Senate Floor

Will the Senate please come to order?

Madam Clerk, please call the roll. [ROLL CALL]

24 present, one excused.

Thank you. The chair has read the journal of the preceding day and approves the same. Well, are there any introductions this morning? Senator Kanuha.

Thank you, mister president. Colleagues, I rise today to recognize Peter Hull on his retirement as chairman, president and CEO of Bank of Hawaii following an exceptional thirty three year career with the institution.

Since 2012 to 2010, his leadership has guided the bank to national recognition, including fifteen consecutive years on Forbes America's best banks list while advancing innovation, strengthening communities and investing in local talent.

A proud Honolulu native, mister Ho has been not only a respected business leader but a committed contributor to Hawaii's broader community. As he transitions, we extend our sincere mahalo for his decades of service and leadership.

Mister Ho, please rise so that this body may recognize all that you have done for the state.

Further introduction, Senator Inouye and then Senator DeCorte.

Thank you, mister president and I'm sorry that our Hilo High School girls water polo team has left to go to the other chamber. However, you did miss a lot of nice introduction and the songs that they had given was planned for all of you here to my colleagues as well.

So just to say that, the Hilo High School Vikings girls, the water polo team, they were the Big Island winners of the of the the contest that we had with water polo on the Big Island and including the BIIF schedule. They lost to last night to Kamehameha, unfortunately.

Let me say that at the final stage of the tournament on the Big Island, they had a record finally at ten zero but their last tournament, they went through three overtime to win the final and be here on Oahu and as I did want to, Mr. President, introduce them them solely, I will ask that their names that I have be entered into the journal, mister president.

When you submit them to the clerks who ordered.

I thank all of you, that you missed such a wonderful introduction. So when you see them walking around, please give them a nice aloha. Mahalo, mister president and colleagues.

Further introductions, Senator Rhodes? Oh, I'm sorry. Senator DeCorte, then Senator Rhodes.

Thank you, Senate president. Colleagues and members of the gallery, I would like to introduce my very hardworking staff. When I call your name, please stand to be recognized. I'm gonna call on Melodyne Miguel. She has is a graduate of the University of Hawaii.

She has her business degree. She came in with the intention of helping us with media, and we unpacked so much of her skills that she ended up digesting bills, really getting in there policy wise and I'm just so thankful to her.

So thank you very much, Mel. Next, I'm going to ask to stand, Kamohoy Sanchez. He's a Nanakuli boy graduate of Kamehameha High School, also graduate of his business degree. He also really has just drawn so passionately towards policy.

He has a very strong conviction to serve his community and do it in such a way that it advances our native Hawaiian population but just overall our 96792. Next, I'll ask Julina Feliciano to please stand. She is a proud mom of five. She has her children that are students at Nanakuli High School.

This is a woman that not only helps me in the office, she lives right down the street from me. So when I run out of rice, I'm calling Julina asking for a bag of rice. So she is a woman of many talents and I'm so thankful for her. Last but not least, I want to introduce Reggie Torres. Most of you guys know him as coach.

I was so blessed to have him in my office this year. This guy comes with an incredible resume, incredible background and to be honest, I was super intimidated with hiring him thinking, oh my god, I don't want to tell coach what to do, I almost feel kinda like, yeah.

Whatever you like to do, coach, yeah. That's fine, go ahead but he comes with skills having been the athletic director at Kamehameha Schools.

Then also, he led as head coach at Kahuku for judo, wrestling and football, who have all won state champs. So if everyone can give a round of applause to my amazing staff, we thank you.

Senator Rhodes?

Thank you, mister president. I have a number of people I'd like to introduce. First and foremost my wife, Cindy McMillan, please stand. Thank you.

Still my favorite constituent after almost thirty two years. I have a number of of current and former staff in the gallery, Ami O'Gata, legislative aide. Please stand when I call you and Sarah Thorn, committee clerk.

Polena Beltran, UH West Oahu intern. Raven Sevillea, session staff. Jessie Fague, who's been my committee attorney, a special shout out to her. She's stuck with me for fourteen years. I'm not sure how she has put up with me that long but I'm very grateful for all your hard work and everything you've done to help me be a successful legislator.

Also, I'd like to mention Emilio Borland, former committee clerk, Dayton Nagaji, a former session researcher and Chris Young, a former session attorney from the house. If you could welcome them all to the Senate. Mahalo.

Senator Elefante.

Thank you, mister president. Joining us in the gallery is also my hardworking staff. So when I call your name, if you could please stand to be recognized. I have my office manager who everyone knows as Auntie Jan Salcedo. If you could please stand.

We also have, my committee clerk, Taylor Sales. Then our session staff, Kayla Okamura and then joining them, is Karen Kawamoto from Representative Takayama's office from the lower house and Paul Woodson. Thank you, mister president.

Thank you. Further introductions? Senator Keohokalole?

The governor's here. Josh Green, everyone. I'd also like to introduce my really, really awesome and hardworking staff. Starting with my dedicated high school intern, Greg Cochero, with his mom, Hazel Cochero. My committee attorney, Sorry.

We'll do everybody and then we can applaud all at once please. Tyler Hee my excellent committee attorney. Elizabeth Matsumoto, assistant committee clerk. Bryn Jaffe, our researcher. Riley Jose, our awesome researcher in our main office.

Then up in the back, Jamie Weisberg, my unflappable committee clerk and Jules Pelehilani who's also been with me for all twelve years in office. Please give them a round of applause.

They're awesome and also really briefly, behind me I'm told the Hawaii Clean Elections Coalition is in the gallery and Daniel Wen my man across the street please rise and everyone supporting Clean Elections. Thank you so much.

Further introductions, Senator Dela Cruz?

Thank you, mister president. Joining us in the gallery this morning is a group of interns from the Department of Labor Industrial Relations Hele Imo program. If you can please stand and be recognized.

Helei Imua is a twelve week internship program for the state of Hawaii which the Senate helped establish. These interns are working in various state agencies, gaining work experience in public service.

They're here today with staff from the Department of Human Resources Development and can interns, also where is the DHARD staff that's here with them? Okay.

Let's give them a round of applause. Mister president, I'd like to request the names of the interns and the DHARD chaperones to be included into the Senate journal. Thank you.

When you get them to the clerks who ordered. Chair Dela Cruz, I am assuming that chair Moriwaki was doing labor when you created the program. I just want to commend you. This is of many great ideas, this is one of the best things that we have done.

Thank you and to the interns, we are grateful to have you and hope we are going to keep you in Hawaii. Further introductions? Senator Dela Cruz.

I would be remiss if we didn't point him out but I also want to acknowledge Will Cain, the governor's the trustee adviser.

Further introductions? Senator Chang.

Thank you, mister president. I see the chief justice of Hawaii, Vlad Devins, in the gallery. I also wanted to acknowledge the very, very hard work of our, office staff. I see our committee clerk, Casey Shoji and our legislative assistant, Zephany Smith Eisenstadt. Also, Ruben Sierra, our office manager.

We're working around the clock this year. So thank you on behalf of the state and on behalf of District 9.

Further introductions? Senator Lee.

Thank you, mister president. I'm very thankful and very grateful to have with us here in the gallery and have had with us all session our staff and I'd like to, specifically thank, Danielle Evangelista and Kula Kukonu and Keely Roldan who are all here with us. Please stand and be recognized.

I'll just say because this has been a new committee for me this year, water, land, culture and the arts, that having their expertise, with expertise in water and land as well as international affairs with Kula's work and culture and arts with Danielle has been invaluable.

With one exception, in the culture area, which is that Danielle has actually never seen Back to the Future and so all my jokes and references that I make just fall flat. Work in progress for next year but thank you, mister president.

Any further introductions, Senator Kanuha?

Thank you, mister president. I do see a member, which I will not not hesitate to call out, former member of the lower chamber, Daniel Holt. Please stand and be recognized.

Further introductions. Senator Fevella.

Mine will be quick. I just wanted to thank my two staff that I have left. One is a session, my office manager, community clerk and everything all the way around, Matthew and then I got my committee legislative aide, Carnation.

Give them my hand, guys.

Further introductions? If not, madam clerk.

House communication number 885 informs the Senate that House bill 1800 conference draft one passed final reading in the House. House communication numbers 886 and 887 inform the Senate that the House has reconsidered its action in disagreeing to the amendments made by the Senate to various bills.

House communication number 888 informs the Senate that various bills passed final reading in the House.

File.

Turning to page 38, advise and consent.

If there are no objections from the members, we will be taking advise and consent on consent.

Standing committee report numbers 3998 to 4010 on governor's messages for adoption.

Is there any discussion? If not, do we have Senator Elefante?

