. But we would have liked it to be at least a minimum of a two-year pilot project, and we certainly would still approve that. I'd be happy to, to implement it if you could do that. Thank you.
- Sue Keohokapu-Lee Loy
Person
In your testimony, you mentioned the rural transformation healthcare prep.
- Sue Keohokapu-Lee Loy
Person
And just real quick, what is the timeline on the deployment of those dollars? I know we secured that at the tail end of last year and there's—we're discovering the guardrails, I think, as we speak.
- Sue Keohokapu-Lee Loy
Person
But I'm just trying to figure out how quickly we can fund and then to your point, you know, provide the right timeline to develop the measurements.
- Unidentified Speaker
Person
Thank you for that question, Representative Keohokapu-Lee Loy. Actually, I think the—we're still in negotiations with CMS on this. We have to encumber all the money for this year before September 30th. We believe we'll be getting some procurements out way before that, but we're still kind of going through negotiations back and forth.
- Unidentified Speaker
Person
So, this program, if it was funded by and it will be, it's approved by, at least in principle, by CMS. It might not really get launched until mid-summer or late summer. So, it's going to be—this one could start a little sooner if it was funded by the Legislature.
- Unidentified Speaker
Person
But the other program can be funded year after year and be expanded in future years. So, actually, we should be able to be more services to neighbor islands because we have more funding available.
- Sue Keohokapu-Lee Loy
Person
Okay and then real quick, what is the timeline and the spend down for the Rural Transformative Health Care Grant and the first tranche of...?
- Unidentified Speaker
Person
It must be spent by the end of the next fiscal year. So, that would be September 30th of 2027.
- Chris Todd
Legislator
Thank you. Anything additional? If not, we're going to move on to the next item, HB 1974 HD 1, relating to health.
- Jack Lewin
Person
Hi. I'm Jack Lewin. I'm sorry that I have so-- we have so many bills here, but there's a lot of important issues. I just wanted to speak about the comments. We're in support. There have been previous bills in previous years to try to address hearing loss in the state which haven't prevailed.
- Jack Lewin
Person
It's kind of a forgotten issue for a lot of folks in healthcare, but it's important. We screen a lot of our kids, but we don't even screen all of our keiki in school, and hearing loss for kids in school that isn't detected really affects their learning ability, obviously.
- Jack Lewin
Person
And for adults, by the time people are 80, the majority have hearing loss, and many don't get care or therapeutic help in that area, but we also have a whole host of adults who have sudden hearing loss after viral infections and other-- sometimes undetected, and this is devastating. They can't work.
- Jack Lewin
Person
They can't deal with their activities of daily living in a normal way. So what we'd like to do with this money is really just assess the issue, determine what we should be thinking about in terms of a plan in the future to address hearing loss. It's an important issue and it's forgotten one. We would hope you will support this very modest funding request.
- Unidentified Speaker
Person
We support the-- we stand on our testimony, offering comments. We support this. Thank you.
- Coby Chock
Person
Aloha, Chair, Vice Chair. Coby Chock with the Alzheimer's Association. We're in support and we'll stand on our written testimony. Thank you.
- Tori Carapelho
Person
Aloha. My name is Tori Carapelho, and I'm the founder of Here for Hope. I come before you both as a community advocate and as someone who has lived experience. In 2021, I experienced sudden hearing loss.
- Tori Carapelho
Person
I remember being told that there was nothing more they could do, that this was something that I just had to learn to live with. In that moment, I wasn't just losing my hearing. I was losing my confidence, my independence, and my ability to communicate. What made it even harder was realizing that there was no clear path forward.
- Tori Carapelho
Person
A diagnosis was addressed, but there was no road map, no coordination, no guidance, and no clear place for me to turn to for support. I also learned that hearing devices alone just don't do enough. You know, it's education, assistive tools, and ongoing support. Those are all the things that make the difference between isolation and participation.
- Tori Carapelho
Person
And too many people, they just don't have the access to it. I was fortunate, but many are not. That experience led me to start Here for Hope because no one should have to navigate hearing loss in such a fragmented system. Through our work, we hear the same stories again and again.
- Tori Carapelho
Person
You know, people don't know where to go, care paths are confusing, providers are stretched thin, and services are disconnected. Hearing loss affects far more than just hearing; it impacts communication, employment, independence, and the quality of life, and as Hawaii's population continues to age, these challenges will only grow.
- Tori Carapelho
Person
House Bill 1974 is an important opportunity for us to take a proactive, coordinated approach. A statewide plan would help us to identify gaps, strengthen early detection, support workforce development, and ensure community voices are part of that solution.
- Tori Carapelho
Person
Both through my lived experience and my work within the community, I can clearly say that the need is real, the gaps are significant, and the cost of inaction is high. Mahalo for this opportunity to testify. Respectfully ask for your support. Thank you.
- Jenna Takenouchi
Legislator
Several indicated they would be joining us. Please note additional support from four organizations and 40 individuals, as well as two individuals providing comments. Is there anybody else wishing to testify? Yes.
- Bryan Mick
Person
Hello, Chair and Vice Chair and committee members. My name is Bryan Mick. I'm here on behalf of Acting Executive Director Kristine Pagano and the Disability and Communication Access Board. We are in support of this bill.
- Bryan Mick
Person
Tens of thousands of Hawaii residents experience loss of their hearing, and our aging demographic is only going to accelerate this trend. If left untreated or unmitigated, there are associated risks with this, such as cognitive decline and dementia, and as you've heard, those are very expensive to treat, so if we can avoid those, that is to be done.
- Bryan Mick
Person
The comprehensive plan will allow for limited resources to be optimally deployed when providing program services, auxiliary aids, and treatments as appropriate, and I'm sure DCAB is looking forward to, hopefully, participating in the development of this plan. Thank you.
- Jenna Takenouchi
Legislator
Apologies. I don't have you on the list, but if you have the written testimony, give it to the staff. We can double-check, make sure it gets online.
- Daisy Hartsfield
Legislator
Can I have Dr. Lewin come up? It should be easy question to answer. So I do represent Waipahu, but there are times it feels like I'm on the neighbor island, so I have to ask about this rural healthcare grant. Would it be applicable to something like this? Could that be another source of revenue to fund this project?
- Jack Lewin
Person
It wasn't in our original-- we had to put our proposal together in less than a month as a state, and the governor led the process and he did an amazing job with it of just forcing out something that got-- not only the minimum we would get would be 100 million a year, but we got 189 million a year. So we got actually more money per capita than any other state in this rural health transformation piece. It's kind of a-- you know, Wahiawa and Mililani are kind of in a quasi-zone and can we say that they're rural?
- Jack Lewin
Person
We think we can. We think we can provide resources there. For this particular program, it wasn't in our proposal, so it would have to wait until year two if we were able to try to insert it in. I'm sure there will be many changes in what we propose the first year when we get around to seeing what we want to put in the second year and the subsequent years.
- Daisy Hartsfield
Legislator
Thank you. And just for future reference, for our rural community representatives, that's probably something we're interested in, so you can just tell us right off the bat and then we won't ask.
- Jack Lewin
Person
Well, you know, I think it's questionable. You know, I mean, Kailua and Kaneohe weren't considered rural, but obviously Waimanalo is right there next door and that's rural. So we can reach in from urban-- I mean, we could place resources in areas that aren't rural if we sort of can qualify that the residents really need the service, just like people on the neighbor islands.
- Chris Todd
Legislator
Thank you. Anything else? If not, we're going to move on to HB 2315 HD 1, relating to state employee benefits.
- Bobby Robinson
Person
Good morning. Good morning, Chair, Vice Chair, and members. My name is Bobby Robinson. I'm the Departmental Human Resources Officer at the Department of Health. We stand on our testimony, and I would just like to highlight that this is a budget-neutral request. And we're here for any questions.
- Jenna Takenouchi
Legislator
Thank you. Also, written testimony from one other organization in support, members. That's everything we've received. Anybody else in the room wishing to testify? Anybody on Zoom? Yeah, go ahead.
- Chris Todd
Legislator
Okay. Members, any questions on this measure? If not, moving on to HB 2343, relating to veterans.
- Jenna Takenouchi
Legislator
We have the State of Hawaii Department of Defense, in support.
- Unidentified Speaker
Person
Good morning, Chair, Vice Chair, members of the committee. The department stands on its testimony in support and available for any questions.
- Sean Sanada
Person
Good morning, Chair, Vice Chair, committee members. The Oahu Region will stand on our written comments. Available for any questions.
- Jenna Takenouchi
Legislator
Thank you. Hawaii Office of Veteran Services, in support. Oh, they did not-- be here. Thomas Driskill, in support.
- Thomas Driskill
Person
Mr. Chair, Vice Chair, Honorable members, Thomas Driskill for U.S. Army Medical Service Corps. As an individual testimony, I stand in strong support of this bill, and I'm here for questions, should you have any. Thank you.
- Jenna Takenouchi
Legislator
Thank you. That's everyone who indicated they'd be joining us. Additionally-- yes, Hawaii Office of Veterans' Services, one other organization, and four individuals, all in support. Is there anybody else in the room wishing to testify? Anybody on Zoom? Kaili? Hi.
- Chris Todd
Legislator
Any questions, members? If not, SB-- oh, sorry. Getting ahead of myself. HB 2501 HD 1, relating to healthcare.
- Jack Lewin
Person
Good morning, Chair, Vice Chair, and members. I'd like to add a few comments to this bill. I don't know who proposed it actually, but it's a very powerful measure for us at SHPDA. I'd just like to just use one minute to provide a little bit of education to folks.
- Jack Lewin
Person
You know, we have this massive partnership that's being proposed with our biggest insurer and a large hospital system, we have lots of chaos in our system, and the real reason for this that we don't seem to kind of all understand together is that we are so underfunded by the federal government in both Medicare and Medicaid on a per capita basis. Our Medicare beneficiaries here get about $9,000 per beneficiary. The national average is approaching $13,000. That's a 40% difference in reimbursement.
- Jack Lewin
Person
And the problem is, we're similar to Wyoming, and North and South Dakota, and Montana, and some other states that have about a little bit higher, but about where our reimbursement per capita is, but they have very low cost of living, and this Medicare under-reimbursement is really putting stress on everybody.
- Jack Lewin
Person
It's the primary care stress to some extent, but it's the hospital stress. Every hospital's losing money on Medicare, and then the Big-Not-So-Beautiful Bill just added a requirement that means that Medicare reimbursement has to go back to 100% of Medicare.
- Jack Lewin
Person
Our Med-QUEST agency was taking us up to 150% of Medicare to keep the hospitals afloat, okay, and to keep others afloat in the practice. This bill will help us quantify where we have these super high Medicare costs that we can help justify getting our rate up. We're going to need to do an addendum to a bill.
- Jack Lewin
Person
Thank you last year for giving SHPDA the $250,000 to get a study done, which we're finally getting through the procurement process to get moving. So I appreciate that. The second thing is, it also wants to know-- wants to monitor who's uninsured. We also need this data, particularly given the HR 1 impacts on the rising numbers of uninsured.
- Jack Lewin
Person
So thank you for approving this because we think it could help us monitor where we are and help us justify to the feds the increases we need in the Medicare and Medicaid per capita reimbursement. Thank you.
- Jenna Takenouchi
Legislator
Thank you. That's everyone indicating they'd be joining us. Also, testimony with comments from the Office of the Auditor, the Hawaii Health Systems Corporation, and two organizations. Is there anybody else in the room wishing to testify? Anybody on Zoom? Yes, just go ahead. Just state your name for the record and proceed.
- Kaili Swan
Person
This is Kaili Swan, Chair. I'm in very strong support because people with disabilities is most important to help and they cannot testify. Support.
- Chris Todd
Legislator
Members, any questions? If not, HB 2505 HD 1, relating to assisted community treatment.
- Courtenay Matsu
Person
Good morning, Chair, Vice Chair, members of the committee. My name is Courtenay Matsu from Department of Health. I wanted to clarify some of the comments that we had provided. This bill, we do support, for assisted community treatment.
- Courtenay Matsu
Person
The amendment that we have requested is to really address the time that it takes from the filing of a petition for assisted community treatment to a decision. So assisted community treatment is a mechanism for us to really try to maintain folks out in the community who have severe mental illness but may be non-adherent to their treatment plans.
- Courtenay Matsu
Person
So this is a mechanism for us to get a court order to ensure that they continue the medications and continue going to service-- get case management services, get their other types of treatment that they might need. Right now, it can take up to maybe three months for us to file the petition and then get a decision, and during that time period, if the person is in the hospital and they're ready for a discharge, we have to discharge them, and then it might be difficult to then find the person once they're discharged to serve the orders.
- Courtenay Matsu
Person
This would also help community hospitals, too, who also can file these petitions, and under the other-- similar to HSH, when somebody is ready to be discharged, have to be discharged. So I understand on Judiciary side the difficulties, perhaps logistically, and in times where there might be a need for guardian items to find them and get that in place, but I do hope that people will consider the amendment that we had provided. Thank you.
- Jenna Takenouchi
Legislator
Thank you. That's everybody who indicated they'd be joining us. Also, comments from the Judiciary and support from one organization and one individual. Is there anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Members, any questions? If not, we're going to move on to HB 1577, HD 1, relating to 9-1-1 services.
