State Budget Targets $172 Million for Maui Capital Improvements

Under the state budget passed by the Legislature this week, Maui representatives secured about $172 million in Capital Improvement Project (CIP) funding for various projects across Maui County.

The largest single item by far was $38 million for expansion and improvements to Kahului Harbor. Of that, $17 million will go for land acquisition and improvements to the acquired parcel and $21 million for improvements to existing facilities over the two years of the biennium. The budget also includes $10 million for the construction of a new 8 classroom building at Lahainaluna High School.

“During a period when the construction industry is doing well, it behooves the state to move prudently regarding capital improvement projects—taking care not to unintentionally drive up the cost of labor and materials by over stimulating the industry with unnecessary or untimely CIP projects,” said House Speaker Joseph M. Souki, who represents Kahakuloa, Waihee, Waiehu, Puuohala, Wailuku and Waikapu. “Having said that, there is also a balance we must seek to ensure that we do fund needed projects to maintain state services and ensure our quality of life on Maui. 

“I am grateful to my Maui colleagues—Rep. Justin Woodson, Rep. Angus McKelvey, Rep. Kaniela Ing, Rep. Lynn DeCoite, and especially to our CIP Subcommittee Chair, Kyle Yamashita—who all worked collaboratively to secure these priorities for all of Maui County.”

Here are the highlights of the CIP funding secured for Maui County:

• $1 million for the design, construction and equipment for track and field at King Kekaulike High School
• $500,000 for a water filtration system at Kula Elementary School
• $10 million for the construction of a new 8 classroom building at Lahainaluna High School
• $2 million for design and construction of a covered play court at Makawao Elementary School
• $2 million to renovate and expand band/choir building at Maui High School
• $2.7 million for construction of weight training and wrestling rooms at Maui High School
• $215,000 to replace and expand the gymnasium floor at Maui High School
• $362,000 for landscaping at Pukalani Elementary School
• $900,000 design and construction for a new administration building at Waihee Elementary School
• $2.25 million for emergency dredging and replacement of buoys at Lahaina Small Boat Harbor
• $6 million for construction of a regional park for central Maui
• $4 million for construction of a Maui office and annex building to support various state departmental divisions and programs
• $500,000 for plans and designs for a Kahoolawe education center in South Maui
• $2 million for improvement to Maui Raceway Park
• $3.3 million for replacement of the sewage lift/pump station at Kahului Aiport
• $7.5 million for the renovations of restrooms at Kahului Airport
• $8.8 million for the design and construction of various projects at Kahului Airport including a holdroom, security pass, ID office improvements, and a new conference room
• $33.579 million for a new aircraft rescue and firefighting station and other related improvements at Hana Airport
• $38 million expansion and improvements to Kahului Harbor
• $1.8 million to widen a portion of Haleakala Highway from one lanes to two lanes
• $4 million for safety improvements to Hana Highway along Route 360, from Huelo to Hana
• $895,000 for roadway widening and realignment on Hana Highway in the vicinity of mile post 28.1
• $4.6 million for the design and construction to mitigate rockfalls and potential landslides along the slopes of Route 360 on Hana Highway
• $1.05 million for the beautification of the main corridor between Kahului and Wailuku along the Hana Highway
• $8.5 million for the next phase of the Lahaina bypass road construction
• $650,000 for the design of Kahului Baseyard improvements
• $300,000 for a Paia bypass traffic alternative 
• $2,000,000 to replace chillers and AC equipment at Maui Memorial Hospital
• $1,000,000 for renovations and repairs at Maui Memorial Hospital
• $400,000 for the purchase of clinical equipment at Maui Memorial Hospital 
•  $2,592,000 for plumping and fire safety upgrades at Maui Memorial Hospital
• $400,000 for air conditioner improvements at Kula Hospital
• $2,000,000 for exterior and ward room repairs at Kula Hospital
• $500,000 to improve energy efficiency at Kula Hospital
• $1,000,000 for plumping and facility improvements at Lanai Community Hospital
•  $500,000 to Maui Youth and Family Services, Inc. for the construction of a new administration facility (Grant-in-Aid)
•  $300,000 to Heritage Hall, Inc. for the construction of incorporated facilities in Paia (Grant-in-Aid)
•          $500,000 to Hana Health for the construction of new facilities (Grant-in-Aid)
  