Thank you, mister president. Please register my no votes on page 41 for GM 636, GM 692 and on page 42 for GM 742, aye with reservations. Thank you.

So noted. Senator McKelvey?

Thank you. Just on 692, no vote. Thank you.

So ordered. We have no votes on SCR 4008 for senators away in the court as well. Senator Fukunaga, then Senator Gabbard.

Thank you, mister president. Please register my no vote on GM 692 and my vote with reservations on GM 636. Thank you.

So noted, Senator Gabbard, then Senator Ihara.

Yes, mister president. Please note my no vote on GM 636 and GM 692. Mahalo.

Senator Ihara.

Could I ask for a short recess?

No objection. Short recess.

Will the Senate please come back into order? We are on standing committee reports number 3998 to 4010. Any other votes to be recorded? Senator Rhoads, then Senator Inouye.

Thank you, Mr. President. Please record my no vote on GM 692 as well. Mahalo.

So noted. Senator Inouye.

Thank you, Mr. President. I rise in support of the nominee for GM 742 on John Komeiji. I had the opportunity with, with John Komeiji to address and discuss the urgent challenges facing the Maunakea Stewardship And Oversight Authority, also known as MKSOA, and we're going on its third year.

We were both in agreement the authority must secure experience, management, and staff, specifically in the areas of planning and finance, to meet the critical deadlines established in Act 255 and House Bill 2592, Conference Draft 1, which passed the legislature the other day and on its way to the governor.

Mind you, the passing of HB 2592, Conference Draft 1 had to be introduced as a vehicle for Maunakea authority to lean on for direction. The MKSOA still faces the daunting task of drafting administrative rules and finalizing a long term management plan before it assumes full governance.

To succeed, the authority requires personnel who deeply understand Maunakea's complexities, ensuring that all diverse stakeholders maintain their access and rights on the Mauna. Under HB 2592's Conference Draft 1, we have extended the authority's deadline to December 1, 2021. There were also opposition why we're adding another of the year.

It is imperative they meet their goals by this date or management will revert to the current oversight structure. I express my gratitude specifically to my colleague, Senator Dela Cruz, Chair of the Ways and Means Committee. Senator Rhoads.

I'll miss you dearly. Chair of the Judiciary Committee. and Senator Lee, Chair of Water and Land Committee for the passage of HB 2592 on conference draft. I'd like to also thank Representative Hashem and the House leadership for their support.

As the Chair of the Maunakea Stewardship Authority, the onus is on Mr. Komeiji to demonstrate his leadership and guidance in helping the authority achieve its statutorily mandated goals come to fruition. And I'm happy that we were able to sit down and create a path for being successful. I'm glad that Governor is here as well, and just a message.

Please make a decision in completing the appointments of DLNR and the, and the deputy director and has been acting for quite somehow in a position of this agency. As we all know, DLNR is the most active and the biggest DLNR agency as we know of with 11 agencies under its guidance.

So I hope, and Members and colleagues, perhaps my colleague under Government Operations can look at the future of how long an administrator can be on an acting position for quite some time. So Mr. President, thank you for the honor, and I rise in support with reservations. Mahalo.

So noted. Further discussion? Senator Keohokalole.

Thank you, Mr. President. I'd like to make remarks in favor of Governor's Message 514 and 515.

Please proceed.

Okay. Governor's Message 514 and 515 submit for consideration and confirmation Jon Itomura as chairperson of the Public Utilities Commission for a term to expire June 30 of this year, and then the full term to expire June 30, 2032.

Colleagues, the PUC, Public Utilities Commission is charged with one of the most important roles in state government. Its decisions and operations impact nearly every household and business in the state. It regulates and oversees energy, telecommunications, transportation, utilities, and wastewater.

And our residents depend on these services every day in almost every aspect of their lives. We're also facing a time in Hawaii with increasing energy costs and navigating the transition toward our clean energy goals. So the PUC's work has never been more consequential.

That was highlighted during, you know, those devastating February and March storms. And the commission led by its chairperson is responsible for ensuring that these essential utilities and services are delivered in safe, reliable, and resilient ways.

Mr. Itomura brings the experience and steady leadership that the state and its residents really need from its PUC chairperson. He has devoted more than 25 years to public service. For almost 16 of those years, he served as supervising attorney for the DCCA's Division of Consumer Advocacy, where he advocated for Hawaii's rate payers in all matters before the PUC.

He also served as a deputy attorney general, general counsel to the Campaign Spending Commission, and most recently as executive director of the Hawaii United Okinawa Association. During his nomination process, Mr. Itomura demonstrated a command of the issues and a responsiveness to concerns raised by stakeholders, lawmakers, and the public.

Through that process, he's committed to emphasizing that electric utilities must prove the appropriateness of rate adjustments, updating the PUC's administrative rules for general rate case applications, and really working to change the culture in that organization so that they are capable of fulfilling these very important duties.

He's also committed to exercise these duties independently and with integrity, and his career demonstrates a commitment to fairness, accountability, and public interest, which are vital qualities for this very important commission. Based off of our review of his qualifications and testimony, I respectfully urge the support from my colleagues of Jon Itomura's confirmation and nomination as chairperson of the PUC. Thank you very much.

Thank you. Further discussion? Senator Fevella.

Thank you, Senator President. I stand in opposition GM 692. Mr. Smith has decision making has raised concerns, especially concerns about the ability and willingness to uphold the mission of BLNR. One of my biggest concerns is the stance that he took on the Army's EIS retention of ceded lands in Pōhakuloa. Mr. Smith advocated and voted in favor to accept the EIS.

The EIS was ignored basic, ignored basically recommendations on the environmental impact laws. Many of these issues identified by the DLNR staff. Board member expected to uphold the constitutional and obligations under public trust. Board member must respect the rights and claims of the Native Hawaiian people.

I don't have confidence in this nominee going forward and cannot support him. For those reasons, I oppose this nominee. A concerned thing that I have, Members, colleagues, is that this is a grueling EIS for Pōhakuloa. The Army do not need, do not need Pōhakuloa. They have all the land that they got from the ranch that they purchased a while ago.

This is a want and not a need. Even though they like to say it under security, we're the only place in the nation that devastate our ʻāina. Contaminate them no matter how close the people are. My concern with this gentleman is that he's also a developer. So I don't know if he's tainted.

I don't know. I don't know the guy personally. But again, Army does give out contracts to developers in our islands. So we don't know. We can only assume. But why would one person out of the six guys, right? Five voted no because of the EIS showing that they contaminated.

Never ever followed the EIS from the beginning to now. For one person to vote in favor of the Army on them contaminating and polluting our land and going to be killing our future of our people. So again, that's the reason why, colleagues, I ask you guys to please vote no on GM 692. Thank you, Senate President.

Thank you. Further discussion? Senator McKelvey.

Thank you. Just in support of GM 514 and 515.

Please proceed.

I would like to adopt the words of my good friend, the Chair of CPN, into the record as if they were my own, if you allow me that. And also to touch upon the fact that Mr. Itomura is more than just energy. He's got a great knowledge and depth on some of these other dockets and issues which we're facing right now.

So I, for one, look for him to appreciate him being on there for his guidance on these many other issues as well as towards a commitment in rebuilding the staff and the morale at PUC. Thank you.

Thank you. Further discussion? Senator Kim.

That's a no vote for me on GM 692. Thank you.

So ordered. Any other discussion? Senator Ihara.

Mr. President, I wanna note my reservations for GM 636, Denise Iseri-Matsubara. I wanna just note that the Land Board members are constitutional officers. They're sworn to uphold the constitution and fulfill the constitutional mandates of stewardship and public trust.

And while she does not currently fully understand those responsibilities, she has agreed to learn about the constitutional requirements and the underpinnings of the constitution. And so that's why I'll be going with reservations in favor of that nominee.

However, for GM 692 on Mr. Riley Smith, I will be note my no vote. Unfortunately, to me in my perspective, he did not conform to the constitutional mandate to protect public lands as the, as the constitution requires. And that's the reason why I'm gonna vote no on that GM. Thank you.

Thank you. Senator Dela Cruz.

Thank you. In support of GM 514 and 515.

Please proceed.

I've known Jon Itomura for a long time. He's a man of character. I would just like to impress upon him to really look at the dockets, make sure that they're streamlined, get them out so that we can really help the the rate payers and get the utilities back on track. So I'm really hoping that he can do that. Also in support of GM 740, 741, 742.

For those on the Maunakea Stewardship and Oversight Authority, you know, please get moving. You've had several years. You've had, you know, several million dollars. You have lots of vacancies. We wanna see some action, so I hope you guys will take this seriously and and get moving. Thank you.

Thank you. Any further discussion? Senator Richards.