- Jenna Takenouchi
Legislator
Thank you. Hawaii State Council on Developmental Disabilities in support.
- Chase Silvert
Person
Aloha, Chairs, Committee Members. My name is Chase Silvert with Hawaii State Council on Developmental Disability. We'll stand our written testimony in support. We really just want to emphasize that the point of this is to make it statewide. We already have it on Oahu. We've been using it a lot. It's also on Maui.
- Chase Silvert
Person
So, we just wanted to emphasize it statewide is the point of the pilot project. Thank you so much.
- Jenna Takenouchi
Legislator
Thank you. That's everyone who indicated they would be joining us. Also testimony with comments from—ne second, going over the written testimony. Comments from the State of Hawaii 911 Board, the County of Kauai Police Department, three organ—sorry, both those organizations with both those agencies with comments. Testimony in support from three additional organizations and five individuals.
- Jenna Takenouchi
Legislator
Is there anybody else wishing to testify? Sorry, we're going to do the room first.
- Bryan Mick
Person
Aloha, Chair, Vice Chair, Brian Mick with the Disability and Communication Access Board. We are in support of this Bill. Prior to the development of Text 911 going live in October of 2016, BCAP coordinated with the Honolulu Police Department and Emergency Management Services to educate the disability community about this option.
- Bryan Mick
Person
Establishing a working group for a statewide emergency safety profile system pilot program would ensure that people with disabilities can voluntarily participate in the system by sharing their personal relevant information to the emergency responders for their immediate use when they're responding by police, fire, and ambulatory services.
- Bryan Mick
Person
DCAB recognizes the value of and privacy of sensitive information, especially when someone's disclosing a disability, medical, or health condition. So, the hope is that the working group can review and address cybersecurity, data retention, and deletion of profiles. Thank you for the opportunity to testify.
- Carolyn Cartirao
Person
Thank you. Carolyn Cartirao with the Executive Office on Aging. I don't know how this one slipped by me, but the Executive Office on Aging stands in strong support of this measure. Thank you.
- Kaili Swan
Person
...Committee Members, my name is Kaili Swan. I'm in very strong support of this Bill because I use Smart 911. It is very simple and DD Council and staff helped me how to set it up and it's and I and it's pretty good because some people with disability doesn't know how to speak to 911 operator. So, this tool is very helpful.
- Kaili Swan
Person
It helps very lot and is very useful. And please...and thank you for letting me testify.
- Chris Todd
Legislator
Thank you. Members, any questions on this measure? If not, moving on to HB 2443, HD 1 relating to disaster services.
- Jenna Takenouchi
Legislator
We have the Department of the Attorney General with comments.
- Ryan Endo
Person
Good morning, Chair Todd, Members of the Committee. Deputy Attorney General Ryan Endo on behalf of the Department of the Attorney General. Our comments are provided in our written testimony. I'll be available for any questions.
- Jenna Takenouchi
Legislator
Thank you. We have the Hawaii State Council on Developmental Disabilities in support.
- Savannah Peskin
Person
Hello, Chair, Vice Chair, Committee Members. My name is Savannah Peskin. I am the Maui Program Specialist with the Hawaii State Council on Developmental Disabilities, here on behalf of our Executive Administrator, Danger Bartoldis. We will stand in our written testimony in strong support of HB 2443.
- Savannah Peskin
Person
We just wanted to emphasize that the bill's purpose is that many people do not identify as having a disability. However, they still might have an access and functional need that can be defined as any need that you have to access the community like refrigerated medication, a mobility issue, anything like that.
- Savannah Peskin
Person
So, it's a lot broader of a scope than just disability. And we wanted to also say that we are in support of the previous committee's amendments, and we are also in support of the recommendation of the $200,000 which establishes the position of $100,000 and then $100,000 for programming. We will be available for any questions.
- Jenna Takenouchi
Legislator
Members, that's everyone who indicated they'd be joining us. Please also note testimony in support from the Hawaii Civil Rights Commission, HYEMA, and the Office of Wellness and Resilience, as well as four organizations and four individuals. Is there anybody else in the room wishing to testify? Please.
- Bryan Mick
Person
Once again, hi Chair, Vice Chair, and Committee Members. Brian Mick here for Executive Director Christine Pagano and the Disability and Communication Access Board.
- Bryan Mick
Person
We are in strong support of this Bill and integration specialists would ensure that the needs of individuals with disabilities and others with access to functional needs are included in all phases of emergency management, including planning, response, recovery, and mitigation. In addition, they could be deployed to disaster sites to provide technical assistance.
- Bryan Mick
Person
We note that one in five residents have a disability and may require additional support before, during, and after disasters.
- Bryan Mick
Person
People with disabilities encounter disproportionately risks including difficulty evacuating without proper support, lack of accessible transportation, barriers to receiving emergency alerts and evacuation orders in accessible formats, obstacles in accessing shelters and barriers in receiving appropriate emergency medical care and in accessing post disaster relief programs such as housing, food, and financial assistance.
- Bryan Mick
Person
We've seen examples of all of this in the past couple of years between Covid, the Lahaina fires, and the tsunami evacuation last year. We do support, as suggested in the last Committee report, that the 200,000 be reinserted into the bill with 100,000 for the position of 100,000 programming costs.
- Kaili Swan
Person
Good morning, Chair, Vice Chair, Committee Members. My name is Kaili Swan. I'm in very strong support of this bill because emergency preparedness is most important.
- Kaili Swan
Person
Anyone but including...and we have a program called Feeling Safe, Being Safe Program for people with disability, how to train, how to put—how to prepare in case of emergency and this program is based out of California so it's from...
- Kaili Swan
Person
So, can you please let me know—please pass this Bill and take my testify please...any question you have? Now you have the floor chair.
- Chris Todd
Legislator
Members, any questions on this measure? If not we're going to move on to HB 2498 HD2 relating to care homes.
- Paula Cerio
Person
Good morning Chair, Vice chair, Members of the Committee. My name is Paula Cerio. I'm the chief for the Office of Healthcare Assurance Department of Health. We stand on our testimony in support of this measure. Thank you.
- Caroline Cadirao
Person
Executive Office on Aging offering comments. I'm available for any questions. Thank you.
- Jenna Takenouchi
Legislator
Thank you. Navian Hawaii in support, not present. That's everyone who identified themselves as joining us Also testimony and support from HEMA three organizations and two individuals. Is there anybody else in the room wishing to testify? Anybody on Zoom Members?
- Chris Todd
Legislator
Any questions on this measure? If not, we're moving to the second to last item, HB2581HD2 relating to emergency management.
- Jongwook Kim
Person
Morning Chair, Vice chair, Committee Members. My name is Wookie Kim. I'm the legal Director of the ACLU of Hawaii. I'll get right to the point. This Bill is absolutely necessary. Emergency powers are supposed to be rare and that's because when they're invoked, we give the Executive extraordinary authority, including the power to suspend democratically enacted laws.
- Jongwook Kim
Person
Back in 2014, when this Legislature modernized our emergency management law, the focus was clearly on things like hurricanes, wildfires, floods, disease outbreaks, not long standing public policy challenge. But the Hawaii Supreme Court recently said an emergency can include long standing problems that reach crisis levels.
- Jongwook Kim
Person
That's a major shift and it's also a dangerous shift because once a decades old policy issue can be labeled an emergency, emergency power stop being exceptional. They start to look like another way to make policy unilaterally and outside of the legislative process.
- Jongwook Kim
Person
We're not minimizing the seriousness of the housing crisis because it's real, but so are many other serious challenges we face. And if every crisis can be declared an emergency, then emergency authority becomes the norm, not the exception. This Bill draws a clear line which is that if there's a sudden catastrophe, emergency powers are okay.
- Jongwook Kim
Person
But for long standing policy, that belongs here before this body in this Legislature, we ask that this Committee advance HB2581HD2. Thank you.
- Jenna Takenouchi
Legislator
Thank you Sierra Club of Hawaii in support on Zoom. Not present Earth justice in support.
- Dru Hara
Person
Aloha Chair, Vice Chair, Committee Members. My name is Dru Hara. I'm at Earth Justice. So we submitted written testimony in support emphasizing that the need for this Bill to restore the proper constitutional balance of power between the Legislature and the Executive branch. We'll, we'll stand on that.
- Dru Hara
Person
I wanted to add some comments today to hopefully clarify what this Bill does and does not do and and address some of the concerns raised in opposition by the emergency management agencies. So under Chapter 127a, HEMA and the county emergency management authority already have a menu of existing powers that operate in any time.
- Dru Hara
Person
We don't need an emergency proclamation and those powers are under 127A12. Those allow for things like procurement, planning, training, preparedness, making response plans, emergency planning. So these are all things that will be totally unaffected by this Bill. Right. So when we're looking forward, how do we best prepare, anticipate emergencies that might be coming down the road?
- Dru Hara
Person
This will not happen HEMA or our county agencies in any way. What this Bill does affect are the additional powers under 127A13, which are the governors and the mayors in the county case, extraordinary powers, including the power to suspend any law. Those, those provisions are triggered under 127A14, declaration of an emergency.
- Dru Hara
Person
And so the definitions and the amended definitions in this Bill are just looking to narrow the definitions of emergency in response to the Supreme Court's Nicola decision to bring the terms emergency and disaster back in line with the original intent of the Legislature.
- Dru Hara
Person
So in the county, Honolulu County, excuse me, Dem's testimony, they raised some concerns about language in the preamble of this Bill about unprecedented size and destructiveness. Just want to point out one, that language is in the preamble. It's not anywhere in the amended definition. So that's not raising a new legal standard.
- Dru Hara
Person
And I think more importantly, that language is actually taken directly from 127A1, which is existing language within the statute that defines the purpose and the policy of the Emergency Management Act. So to the extent that anyone is bristling at that, it's. It's only in the preamble. If that needs to be taken out, I think that's. That's fine.
- Dru Hara
Person
The other thing I wanted to address is really quickly, and I'll stay on for questions after, is this idea that narrowing the scope could lead to litigation in the times of emergency. Under 127A-27, there is a very comprehensive procedure outlined for how citizens can challenge an emergency proclamation.
- Dru Hara
Person
It is an expedited process that allows temporary restraining order or preliminary injunction and a ruling within a matter of days outside of sort of the normal litigation track where, you know, there might be concerns that litigation can go on for months or years at a time.
- Dru Hara
Person
Just as an example, this, this is something that has played out before in the context of Governor Ige's emergency proclamation relating to Mauna Kea. During the TMT protests, there was a citizen who challenged that the 127-A27 provision. Within a matter of days, a panel of three Circuit Court judges was assembled.
- Dru Hara
Person
They were able to come out with an initial preliminary injunction specific to that one citizen that would allow him his constitutional, traditionary and customary practices and access rights. But that left the emergency order in place broadly so that we could still continue to protect public public safety.
- Dru Hara
Person
So I think some of the concerns raised by the emergency management agencies are a little bit overblown and represent kind of a misunderstanding of what this Bill is actually doing. So we stand in strong support. And again I'm here for any questions, if you have any. Thank you.
- Jenna Takenouchi
Legislator
Thank you. Chrysler's Institute of Hawaii in support, not present. That's everyone who indicated they would be joining us Members. Also testimony in opposition from HEMA, as well as the City and County, Honolulu Department of Emergency Management, testimony in support from three additional organizations and 18 individuals. Is there anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
No. All right, we're going to move on to the last item on our agenda. HB 2622 HD1 relating to language access US SHPDA in support.
- Jenna Takenouchi
Legislator
Thank you. Roots Reborn Maui in support on Zoom. Hawaii Coalition for Immigrant Rights in support.
- Unidentified Speaker
Person
Todd and Vice Chair Takenouchi, Members of the Committee, Hawaii Coalition for Immigrant Rights. We represent about 30 immigrant serving organizations across the and we've been working very actively.
- Unidentified Speaker
Person
About two sessions ago, we were able to work with HEMA to get a full time language access coordinator within within HEMA and that was a direct result of advocacy from organizations that we worked with in lahaina for whom 30% of the survivors of the Maui wildfire were limited English proficient and foreign born.
- Unidentified Speaker
Person
And so this is a part of our process in moving forward and making sure that we have both blue sky and gray sky materials ready for for the various disaster scenarios that we're preparing for.
- Unidentified Speaker
Person
For example, if we were to have like a tidal wave that hit Haula, we would need to make sure that we rolled out Tongan language resources immediately. Not then, you know, find and film materials at Tongan once it's already happened.
- Unidentified Speaker
Person
But so this funding goes towards making sure that we have those ready to go for the disaster scenarios that we think are likely.
- Christine Andrews
Person
Thank you for the opportunity to testify. Yeah, my name is Christine Andrews. I'm an attorney based in Maui and I do want to reiterate what Liza said about the need to be properly responsive to our non English speaking community.
- Christine Andrews
Person
So in Lahaina before the fires, about 1/3 of our residents were foreign born and also about 36% age 5 or older spoke a language other than English at home. We have again large Members of the COPA community, a lot of Tongans and Philippine Members of our community who are at risk during the Lahaina wildfires.
- Christine Andrews
Person
And we feel it imperative that Hawaii Emergency Management Agency be responsible to the needs of our non English speaking community in times of disaster. Thank you so much for the time.
- Jenna Takenouchi
Legislator
Thank you. Circling back one more time to Roots Reborn Maui on zoom.