  

Funding highlights for Molokai:

• $3.5 million for the renovation of the gym/emergency shelter at Molokai High School
• $3.5 million for renovation of the gym/emergency shelter at Molokai High School
• $3.5 million to replace the Makakupaia Stream Bridge along Kamehameha V Highway
• $1.2 million for the design and construction for improvements to the Molokai irrigation system
• $3.2 million for improvements to Molokai Airport
• $500,000 to Kalamaula Homesteaders Association for the redevelopment of Kiowea Park facilities (Grant-in-Aid)

Funding highlights for Lanai:

• $1.5 million for construction of airport road and other improvements to Lanai Airport

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Contact Information:
Joseph M. Souki (District 8: Kahakuloa, Waihee, Waiehu, Puuohala, Wailuku, Waikapu)
(808) 586-6100
repsouki@capitol.hawaii.gov

Justin H. Woodson (District 9: Kahului, Puunene, Old Sand Hills, Maui Lani)
(808) 586-6210
repwoodson@capitol.hawaii.gov

Angus McKelvey (District 10: West Maui, Maalaea, North Kihei)
(808) 586-6160
repmckelvey@capitol.hawaii.gov

Kaniela Ing (District 11: Kihei, Wailea, Makena)
(808) 586-8525
reping@capitol.hawaii.gov

Kyle T. Yamashita (District 12: Sprecklesville, Pukalani, Makawao, Kula, Keokea, Ulupalakua, Kahului)
(808) 586-6330
repyamashita@capitol.hawaii.gov

Lynn DeCoite (District 13, Haiku, Hana, Kaupo, Kipahulu, Nahiku, Paia, Kahoolawe, Lanai, Moloka'i, Molokini)
(808) 586-6790
repdecoite@capitol.hawaii.gov

House Passes Bills on Final Reading for 2015 Session

As the close of session quickly approaches, the House today approved bills that address a wide range of issues, including extending the rail tax for another five years, funding the Turtle Bay land purchase, and approving the state budget.

Other significant measures that passed final reading in the House included increasing the tax state credit for low-income residents; providing additional funds for preschool for low-income families; requiring health insurers to provide coverage for children with autism; making sex trafficking a Class A felony; and establishing an affirmative consent task force to review and make recommendations on the University of Hawaii's executive policy on domestic violence, dating violence, sexual assault, and stalking.

"The House took on some tough issues relating to the rail tax, Turtle Bay and the Maui public hospitals, and worked collaboratively with the Administration and the Senate to come up with sound and reasonable solutions,” said House Speaker Joseph M. Souki (Kahakuloa, Waihee, Waiehu, Puuohala, Wailuku, Waikapu).

“We also crafted a responsible budget that addressed our long-term obligations and took care of our immediate social services needs and capital improvement requirements.”

HB500, CD1, the state budget bill, appropriates funds for operating and capital improvement costs of the Executive Branch for the current biennium, fiscal years FY2015-2016 and FY2016-2017, will now go to the Governor for his signature. The bill includes nearly $6.6 billion in general funds for FY2015-2016 and $6.862 billion in general funds for FY2016-2017.

In crafting the budget, House Finance Chair Rep. Sylvia Luke (Makiki, Punchbowl, Nuuanu, Dowsett Highlands, Pacific Heights, Pauoa) looked to create a “better budget” in four ways, by: (1) limiting growth in the budget, (2) fueling economic growth through selective tax credits, (3) investing in people who need help the most, and (4) reducing the state’s unfunded liabilities and building up its Rainy Day funds.