Thank you, Mr. President. I rise in strong support of 692.

Please proceed.

Thank you, Mr. President. I've known this candidate for quite some time, and what we are trying to do is strike balance. What I have found in working with Mr. Smith that he does bring balance, and his intention on arriving a decision is through long investigation and analysis, what we're trying to get done.

I appreciate some of the statements been made in this chamber, and I do understand that. But having worked with this individual for a long time, I know that his intentions and he takes his kuleana very, very seriously, so I'm in strong support. One more, Mr. President. On GM 742, Mr. Komeiji.

I've worked with John for the last several years on this, and what I see in Mr. Komeiji is a way forward. He has truly embraced the term Hoʻoponopono in the true sense. Trying to arrive at a destination with no preconceived idea, and we are getting there. I appreciate the concerns. But again, working with the Maunakea Authority, they're gonna hit the deadlines, and they're gonna make it work. Thank you, Mr. President.

Thank you. Senator Inouye.

Thank you, Mr. President. I do wish to vote on GM 692, Mr. Riley Smith, in support. I'd like part of the comments from my colleague on the Big Island, the Senator from District 4, into the journal as if it was mine. I do, had the opportunity of confirming Mr. Smith four years ago to be a representative on the Big Island on the Board of Land and Natural Resources.

And I believe with his expertise and the relationship that he's had with the board has been a tremendous effort with the diversity that we have sitting on the board. So I'd like to ensure that I will be voting for GM 692, Riley Smith. Mahalo, Mr. President.

Thank you. And I assume the part you want entered into the journal is the remarks limited to Mr. Smith made by Senator Richards and not the remarks with Mr. Komeiji since you already made your own. Any other discussion? If not, said nominees for governor's messages have been confirmed. Do we have any late introductions? Senator Keohokalole.

Yes. Thank you, Mr. President. In the front row, we have the newly confirmed Chair of the Public Utilities Commission, Jon Itomura. And then I don't have my notes, but there are just a ton of supporters, family, friends, and PUC employees that are here to support him. Can everyone for Jon please stand and be recognized? Thank you for joining us.

I think to Chair Dela Cruz's remarks, do ask them to clean the docket. Now that we voted, you can go back to work. Senator Lee.

Thank you, Mr. President. From where I sit here, I am unable to see who's in the gallery behind me.

But they are.

But I would like to do a late introduction and recognize those members of the other commissions and boards who were just voted upon. So if there is anyone from the International Partnerships Commission, the State Foundation on Culture and the Arts.

The Land Use Commission, the Board of Land and Natural Resources, or the Maunakea Stewardship and Oversight Authority, would ask that they please stand and be recognized. And if we could, please insert their names into the journal at the appropriate time.

So ordered. Please rise. Senator Inouye.

Thank you, Mr. President. May I? I feel that I owe this person much mahalo for the work he's been doing as an acting director for DLNR, Ryan Kanaka'ole. Please stand. In the, in the short, in the times that he has been doing the work of DLNR.

Hopefully, Governor, if you can hear me again, please make a decision soon. As you know, the Maunakea Stewardship Group is also an attached agency to DLNR, and we'll just have to do the people's work. Mahalo, Ryan. Good luck. And to all the DLNR staff, love you folks for having to work with all of you.

Madam Clerk? Oh, sorry. Senator Keohokalole.

If you'll excuse me, dreadful mistake. I would like to just take a moment and specifically point out some very special people to the PUC chair. His sister Michelle and her husband Eric, and his wife Darlene. Please rise. Thank you very much.

Any other late introductions? If not, Madam Clerk.

On page 42, final adoption of Senate Concurrent Resolution numbers 50, House Draft 1, and 149, House Draft 1.

Senator Wakai.

Mr. President, I move for the adoption of said Senate Concurrent Resolutions.

Senator DeCorte.

Mr. President, I second the motion.

It's been moved and seconded. Is there any discussion? Any objections? If not, the motion is carried. Said Concurrent Resolutions have been adopted.

Beginning on page 43, final reading.

If there are no objections from the Members, we'll take final reading on consent.

Final reading of Senate Bill 3125, Conference Draft 2, relating to income tax.

Is there any discussion? Senator Dela Cruz.

Thank you, Mr. President. I rise in strong support of SB 3125, Conference Draft 2.

Please proceed.

From the start of this session, the Senate was clear that before we even consider increasing taxes on Hawaii's families, we must look internally to ensure we are doing all we can do to reduce spending at the state level. The message was simple.

We must tighten our belts and live within our means while sharing the responsibility of fiscal restraint. This, this bill represents that shared commitment. First and foremost, this bill leaves in place the promised tax breaks from Act 46 2024 for 90% of Hawaii's taxpayers.

All scheduled standard deduction increases will continue ending in 2031 at 24,000 for joint filers, 18,000 for heads of households, and 12,000 for single filers. The tax bracket adjustment scheduled for 2027 and 2029 for Hawaii's working and middle income households will not only continue but get better.

For joint filers who made less than 350,000, heads of households who make less than $262,500, and single filers who make less than 175,000, all tax bracket adjustments remain in place. Additionally, the tax rates for the two lower income tax brackets will further decrease in 2027, further increasing the tax savings for those households.

Why does this all matter? It matters because protecting tax breaks means putting money directly into Hawaii's family's pockets. As standard deduction increase, deductions increase and tax brackets decrease, the withholdings taken out in each paycheck go down.

That means more money in Hawaii's family's paycheck to paycheck rather than waiting until the end of the year to file for a tax credit that benefits them. Under this bill, a family of four making 100,000 a year will see an additional $788 in tax savings by 2031 on top of what the current law already provides. That's real savings day to day.

All of this is balanced by sunsetting some of long some long standing business tax credits. These tax credits include the Capital Goods Excise Tax Credit in 2028, the High Technology Business Investment Tax Credit, Renewable Fuels Tax Credit, Tax Credit for Research Activities, and the Technology Infrastructure Renovation Tax Credit in 2029, and the Renewable Energy Technologies Tax Credit in 2031.

Tax credits for businesses cannot come at the expense of Hawaii's families who are facing vulnerability and uncertainty. This along with reducing spending in the budget and only maintaining tax relief for working families, the legislature is looking at a holistic solution to address affordability and the quality of life in Hawaii.

Finally, let's get the record straight. The state has supported renewable energy, the renewable energy industry since 1976. That's fifty years, half a century of support. Just between 2013 and 2023, data from the Department of Taxation shows that over $1 billion in tax credits were claimed by the solar industry. $1 billion in a state subsidy for one industry.

We helped start the transition of renewable clean energy, and now Hawaii has the highest per capita rate of rooftop solar adoption in the United States. That is what a tax credit should do. Get an industry off the ground, spark innovation, and expand access.

But a good business model should not rely on endless state subsidies to survive. The tax credit is long overdue for reform. SB 3125 proposes much needed reforms to bring the credit in line with the Senate's goals of helping working families.

The reforms to the Renewable Energy Technology Tax Credit includes a cap of 40 million for 2027, 2028, 2029, and 2030, and a limit on who can file for the tax credit based on adjusted gross income. For joint filers, this limit is 350,000, and for filers single filers, this limit is 175,000.

Based on data from the Department of Taxation, about 40 million was used by households in this income range, in line with our prioritization for preserving income tax breaks for those households. This tax credit should also prioritize those same households. The sunset in this measure allows the legislature to continue to review the tax credit and make necessary adjustments.

Continued subsidies for the solar industry cannot come at the expense of tax relief for working families. While not in this bill, the budget also includes an additional $10 million to the Green Infrastructure Revolving Fund to provide low interest or in some cases forgivable loans to our working and middle income households who want to install solar.

This provides another option beyond the tax credit, especially valuable for those who do not have the money to pay for solar upfront. SB 3125, SD 2 represents meaningful tax relief for Hawaii's working and middle income families, upholding the promise that the Senate has maintained throughout this session.

With rising costs in our state, Hawaii's families need more money in their pockets now more than ever. This bill proves that Hawaii can manage fiscal uncertainty and maintain core programs without increasing taxes on residents.

By preserving tax relief, balancing fiscal challenges, and reforming business tax credits to ensure accountability, we reaffirm a simple principle. Hawaii's tax system should work for people who live and work here, not against them. I urge my colleagues to vote in support of SB 3125, CD 2. Thank you.

Thank you, Senator Dela Cruz, to you and your staff, Vice Chair, and committee for the hard work. Further discussion? Senator Fevella.

Thank you, Senate President. First of all, I wanna thank the WAM Chair and Vice Chair. Also, you, Senate President, Vice President, and all my colleagues. I'm thinking of the working families in Hawaii.

In support. Senator Fevella, please proceed.