- Jenna Takenouchi
Legislator
Okay. Anybody else in the room? Oh, that's all the written testimony we've received. Also testimony in support from HEMA, the Hawaii civil rights commission, three other organizations and 14 individuals, as well as one individual providing comments. Is there anybody else in the room wishing to. No. Smile, please.
- Jenna Takenouchi
Legislator
Just state your name and position for the record and proceed.
- Ana Flores
Person
So, hi, Chair Todd, Vice Chair and Members of the Committee. My name is Ana Flores. I am a fellow at the Legal Clinic. So. So I'm testifying on behalf of our board President, Amy Agbayani. And we stand in strong support of bill HB 2622.
- Ana Flores
Person
Many of the workers at TLC and of course the people that we serve are immigrants, ourselves included. We draw from our experience as immigrants and from our work with those communities we've been helping serving communities, communities in Maui and the ones affected at the Lahaina fires and going back to the COVID 19 pandemic.
- Ana Flores
Person
So government, private companies and nonprofit organizations need qualified personnel to provide language access, especially in times of emergency. The recent weather emergency announcements just days ago should have been available in multiple languages to ensure safety with the system from government agencies. And strengthening language access capacity within HEMA is therefore critical to provide an effective emergency response statewide.
- Jenna Takenouchi
Legislator
Thank you. And we do have your written testimony. Anybody else in the room? Anybody on Zoom?
- Chris Todd
Legislator
Members, any questions on this measure? If not, we're going to recess briefly prior to decision making. Recess.
- Chris Todd
Legislator
Aloha. We are reconvening the House Committee on Finance for the purpose of decision making on our 10am Friday, February 27th agenda, again here in room 308. First on our list is HB 816 HD1 relating to emergency response. The Chair's recommendation is to move this forward as is. Are there any questions or comments? Seeing none. Vice Chair.
- Chris Todd
Legislator
Thank you. Next, we have HB 1535 HD 1, relating to automated external defibrillators. The chair's recommendation is to move this forward, amended as an HD 2, including some necessary technical and clarifying amendments and ensuring that all dates in the bill are defective. Are there any questions on this measure? Seeing none.
- Jenna Takenouchi
Legislator
On HB 1535 HD 1, recommendation's to pass with amendments, noting the excused absence of Representative Lee, who will be noted as excused for the remainder of this agenda unless otherwise noted, and the presence of all other members. Are there any reservations? Any no votes? Recommendation's adopted.
- Chris Todd
Legislator
Thank you. Next, we have HB 1537 HD 1, relating to mental health. Chair's recommendation is to move this forward as is, but I'd like some language in the committee report noting the testimony and potential expansion from the LGBTQ Plus Commission. Any questions or comments? Seeing none. Vice Chair.
- Jenna Takenouchi
Legislator
HB 1537 HD 1: recommendation is to pass unamended. Any reservations? Any no votes?
- Jenna Takenouchi
Legislator
And Rep. Gedeon. Anybody else? Any no votes? Recommendation's adopted.
- Chris Todd
Legislator
Thank you. HB 1541 HD 2, relating to the Department of Health. The recommendation from the chair is to move this forward as is. Any questions or comments? Rep. Perruso.
- Amy Perruso
Legislator
I'll be voting with reservations just because it provides for exemptions from civil service.
- Chris Todd
Legislator
I understand. And it's something, I think, down the road we'll have to weigh out, kind of like where it's necessary, where it's maybe a little bit of overreach. We'll figure that out over time.
- Jenna Takenouchi
Legislator
Okay. HB 1541 HD 2: recommendation's to pass unamended, noting reservations for Representative Perruso. Any other reservations?
- Jenna Takenouchi
Legislator
Rep. Gideon, reservations. Any no votes? Recommendation's adopted.
- Chris Todd
Legislator
On HB 1562 HD 1, relating to youth mental health, similar recommendation to two bills ago. The recommendation is to move forward as is, but note the testimony from the LGBTQ Plus Commission. It's something a future committee can look at in the committee report. But recommendation as is. Any questions or comments? Seeing none.
- Jenna Takenouchi
Legislator
HB 1562 HD 1: recommendation's to pass unamended. Any reservations? Any no votes? Recommendation's adopted.
- Chris Todd
Legislator
Moving on to HB 1574 HD 1. We actually have a few substantive amendments on this measure, so the recommendation will be to move this forward as an HD 2. This is relating to the Healthcare Education Loan Repayment Program. So I'll read this out so we don't mess this up. Okay.
- Chris Todd
Legislator
We'd like to clarify the statutory basis of the Healthcare Education Loan Repayment Program by addressing the absence of an explicit program establishment and statute and resolving potential ambiguity regarding whether existing statutory references refer to the same program. Conforming amendments will also be considered-- or will be considered to ensure consistency in program naming and statutory reference.
- Chris Todd
Legislator
So largely just cleanup and technical things on that end. We'd also like to clarify that the applicability of the new service requirements-- we'd like to clarify that by expressly specifying that the minimum service obligations apply only to healthcare professionals who receive a new loan repayment program award on or after July 1st, 2027 so that this does not have retroactive impact on the current participants. So again, another kind of technical cleanup clarification.
- Chris Todd
Legislator
And lastly, correct any technical drafting issues, including review of the effective date provision to ensure consistency with legislative intent and standard drafting practices. So all three are clarifying but technical in nature to ensure that we don't mess this up. Any questions? Comments? Seeing none. Vice Chair.
- Jenna Takenouchi
Legislator
HB 1574 HD 1: recommendation's to pass with amendments. Any reservations? Any no votes? Recommendation's adopted.
- Chris Todd
Legislator
Thank you. Next, we have HB 1591 HD 1, relating to healthcare. The chair's recommendation is to move this forward as is. Any questions or comments? Seeing none.
- Jenna Takenouchi
Legislator
HB 1591 HD 1: recommendation's to pass unamended. Any reservations?
- Chris Todd
Legislator
HB 1853 HD 1, relating to dementia. The chair's recommendation is to move this forward as is. Are there any questions? Concerns? Seeing none.
- Jenna Takenouchi
Legislator
HB 1853 HD 1: recommendation's to pass unamended. Any reservations? Any no votes? Recommendation's adopted.
- Chris Todd
Legislator
Next, we have HB 1854 HD 1, relating to community behavioral health clinics. The chair's recommendation will be to move this forward as is. Any questions? Comments? No? Go ahead.
- Jenna Takenouchi
Legislator
HB 1854 HD 1: recommendation's to pass unamended. Any reservations? Any no votes?
- Chris Todd
Legislator
For HB 1871 HD 1, relating to health, recommendation is to move this forward as is. Any questions? Nope?
- Jenna Takenouchi
Legislator
HB 1871 HD 1: recommendation's to pass unamended. Any reservations? Any no votes?
- Chris Todd
Legislator
HB 1965 HD 1, relating to primary care. Same recommendation to move this forward as is. Any questions or comments? Seeing none.
- Jenna Takenouchi
Legislator
HB 1965 HD 1: recommendation's to pass unamended. Any reservations? Any no votes?
- Chris Todd
Legislator
For HB 1966 HD 1, relating to the Emergency Medical Services Special Fund, the recommendation is to move this forward as is. Any questions? Comments? No.
- Jenna Takenouchi
Legislator
HB 1966 HD 1: recommendation's to pass unamended. Any reservations? Any no votes?
- Chris Todd
Legislator
HB 1969 HD 2, relating to colorectal cancer. The recommendation is to move this forward as is. Any questions or comments? Seeing none.
- Jenna Takenouchi
Legislator
HB 1969 HD 2: recommendation's to pass unamended. Any reservations? Any no votes?
- Chris Todd
Legislator
HB 1973 HD 1, relating to health. Same recommendation to move this forward as is. Any questions? Comments?
- Daisy Hartsfield
Legislator
Comments, Chair. Just, I would ask the committee notes to reflect that the end date of the pilot project, if they could consider 06/30/28. Thank you.
- Chris Todd
Legislator
We can do that. We'll drop some language in the committee report. I think on a lot of these things, there's some things we could probably clean up a little bit, but in the interest of not having a complete meltdown of all of our drafting agencies, some of these things we'll be sending forward with a little bit of work ahead of them, and this falls into that category.
- Chris Todd
Legislator
But we'll note that in the committee report. So the pilot date sunset, yeah.
- Chris Todd
Legislator
Okay. Any other questions? Comments? Okay, seeing none. Vice Chair.
- Jenna Takenouchi
Legislator
HB 1973 HD 1: recommendation's to pass unamended. Any reservations? Any no votes? Recommendation's adopted.
- Chris Todd
Legislator
On HB 1974 HD1 relating to health. The recommendation is to move this forward as is. Any questions or comments? Seeing none.
- Chris Todd
Legislator
Next we have HB2315HD1 relating to state employee benefits and the recommendation is to move this forward as is. Any questions or comments? Seeing none.
- Chris Todd
Legislator
On HB 2343 HD1 relating to veterans. Recommendation is to move it as is. Any questions or comments? Seeing none.
- Chris Todd
Legislator
Thank you. For HB 2501 HD1 relating to healthcare, similar recommendation, if you're sensing a theme here, is to move this forward as is. Any questions? Comments? No? Okay, go ahead.
- Jenna Takenouchi
Legislator
HB2501HD1 recommendations to pass unamended. Any reservations?
- Jenna Takenouchi
Legislator
Reservations for Rep. Alcos. Any other reservations? Any no votes.
- Chris Todd
Legislator
Recommendations adopted for HB2505HD1 relating to assisted community treatment. We'd like to just note in the Committee report the suggested amendment from the Department of Health to reflect what may be a reasonable timeline for them. That's something that future committees may consider is what's reasonable. Any questions or comments? Seeing none.
- Chris Todd
Legislator
Next on to HB 1577 HD1 relating to 911 services. Recommendation is to move as is. Any questions? Seeing none.
- Chris Todd
Legislator
Thank you. HB2443HD1 relating to disaster services. The recommendation is the move as is. Any questions? Comments?
- Susan Lokelani Keohokapu-Lee Loy
Legislator
Chair just note the AG's comments regarding the amended language specific to that one position.
- Chris Todd
Legislator
Okay, we can do that. So in the Committee report we'll just kind of reference their testimony and as something that should be considered down the road. Yeah.
- Chris Todd
Legislator
Okay. Recommendation to move as is. Any questions or comments? Seeing None. Vice Chair.
- Chris Todd
Legislator
Onto our final page we have HB 2498 HD2 relating to care homes. Recommendation is to move as is. Any questions or comments? Seeing None. Vice Chair.
- Chris Todd
Legislator
HB 2581 HD2 relating to emergency management. Same recommendation to move as is. Any questions or comments? Thank you.
- Chris Todd
Legislator
Lastly, relating to language access for HB2622HD1 recommendation will be to move this as is and kind of similar to the film tax credit stuff for the folks that are working on some of the immigrant rights issues. Just don't want to alarm you. This is not the only Bill relevant to folks that will be on the agenda.
- Chris Todd
Legislator
Oh, we have some stuff coming up next week, but I don't want to freak you out. Final we don't move this forward as is. Any questions? Comments? No. Go ahead.
- Chris Todd
Legislator
All right. Thank you very much for your time and your patience and advocacy. We are adjourned.
- Chris Todd
Legislator
Aloha everyone. We're convening the House Committee on Finance. It is roughly 2 pm on Friday, February 27, 2026 in Conference Room 308. We have a pretty full agenda. The plan for today, so everyone can kind of plan accordingly, is we will be hearing everything, but we will be deferring decision-making to next week.
- Chris Todd
Legislator
I think most of these measures will be after the Monday morning, after the Monday morning agenda, just in case people have to leave and don't want to stick around for the next couple hours. That'll be the plan. With that being said, if you are on Zoom, please stay muted until you're called upon.
- Chris Todd
Legislator
We will be kind of enforcing a two minute time limit on individual testimony as much as possible to accommodate maximum number of bills moving to the Committee as possible.
- Chris Todd
Legislator
Try to stand on your testimony, but you know, if you want to provide, you know, context or if you want to really emphasize something, please feel free to do so. But just try as much to be kind of considerate of others who maybe could testify as well.
- Chris Todd
Legislator
As well, especially if you've flown in, like, please, by all means, you know, do your thing. And that's about it. Okay. We're going to open up with HB 20 HD 1, relating to lava zone insurance.
- Matthew Tsujimura
Person
Afternoon, Chair, Vice Chair--woah--members of the committee. Matthew Tsujimura, on behalf of the Insurance Division. We'll stand on our written testimony in opposition, but I do just want to point out, the division's major concerns here are that it redirects funds that would otherwise go into the CRF, which is used for defrayal of costs for the division for regulatory, investigation, and enforcement purposes into the subsidy fund, which would not be used to defray those costs.
- Matthew Tsujimura
Person
We also do want to point out that this subsidy program, while it would help the homeowners in lava zones 1 and 2, the division does not believe that this would actually affect in any way the affordability or the availability of insurance in lava zones 1 and 2. But with that, happy to answer any questions. Thank you.
- Jenna Takenouchi
Legislator
Thank you. There was another testifier who indicated they would be joining us. Members, also testimony in opposition from one organization and one individual, as well as testimony in support by one organization and 18 individuals. Is there anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Okay, Members, any questions on this measure? Seeing none, we're going to move on to HB 1991 HD1 relating to the liquor tax.