Earlier, the House passed and sent on to the Governor a bill that raised the smoking age in Hawaii to 21 that put the state in the lead in national efforts to prevent nicotine addiction. The bill also banned the sale and use of e-cigarettes in public places to anyone under 21.

Highlights of the measures passed include:

EDUCATION
SB64, CD1, makes an appropriation of $6,000,000 for the Preschool Open Doors Program.

HB820, CD1, establishes the Executive Office on Early Learning Public Prekindergarten Program to be administered by the Executive Office on Early Learning and provided through Department of Education public schools and public charter schools.

HB11, CD1, authorizes an additional per year bonus for teachers who maintain current national board certification under the national board certification incentive program and teach at a school in a focus, priority, or Superintendent's Zone, as determined by the Department of Education.

SB1345, CD1, requires the Department of Education to develop a transition plan to end multi-track schedules in public schools and report to the Legislature regarding the plan and any proposed legislation. Appropriates funds to the Department of Education for the development of a transition plan to end multi-track schedules in public schools.

SB854, CD1, requires public school lands that are leased to benefit public educational purposes rather than simply to be used for public purposes. Authorizes the Department of Education to enter into leaseback agreements.

SB374, CD1, renames the "running start program" as the "dual credit program". Broadens participation to include ninth and tenth graders. Broadens participation to include home-schooled students for courses offered on University of Hawaii campuses. Replaces a standardized test with an assessment. Repeals tuition and fees requirement.

HOUSING AND HOMELESSNESS
SB273, CD1, requires the examiner of drivers to accept a sworn statement from a victim services organization, an attorney, a member of the clergy, correctional institution staff, a medical or health professional, or a verification letter from a homeless service provider as documentary evidence of a homeless person's address. Requires the Director of Transportation's rules to direct the examiner of drivers to waive all fees for original or renewal identification cards for homeless individuals upon verification of homeless status. Establishes a working group to develop a plan to enable homeless individuals in the State to obtain necessary documentary evidence.

KUPUNA
SB964, CD1, appropriates $3,000,000 for the Kupuna Care Program.

HEALTH AND HEALTH CONNECTOR
SB1028, CD1, appropriates $2,000,000 for the operations of the Hawaii Health Connector.

HB576, CD1, narrows the scope of work of the State Innovation Waiver Task Force to facilitate the development of an Affordable Care Act waiver in a timely manner.

SB1117, CD1, makes an emergency appropriation of $15,000,000 to support the functions of the Hawaii Health Systems Corporation.

SB1291, CD1, prohibits discrimination against medical marijuana patients and caregivers by schools, landlords, courts with regard to medical care or parental rights, planned community associations, condominium property regimes, and condominiums.

SB791, CD1, requires health insurers, mutual benefit societies, and health maintenance organizations to provide insurance coverage for the diagnosis and treatment of autism.

HB631, CD1, establishes the documentation required when requesting the Department of Health to issue a new birth certificate with a sex designation change.

UNIVERSITY OF HAWAII
SB387, CD1, establishes an affirmative consent task force to review and make recommendations on the University of Hawaii's executive policy on domestic violence, dating violence, sexual assault, and stalking.

HB553, CD1, allows part-time and full-time graduate student assistants employed by UH to collectively bargain their wages, hours, and other terms; provided that no collective bargaining agreement shall take effect prior to July 1, 2016. Requires UH and the relevant exclusive representatives to meet and report to the Legislature.

HB547, CD1, requires the University of Hawaii to provide guidance to students to increase the rate of on-time graduation through a Graduation Pathway System. Appropriates funds for the Graduation Pathway System and to the John A. Burns School of Medicine for repairs.