Sorry. Forgive me. Forgive me for my wrongness. In strong support, Senate President.

Please proceed.

Like I said, when we first came in, we had the uncertainty of the changes of not being able to do tax breaks and continue to have keep our word to the people of Hawaii. And through the hard work of Senator Dela Cruz and his staff going forward, we had done something that I think everybody can be happy together in this chamber and in the state of Hawaii.

I said that the other day on the hard work of our, not only of our colleagues here on the floor, but, Senator Dela Cruz staff and a commitment that they made to the people of Hawaii. A lot of guys, they don't, they like to talk smack. They like to talk, you know, not very good things.

But the hard work that people in this chamber, all of us here, work together and do well and work for the people of Hawaii. I just hope people appreciate this session on how hard and grueling it was for the decisions that was made today and going forward in the next few years. So I thank everybody here. And again, thank you, Senate President. Mahalo. God bless.

Thank you. Senator DeCorte.

Mr. president, the Senate was not willing to let tax relief for working families collapse under financial pressure.

You are also in strong support.

I am also in support. You see? You're rubbing off on me. Strong support. Thank you so much. Okay. That is exactly why this measure exists. As federal cuts began impacting long term programs and services that many of our communities, especially my community, rely on to stay afloat.

The state faced growing financial pressure, and almost immediately, immediately, the administration began publicly discussing the repeal of Act 46 and rolling back the tax relief promised to local families in 2024. And if the Senate did not step in, these tax cuts would have been gone.

Act 46 recognized what families across Hawaii already knew, that the cost of living is crushing working people and that government needed to stop taking so much from families already struggling to get by. The Senate believed in that mission then, and we believe it now. The Senate didn't only preserve Act 46. It enhanced it.

As example, in 2027, annual income owners between roughly 28,000 to 48,000, that is very much a reality in Waianae, will be taxed even at a lower rate. And that rate will get better year after year. That means families get to keep more of their paycheck throughout the year, not just during tax season. And for communities like Waianae, that matters.

We're not asking for luxury. We're asking for breathing room. This bill recognizes that reality. That is the difference between Act 46 and SB 3125, CD 2. Act 46 started the conversation. SB 3125, CD 2 secures it. And I want to close by recognizing the Chair of Ways and Means Committee and its Members for standing firm on this issue.

Because in the face of pressure and compromise, the easy thing would have been to scale back relief for working families. But the Chair of Ways and Means did not back down. He fought to protect the promise made to local families that when times get hard, working people should not be the ones to sacrifice.

And anyone who watched those committee hearings could see it for themselves. There was no backroom deals. There was no private conversations behind closed doors. It was one of the most public and transparent displays of democracy this building has seen in a very long time.

And for that, I believe the people of Hawaii are thankful. Because at the end of the day, this bill is not about politics. It is about what I believe we all got elected for, to protect working families and make sure local people could keep more of what they earn. Mahalo.

Thank you. Further discussion? Senator Wakai.

Thank you, Mr. President. I rise in support of this measure.

Please proceed.

I think the most important thing for the public to take away from this bill is that the Senate fulfilled its promise. I mean, two years ago, we promised the people of Hawaii the most historic tax break in Hawaii history. Unfortunately, they had the administration. We had the House.

They wanted to renege on that. But kudos to the Senator from Wahiawa who really stayed true to what we promised the public. So I would like to also adopt the words of the Senator from Wahiawa, excuse me, Wahiawa, as if they were my own.

So ordered. Senator McKelvey.

Thank you, Mr. President. I'm in support, obviously.

Please proceed.

But given the lively exchange my good friend from Waianae had on this bill in the first iteration, I'd like to close the circle and adopt her words as if they were my own to show unity and bipartisanship of your State Senate. Thank you very much.

So ordered. Further discussion? If not, do we have unanimous consent? Any reservations? Any no votes?

24 ayes.

Thank you. SB 3125, CD 2 passes final reading. Senator Rhoads.

Before we go to the next bill, may be permitted three additional introductions?

Please proceed.

Thank you. Three more attorneys that worked for me over the years are here today. Teddy Brokaw, Moya Gray, and Ryan Hew, I believe, please stand and be recognized. Ryan, I don't know, maybe you already left. Oh, there he is. Thank you very much.

Madam Clerk.

Final reading of House bill 2275, Conference Draft two, relating to Funding adjustments for State programs.

Is there any discussion? If not, do we have unanimous consent? Any reservations? Any no votes?

24 ayes.

Thank you. HB 2275, CD 2 passes final reading.

Final reading of house bill 1753, conference draft two, relating to social media.

Is there any discussion? If not, do we have unanimous consent? Any reservations? Any no votes?

24 ayes.

Thank you. HB 1753, CD two passes final reading.

On page 44, final reading of Senate Bill 2471, Conference Draft two, relating to the Powers of Artificial Persons.

Is there any discussion? Senator Rhoads.

Thank you, Mr. President. In support

Please proceed.

First, I wanna thank the chair of the Consumer Protection Committee for all his hard work on this bill. If I had been lead chair about a week and a half ago, I'm pretty sure I would have said, the house and Senate positions are just so far far apart, this might need to be taken up next year. He didn't and continued to work to try to, work out areas of disagreement right up to the floor amendment we adopted Wednesday.

I've been lucky during my time here at the capitol, but I've gotten to work on a number of interesting high profile issues. When I was staff for then representative Marilyn Lee, it was her bill, HB 139, that provided the first funding for rail.

I was in the thick of reforming our pension system to be sure it could pay our retirees when I was labor chair in the house. I was the lead chair in the house when we passed same sex marriage in 2013. I was JDC chair when we adopted our current current mail in voting system. All these issues had statewide implications and affected many Hawaii's many Hawaii residents' lives. This bill has national implications.

In 2010, the United States Supreme Court ruled in Citizens United versus the Federal Election Commission that super PACs could raise and spend unlimited amounts of corporate money as long as they did not coordinate their efforts with the candidates' own committees. This resulted in not only a tremendous increase in corporate spending to influence campaigns, it also resulted in huge increases in dark money, money given by anonymous donors. In 2006, dark money was less than $5,000,000 nationwide.

In 2024, there was over 1,000,000,000 with a b anonymously spent in the presidential election alone. This anonymity also invites an interference from from foreign countries.

Because we don't know who is giving, it is very difficult to know whether Russia or Iran or China are funneling money into American elections. From the very beginning, Hawaii has been in the forefront of opposition to the Citizens United decision. In April 2010, just a few months after the decision came down, House Concurrent Resolution 282 passed both houses of the legislature. It called, on Congress to propose a constitutional amendment to overturn Citizens United.

Despite our best efforts over the years, Citizens United has not been overturned.

SB 2471 is the first bill we've have considered in the last sixteen years that gives us a fighting chance to undo at least some of the damage caused by Citizens United. As many of you know, corporations and other other artificial persons are creatures of states. States grant powers to these entities in return for playing by the rules the states lay down. They receive important benefits including perpetual existence, tax benefits not available to actual persons, and probably most important importantly, limited liabilities for shareholders.

For decades, most states to be competitive with other states have given artificial entities the same power as humans.

Essentially, they are granted the power to do anything a human can do, but states have always maintained the ability to change the terms of the bargain between states and the artificial entities. They've also maintained the ability to eliminate corporations altogether. Please don't don't misunderstand me. I don't think that that we should get rid of these artificial entities. They are a useful legal construct.

But because of Citizens United and the really good bargain artificial entities get from states, there has always been the risk that these creatures of state law have become so strong that they would one day turn on their creators. That day is here. When corporations have the financial capacity to spend $2,000,000 on a Honolulu mayor's race or $300,000 on a state Senate race, they can, with few exceptions, spend more than the candidates candidates' own committees can.

They're more powerful than all but the most influential in state and county government. Combined with nearly unlimited resources for lobbying, this enormous influence on campaigns can result in policies that favor the interests of corporations and other artificial artificial entities above those of actual people.

There's a phrase for this. It's called industry capture. Another benefit that Hawaii has long given its corporations and other artificial entities is statutory protection that out of state corporations cannot exercise power that Hawaii corporations or other artificial artificial entities do not have. For a regular non, regular for profit corporation, this provision is in HRS section 14 four fourteen dash four thirty five, a section that has been around since at least two thousand sixteen years before Citizens United.

For for years, this provision has not mattered much because all states grant roughly the same powers to their corporations.

If we pass SB 2471, this provision will be very important. SB 2471 removes the power of Hawaii corporations to spend for the purpose of influencing political races. This means Hawaii corporations won't be able to spend money on political campaigns in Hawaii, and it also means they won't be able to spend money in other states where they are doing business either. They will no longer be granted that power by the state.