- Gary Suganuma
Person
Good afternoon. Gary Suganuma for the Department of Taxation stands on its written testimony offering comments. Thank you.
- Sherry Menor
Person
Good afternoon. Chairman's Committee. Chamber of Commerce stands on testimony.
- Tom Yamachika
Person
Good afternoon. Chair, Vice chair is the Committee. Tom Yamachika from Tax Foundation. I'll list on our written testimony.
- Jenna Takenouchi
Legislator
Thank you. Hawaii Food Interest, Hawaii Food Industry Association in opposition on zoom.
- Alexis Chapman
Person
Good afternoon Chair, Vice chair, Members of the Committee, I'm Alexis Chapman for HFIA. We stand on our testimony in opposition and I to answer any questions.
- Steve Haumschild
Person
Aloha Chair, Vice Chair. I'm Steve Haumschild with Lanikai Brewing Company. I stand on my testimony and I just want to highlight a couple extra points real briefly. Thanks for the opportunity to testify. You know we understand the intent of the taxation and the structure.
- Steve Haumschild
Person
It just provides a massive advantage to mainland and importers and kind of punishes local businesses here. As a local producer, we already pay the top highest taxes in the nation. All of our affiliate costs like labor costs, raw goods, utility are some of the highest in the nation.
- Steve Haumschild
Person
The Bill as written will cost local jobs as at local manufacturers and that will favor large corporations. It's not really a question of if there will be a job loss.
- Steve Haumschild
Person
It'll really be to what extent that will be as this Bill is written from a structure standpoint, this Bill will be the first of its kind in the nation to adapt an ABV based system.
- Steve Haumschild
Person
And there's just no real clear methodology on how tolerance for alcohol testing, standards compliance, any of that would actually be adapted without large changes into the Bill. It's just going to really crush. This is an industry crusher and can destroy a lot of our local economy in favor of importers. Thank you for this opportunity.
- Alicia Thompson
Person
Alicia Thompson, on behalf of Molson Coors, we'll stand on our written testimony in opposition. I just wanted to emphasize that this Bill is not just simply a restructuring, but it's a meaningful tax increase at a time where hoy families and small businesses are already under significant economic pressures.
- Alicia Thompson
Person
And for many neighborhood restaurants and bars, draft beer is one of the few items that helps keep the doors open. And nearly doubling the rate removes a long standing differential that makes that supports our hospitality sector and those are small businesses and local, small local businesses that are in our districts.
- Alicia Thompson
Person
So on behalf of that like to encourage you to defer this measure. Thank you.
- Chrissie Pinney
Person
Aloha. Thanks for the opportunity to speak. Mahalo, chairs. This Bill is, for us as a small business, really, really scary. We know that the tax increase hasn't happened since 1998, but frankly, we are still trying to survive. I stand by my testimony. There's a lot more there.
- Chrissie Pinney
Person
But we work really hard to contribute to our community and there's only so much we can do to survive to make sure that we can put food on the plates of our employees. Like my heart's going to break because we just can't continue to operate as a small business this way with how expensive Hawaii already is.
- Chrissie Pinney
Person
We have the highest electricity, we're going to have the highest minimum wage to increase taxes yet again. And on top of that, change the structure to add a little bit of confusion and restructuring and how we pay our taxes and make sure that we are compliant.
- Chrissie Pinney
Person
Currently, there's going to be a lot more businesses that will have to close because of this. And to those in opposition, I would gladly invite you to come in. We can have a mocktail. We don't have to drink alcohol, but there is a lot more.
- Chrissie Pinney
Person
That small craft breweries contribute to our community and to limit it to violent crimes and all of these other things and is just not fair. It's not putting accountability on the actual perpetrators of crimes and it's a scapegoat. I heavily vote and hope that you vote in opposition. Thank you.
- Rick Collins
Person
Good afternoon, Chair, vice chair and Members of the Committee. My name is Rick Collins. I'm with the Hawaii Public Health Institute. Thank you for the opportunity to provide testimony. We stand in strong support of this measure and I just want to highlight a few things and why we think this is a win, win, win for our state.
- Rick Collins
Person
First of all, this not only contributes to a significant revenue generator for our state that's been lost over the last over a quarter century in terms of tax revenue that has been lost due to inflation. So this helps to raise it up to inflation standards.
- Rick Collins
Person
The second thing is that it is a tried and true public health measure to reduce the harms associated with alcohol use. The CDC says that alcohol use is the third leading preventable cause of death in our country. The CDC also said that we spend nearly a billion dollars a year in alcohol arms in our state alone.
- Rick Collins
Person
And this is one way to have alcohol pay for itself. And lastly, I was going to say one more. What was it? Oh, yeah. So lastly, University of Hawaii did a study on looking at the public health impact of a Diamond Drink alcohol tax increase a number of years ago.
- Rick Collins
Person
And one of the things that was generated in their models was that we would actually get a net positive of 1200 jobs because of the revenue generation of that. So encourage you to take a look at that and thank you for letting letting me provide testimony.
- Jenna Takenouchi
Legislator
Thank you. We have Brittany Cass in support on zoom. Not present. Not present. That's everybody who indicated they would be joining us in person today. Also, testimony in opposition from 16 other organizations and two individuals. Testimony and support from one other organization and 11 individuals. Is there anybody else in the room wishing to testify.
- Garrett Marrero
Person
Garrett Marrero, Maui Brewing I thought I'd click the link that I'd be here standing on my written testimony. Apologies that it's nearly three pages. This details the complexity of this issue that I think is unfortunately a massive lack of understanding of how this Bill works. First, inflation on taxes since 1998 we were already astronomically high beer prices.
- Garrett Marrero
Person
Alcohol prices in General have gone up massively since then, at least doubling since 1998. So from a get tax perspective and other taxes that us local businesses pay, there's actually been an increase in revenues due to alcohol prices going up. I think it's completely illogical that driving the price up will continue to decrease consumption.
- Garrett Marrero
Person
Nobody in this room hasn't seen the articles that alcohol consumption is an all time low. Specifically underage drinking for the last 20 years has declined every single year.
- Garrett Marrero
Person
I think it's also important that this Committee understands that the way this Bill is currently written under HD1 gives a 90% tax decrease to the beverages that underage consumers would probably choose if they were drinking.
- Garrett Marrero
Person
So I think when you're talking about a case of ALCO Pop at 13.46, a case for tax, it does cost more then the cost to produce the case reduces that to $2.25 a case. So that $11.20 to me is a discount, not an increase.
- Garrett Marrero
Person
This will be a massive revenue driver down because many of us will be out of business. We gotta keep our employees fed, gotta keep them housed. What it costs to do business here. We are paying taxes at every single level that are among the highest in the country. This Bill only favors mainland production.
- Garrett Marrero
Person
And I argue that it's gonna take us back to a world where we don't have local products on the shelves and that our choice is very very limited. So I stand at the ready to work with you to solve the state's issues in revenue.
- Garrett Marrero
Person
There are ways to do this that accomplish the goals of both protecting small businesses While at the same time achieving a revenue raise by supporting those very businesses that employ the people here. I'll close with. I'm the first call when problems strike, when charities need money, all of us, all this, you know.
- Garrett Marrero
Person
You saw Chrissy earlier, Hanakoa, when the fires happened in Maui, I was the first on the west side with generators and water tankers and food and everything. When Covid hit, I was the first to make sanitizer in the state. In order to give that freely, we're the first to help.
- Garrett Marrero
Person
And now we feel like we're being the first to be hurt. So I would ask you to defer this without significant amendments. And I'm happy to share my. My thoughts on how those actually impact the state. So thank you for the opportunity. I'll be here for questions.
- Jenna Takenouchi
Legislator
Thank you. And sorry I skipped over Wine Institute in opposition.
- Mihoko Ito
Person
Sorry. Good afternoon, Chair, Vice chair, Members of the Finance Committee, Mihoko Ito. On behalf of the Wine Institute, I'll stand largely on the comments I've submitted and written form. But I just wanted to highlight a couple things. First, from a national perspective, how much of an outlier this proposal is?
- Mihoko Ito
Person
It is taking a system, the current system that's used across the country, really, it takes into account two factors, the alcohol by volume and the original source material that's used. So for wine, it's grapes, for example, and this is fundamentally changing that structure to only be based on alcohol by volume. It's a huge outlier.
- Mihoko Ito
Person
I mean, it would be the only system of its kind across the country, whether state or federal. Second, you know, just for wine alone, this represents, For Cabernet, a 762% tax increase on Cabernet Sauvignon, 99% tax increase on whites, roses, and certain red wines, and almost an 18% tax increase on cooler beverages.
- Mihoko Ito
Person
So in our testimony, we put a chart, I think that's helpful, to show just how dramatic this tax increase has proposed. And I think, you know, at a time when we're looking at cost of living and trying to prevent cost of living increases, this is a really severe tax increase.
- Mihoko Ito
Person
So we just encourage the Committee to rethink this proposal as it deliberates on this Bill. Thank you.
- Jenna Takenouchi
Legislator
Thank you. Anybody else in the room looking to testify? Anybody on Zoom?
- Jenna Takenouchi
Legislator
Hi. Yes. Please state your name and your stance for the record, and then you may proceed.
- Cynthia Okazaki
Person
Hi, I'm Cynthia Okazaki, and I'd like to stand on my written testimony that I submitted. But I also would like to emphasize that the price of alcohol is the best prevention for preventing underage drinking. And we want to keep our youth safe, our youth and our roads safe for all people in Hawaii. Thank you.
- Cynthia Okazaki
Person
And if you have any questions, you know, I'm open to questions. Thank you.
- Chris Todd
Legislator
Okay, Members, do we have any questions on this measure? We've got to do something. Yeah, Gary, come up real quick. Yes, sir. Thanks. Thank you. You know, I think what we.
- Chris Todd
Legislator
Well, what I'm interested in doing is trying to ensure that regardless of whether it's the ABV framework or the original kind of liquor tax language that's already in statute, that we make sure that maybe it's adequately incentivizing local production. Do you think the current language of the Bill does that?
- Chris Todd
Legislator
I know they tried to at least address it, but beyond the draft beer, but for things like local spirits, that may be emerging. Do you have thoughts on that?
- Garrett Marrero
Person
Sure. First, thank you for that. I realized that was an attempt to help the small producers. I think in the current form under HD1, it only benefits brewers, which, of course, I'm a brewer, but class 18 means I'm also a distiller and technically a winery as well.
- Garrett Marrero
Person
So looking at it from all sides, I was just texting with my friend at Maui Wine. There's no benefit for them to produce here. Right. And I think we do have to be careful of whether it be interstate commerce or Granholm in preference to local.
- Garrett Marrero
Person
I think there are ways around that for the class of license and also the being made available to everyone subject to these conditions. So it does make sense.
- Garrett Marrero
Person
I would argue though, that still departing from the tried and true system that even our Federal Government uses of beer, wine, spirits, and using the base alcohol as the determinant on what rate you pay, I think departing from that would be a poor choice and because of the complexity that that brings.
- Garrett Marrero
Person
So While that class 18 or small producer, carve out, if you will, is very welcome, warranted and supported, I do think it adds complexity when you add in that ABV component.
- Chris Todd
Legislator
Any additional questions, go Rep. Gideon and then Rep. Mianke for Margari.
- Garrett Marrero
Person
Roughly how many employees would you say you have across the board? Not enough, sir. Frankly, I wish we had more. There's one thing we need in Hawaii and Hawaii to support the local businesses. At last count, somewhere in the 4 to 440.
- Garrett Marrero
Person
Somewhere in that range between the four restaurants, the production brewery, administrative staff, and we've downsized our team on the mainland we have two people on the 23 people on the mainland.
- Daniel Saltman
Person
Now what would be the likely impact on jobs expansion plans and long term investment in local manufacturing if the Bill did pass as is current form?
- Garrett Marrero
Person
Haven't done too much math given that carve out because I feel like it was, it wasn't right generally. General idea is there would be no further capex, further growth plans, no further hiring plans and a strong push to find mainland production that could be cheap enough to send via the water here and we'd be domiciled elsewhere.
- Garrett Marrero
Person
That's just the way it have to work. If we aim to the banknotes not going down by the way, the rate is going up. Right. So we have to figure out something to keep what we could preserved. Thank you. And it would be a huge deterrent to anyone who even thinks about investing in the state going forward.
- Tyson Miyake
Legislator
Thank you for Maui Brewing Co. What percent or what price increase if this Bill was to go forward would you expect
- Garrett Marrero
Person
speaking for beer specifically and fermented based seltzers. So again not vodka based seltzers that we make or vodka based sodas beer for every dollar increase you're going to see about $1.70 to $2.10 for the to the customer. And that's because we have a tried and true system. The three tier system that we our wholesaler partners always applaud.
- Garrett Marrero
Person
When the landed price goes up to the wholesaler they tack on their margin to that landed price which includes the tax. So then it goes up again and again. So by the time it gets to the customer it's been had margin applied to it at least two up to three times.
- Chris Todd
Legislator
Thank you Members. Additional questions Seeing none, we're going to move on to the next item on our agenda. Appreciate you. Thank you for your time. HB2614HD1 relating to deceptive practices.