HB541, CD1, requires each UH campus to prepare an operations plan, to be reviewed by the President and VP for Budget and Finance and CFO of UH, for each fiscal year. Requires the moneys in the UH Tuition and Fees Special Fund for each UH campus to lapse to the credit of Program ID No. UOH900 (University of Hawaii, system wide support)

PUBLIC SAFETY
HB448, CD1, requires the Department of Health (DOH) to conduct reviews of domestic violence, near-deaths, and suicides, in addition to fatalities. Authorizes DOH to enter into memoranda of understanding to obtain information relating to near-deaths resulting from intimate partner violence.

HB436, CD1, amends the definition of "emergency vehicle" to include sheriff division vehicles, Hawaii emergency management agency vehicles, civil defense vehicles, DOT harbors division vehicles, DLNR division of conservation and resources enforcement vehicles, and county emergency management vehicles to require approaching vehicles to slow and change lanes when nearing the emergency vehicle when it is stopped for official duties.

SB265, CD1, replaces the term "promoting prostitution" with the term "sex trafficking," a Class A felony. Includes the offense of sex trafficking in the Department of the Attorney General's statewide witness program and adds various other amendments relating to sex trafficking.

SB1211, CD1, increases the expenditure ceiling on Major Disaster Fund moneys. Increases the ceiling for additional funds required for matching federal disaster relief funds. Requires the Adjutant General to report any allotment of fund moneys or any expenditure of fund moneys to the Legislature within one month of the allotment or expenditure. Appropriates funds for deposit into the Major Disaster Fund.

SB871, CD1, authorizes the Director of Transportation to establish reciprocal licensing privileges to any person eighteen years of age or older who holds a license from another country or state, under certain conditions. Authorizes the examiner of drivers to waive the demonstration of the ability to operate a motor vehicle for individuals with licenses from other jurisdictions who receive reciprocal licensing privileges. Repeals the driver's license reciprocity committee.

THE ENVIRONMENT AND INVASIVE SPECIES
HB444, CD1, authorizes the use of a portion of transient accommodations tax revenues for beach restoration and conservation. Makes additional general fund appropriations for the same purpose for fiscal years 2014-2015 and 2015-2016.

SB284, CD1, authorizes the B&F to issue $35,000,000 in reimbursable general obligation bonds and to deposit the proceeds into the Turtle Bay Conservation Easement Special Fund. Appropriates $35,000,000 out of the Turtle Bay Conservation Easement Special Fund for the DLNR to acquire a conservation easement and other real property interests at Turtle Bay, Oahu. Allocates TAT revenues of $1,500,000 annually to the Turtle Bay Conservation Easement Special Fund. Provides that a nonprofit land conservation organization shall file an application annually with the BLNR requesting $1,500,000 from the Land Conservation Fund to be used for the reimbursement of debt service on the Turtle Bay reimbursable general obligation bonds. Appropriates $3,000,000 out of the Turtle Bay Conservation Easement Special Fund to reimburse the state general fund for payment of debt service on the reimbursable general obligation bonds.

SB359, CD1, applies the state environmental response, energy, and food security tax to fossil fuels other than petroleum products and bases the tax on one million British thermal units. Removes the sunset of the various funds related to the barrel tax. Clarifies the purposes for which the environmental response revolving fund may be used. Provides for the transfer of moneys from the environmental response revolving fund into the general fund. Requires the Director of Health to report to the Legislature information regarding the environmental response revolving fund.

AGRICULTURE
HB573, CD1, establishes and appropriates funding for the Hawaii Good Agricultural Practices Program to develop and support good agricultural practices for Hawaii farms growing agricultural food products.

SB1060, CD1, allows for agricultural loans to be administered for livestock biosecurity projects to assist the livestock industry by establishing a low-interest biosecurity loan program within the Department of Agriculture for construction, improvements, purchase of equipment and other costs related to biosecurity projects.

SB376, CD1 establishes the Hawaii Farm to School Program and a Farm to School Coordinator position.

TAXES
SB555, CD1, increases the refundable food/excise tax credit. Repeals credit for individual taxpayers with adjusted gross incomes of $30,000 or above and for heads of households, married couples filing jointly, and married couples filing separately, with adjusted gross incomes of $50,000 or above. Repeals residency requirement. Applies to taxable years beginning after 12/31/2015. Repeal and reenactment on 12/31/2017.