It also means that out of state corporations won't be able to spend money on political campaigns in Hawaii even if their state doesn't restrict corporate spending on campaigns.

Hawaii is not afraid to be the first in the nation. In 1974, we passed the prepaid health care act. Because of that bill, Hawaii has been in the top two or three in health care coverage for fifty years. Partly as a result of that first in the nation law, we are one of the healthiest states in the country too. More recently, we were the first to ban smoking by 18 to 20 year olds.

Many other states have wisely followed suit. Today, we have a chance to be first again. First, to limit the amount of dark money pouring into the American political system. First, to increase the transparency of our political fundraising. First, to have a meaningful chance to limit the wrong wrongly decided Citizens United case.

I urge my colleagues to support SB 2471. Mahalo.

Thank you. Further discussion, Senator Keohokalole.

Thank you, Mr. President. Almost in also in support.

Please proceed.

Thank you. As noted by the Judiciary Chair, and I thank him for his diligent work on this, this bill reverses Citizens United, the notorious 2010 Supreme Court decision that says corporations have the right to spend unlimited amounts of money to influence our elections. It said basically that corporations have rights, not powers.

I'm gonna talk about that in a minute and why we need this now and why Hawaii can and should be the first state in the country to do this, but I'd just like to note that for the entirety of the passage of time since that 2010 decision, opposition to that ruling has consistently stayed at 75% of of the public in multiple polls over the last sixteen years, and that's across the political spectrum. That's Republicans, Independents, and Democrats.

75% of the public oppose that ruling. So I'm gonna come back to the rights part. Our rights our rights as individual people don't come from the government or the constitution. As Thomas Jefferson said, all men are created equal that they are endowed by their creator with certain unalienable rights. So what does that mean?

It means that our individual rights to speak, to to have privacy, to worship, they are God given. They preexist the government. The government doesn't grant us rights, they recognize and protect them. That's what the Constitution does. It guarantees the rights that we already have as human beings.

Colleagues corporate powers are totally different. They are created by state law. Specifically Hawaii revised statutes Chapter four fourteen. And as Chief Justice John Marshall said in 1819, a corporation is an artificial being. It possesses only those properties which the charter of its creation confers upon it.

The charter that exists in Hawaii revised statutes Chapter four fourteen. An artificial being this whole idea of corporations being people as a legal concept it evolved over time out of convenience so that commerce could happen, so that we could have functional contracts and those things could be honored. So what the state creates the state can define. And we have the Hawaii State constitution in Article one section 21 is explicit. The power of the state to act in the general welfare shall never be impaired.

Never be impaired by making of by the making of any irrevocable grant of special privileges or immunities. So this bill restates what our constitution already recognizes. The creation of a corporation is a privilege granted by the state, not a natural right. When a business chooses to incorporate as the Judiciary Chair said, it's afforded extraordinary privileges in return for operating within the rules the state sets and those privileges are significant.

Like you said before, limited liability, shielding founders and investors if the company causes harm, perpetual existence, and structural tax advantages that no person can access.

According to the Institute on Taxation and Economic Policy at least 88 of the largest corporations in The United States paid zero federal income tax in 2025 despite collectively reporting billions in profits. Tesla reported nearly $5,700,000,000 in US income while paying zero federal income tax last year. So again the state cannot rescind the natural rights of human beings but it absolutely can define and limit the tremendously lucrative privileges it confers on entities that it creates under the law.

So those are not the same things and they were never meant to be and it's time for guardrails. As the chair just mentioned Super PAC spent a record $2,700,000,000 in the twenty twenty four election.

That is not an exercise of natural rights, it's a perversion of state conferred corporate privilege to purchase political outcomes. And the founders saw this coming when they outlined this in the Constitution. Thomas Jefferson in a letter in 1816 wrote, I hope we shall crush in its birth the aristocracy of our moneyed corporations which dare already to challenge our government and bid defiance to the laws of our country.

James Madison, the father of the Constitution in 1827 called incorporated companies at best a necessary evil only requiring proper limits and guards. So again as the chair noted Hawaii has a long history of corporations overruling the will of the people.

The overthrow of the Hawaiian Kingdom in 1893 was organized and executed by the sugar companies. The big five ruled Hawaii for fifty years before the people ultimately rose up, ran for office, and took over this legislature. And after they did the people lobbied for statehood, for workers rights, for health care, for environment, and for our families, for things that human beings need and care about. So as elected leaders we do not serve artificial entities, We serve the people.

And now's the time for us to step up again and be the first state in the nation to act for them.

Please vote yes. Thank you.

Thank you. Further discussion? If not, do we have oh, Senator Ihara?

Mr. Ppresident, I rise in support of Senate Bill 2471.

Please proceed.

Mr. President, I remember 1978 and the constitutional convention held that year. We at the constitutional convention and outside the convention were concerned about how Congress and state legislatures around the country tended to act more consistent with the large donors, campaign donors, than the fragmented voting population. That's why the constitutional convention proposed an amendment that mandated the legislature that the legislature establish a program of partial public funding of elections.

The constitutional convention wanted to create a safe space for elected officials from the dominance of corporate campaign influence. Mister president, that's why I support Senate bill 2470

one. Thank you. Further discussion? If not, do we have unanimous consent? Any reservations?

Any no votes?

24 ayes.

Thank you. SB 2471 CD two passes final reading.

Final reading of Senate Bill 2069, conference draft two, relating to the dwelling unit revolving fund.

Is there any discussion? If not, do we have unanimous consent? Any reservations? Any no votes?

24 ayes.

Thank you. SB 2069 CD two passes final reading.

Final reading of House bill 1334, conference draft two, relating to meat donation.

Is there any discussion? If not, do we have unanimous consent? Any reservations? Any no votes?

24 ayes.

Thank you. HB 1334 CD two passes final reading.

Final reading of Senate bill 2169 conference draft two relating to the Agribusiness Development Corporation.

Is there any discussion? If not, do we have unanimous consent? Any reservations? Any no votes?

24 ayes.

Thank you. SB 2169 CD two passes final reading.

On page 45, final reading of House bill 1823, conference draft two relating to the Coastal Zone Management Act.

Is there any discussion? If not, do we have unanimous consent? Any reservations? Any no votes? No votes

Mister President, with reservations, please.

Elefante? I I didn't.

Sorry, Mr. President. With reservations.

Reservations for Senator Elefante. No votes, Senator McKelvey.

23 ayes, one no.

Thank you. HB 1823 CD two passes final reading.

Final reading of Senate Bill 2401, conference draft two relating to regional shoreline mitigation districts.

Is there any discussion? If not, do we have unanimous consent? Any reservations? Any no votes?

24 ayes.

Thank you. SB 2401 CD two passes final reading.

Final reading of Senate bill 3203, conference draft one relating to air medical services.

Is there any discussion? If not, do we have unanimous consent? Any reservations? Any no votes?

24 ayes.

Thank you. SB 3203 CD one passes final reading.

Final re I'm so sorry. Conference committee report number two forty, final reading of Senate Bill 3263, conference draft one relating to the University of Hawaii.

Is there any discussion? If not, do we have unanimous consent? Senator Keohokalole.

Yeah. In support.

Please proceed.

The game should be left on the field. In support.

Further discussion? Senator Dela Cruz.

Thank you, Mr. President. In opposition.

Please proceed.

I just wanna read, a letter from the Vice President of Budget and Finance from the University of Hawaii. He says, Aloha chairs. And this is after a meeting that, myself, the fin chair, the higher Ed Chairs from the House and the Senate met to try to figure out some type of solution. And the solution, that was proposed is what he responded to.

Aloha, chairs. We appreciate the time and thought you have put into this. However, at this time, we cannot proceed with the current proposal to establish a state-funded endowment for name, image, and likeness, funding through UH athletics, utilizing state general and tuition and fee funds. While the university remains committed to the competitiveness of our student athletes, the present framework poses challenges the university cannot overcome. While we share your vision for a robust and competitive athletic program, the university must prioritize its long term legal and fiscal integrity.

We must respectfully request a deferral of this specific proposal until a framework can be developed that aligns all stakeholder interests.

Once again, we appreciate the work done to support UH Athletics and look forward to possibly working more on this issue in the future. And I just want to point out that, within their tuition and fees special fund, the university currently has at least $411,000,000 in that fund. Thank you.

Thank you. Any further discussion? If not, madam clerk, I believe that the indication, is unclear, so let's do this the easy way and call the roll.

[roll call]

[roll call]

Aye.

Senate bill 3263, conference draft one fails.

Miscellaneous business, reconsideration of disagreement to house amendments, motions to agree, and final adoption.

Senator Lee.