- Emma Olson
Person
Aloha Chair, Vice Chair. Members of the Committee, my name is Emma Olson for the Office of Consumer Protection. We will stand on our written testimony in strong support available for questions. Thank you.
- Jenna Takenouchi
Legislator
Thank you. That's all the testimony we received for this measure. Is there anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Any questions? No. Okay, we have HB 276 HD1 relating to condominiums.
- Jenna Takenouchi
Legislator
Okay. DCCA Hawaii Real Estate Commission with comments. Grassroots Institute of Hawaii and support. Not present Members. Also testimony in support from one other individual. That's all testimony we've received. Anybody else in the room wishing to testimony by anybody on ZOOM
- Chris Todd
Legislator
Members, any questions on this measure? Seeing none, we're going to move on to HB916HD1 relating to the low Income Housing Tax Credit.
- Unidentified Speaker
Person
Good afternoon, Chair. Vice Chair Dominicom, HHFDC who sign our testimony and support.
- Tom Yamachika
Person
Thank you, Vice Chair. Chair. Vice Chair. Members of the Committee, Tom Yamashika from Tax Foundation. We concur with the Department of Taxation that there will be severe administrative difficulties implementing the Bill as written. We urge the Committee to do something simpler. Happy to answer any questions?
- Jenna Takenouchi
Legislator
Thank you. That's all the testimony we've received on this measure. Is there anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Questions on this measure? Seeing none. Moving on to HB 1711 HD1 relating to housing.
- Dean Minakami
Person
Vice chair Members, we stand on our testimony in support. I would like to highlight that we are working towards implementing our into own program and this flexibility would give us, I guess, greater opportunities to adjust to changing market conditions. There may be times when we can make the rental period and transition sooner than five years.
- Dean Minakami
Person
There might be certain times we might need more than five years, which is why we're proposing this measure.
- Jenna Takenouchi
Legislator
Okay, thank you. That's everybody who indicated they would be joining us today. Two additional organizations in support Members. Is there anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Members, any questions on this measure? If not, we're going to move on to HB 1713 HD1 relating to school impact fees.
- Jenna Takenouchi
Legislator
HHFDC in support. Thank you, Department of the Attorney General with comments.
- Chris Todd
Legislator
That keeps catching people. It's almost like we're doing it on purpose.
- Randall Wat
Person
Randall Wat, Deputy Attorney General on behalf of the Department. Attorney General, as outline of written testimony the Department has comments on this Bill will repeal school impact fees and those school impact fees already corrected are to be are to be spent in a certain fashion under Section five in order to address certain concerns regarding that complies with the U.S. constitution as by the states and under U.S. Supreme Court law.
- Randall Wat
Person
The Department has recommended amendments as detailed in our written testimony and I'm available for questions.
- Riki Fujitani
Person
Thank you Committee. Riki Fujitani with the School Facilities Authority. We offer comments on this Bill that changes a law that has 20 years of motion with the school in fact fee law that has no impact on schools where it's headed.
- Riki Fujitani
Person
We just offer comments on how it carefully has to be abolished because you want to preserve the money that's been collected and effectively spend it because we can't find even the people who to give us back to. And that going forward this is good because it removes hurdles on developing household. Thank you.
- Tom Yamachika
Person
Thank you Chair, Vice Chair, Members of the Committee, Tom Yamachika from Tax Foundation. There have been issues with spending the school impact fees and its a predecessor fair share fees because of the technical requirements that are now in the the respective statutes.
- Tom Yamachika
Person
I mean basically DOE can't spend any of the monies because they have to wait until they have enough to do a whole school.
- Tom Yamachika
Person
So, so we have millions of dollars, tens of millions of dollars in the school impact fee accounts and under, under current law they got to stay in there because there's no way that the DOE is going to have enough to build a whole school when you take into account the fact that where the fee is collected is where it has to be spent.
- Tom Yamachika
Person
So we think a way better solution to the measure is to get rid of the system entirely. Lapse the funds to something like the School Facilities Authority. We've attached charts and other data in our testimony. Happy to answer any questions.
- Jenna Takenouchi
Legislator
Thank you Grassroots Institute of Hawaii in support, not present, NAIOP chapter with comments.
- Evan Oue
Person
Thank you Chair, Vice Chair, Members of the Committee Evan Oue on behalf of NAIOP we want to revise our comments to strong support. Thank you.
- Jenna Takenouchi
Legislator
Thank you. That's all the testimony we received on this measure. Is there anyone else in the room wishing to testify? Please just need your name and stance for the record and then you can proceed.
- Unidentified Speaker
Person
Aloha, Chair and Vice Chair, Members of the Committee Committee, I apologize that our testimony was submitted late.
- Unidentified Speaker
Person
The Department just wanted to note that pursuant to Act 268 which passed into law last session, notes that DHHL is exempt from school impact fees until the noted sunset date of July 2029. I'm available for questions. Mahalo. Thank you.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
For Tax Foundation. Thank you for being here. Thank you for your information. I'm trying to walk this out because it's kind of been snowballing and not really developing the results that it was intended to do.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
But I also recognize that there have been a number of charter schools that have been developed over time, kind of releasing some of the pressure for the development of campuses. I was just wondering if Tax Foundation had any insight or thoughts around if the funds were lapsed. Not only distributing back to doe, but other charter school organizations.
- Tom Yamachika
Person
We have taken no position on where they should be lapsed to, but the immediate problem is that they're just sitting there right now and need to be put to use, to use somewhere.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
Thank you. Thank you for your response. Thanks Chair.
- Tyson Miyake
Legislator
For SFA? Hi Riki. If the school impact fees were to be repealed, the funds that are already in there, the fees that are already in the account, would you be able to use it or, per Tax Foundation, should we lapse that money?
- Riki Fujitani
Person
I think Thomas saying is to lapse it to us. What the Bill saying is sweep it to us. And I'm pretty certain that if we follow the recent sheets vested, City of El Dorado test and nexus with proportionality it can easily be met.
- Riki Fujitani
Person
It could be used for say buying a building for a charter school in that district. So there is a nexus as long as the charter was like a high school that served the entire district or a preschool, which again serves the entire district.
- Riki Fujitani
Person
So I'm confident that we can effectively spend, spend the money that's been amassed and it's not a lot of money, but it could really help like a charter or preschool, which is a different scale of expense. So.
- Chris Todd
Legislator
Thanks. Anything else? If not, moving on to HB 1715 HD 1, relating to affordable housing.
- Dean Minakami
Person
Chair, Vice Chair, and members, just wanted to further explain the proposal. This really is a different approach to managing our affordable housing inventory. Currently, our affordable units are regulated by a 10-year buyback and short appreciation restrictions.
- Dean Minakami
Person
Concerns we hear from homebuyers are that in that 10-year period, they gain very little equity and they're stuck in their unit. And we hear from others that, well, after 10 years, they just go to market rates. So this tries to balance both of those concerns where homebuyers can gain equity.
- Dean Minakami
Person
They don't have to stay there for 10 years, but their equity would be restricted to a certain index, and the index that we're looking at is the long-term appreciation of real estate on Oahu, which has been about 4.5% per year.
- Dean Minakami
Person
So just giving you a real example of how this could have been applied for the Kapiolani Residence Project just completed in 2018, one-bedroom units there sold for as low as about $400,000. Today, the market units are selling for over $700,000.
- Dean Minakami
Person
If this program were in place back in 2018, you know, those one-bedroom units now, they could be sold now for about $540,000. So substantial equity for those buyers, but still quite a bit below the market rate. And I'll just note that for the Kapolani residents, yes, all those units will become market rate units in 2028.
- Dean Minakami
Person
You know, we can't go back and change the restrictions on them. So this tries to strike some balance where homebuyers still gain equity but prices stay relatively affordable.
- Jenna Takenouchi
Legislator
Thank you. Office of Planning and Sustainable Development, in support.
- Diana Setness
Person
Aloha, Chair, Vice Chair, and members of the committee. Diana Setness with the Office of Planning and Sustainable Development. OPSD stands on his written testimony in support, and we're available for any questions.
- Jenna Takenouchi
Legislator
Thank you. Hawaii State Council on Developmental Disabilities, in support.
- Daintry Bartoldus
Person
Hi, Chair, Vice Chair, committee members. Daintry Bartoldus, executive director for the Hawaii State Council on Developmental Disabilities, and we are in strong support of HB 1715 HD 1.
- Daintry Bartoldus
Person
The reason being is, we serve individuals with disabilities and other access and functional needs. In order to live out their lives in certain areas, they need adaptive equipment put in the home, making permanent structure changes. A lot of times, those structure changes will not be approved if you don't own your home.
- Daintry Bartoldus
Person
By giving them a tool to be able to purchase their own home, they're able to adapt it as they age and live there forever. Thank you so much for this opportunity to testify.
- Jenna Takenouchi
Legislator
Thank you. That's everyone who indicated they would be joining us in person. Members, also testimony in support from the Office of Hawaiian Affairs, three organizations, and one individual, as well as two additional organizations providing comments. Is there anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Members, Any questions? If not, we're going to move on to HB 1718 HD1 relating to housing.
- Jenna Takenouchi
Legislator
HHFDC in support. ... Thank you. Office of Planning and Sustainable Development in Support.
- Unidentified Speaker
Person
Office of OPSD stands on its written testimony in Support. Thank you.
- Jenna Takenouchi
Legislator
Thank you. City and county of Honolulu Department of Housing and Land Management in support.
- Unidentified Speaker
Person
We'll Stand on our in testimony and strong support. Thank you.
- Jenna Takenouchi
Legislator
Thank you. Navian Hawaii in support. ... Thank you. That's everyone who indicated they would be joining us. Also testimony and support from City, county of Honolulu, Department of Budget and Fiscal Services and one organization. Is there anybody else in the room wishing to testify? Anybody on ZOOM
- Chris Todd
Legislator
Members? Any questions? If not, we're going to move on to HD 1724 HD1 relating to the Hawaii Housing and Finance and Development Corporation.
- Jenna Takenouchi
Legislator
Yes, I say it came in twice. Thank you. Office of Planning and Sustainable Development in Support.
- Jenna Takenouchi
Legislator
Thank you. That's everybody who indicated they would be joining us. Additional testimony and support from the from DBEDT as well well as five organizations. Is there anybody else in the room wishing to testify? Anybody on ZOOM
- Chris Todd
Legislator
Members? Any questions on this measure? If not, Moving on to HB 1725 HD1 relating to building codes,
- Jenna Takenouchi
Legislator
we have the Office of Planning and Sustainable Development in support.
- Jenna Takenouchi
Legislator
thank you. International Code Council in opposition On Zoom.
- Bryan Imai
Person
Thank you Chair, Vice Chair Members of the Committee I 'm Bryan Imai with the International Code Council.
- Bryan Imai
Person
While we largely stand on our written testimony in opposition to the bill's language that would extend the state's building code adoption cycle from three years to six years, I did want to highlight last year's resolution requesting that the Governor, the State building Code Council and others develop a strategy to adopt updated building codes.
- Bryan Imai
Person
That strategy is currently underway and in process and includes other measures that would provide paid staff for the council for the first time. So we urge the Legislature to allow that process to play out instead of advancing a Bill that would guarantee that the state remains years behind on adopting modern building codes.
- Jenna Takenouchi
Legislator
Thank you. Pacific Resource Partnership in support. Not present plumbers and fitters local 675 in opposition not present BIA Hawaii in support ... Thank you. Grassroots Institute of Hawaii in support not present the National Electrical Manufacturers association in opposition on Zoom.
- Chris Bresee
Person
Good afternoon Chair, Vice Chairs and Members of the Committee. NEMA stands by our written testimony but do want to note we strongly support continuing with the triennial building code cycle and not moving to a six year adoption cycle.
- Chris Bresee
Person
Would also like to echo the International Code Council's comments about keeping up to date on modern building code adoption, but we do strongly oppose this legislation as currently drafted. Thank you.
- Unidentified Speaker
Person
Aloha Chair Vice Chair Members of the Committee Happy Aloha Friday and for staying late on a Friday afternoon. I'm sure you're as excited to go home and enjoy your weekend as I am, so I'll try to keep this brief. You do have our written testimony in strong support.
- Unidentified Speaker
Person
Holomua Local nonprofit founded to advocate for policies to keep local working families in Hawaii by making sure they can afford to stay here. We all know the cost of housing in Hawaii is extreme, some of the highest in the nation and part of the reason is that is due to the delays and permitting processes.
- Unidentified Speaker
Person
Despite wonderful efforts by the various permitting departments, they are often backlogged, which then can lead to delays in construction which ultimately that cost is passed down to our home buyers and to our renters as well.
- Unidentified Speaker
Person
Moving the code cycle to a six year cycle to allow for a rotating cycle will give time for the state building code for our various developers and the folks that are a part of the building process to get up to date with the codes to move things through permitting at a reasonable time while also maintaining important safety standards and thus allow permits to get out and free up the permitting that is happening at our permitting departments.
- Unidentified Speaker
Person
Additionally, one thing I think is really interesting about some of the concerns brought up related to issues of safety would be that it's too often now that a lot of folks go ahead and do unpermitted permitting on their homes because of how long it takes to get a permit through the permitting process.