HB134, CD1, reauthorizes the counties' authority to establish a county surcharge on state tax for a limited time period, with the surcharge to be effective until 12/31/2027, if adopted. Requires counties to adopt an ordinance to establish or extend a surcharge prior to 7/1/2016. Limits the use of surcharge revenues by counties that have already established a county surcharge on state tax to capital costs. Expands the definition of capital costs for counties with a population greater than 500,000.

ECONOMIC DEVELOPMENT AND TOURISM
SB1001, CD1, establishes and appropriates funds for the manufacturing development program, through which the High Technology Development Corporation may distribute grants to Hawaii manufacturers for various activities.

SB519, CD1, authorizes fines to be deposited into the tax administration special fund. Increases the balance that may be retained in the tax administration special fund in each fiscal year. Authorizes DOTAX to enforce civil penalties for operators and plan managers who fail to display the certificate of registration and registration ID numbers for transient accommodations and resort time share vacation plans. Authorizes DOTAX to issue citations for failure to provide the registration identification number or link to the number and the contact information of the local contact in an advertisement for a transient accommodation or resort time share vacation plan. Takes effect 1/1/16.

SB892, CD1, makes various appropriations for the Hawaii resilience and sustainability strategy.

ENERGY
HB1509, CD1, requires the University of Hawaii to establish collective goal of becoming net-zero with respect to energy use by January 1, 2035.

SB717, CD1, repeals existing requirement that gasoline for motor vehicles be composed of ten per cent ethanol. Effective December 31, 2015.

HB623, CD1, which increases the state’s renewable portfolio standards to 30 percent by December 31, 2020, 70 percent by December 31, 2040, and 100 percent by December 31, 2045. Requires the Public Utilities Commission to include the impact of renewable portfolio standards, if any, on the energy prices offered by renewable energy developers and the cost fossil fuel volatility in its report to the Legislature.

SB1050, CD1, requires electric utilities to file proposed community-based renewable energy tariffs with the public utilities commission by October 1, 2015. Authorizes ratepayer participation in eligible community-based renewable energy projects. (CD1)

SB1316, CD1, establishes a working group to examine the issues regarding requests to the board of directors of an association of apartment owners, condominium association, cooperative housing corporation, or planned community association regarding the installation of electric vehicle charging systems.

SB349, CD1, establishes a five-year renewable fuels production tax credit and repeals the ethanol facility tax credit. Allows qualifying taxpayers to claim a refundable income tax credit equal to 20 cents per seventy-six thousand British thermal units of qualifying renewable fuel, capped at $3,000,000 per taxable year. Caps the credit at $3,000,000 per year in aggregate. Requires DBEDT to certify all tax credits and submit a report regarding the production and sale of qualifying renewable fuels to the governor and legislature each year. Directs DOTAX to create forms for the tax credit. Applies to taxable years beginning after December 31, 2015.

SB1214, CD1, relating to the issuance of special purpose revenue bonds. Authorizes the issuance of special purpose revenue bonds to assist Hawaiian Electric Company, Inc., Maui Electric Company, Limited, and Hawaii Electric Light Company, Inc.

CONSUMER PROTECTION
SB464, CD1, requires persons charging a consumer's credit or debit card or account for automatic renewal or continuous service offer to first obtain the consumer's affirmative consent. Requires acknowledgment of terms, cancellation policy, and information on how to cancel the automatic renewal or continuous service to be provided to the consumer. Requires free trial offers to clearly and conspicuously disclose how to cancel the agreement prior to the consumer being charged for goods and services.

HB261, CD1, requires health insurers, mutual benefit societies, and health maintenance organizations to post and update information on drug formularies via a public website and toll-free number for the benefit of insureds, potential insureds, and providers. Establishes a formulary accessibility working group.