Thank you, Mr. President. I move that the Senate reconsider its previous action in disagreeing to the amendments made by the House to SCRs number 58 SD 1 and 159 SD 1 and move to agree to set amendments.

Senator Wakai.

Mister president, I second the motion.

It's been moved and seconded. Is there any discussion? Senator Lee.

Thank you, mister president. The amendments made to these measures were slight improvements but kept the focus of the measures.

Is there any further discussion? Any objections? If not, the motion is carried. Final adoption of oh, I'm sorry. Madam Clerk.

Final adoption of Senate Concurrent Resolution numbers 58 HD1 and 159 HD 2

Senator Wakai.

Mister President, I second the motion. Actually, I'm sorry. I move for the final adoption of Senate Concurrent Resolutions. My apologies.

Senator DeCorte.

That's my job. Thank you. Second, Mr. President.

It's been moved and seconded. Is there any discussion? Any objections? If not, the motion is carried. Said Senate Concurrent Resolutions have been adopted.

On page 47, Senate Concurrent Resolution numbers 166 SD1 and 172 SD1

Senator Keohokalole.

Mr. President, I move that the Senate reconsider its previous action in disagreeing to the amendments made by the House to SCR numbers 166 SD1 and 172 SD1 and agree to said amendments.

Senator Wakai?

Mister president, I second the motion.

It's been moved and seconded. Is there any discussion, Senator Keohokalole?

Yeah. Upon consideration of the, House amendments, we'll agree. Thank you.

Thank you. Is there any further discussion? Any objections? If not, the motion is carried. Senator, oh, I'm sorry.

Final adoption of Senate Concurrent Resolution numbers 166 HD1 and 172 HD1

Madam Clerk?

Mr. President, I move for the final adoption of said Concurrent Resolutions.

Senator Wakai.

Senator DeCorte.

Mr. President, I second the motion.

It's been moved and seconded. Is there any discussion? Any objections? If not, the motion is carried. Said Concurrent Resolutions have been adopted.

On page 48, oh.

Senator Rhoads.

Sorry, Mr. President, I have one further introduction if you don't mind.

Please proceed.

I also wanna introduce Claire Ronkelo, I believe, is still here who was used to be a committee clerk for me and has worked in my office for several sessions. Thank you for being here, and welcome to the Senate. Mahalo.

Madam Clerk.

On page 48, miscellaneous business, usual and customary resolutions, Senate resolution numbers 193 to 195 for adoption.

Senator Wakai.

Mr. President, I move for the adoption of Senate resolutions 193 to 195.

Mr. President, I second the motion.

Senator DeCorte.

It's been moved and seconded. Is there any discussion? Any objections? If not, the motion is carried, said Senate resolutions have been adopted.

We have no further business, Mr. President.

I will quickly ask before asking for announcements. Did the house adjourn? Do we know? Okay. Please proceed.

Any announcements? Senator Keohokalole.

Thank you, Mr. President. It is my honor, and Mr. President, colleagues, and honored guests. It is my honor to recognize Senator Carl Allen Rhoads for his decades of dedicated public service, and his last, thank you, yes. And his lasting contributions to the state of Hawaii.

Senator Rhoads built a strong foundation through his academic achievements. First earning a bachelor's degree at Andrews University, a master's at the University of London, and a law degree at George Washington University, before beginning his legislative career in 2006 as a member of the lower Hawaii State House of Representatives.

During his ten years serving District 29, he became known not only for his thoughtful leadership and legislative accomplishments but also for his deep commitment to the community through organizations such as the Chinatown Citizens Patrol and the Downtown Neighborhood Board. His dedication to justice, equity, environmental stewardship, and public service earned him numerous honors and reflected the compassion and integrity that would define his career.

In 2016, Senator Rhoads was elected to the Hawaii State Senate, where he served with distinction as Chair of the Senate Committee on Water, and Land, and later as Chair of the Senate Commission Committee on Judiciary, overseeing the confirmation of 70 state court judges and justices.

Throughout his career he remained a steadfast advocate for marginalized communities and consistently worked to advance legislation that strengthened and protected the people of Hawaii. Beyond his policy achievements, Senator Rhoads leaves behind a legacy of mentorship and inspiration, encouraging many of his staff members, many of which are here out of loyalty and love for him, to pursue careers in law and public service. His leadership, humility, and unwavering dedication have made a profound impact on our state and its people.

So I was granted the privilege of presenting this congratulatory tribute and certificate to him. I just want to note personally what I'm gonna remember, Karl, is watching the Laker game in my office in between hearings and going to a baseball game in Nashville with Gil Keith Agaran and you, minor league baseball game when we were at the national conference of state legislatures and just hanging out.

What you see on the mic and in the committee with Karl Rhoads is what you see in the offices or at the baseball games. He's unflappably cool and independent. And I've always admired and tried to shoot for those qualities, falling short often. He's also unwaveringly progressive and I always used to get a kick of, over, no matter how hard he tried to convince us that he was not the most progressive person in the Senate, nobody ever believed him.

And so there's a new competition because, we'll have to replace that that energy.

But you deserve, to be acknowledged for your years of service, two decades of service to the people of Hawaii. It was an honor to serve as your Vice Chair for three years. I saw you stand in there and deal with the hardest issues, the most complicated and difficult decisions, for victims, for people who are having a hard time and didn't have an advocate for them.

And you did it you did it in the chair, in the seat of power, and it's just truly admirable, and everyone here owes you a debt of gratitude for so many years of service. So thank you very much for serving.

It's been an honor to serve with you. How about another round of applause for Karl Rhoads?

Now I have several other members who have requested I don't know if there are others we're going to hear from Senator Rhodes. We have two others that we're going to be recognizing, but I have been informed that the house has concluded and they are at the gates to come in.

So I'm going to call for a short recess so that we can greet gather in the circle and ask those in the gallery who still remain to join us as we will close with the traditional Hawaii aloha. Recess.

Will the Senate please come back into order? We are recognizing and congratulating Senator Rhoads as he goes off into his retirement. I'd next like to call on Senator Gabbard.

Yes, Mr. President, colleagues, staff, and guests, I rise today as Vice Chair of Judiciary Committee to share a few words about my friend and colleague, Senator Karl Rhoads. Karl has given nearly two decades of his life to public service here at the legislature, as was mentioned, and that kind of service does not go unnoticed.

Since 2024, I've had the privilege of serving as the JDC Vice Chair under Karl. And sitting next to him in committee day in and day out, you really get to see how he works and how he carries himself. Throughout all those years, he's been steady, thoughtful, smart, fair, respectful, and whether people agreed with him or not, everybody knew Karl came prepared and he did his homework.

As Chair of Judiciary, he handled some of the toughest and most controversial issues that came through this Capitol. He never ran away from hard conversations. He believed deeply in accountability, transparency, and doing what he thought was right for Hawaii.

But for me, personally, what I'll remember most is not just the work, it's the friendship. So aloha, Karl. Best wishes to you and the missus. Wishing you all the best in whatever life throws at you. And I have a very special pack, a four pack, a four pack of toffee. It's what we in Samoa call a meaalofa, a gift of love.

Senator Rhoads, I hope that given the length and the heat of the debate sometimes in the chamber today that the candy is not melted. Senator Chang.

Thank you, Mr. President. There were only two of us in the class of 2016 here in the Senate, Senator Rhoads and me. We were very different in many ways. He was tall, vegetarian, mainland Haole, who served many years in the House and had long relationships in the legislature, married to someone else who knew the system well.

I was single, much shorter, Chinese, who'd served on the city council and had barely even been in this building. And still, I'm an enthusiastic omnivore. Politics can be a tough business. I quickly learned here that there are many reasons someone might kill a bill, very few of which had to do with the merits, and even more ways to kill a bill.

I learned that people often had unspoken agendas or might even lie to your face. We all deal with the reality that egos, inertia, or simple laziness can derail truly beneficial ideas that would improve people's lives. But I also learned that Senator Rhoads was not one of those people.

If I had a question, he would always give me a straight answer. If he voted no, it was always on the merits of a bill. If he spoke up, it was always due to a genuine concern after he read all the testimony and researched the issue and not just a grandstand.

One area where we found a lot of common ground was on urban planning and housing issues because he represented one of the most heavily urbanized districts in the state, and I was the Chair of the Housing Committee. Though he rarely took credit, I saw more than once where he made the difference on the inside in making a project or a bill go.

When we disagreed, I knew we could discuss my concerns in an open way and he would do his best to address them, or if not, he'd be totally open about why not. When he held a position that the caucus disagreed with, he never tried to twist arms or whip votes, but he truly let everyone vote their consciences.

I never saw him hold a grudge or be the subject of the drama that surrounds the building, especially during conference. For the last ten years, I've been able to count on Senator Rhoads for a thoughtful, careful, detail oriented perspective on any issue.