- Unidentified Speaker
Person
That is not a safe process within itself. If we can free up the capacity of DPP and other permitting departments. DPP has come out and said they are in support of this measure, that it would allow actual permitting to happen and be reviewed appropriately and to keep folks from doing unpermitted building on their homes.
- Jenna Takenouchi
Legislator
Thank you. NAIOP Hawaii Chapter in support. Thank you. Sierra Club of Hawaii in opposition on zoom.
- Wayne Tanaka
Person
Good afternoon Chair, Vice Chair Members of the committee. Wayne Tanaka here with Sierra Club of Hawaii. You know, we are in opposition to this measure, but specifically because of the provisions in Section 5, the code skipping provisions. You know, like, you know, I think the doing code skipping now is kind of jumping ahead.
- Wayne Tanaka
Person
Like we, you know, it's clear that the permitting departments are struggling with a number of other issues including staffing, retention and recruitment as well as training.
- Wayne Tanaka
Person
So you know, just deciding that, well, any real evidence that we should skip this code cycle and some other fix those problems, you know, I think that's, that's just only going to compromise the safety of future tenants of buildings that are built with out of date codes as well as increase their costs over time.
- Wayne Tanaka
Person
Because all of our codes are actually intended to increase things like energy efficiency which reduces, you know, your long term costs. But happy to answer any questions and thank you for your time.
- Gina Thielen
Person
Chair, Vice Chair, Members of the Committee. My name is Gina Thielen. I'm here in support. I'm a licensed General contractor, have been for 30 years.
- Gina Thielen
Person
In addition to that, I serve as a volunteer on the Building Board of Appeals for the City and County of Honolulu and the Vice President of the Chair of the State Habitat for Humanity Association as well as the chair of the Building Codes Committee for BIA Hawaii.
- Gina Thielen
Person
Most of my work focuses on the city and county's Bill seven affordable rentals projects. And I can tell you from firsthand experience that building codes have become very problematic for affordable housing. One of the greatest areas of concern is the pace of change.
- Gina Thielen
Person
And I want to emphasize that the three year code cycle is not dictated by any level of government. It's not federal, it's not state. It is dictated by the entities that write the codes and sell the codes. Entities that are profiting hundreds of millions of dollars.
- Gina Thielen
Person
I also want to emphasize that the original language in the Bill in the act that created the State Building Code Council and the state code refers specifically to adopting codes on a staggered basis. And I want to emphasize that what this Bill does doesn't just simply change to a six year code cycle.
- Gina Thielen
Person
Our current building codes are actually made up of seven different codes, four of which are written by the ICC and three of which are written by different entities. What we're talking about doing is looking at these codes on a staggered basis so that four would be done in one cycle and the other three in the other cycle.
- Gina Thielen
Person
This is going to allow a greater period of stability with each code as well as a greater deal of scrutiny for local amendments. With that, I'd like to thank you for your time and be available for any questions.
- Jenna Takenouchi
Legislator
Thank you. Members. That's everybody who indicated they would be joining us today. Please also note testimony and support from Mayor Kawakami from the county of Kauai and the City and County of Honolulu Department of Planning permitting, as well as 10 organizations and 79 individuals.
- Jenna Takenouchi
Legislator
Testimony and opposition from seven other organizations and 18 individuals as well as one organization providing comments. Is there anybody else in the room wishing to testify? Anybody on ZOOM
- Chris Todd
Legislator
Members questions? Yeah. Yes. You look a little excited. Go for it.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
Thanks. Position request aside, I've been trying to crack this nap for a while now and understand the code adoption cycle. Whether it's our base codes, like our IDC, IRC, ICC, all of this, but also our electrical, plumbing and fire codes.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
My biggest heartburn absolutely in support of this, but nobody has been able to answer this question and it you cannot, maybe you can write me the right answer.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
Under the Stafford Act, which is how we collect reimbursement funds in the event of an emergency or FEMA dollars, it's very clear under 44 CFR that replacement value is based on the adopted code cycle.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
And my concern is if we're adopting every six years, are we losing out on potential reimbursement money in the event of a natural disaster?
- Unidentified Speaker
Person
I think that's a good point and I don't have the exact answer for you now, but I can get back to you on that. Yeah. Any other questions? No. Thank you.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
Gina seems to wipe up the answer and I absolutely agree. I think there was a time when they were supposed to be updated, kind of stepping in, right a paced code with our other codes and tiptoeing back and forth.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
Any idea on how this might impact our ability to recoup federal dollars if we don't adopt them in a timely cycle?
- Gina Thielen
Person
Thank you for the question. And actually yes, I do know the answer to that question, not because I know it personally myself firsthand, but we reached out to Congressman Ed Case's office and receive verification in writing that there's absolutely no link between building codes and FEMA's reimbursements. In the case of a natural emergency.
- Gina Thielen
Person
The only part of FEMA funding that is linked to building codes is what's called a BRIC grant, Building resilient infrastructure communities. And those BRIC grants include a scoring system as to whether or not you qualify for a grant. And 1 point on the scoring system is whether or not you've adopted the most current code.
- Gina Thielen
Person
However, FEMA considers either of the two most current publicized model codes to be the current code. So being on a six year cycle would not inhibit in any way access to BRIC grants. And regardless of what cycle we're on, it would not impact access to federal reimbursement. Event of a disaster.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
and then specifically the Stanford act under 44 CFR
- Susan Lokelani Keohokapu-Lee Loy
Legislator
Can I have you do a bit of homework and write me. Thank you so much. Thank you.
- Daisy Hartsfield
Legislator
Sure, I do have. I have a question. Sure. And thank you. So I'm new to trying to crack this nut, but I want to try and help figure this out as well.
- Daisy Hartsfield
Legislator
So you know, I went through the testimony and a lot of it has to do with Section five and the cycles. And so I, I'm hoping you can explain to me and perhaps some other Members about the staggered codes.
- Daisy Hartsfield
Legislator
And if we were to replace the six year cycle with something else, are there any suggestions with what to replace it with?
- Gina Thielen
Person
So unfortunately I spent a lot of time looking at building codes not because I like the subject, but because it sort of becomes something that I've had to take on. What I can tell you is that I believe the staggered adoption is the best system because codes are designed to work together.
- Gina Thielen
Person
And what I mean by that is that the ICC testified earlier publishes four of our separate code books. Within each of those codes there's interlinking references. So for example, if you try to cherry pick which codes are on a six year cycle and which are on a three year cycle, it really won't work.
- Gina Thielen
Person
And because they publish their codes Every three years, it's really three or six because we start with their codes which are called a model code and work on local amendments from there.
- Gina Thielen
Person
I do think that hopefully over time as enough of states begin to adopt measures like this that these code writing bodies will get the message and back off to a more manageable time frame and which point we don't have to skip codes.
- Gina Thielen
Person
I don't know if that answers your question, but that's sort of the best I could do.
- Daisy Hartsfield
Legislator
I'm not sure if it answered it, but it did provide helpful information. So thank you. Thank you Members.
- Chris Todd
Legislator
Additional questions no seeing none. We're going to move on to the next item which is going to be HB 1727 HD1 relating to the rental housing revolving fund.
- Jenna Takenouchi
Legislator
HHFDC in support. Thank you. Catholic Charities Hawaii with comments.
- Betty Larson
Person
Good afternoon Chair, Vice chair, Members of the Committee, I'm Betty Lou Larson with Catholic Charities Hawaii and we're here to present comments. We're not opposed to work for self. We know that's a need. We support that need.
- Betty Larson
Person
What we want to caution the Committee and the Legislature is the impact it might have on the very low income housing which is called low income housing tax credit housing which addresses people at basically 60% AMI or below but can go up to 80% when they balance things.
- Betty Larson
Person
So it can go up to families at 80% AMI or below. This is what the rental housing revolving Fund started with in 1993 I believe and it's created thousands of units. It really is the lifeblood of rental housing for that low income and even Ellis population group that are really at risk of homelessness.
- Betty Larson
Person
I mean many of them, as we know people move out of homelessness and almost an equal number fall in. These are the families who are at risk who really need affordable housing. So we just want to express that caution that there's a balance.
- Betty Larson
Person
But as you're looking at this bill and what's going to happen with, you know, focusing on workforce housing, don't forget that, you know there are 17,000 units according to the latest housing plan needed for those at incomes of 30%. I mean incomes of $30,000 annually or below.
- Betty Larson
Person
So it really is a big population, a big need and we just asked for a balance and to review that. As you're looking at, since it's finance, you're looking at the overall budget. How do we beat both needs and balance both needs for the people in our state? Thank you very much for hearing us.
- Jenna Takenouchi
Legislator
Thank you. That's everybody who indicated they would be joining US today. Members also testimony and support from DBED as well as two organizations. Is anybody else in the room wishing to Testify? Anybody on Zoom?
- Chris Todd
Legislator
Any questions on this measure? Singnan HB 1740 HD1 relating to the Hawaii Housing Finance and Development Corporation, HHFCC and support.
- Jenna Takenouchi
Legislator
Thank you. Hola. Collaborative in support. Thank you. That's everyone who indicated they'd be joining us. Members, additional testimony in support from five organizations and five individuals. Anybody else in the room wishing to testify? Anybody on ZOOM
- Chris Todd
Legislator
Members questions? We're going to move on to HB 1756 HD1 relating to the Individual Housing
- Jenna Takenouchi
Legislator
Account program HHFDC in support. Thank you. Department of Taxation with comments. Thank you. Tax foundation of Hawaii with comments on Zoom.
- Tom Yamachika
Person
Thank you. Chair, Vice Chair, Members of the Committee, Tom Yamachika from Tax Foundation. We're just concerned about the blanks in the bill and we'll stand up in comments other than that.
- Jesse Wilson
Person
Oh, hello. Hi, I'm Jesse. I've never testified before so I don't really know what I'm doing. But I do want to support Measure HB 1756.
- Jesse Wilson
Person
I help folks make better financial decisions and I think this is one way that a lot of young folks, especially young professionals, can get on their way to possibly overcoming the very daunting idea of being able to own home own a home in Hawaii.
- Jesse Wilson
Person
I'm born and raised here and I really am passionate about helping folks this area. And I think while the IHA will not necessarily solve every everybody's problem, it will be another tool in the toolkit to help on the multi front battle of purchasing a home in Hawaii for locals.
- Jesse Wilson
Person
I also think it helps to keep keep locals here and build up a tax base for the future. Thank you for your time. I also submit a written testimony.
- Jenna Takenouchi
Legislator
Okay, thank you. That's everybody who indicated they'd be joining us today. Additional testimony and support from the Office of Hawaiian Affairs, three organizations and six individuals. Anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Any questions on this measure? Seeing none. We're going to move on to HB 1842 HD 2, relating to government.
- Jenna Takenouchi
Legislator
Thank you. That's everybody who indicated they would be joining us today. Members, also testimony in support from the Department of Accounting and General Services, and comments from the Mayor's Office of the City and County of Honolulu, and one organization. Is there anybody else in the room wishing to testify? Anybody on Zoom?
- Unidentified Speaker
Person
So as written, the original bill exempted the Ali'i Tower from 171-2, which is the public lands definition. We are consulting with the Attorney General's Office, but we believe that there is a potential that we may not have jurisdiction over it or management authority over it.
- Unidentified Speaker
Person
The Ali'i Tower. So you're asking us to give up Westridge, which is our fourth highest generating property, for something that we may not be able to collect revenues on, so it would be a loss to the SLDF and it would affect, you know, the operating budget of not only our division, but it would affect other programs and other divisions that we plan.
- Kyle Yamashita
Legislator
Okay. And you understand that there's a bigger picture there as far as what's benefit to the state as far as leasable properties that we're currently leasing outside?
- Kyle Yamashita
Legislator
You know, when we did the analysis prior, there was what we're currently paying in lease rent for all these properties in urban Honolulu, which is about 300,000 square feet, which is what Ali'i Place is. Lease rent could almost pay for debt service, right? So there's a benefit to the state require this.
- Kyle Yamashita
Legislator
Now, what bothers me about your opposition is--and I understand that you guys are in a silo-thinking about, you know, your revenue and this from your division and things like that, but DLNR in general has always been-- when it comes to environmental issues and all this kind, you know, what's best for a keiki in the long run and all this kind of different stuff, but this bill is specifically looking at, you know, what's in the best interest of the state long-term and your view is very narrow.
- Unidentified Speaker
Person
Well, I understand what you're saying, Representative Yamashita.
- Kyle Yamashita
Legislator
Yeah, and you understand we can-- you know, your special funds-- we can look at your special funds and do whatever we want with it.
- Unidentified Speaker
Person
Okay. I mean, that is your prerogative and I'm not going to argue with you--
- Kyle Yamashita
Legislator
So in the long run, we can help you if there's a short call or anything like that. This is a bigger picture.
- Unidentified Speaker
Person
Okay. I mean, I'm not-- we stand on our testimony. It is what it is for our department and how we function. I mean, our SLDF, I understand it is a bigger picture, and I'm not-- like I said, I'm not going to argue with you.
- Kyle Yamashita
Legislator
DLNR in general has always testified before this committee on the bigger picture as far as any other division.
- Unidentified Speaker
Person
Correct. I think our issue is is that we just have a lot of unknowns with it. We wish that people would--you know, I think when the original bill came forward, we asked for information from the city so we could understand and so we could--
- Unidentified Speaker
Person
No, I know, but-- right? To understand what the city was looking at in terms of what they pay, all of that, so that we could better understand what it was that was a trade-off and whatnot. We have no information on that, and I think that's just the problem is the lack of information.