After he leaves the Senate, hearings will still happen, committee reports will still get decked, nominees will continue to face scrutiny, bills will still pass, but it won't quite be the same without one of most honorable, diligent, hardworking, and humble Members of our body. Thank you, Senator Rhoads, for your service to the people of Hawaii.

Is there anyone else wishing to speak? Senator Lee.

Thank you, Mr. President. I was really, really excited that we came back into session and we weren't actually adjourning a minute ago because there would be a story that would just be absolutely lost to time about Senator Rhoads, who's been such a great colleague. And it those late nights that we are stuck here waiting, signing committee reports as things go on, I've had the great fortune to spend a few with Karl.

And one of the more recent ones was with a few other friends, and we got together and we thought, what are we gonna do? Well, we can play some board games. And so a few of our friends had brought some board games that they got from home, from the store.

And Karl brought something that was very interesting. It was, I think in a plastic bag, pulled out these things that looked like they were hand drawn about 75 years ago and unfolded this little map and explained to us the rules of this game, which was all about politics and elections.

Come to find out that game, which was amazingly fun, by the way, was something that Karl had created himself back in seventh grade, and that was the actual game that we were playing that he's had all these years and he's been waiting all that time to find people to play with again. So he was so excited that we were willing to stand up. You know, those moments I will cherish forever.

But more than that, having served with Karl my entire career, both in the House and now in the Senate, has been, just remarkable. And serving across from each other when we were both House and Senate Judiciary Chairs was perhaps the most fun in conference. Because while I think everyone around us was scurrying, wondering, are they gonna agree on this or that? We had already agreed on everything.

And it just made it such a fun experience. And I really wanna credit Karl because, perhaps more than anyone, and some of the other speakers had mentioned this, Karl has probably shaped democracy and elections and the fundamental structure of campaigns and how we do things here in Hawaii more than anyone else, I think for the better. And that's something that is nothing to sneeze at given, I think, the state of the world these days.

But here in Hawaii, you know, we have elected democracy that is strong and robust because of Karl. And I think that's something that will live far beyond any of our time here. And so I have two questions for Karl as we close out. The first being, really, what's next? And then we hope to see you back again. I hope to be able to keep in touch.

The second question is which board or commission are you gonna serve on next year that we can confirm you to? And or if there's interest, I have spots in my office for leg session staff. I'm gonna miss you so much, but really appreciate the time we've shared and all the contributions you've made, not only to Hawaii, but certainly to my time here and the the person that I've become. So thank you.

Senator Elefante.

Thank you, Mr. President. I rise on a point of personal privilege to speak on behalf of Karl Rhoads, the Senator from Downtown Chinatown. And I'll share a brief few stories. And the first story I'll share is, we were attending an event at the Pagoda Hotel, and Senator Rhoads showed up in a traditional fashionable barong tagalog. And on top of that he took Fosse's limo, the city bus, to this Filipino event.

And as a Member of the Filipino Caucus and as someone of Filipino ancestry, I really admired Karl for just how he embraced not only that culture but every single issue. Aside from him probably having the same amount of barong tagalogs as I might have, which is very impressive, I'll just say that, you know, I've learned a lot from him, from his leadership, from his mentorship.

And when I first walked into this building, you know, four years ago, I served on the Judiciary Committee with Senator Rhoads, and he taught me a lot. And you could see it in his values, his ethics, and what the Senator from Kaneohe mentioned is what you see here on the floor is what you see also behind closed doors.

He's a true man of integrity, stands for his principles, but more importantly, he's not afraid to do what is right. Even if it means sticking out and just being the only one in the face and in the face of headwinds, even if it's against the odds on a national level. We're truly gonna miss you, Senator Rhoads. But I know I'll see you at the next Filipino event in your barong tagalog.

Senator McKelvey.

Thank you, Mr. President. I'd like to rise on a point of personal privilege.

Please proceed.

And I don't mean to speak to add on to this, but I feel like I need to speak because he and I came into this crazy legislature the same time in 2006. What was then the largest freshman class in the House of Representative in over 20 years.

And through that all, I've seen this man. We were there through all of it. Superferry, marriage equality, the crisis of the 2010. And through all of that, this guy has remained remarkably unflappable. I thank you, Mr. President, for your wisdom or perhaps not in putting me next to the good Senator this year.

You've seen us having quite good levity on very serious issues, making fun of our good friend here from Kaneohe here and then. But through all of this, what I really liked about Karl, and you can't say it enough, is you may not agree with him.

You may actually have some very pointed discussions, but you know what? He never held grudges. He always found a way to appreciate what you were saying. And he always found a way in a committee where divisiveness is the coin of the realm to bring people together.

And that is something that will be missed more than anything in this building. Sorry, I'm getting emotional. It's been since 2006. 20 years. And you are gonna be missed in so many ways, my friend, but the legacy you leave will be felt far beyond our years. Thank you.

Clearly, I'm not as clever as I thought. You did realize he's babysitting you? Any anyone else? Otherwise, Senator Rhoads.

Well, thank you so much, all of you who stood up and spoke. I'm not sure I appreciate all the stories being made public about the games and stuff, but that did really happen. I and then I, my teacher that, when I was in about fifth grade, he was very political and it was the year that, it was 1976.

So it was the year that Watergate had just ended and Jimmy Carter was running for president. And we had an election in the, we had an election in the school. It wasn't a very big school. And, I'm sorry. This it must have been 1980 because I because I didn't I didn't I didn't support Jimmy Carter.

Which is, like, one of the stupidest things I've ever done in my life. But I managed to get, and this is in Indiana, so, of course, everybody's wildly conservative, even the, you know, even the kids. And, I managed to Eugene McCarthy.

I don't know if any of you remember Eugene McCarthy, but he was this anti Vietnam War radical, and I managed to convince everybody, but didn't quite make it, which has often been my tail here in the in the legislature. I didn't quite make it on my, I'm always on the back end of the 13, 12 votes.

But we get, but Gerald Ford came in first and Eugene McCarthy came in second, and that was that was how my political career got started. It was trying to convince my classmates in Bloomington, Indiana that they should vote for somebody they'd never heard of. And my argument was that, well, you don't know who Gerald Ford is either.

And they're all like, oh, yeah. I guess we don't. So we'll vote for you. It's been an honor and a privilege to be here for 20 years. If you had told me when I was in high school in Indiana that I was gonna be in any legislature anywhere in the world, I would have probably laughed.

But if you told me I was gonna be a State Senator and a House Member of the House of Representatives for 20 years in Hawaii, where I had never even been before at that time and had no I had no idea I'd never be here, I probably would have laughed. But if I if if I'd taken you seriously, I would have been like, wow. That that's a pretty cool way to go.

Being a Senator in Hawaii for ten years and a Member of the House, I beyond my wildest aspirations as a politico, and it's been an honor and a privilege. I know we haven't always agreed on everything, but what my experience has been that Hawaii is, if you're if you have the right attitude, Hawaii is a remarkably open and the voters are remarkably forgiving.

And it's been a it's been a privilege to represent, you know, the Haole guy from Chinatown, represent Chinatown and up the valley in Nu‘uanu. I take a lot of pride in the fact that the the my district is, at least the old one. I don't know about after redistricting.

But the old one, which isn't that much different, is the least, second least Haole district in the state. So that to me says a lot about the voters of Hawaii. If you if you work hard, try to do the right thing. You don't even have to do the right thing all the time.

You just have to try and and people will support you, and that's been my experience. And I just wanna say that the least Haole district in the state was my next door neighbor, Senator Kim, which I did represent part of that district for a while as as well. So I, hearing you talk, I wanted to cry.

But I because in the back of my head, I was hearing Council Member Nishimoto going, Rhoads, you gotta be the OG. You gotta be the OG. You can't, there's no, you can't be crying when you're leaving the the state legislature. So I think I made it. And mahalo nui loa to all of you. And I look forward to seeing you again in the future as our paths cross again. Mahalo.

Just so you know that Senator Keohokalole wasn't being funny when he said most progressive. When I meet with advocates, I am always clear. You need to see Senator Rhoads. He is by far the farthest left in our caucus, and he will embrace your cause. And it's been my pleasure, privilege, and honor to serve with you as well, Senator Rhoads. Next, Senator Kanuha. Yes, please.

My turn now? Okay. Thank you, Mr. President. Mahalo, Mr. President. Today, I'm honored to recognize and introduce Ms. Jeanine Jones, director of SMA, the research and legal office serving the Senate majority. Please stand as you're standing and be recognized. For nearly twelve years, Jeanine has dedicated herself to public service in this body.