- Unidentified Speaker
Person
I believe that-- I believe that the past administration has. I'm not sure. I mean, I stepped into this role as is, right? So please bear with me. I am trying my best right now, but I do understand your concerns.
- Unidentified Speaker
Person
I'm not-- like I said, I get the bigger picture, but I also need to understand all the facts at hand before I can come up with something that's reasonable, that makes sense for everyone. I mean, I agree with the city's testimony in which negotiations between the state and the city in that sense would be probably more palatable for everyone.
- Kyle Yamashita
Legislator
Did you try and do an analysis of what we paying in lease right now? That's for all the different facilities statewide, and then if we acquire the building, and what kind of benefits?
- Kyle Yamashita
Legislator
Okay. Maybe some kind of homework like that should be done also. You know, you're kind of the Land Division and things like that, so I mean, there is some crossover, some of that network, and I suggest that some of that work be done.
- Chris Todd
Legislator
Thank you Members. Additional questions Seeing none, we're going to move on to HB 1868 HD1 relating to housing.
- Jenna Takenouchi
Legislator
HHFDC with comments. Thank you Hawaii Public Housing Authority and support. Thank you City County of Honolulu Department of Housing and Land Management in support not present. Catholic Charities Hawaii with comments again Chair, Vice Chair and Members Committee.
- Betty Larson
Person
I'm Betty Lou Larson with Cathy Chair SOE. We have comments on this bill. We feel that HHFDC already has expertise, ability and they are working with the Legislature on how to revise in the most effective way the GAP.
- Betty Larson
Person
What we would like to suggest that we keep the QAP open to the public instead of what this Bill says is to invite relevant stakeholders, to only invite relevant stakeholders as recommended by the Members of the working group. We feel that really these meetings there are a lot of interested parties.
- Betty Larson
Person
There's Developing disabled, there's homeless, there's people who naturally want to create more housing in many different areas. So this is really a public process, which actually is what's required by the federal rules. They want a robust public input into the QAP.
- Betty Larson
Person
So we would like to focus on that and make sure that it is a very wide open process that groups are interested, who are interested, can have input. And we feel that HHCFTC has that expertise. They have invited various groups and various groups, community groups have worked with them in the past.
- Betty Larson
Person
So that's just our comment to keep that process very open so that everyone can evaluate.
- Betty Larson
Person
We like to, I think the group would like to sit down with the Members listed in this field to also discuss what revisions they would see and what the impacts or the, you know, efficiencies would be that could be developed through those, through those, through their suggestions along with consideration or discussions with the public.
- Jenna Takenouchi
Legislator
Thank you. That's all the written testimony we received on this measure. Is there anybody else in the room wishing to testimony five? Anybody on Zoom?
- Chris Todd
Legislator
Additional questions on 1868? Seeing none, we're going to move on to the next item. HB 1920 HD1 relating to the Low Income Housing Tax Credit.
- Tom Yamachika
Person
Thank you, Chair, Vice Chair, Members of the Committee, Tom Yamachika from the Tax Foundation. We will stand in testimony and be standby for questions.
- Jenna Takenouchi
Legislator
Thank you. Hawaii Chapter in support. Thank you. Sugar Creek. Sugar Creek Capital in support on zoom.
- Phil Gilman
Person
Good afternoon. Thank you, Chairman, Vice chair, Members of the Committee, my name is Phil Gilman. I represent Sugar Creek Capital, an affordable housing investor. We stand by our testimony in support of House Bill 1920 and I'd like to briefly highlight a few points.
- Phil Gilman
Person
The Hawaii Housing Tax Credit is a long standing, proven tool to boost affordable housing supply and continuing to foster a robust, diverse market of investors in this program is good policy for Hawaii.
- Phil Gilman
Person
This Bill strengthens the demand for these Hawaii housing credits in the investor market, which in turn will boost investment directly into these developments and help lead to more homes being built.
- Phil Gilman
Person
We've also submitted a recommended amendment based upon the updated effective date recommended by dotax with the goal of clarifying and simplifying what they would specifically need to track. Thank you and I'm happy to answer any questions.
- Jenna Takenouchi
Legislator
Thank you and apologies. Department of Taxation with comments. Department stands on disprinting comments. Thank you. Thank you. That's everybody who indicated they'd be joining us today. Members Additional support from three other organizations. Anybody else on the room wishing to testify? Anybody on ZOOM
- Chris Todd
Legislator
Members, Any questions for this measure? Seeing none, we're going to move on to the next item on our agenda. HB2270HD1 relating to the Down Payment Loan Assistance Program.
- Jenna Takenouchi
Legislator
Thank you. Office of Planning and Sustainable Development in support. Thank you. That's everyone indicating they join us today. Also testimony and support from DBED as well as two organizations and one individual. Anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Any questions on this measure? No? HB2385 HD2 relating to housing.
- Tom Yamachika
Person
Thank you, Chair, Vice Chair, members of the committee, Tom Yamachika from Tax Foundation. The bill in its current form allows only HHFDC, not the counties, to approve and certify get exemptions for projects developed under a county assistance program approved by HHFDC.
- Tom Yamachika
Person
We are just wondering why the county should not be able to certify the exemptions, given that it's a county program and HHFDC has approved it already. Thank you very much. I'll be happy to answer any questions.
- Jenna Takenouchi
Legislator
Thank you. That's everyone indicating they join us today. Additional testimony and support from three organizations and one individual. Anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Members, questions on 2385? No, seeing none. We're going to move on to HB2444 HD2 relating to taxation.
- Tom Yamachika
Person
Thank you, Chair, Vice Chair, Members of the Committee. Tom Yamachika from Tax Foundation. We are concerned about the complexity of the current system that, that has a patchwork of different credits and incentives for, for people who probably can't understand the tax forms in the first place. So, we urge simplification of this area.
- Jenna Takenouchi
Legislator
Thank you. Hawaii Children's Action Network Speaks, in support on Zoom.
- Nicole Wu
Person
Aloha, Chair, Vice Chair, Members of the Committee. I'm Nicole Wu from Hawaii Children's Action Network Speaks. We all know that housing is basically unaffordable for most working families here in Hawaii. This renter's credit was created back in 1977 to provide some tax relief to renters. In 1981, the credit was set at $50.
- Nicole Wu
Person
And just adjusting for inflation, it's a little bit more than $170 now. So, the current Bill says that it would increase the amount of the tax credit from 50 to 170, which would get us up to where it was for inflation. But another restriction on this tax credit is the income eligibility cutoff.
- Nicole Wu
Person
In 1989, that level was set at $30,000 a year. At that time, that was just about at the median household income, a little bit above. So, about half of Hawaii's households made less than 30,000 and about half made more. If we adjust that income cutoff for inflation, it would be more than $77,000 a year now.
- Nicole Wu
Person
With that eligibility cutoff being stuck at 30,000, fewer and fewer Hawaii families are able to claim this credit. With our minimum wage now at $16 an hour, that's about $33,000 a year. So, even a minimum wage worker at full time no longer qualifies for this tax credit.
- Nicole Wu
Person
You'll see in my testimony, which is page five in the PDF, I have a chart from Department of Taxation that shows how many fewer and fewer Hawaii households are claiming this credit because of that income eligibility cutoff.
- Nicole Wu
Person
So, I think to reflect the intent of the Legislature to create this tax credit to provide some relief to renters, we also need to move that income eligibility cut off to a higher level. So, we suggest amendments to do that. But either way, we support this Bill and we thank Chair for hearing this Bill.
- Betty Larson
Person
Thank you, Chair, Vice Chair, Members, and thank you for hearing us. We support this Bill. We think it's a very important Bill. We really appreciate that it does look at inflation and raises the individual assessment or exemption or tax credit, I'm sorry, to $170.
- Betty Larson
Person
But as just mentioned, it really doesn't meet the need of so many of our Ellis families, even low income workers who are working full time. And so, we do ask you to please consider raising that cap on the income to $77,000. In fact, recent report said that for the Ellis families of survival budget is $99,000, over $99,000.
- Betty Larson
Person
So, this would give many of the Ellis families a break and who have families who are working, who have many children or even one child. So, we thank you for listening to this and we hope you'll consider this amendment also.
- Jenna Takenouchi
Legislator
Thank you. That's everybody indicating they would be with us this afternoon. Additional testimony in support from one individual. Is there anybody else in the room wishing to testify? Anybody on Zoom?
- Shirley Ann Templo
Legislator
Thank you, Chair. First off, thank you for hearing this. Bill. Quick question for DoTax, please.
- Shirley Ann Templo
Legislator
Thank you Director for being here and thank you for answering my questions offline. Just for the Committee Members and the public. In regards to the low income renters tax credit, could you please provide an updated dollar amount that reflects the inflation from the laws initial implementation to present. Okay.
- Gary Suganuma
Person
As noted in the Tax Foundation of Hawaii's testimony, this, this credit was established back in 1997 at $20 per exemption. It was raised in 1981 to $50. So taking $50 back in 1981 and plugging it into the US Bureau of Labor Statistics CPI inflation calculator, that $50 is now worth approximately $187.
- Shirley Ann Templo
Legislator
Okay, so the Bill states right now 100 and seventy, but the actual inflation number is 187.
- Gary Suganuma
Person
Well, based on the US Bureau of Labor Statistics calculator and that's how we got the number. So. Okay. There may be other sources that come up with a slightly different number.
- Shirley Ann Templo
Legislator
Okay, thank you Director. No further questions. Thank you, Chair.
- Chris Todd
Legislator
Thank you. Anything else? Now we're going to move on to HB2476HD2 proposing amendments to Article 7, Sections 12 and 13 of the Hawaii State Constitution.
- Jenna Takenouchi
Legislator
Thank you Hawaii Public Housing Authority in support. Thank you Office of Planning and Sustainable Development in support. Thank you Pacific Resource Partnership in support.
- Andrew Pereira
Person
We stand on our written testimony. Just wanted to add really quickly to our testimony. Chair and Vice Chair Members of the Committee, Andrew Pereira with Pacific Resource Partnership. This type of revenue capture financing has been used widely across the country. And I just wanted to highlight three recent projects on the continent that's using this type of financing.
- Andrew Pereira
Person
The Federal Way Downtown Revitalization project in Washington State. This is a value capture project that will add 400 to $800 million in construction value along with thousands of residential units. There's the Viva White Oak development in Montgomery County, Maryland, adding another $2.8 billion of value to that neighborhood and 5,000 new homes.
- Andrew Pereira
Person
And finally the Boardwalk project in Oklahoma City, Oklahoma. This is valued at 700 million to $2.5 billion mixed use project that will add up to 1600 units. So this type of revenue capture financing is a tool that's been missing for a long time here in Hawaii. And urge the community Committee to pass this measure forward. Thank you,
- Jenna Takenouchi
Legislator
Navian Hawaii in support. Thank you. The Hawaii Realtors in support.
- Tom Yamachika
Person
Thank you, Chair. Vice Chair. Members of the Committee, Tom Yamachika for Tax Foundation. Our primary concern is excluding these types of bonds from the constitutional debt limit. We think there, there was a reason why our framers put the debt limit in the Constitution and ignoring it. I mean, we're effectively ignoring it for this type of debt instrument.
- Jenna Takenouchi
Legislator
Thank you. That's everyone who indicated they would be joining us in person. Members, additional testimony in support from HCDA, eight other organizations and two individuals, as well as the city and county of Honolulu Mayor's office providing comments. Is there anybody else in the room wishing to testify?
- Jenna Takenouchi
Legislator
Yes, we got your testimony. Thank you. Anybody else in the room? Anybody on Zoom?
- Chris Todd
Legislator
Thank you. Do we have questions? Members on HB2476? Yeah, go ahead.
- Kyle Yamashita
Legislator
Thank you. Maybe Pacific Resource. You know, it clearly states that the revenue has to be solely from the increase. Right. So similar to when the Bears were before us, I asked how is this going to work functionally? So the only thing that I could think of that would make something like this work because it's primarily for infrastructure.
- Kyle Yamashita
Legislator
So sewer, water, those are all the upfront costs. So we're going to float the bond and then the revenue has to come solely from the increase. Then somebody has to front the money, right?
- Andrew Pereira
Person
So the bond riders, the increment bond would go to the bond writers, the way I understand it, and they would assess how much of that increment would actually be captured. And usually the bonds are written, you know, under that assessment, that prognostication of how much value would be captured.
- Andrew Pereira
Person
For example, Aloha Stadium, the 98 acres at Aloha Stadium right now capture zero in property taxes. And so that incremental increase in value is that parcel is built out. That's what would pay back the increment bonds. And some municipalities have gotten very.
- Andrew Pereira
Person
So the revenue, you float the bond initially, right and then so the bond underwriters would capitalize that as essentially like a revenue bond. No, but it.
- Kyle Yamashita
Legislator
Because there's no improvements yet, there's no revenue. Right. So where's the revenue from?
- Andrew Pereira
Person
So it's up to the bond writers to raise that capital the way I understand it. I'm not an expert on how these bonds are.
- Kyle Yamashita
Legislator
Like I said, the only way that I see it penciling is somebody has to fund the money. So it's got to be the county from the private developer from somebody. So, you know, and there's a second Bill rolling it out. That's why I'm asking specific. I want to understand what the rollout is.