From her early work as an educator to her career in legislative research and law, she has brought a strong foundation of knowledge, professionalism, and commitment to her role. Since joining SMA in 2015 and ultimately serving as director, she has played an important role in supporting the Senate's work, ensuring deadlines are met, navigating complex legal and policy issues, and helping this body function effectively.

In my own experience working with Jeanine, I've seen her firsthand due diligence, sound judgment, and steadiness under pressure on all the deadlines. My staff and I have truly appreciated her responsiveness, thoughtfulness, and collaborative spirit.

Mr. President, I would also like to recognize the SMA team that are here to support Jeanine that are in the gallery. And if you could please stand and be recognized, we'll clap for all of you at the very end, but appreciate all of your hard work and dedication to this body.

Again, Amanda Fife, Effie Steiger, Blake Anderson, Megan O'Brien-Rene, Reiko Nomura, Fred Akau, Noah Haug, Finley Brackie, Gregory LaMontagne, Anne Yamane, Fay Yasutake, Maggie McGreary, Adam Weiss, Amy Vickers. Yuko Funaki, Leilani Sison.

I think I got everybody. If I didn't, please stand and also be recognized by our body. Again, another really mahalo for each and every one of you for all of your hard work this session. It was a tough session, and we couldn't have done it without all of you.

As Jeanine concludes her final session and returns to Arizona to be closer to her family, we extend our sincere gratitude for her service to the people of Hawaii. And wish for and wish her all the best in her next chapter to come. Mr. President, it is my honor to recognize Ms. Jeanine Jones.

Senator Gabbard.

Thank you, Mr. President and colleagues. I will rise today to recognize and extend our heartfelt Mahalo to Jeanine Jones for her dedicated service to the Hawaii State Senate and to the people of Hawaii Nei. As was mentioned, Jeanine has been with the Senate majority research since 2019, and she's been someone that we could always count on.

She's an incredibly fast worker, getting research done and committee reports completed at lightning speed while still being thoughtful and detail oriented. She's also really smart and always in a good mood, which made even the busiest parts of session a little easier for everyone around her.

We're going to miss her, but we're very grateful for all that she's done for the Senate. Jeanine, mahalo nui loa for everything, and we wish you all the best in the next chapter of your life in Arizona and whatever else that entails. Mahalo.

Any other announcements with Jeanine? Otherwise, I would just share that, with about six weeks before the opening of session, I found out that our attorney had an opportunity he couldn't pass up and he and the number two person were leaving. When we looked around and said, what do we do next? Jeanine with Amanda, Yuko, and Effie were called to come up to my office.

And I just asked in the most direct way, do you think you can do the job? And the answer was yes. Gave them the opportunity, and while they worked as a team, Jeanine, being the most senior member, was identified as the leader. And that coincided with you deciding to introduce and move a record number of bills that year. And there were some trials and tribulations in trying to deliver for the Members on the level of work that they were putting out there.

But ever since that first cross, it's gotten better. And we used to meet every week. This year, we didn't meet at all on a weekly basis because they were running so smoothly. They knew exactly what to do. So Jeanine and the team behind you, congratulations.

Best wishes in the next chapter of your life and thank you for your service here. Now it brings me great pleasure to know that we normally don't go this long. And Karl and Ben in particular have just been loaded down with leis like graduation. It's gotta be really hot and really uncomfortable. And Ben, we've been saying Hawaii Aloha so that you can't get the leis off. So I'd like to call in Senator Ihara. And Ben, if you just step out, please.

Mr. President, as the longest serving elected official in the Senate, I have a few words of congratulations to about Hawaii's longest serving Senate Sergeant at Arms, Ben Villaflor. And for his service for all these years, this is his last legislative session or at least regular session. And Ben was born in the Philippines and from age 13 worked on a rubber plantation there where he found a passion for boxing.

Started a professional boxing career there at a very early age. I think it was 14. And then moved to Hawaii to expand his boxing career. In April 1972, the World Boxing Association Junior Lightweight Championship title match was held in what's now called the Neal Blaisdell in Honolulu, a couple of blocks away.

Ben was 19 years old then and won, becoming at that time the youngest person to win a world title. Ben won a title the title a second time and successfully defended it many times during his world title run. And then Ben was appointed Senate Sergeant at Arms in 1979.

And he's worked through five, served through five of Hawaii's nine last governors, 47 years, 47 legislative sessions. Ben's been the chief law enforcement and protocol officer of the Senate, tasked with maintaining order in the Senate.

And he's done this for almost five decades. By the time I arrived in the Senate, we're actually already tamed. He already tamed the Senate. Because I used to, we used to in the House admire the antics that happened in the Senate. And I understand, so Ben was a legend to me before I even got here.

And I had heard and read about the stories about how he had to prevent things from happening, fisticuffs, and had to remove some Senators from the from the floor. I think in 1983, the last day of the session, like today, there was a filibuster by one of our senior Senators. And he had, the filibuster ended and, Ben was asked to remove the Senator, and he did it.

I don't think any blows a punch. Right? Okay. So he's, he, no one would really challenge our Sergeant at Arms. And it's his respect that the Senators have for him that has helped to keep the peace in these chambers. These chambers get a little hot sometimes and it helps to have him here. And a special mahalo to you, Ben.

To me, you epitomize the spirit of the Law of the Splintered Paddle, the caring warrior who will do whatever you can that's necessary to protect the vulnerable. And we really appreciate you being here, for protecting us. I remember when you protected us outside and had to, I guess, retain somebody for a little while, and we appreciate your willingness to serve like that.

We are also honored to welcome the family, your family, friends, and colleagues. They're gathered in the gallery in this final, your final legislative session, regular session. I wanted to wanted to ask them to stand to each be recognized when I call your name. Denise Villaflor, Ben's love. Ernestine Ling Villaflor Miranda. The children also, Benavito Villaflor II and Benjamin C. Villaflor.

And then Ben's grandchildren, Benny III, Savannah Savannah Breeze, Phoenix Phoenix. I'm going to read it right through and then we can clap at the end, I guess. Phoenix, Don, Dulce, Dakota. Where is Dulce? Angeliz Griffin. Benny Cioziano, Bentley Jules.

And he has families arrived from Los Angeles today. Stephen Ricard, Nannette Ricard. Riley Ricard. Shay Ricard. Leighton Ricard. And Nancy Palma. And thank you all for coming from your, from the Mainland here. Ben's impact on the Senate is best reflected in the staff team he has led and mentored at the Sergeant at Arms Office.

And we want to extend a welcome to them, as well as his family. Thank you. Could you stand to be recognized also? Linda Kahana, Debbie Aki, Doug Arakaki, Sina Kawahelo, Faye Verney, Michelle Laberra, Park Kaleiwahe. Park is down here.

Ali Yasui, Savannah Miranda, Bryson Perry, Leila Chi, Ariana Onigi, Leighton Fong. They're here. Right? Paul Reed, Annette White, Gwen Kuohara, and Yashi Duralshar. Did I get that right? Anyway, we are, we welcome all the staff members here today who's part of the office's journey.

And we also want to welcome Ben's many friends, including members of Ben's Senate boxing group. Could you stand? And I thought there was another member here that was in the boxing group. Was this a Chief Justice? Were you in his boxing group? Yes. Okay. Thank you. Ben, you taught him well. And so welcome, Chief Justice.

And also we have Senate employees who are here, who's been working with who has worked with Ben. Could you all stand to be recognized? Thank you all for being here to honor Ben's legacy as he concludes his final session of the Hawaii State Senate. Thank you, Ben.

Senator Kim.

Thank you, Mr. President. I too would like to add some words for Ben Villaflor. So Ben, don't go anywhere. Mr. President, I cannot claim that I have served my entire career with Ben because he actually started in 1979. I didn't get elected until 1982.

I didn't know Ben. I knew of Ben because my dad was a boxer and my dad watched all the boxing matches and he thought that Ben was an extremely, extremely talented boxer. I didn't get to know Ben until I got into the Senate in 2001.

And when I got here, I have to admit that, sometime I got a little impatient with Ben because I wanted things done right away. But if you know Ben, he's stable, he's calm, he's hands on, he's always there. And I, over the years, I got to appreciate Ben more and more.

He's been a fixture around here and, as Vice President under President Hanabusa, I was in charge of the permanent staff. And so I got to work a lot closer with Ben as we look to clean up some of the back offices here in the Senate. He has, he has been someone that we can all count on. Whenever forgot our keys or whatever we're missing something.

Who do we call? We called Ben. I also have to acknowledge his wife, Denise, who has been by his side and so supportive of him all these years. And so without her, I don't know that Ben would continue on. But I told Ben, I said, you know, you're not supposed to retire until I retire. So Ben, you're gonna be sorely missed.