- Kyle Yamashita
Legislator
And even, you know, in the AGs testimony in the second Bill. Sorry, Chairman, but, right, it had concerns about. It's not clear on how this thing is going to roll out.
- Andrew Pereira
Person
I think the concern is not necessarily who's going to underwrite the bond, but I think it was more testimony of like going to the bond council and making sure that.
- Kyle Yamashita
Legislator
I think that part is. Can be all worked out. I just think at the end of the day is who's going to front the money and how is it who's going to pay debt service on the front end? Because there's no revenue until you actually have.
- Andrew Pereira
Person
Right. So you front the bond first and then as the revenue starts coming in, then you pay off the bond. You know, that could be years. Right. So it could be a few years.
- Andrew Pereira
Person
But the good thing about Hawaii is that our value is so robust and our value increases, you know, substantially compared to other areas on the continent, for example, that I think we're ripe for this type of value capture financing. It's being done in 48 other states.
- Andrew Pereira
Person
It's put in place billions of dollars of infrastructure and led to thousands, if not tens, tens of thousands of units being developed with this type of infrastructure. And PRP research, we talked directly to our home builders has shown that 30% of the cost of a home.
- Andrew Pereira
Person
So this is the price of the home that your constituents are paying. 30% of that price is because of infrastructure, because you're asking home builders to put that infrastructure in place.
- Andrew Pereira
Person
And the model of having home builders like Ho'opili put in a billion dollars of infrastructure and trying to get that value back over a period of decades, that model is dead. So this type of value capture financing, if you want these kind of master plan communities, this is the way to do it.
- Kyle Yamashita
Legislator
I understand philosophical, right. I think that's why I just believe it should just be paid for out of property taxes and it just spread over the masses.
- Andrew Pereira
Person
This is a great way, Representative, to grow the pie without increasing property taxes on the rest of the population.
- Kyle Yamashita
Legislator
But right in the Big Beautiful Bill, they increase the Salt deduction from 10,000 to 4,40,000. So by increasing property tax, now it's deductible. You know, so when you spread it over people, you can deduct all of them, all of those costs.
- Andrew Pereira
Person
But under my time under Mayor Caldwell, what I learned is that the way that we keep property taxes low in the city county Honolulu, is that you, you Grow the pie. Right. So you're adding new product and you're renovating old products.
- Andrew Pereira
Person
So by increasing the pie, you keep the property tax at 350 per thousand dollars of value. And this type of value capture financing allows you to separate a district that pays the bond off that increment increase without raising property taxes for the rest of the population.
- Kyle Yamashita
Legislator
Yeah, but spreading it over the masses, probably. I just believe it's a better way to go. So as far as policies, that was done during previous administrations, when the consent decree came down for honey and you guys decided to increase fees to pay for it. Right. Fees are not deductible on your federal income tax.
- Kyle Yamashita
Legislator
You guys did it on property. You could have deducted it. Right. So your policy doesn't match up with, you know, what is best, what is in the best interest of the people. And that's what I'm getting at, is that I don't know, if all these things line up.
- Kyle Yamashita
Legislator
You know, I'm all for coming up with different tools, but that in itself was a mistake.
- Andrew Pereira
Person
Well, I don't want to, you know. You know, relitigate the Caldwell Administration.
- Andrew Pereira
Person
But I do know, Representative, that with this type of value capture financing, you're not raising everybody else's property taxes. So this is not an increase in property taxes for all constituents, whatever the island they're on. This is a way to grow the pie. Have those bonds for the infrastructure paid back by the incremental increase of the value.
- Kyle Yamashita
Legislator
All stadium going to be housing project. There's 4400 units of housing going. So basically, if you're going to front the cost and you're going to spread it and you're going to delay debt service, right?
- Kyle Yamashita
Legislator
There's going to be an increasing cost on the back end, and then all that's going to be incurred by those housing projects, correct?
- Andrew Pereira
Person
No, I think the. I wouldn't agree with that. The property taxes being paid by the new housing units going into the NASD project property is what's going to go back to pay the bonds so that initial.
- Kyle Yamashita
Legislator
So those. Those properties will pay a higher increase in property taxes.
- Andrew Pereira
Person
No, they'll pay the. They'll pay the going rate of property taxes. Because right now, Aloha Stadium, with due respect, Representative, is collecting zero property taxes right now. Zero TAT taxes. Zero GET taxes.
- Andrew Pereira
Person
So when you get a development with 4400 housing units going in, paying the $3.50 per thousand dollars of value that's going to raise an enormous amount of property tax value. We estimate $14 million per year, as much as $14 million per year to the county. So some municipalities have gotten very creative.
- Andrew Pereira
Person
They take that incremental value and they pay. They use part of it to pay off the increment bond and then part of it goes to the General Fund. So this is really about growing the pie. It's really a commonsensical way to do this.
- Andrew Pereira
Person
It's going to go under the mandates of the city and county affordable housing plan, the regime.
- Kyle Yamashita
Legislator
I still think if you spread it, you could bring the affordability down versus just putting it on this project. And that's my concern.
- Andrew Pereira
Person
Well, as I mentioned, representative, 30% of the cost of infrastructure is so a $600,000 condo or a starter home, $180,000 of that is you're paying for infrastructure.
- Kyle Yamashita
Legislator
Right. And I do believe that infrastructure needs to be paid for by property taxes. So I agree with that part, but I just believe it should be spread over the masses.
- Andrew Pereira
Person
Well, this is a way to spread it over the people that are actually going to grow that area. So the people that are moving into that area, they're going to be paying property taxes, whereas you're going to make
- Kyle Yamashita
Legislator
it affordable or you're going to spread it just among whom need them. Sure, sure, sure. Anyway. Okay. Now. Okay. So in General, I think having another tool is fine. Right. But I just don't know on this project exactly how it's going to work.
- Andrew Pereira
Person
It's actually, it'll work great. Representative, for master plan communities, you can actually talk to Tracy Tanaki at DR Horton and there's master plan communities that have already been approved throughout the state and the one thing holding them back is infrastructure.
- Andrew Pereira
Person
So if they have this kind of financing tool or the counties go in, designate a revenue capture district and then pay for that infrastructure and then as that development grows out, pay back those bonds. I think it's a, it's a common sense approach.
- Kyle Yamashita
Legislator
So just do this for the Committee, then give me a perform on the whole thing. Right. How that's going to pencil and then we can make, you know, an educated or good decision. You know, I think we should get have options going forward, but I just want to see how it's going to.
- Amy Perruso
Legislator
Question for you. So I mean this is essentially a TIFF approach, right?
- Amy Perruso
Legislator
So I share my colleagues concerns and also the preference for publicly invested infrastructure, you know, widespread investment that we're investing in the whole thing as a whole together. And I understand that that's not working. I am not convinced that this is the right approach. I see why you are advocating for it.
- Amy Perruso
Legislator
But my question is more about who bears the risk should this fail or falter because it has in other jurisdictions. You mentioned that it's being used in all 40 in 48 other states. But also there have been problems.
- Amy Perruso
Legislator
So I guess with this particular approach from your lens and maybe this is a question better posed to the Tax foundation or even dotax, which entity or which level of government which set of investors bears the real risk should this kind of approach fail?
- Andrew Pereira
Person
Our research shows that this is essentially treated as like a revenue bond. So some of the risk is to the purchasers of the bonds themselves and
- Andrew Pereira
Person
That would be actually people purchasing the bond to get a return on their money. But what some municipalities have done when projects run into trouble is they there might be some calculations for the debt rating of the city and county or the municipality.
- Andrew Pereira
Person
So sometimes the city or the municipality steps in and works out a solution to keep the project going and to not affect the the bond rating. However, as I mentioned before Representative Perruso, this has been being done in 48 states, in some states for decades putting into place billions of dollars of infrastructure.
- Andrew Pereira
Person
And if one thing Hawaii has going for us is our high value and a high property tax, sorry, high property values. And so if there's a poster child for this type of revenue capture financing, I think Hawaii would be it because you know our, our values hardly ever go down drastically.
- Chris Todd
Legislator
Additional questions. Okay, seeing none. We're going to move on to the next item on our agenda which is HB2478A related measure 2478 HD1 relating to bonds.
- Jenna Takenouchi
Legislator
We have the Department of the Attorney General with comments.
- Ian Robertson
Person
Good afternoon Chair, Vice Chair Members. Ian Robertson, Deputy Attorney General. We've submitted testimony offering comments on this Bill, particularly expressing concerns over the sufficiency of the issuance process represented in section one that would add a section to Chapter 46.
- Jenna Takenouchi
Legislator
Office of Planning and Sustainable Development in support. Thank you HHFDC in support. Thank you, Hawaii Public Housing Authority in support. Thank you. Pacific Resource Partnership in support.
- Jenna Takenouchi
Legislator
Thank you, Navian Hawaii in support. Thank you. And Hawaii Realtors in support. Thank you. That's everyone indicated they would be joining us today.
- Jenna Takenouchi
Legislator
Members also testimony and support from DBEDT, the Stadium Authority in DBEDT, HCDA Council Member Bolasan from Kauai County and Council Member Hodgins from Maui County as well as six other organizations all in support. Anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Members questions on this measure? Okay, seeing none. We're going to move on to HB2515HD1 relating to workforce housing.
- Jenna Takenouchi
Legislator
HHFDC in support. Thank you. Hawaii Public Housing Authority in support. Thank you. Office of Planning and Sustainable Development in support. Thank you. Chamber of Commerce, Hawaii in support. Thank you. That's everybody who indicated they would be joining us today. Also, additional testimony and support from HCDA, three organizations, and two individuals.
- Jenna Takenouchi
Legislator
Anybody else in the room wishing to testify? Anybody on Zoom?
- Chris Todd
Legislator
Members, any questions on this measure? Yeah, I know I can always pass up. Okay, Next we have HB 2606 HD2 relating to off site construction.
- Jenna Takenouchi
Legislator
Thank you. Office of Planning and Sustainable Development in support.
- Unidentified Speaker
Person
- Jenna Takenouchi
Legislator
Thank you. Plumbers and Fitters Local 675 in support; not present. CARES in support on zoom; not present. Okay, members, additional - that's everyone who indicated they'd be joining us.
- Jenna Takenouchi
Legislator
Additional testimony and support from one organization and two individuals. Anybody else in the room wishing to testify? Anybody on Zoom?
- Susan Lokelani Keohokapu-Lee Loy
Legislator
Thank you. You know your letter noted the limitations on the type and size of oxide construction should be determined by the way. And then it goes on to say off site construction production requirements of our minimum number of units: curious how you guys got there.
- Unidentified Speaker
Person
I believe it's noted in the bill in Section 2 of the of the bill and our comments were that if you make the requirements restricted then it has an effect on the consequences of who it can be supplied from. So, that was our simple comments.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
I'm curious; for a typical house product that DHHL produces, what's the price range that for some of your. I know there's the lots and then home but then you have your turnkey right?
- Unidentified Speaker
Person
Correct. It varies because as you know we fund and provide the infrastructure and that varies from island to island according to their water sewer needs. And then the vertical construction is considered separate.
- Unidentified Speaker
Person
As you already know, right now our prices range anywhere from 400 to 700 thousand and we do see the prices increasing largely because of the cost of lumber and labor and other costs increasing everywhere.
- Unidentified Speaker
Person
But, we are doing our best to make sure that it is affordable and where our beneficiaries struggle to qualify for the loans we have other subsidy and loan programs for them. Perfect.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
I just, for the record, I picked 1200 square feet because of that math, that we are desperately trying to find housing for our beneficiaries who are at the 8,000 and 120% EMI. And the affordability when you're at that price range is not $700,000.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
And so the idea behind this was to try and identify that sweet spot of square footage that actually met the affordability. And then my other question is, you mentioned the minimum number of units to justify the investment of establishing a local based facility.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
Is it the goal for DHHL to possibly develop a factory to develop off site construction?
- Unidentified Speaker
Person
Currently, the department does not have any plan to create such a facility. We would be open to the potential of it if it could, as you mentioned, allow us to pencil out at a better price for our beneficiaries benefit.
- Unidentified Speaker
Person
But I think our comments were more so geared towards, like I mentioned, not restricting us so much that we are forced then to outsource and purchase from out of state. So, if there's ways in which we can support the local economy, we're open to.
- Susan Lokelani Keohokapu-Lee Loy
Legislator
Yeah. So to that point there's a number of members on the Is DHHL or someone from DHHL open to speak?
- Unidentified Speaker
Person
You are correct, we are not included. But we support the SPEED task force and if they in this body would be interested in having our chair or the chair's designee on the task force, we'd be open to it. Thank you. Mahalo.
- Chris Todd
Legislator
Anything else? If not, as announced earlier, you know the original plan was this would take a little bit longer. So, we weren't planning on doing decision making today. So, we'll stick to that since we've already announced. We'll be doing decision making at the end of our Monday 10am agenda.
- Chris Todd
Legislator
If you look over the system, we already have agendas for Monday and Tuesday up with a whole bunch of bills. But thank you all for being here and feel free to reach out over the weekend if something's popped up and need to, you know, talk it out. Any questions?
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Next bill discussion: March 2, 2026
Previous bill discussion: February 27, 2026
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Legislator