SB1009, CD1, requires hotels to distribute porterage service charges to employees in full or disclose to customers that the charges are being used for other purposes.

MILITARY AND VETERANS AFFAIRS
SB181, CD1, allows the Department of Education to continue, until June 30, 2020, awarding high school diplomas to qualified veterans who did not receive a high school diploma as a result of compulsory induction into active service in the armed services of the United States or any person whose high school education was interrupted due to wartime practices such as internment during World War II.

HB1153, CD1, exempts qualifying totally and permanently disabled veterans from paying the state motor vehicle registration fee. Requires the Director of the Office of Veterans' Services to report the number of qualifying veterans to the Legislature and Department of Taxation.

TRANSPARENCY AND GOOD GOVERNMENT
SB996, CD1, appropriates funds to the State Ethics Commission to design and develop a system that allows filers to electronically file required statements and reports with the State Ethics Commission.

SB654, CD1, reduces from less than $500 to less than $100, the aggregate contribution amount a candidate may receive from ten or more anonymous persons at the same political function. Takes effect on 1/1/2016.

HB179, CD1, specifies the in-state mailing address in a voter's registration record as the forwarding address for receiving absentee ballots permanently. Requires voters seeking to have permanent absentee ballots forwarded to another address to re-apply for an absentee ballot.

SB508, CD1, requires noncandidate committees to file an additional preliminary report on October 1 of each general election year.

HB15, CD1, specifies that the Chief Election Officer is an at-will employee. Requires Elections Commission to provide notice and reason for removal of a Chief Election Officer. Requires a performance evaluation of the Chief Election Officer after a general election. Requires a public hearing on the Chief Election Officer's performance for purposes of considering reappointment. Creates a statewide standard for the distribution of absentee ballots.

HB1491, CD1, strengthens reporting requirements for organizational reports, noncandidate reports, and late contributions reports submitted by noncandidate committees making or receiving large contributions.

FISCAL INITIATIVES
SB254, CD1, requires information on the estimated operational costs of proposed capital improvement projects and deferred maintenance costs of state-owned buildings, facilities, and other improvements to be summarized in the multi-year program and financial plan and supplemental budget, as applicable. Intends that the requirement apply to the judiciary. Effective 7/1/2016.

HB1140, CD1, provides a temporary income tax credit for the cost of upgrading or converting a qualified cesspool to a septic system or an aerobic treatment unit system, or connecting to a sewer system. Permits DOH, as a pilot program, to certify no more than 2 residential large capacity cesspools as qualified cesspools. Defines terms. Effective 7/1/2015. Sunsets 12/31/2020.

SB1312, CD1, appropriates $10,000,000 from the general revenues into the Emergency and Budget Reserve Fund in FY 2014-2015 to comply with article VII, section 6, of the Hawaii State Constitution, which requires, under certain economic conditions, that the legislature provide a tax credit to state taxpayers or make a deposit into one or more funds.

CULTURE AND THE ARTS
SB1177, CD1, appropriates funds to establish four full-time equivalent positions with the Hawaii State Foundation on Culture and the Arts to address the findings contained in Auditor’s Report No. 14-11, that the Foundation needs to improve its management to ensure the accountability, accessibility, and protection of the Foundation's resources.

OTHERS
SB868, CD1, authorizes county liquor commissions to prescribe regulations on dancing in establishments licensed to serve alcohol. Requires liquor commissions that do regulate dancing to adopt or amend administrative rules, no later than October 1, 2015, regarding dancing in premises licensed to sell liquor for consumption thereon and include a definition of "dancing" in those rules.

HB1090, HD2, prohibits non-compete agreements and restrictive covenants that forbid post-employment competition for employees of a technology business to stimulate economic development in Hawaii’s technology business sector.

HB1366, CD1, appropriates $500,000 to perform due diligence, plan, and enter into negotiations to acquire the Alii Place building in Downtown Honolulu to provide office space for state governmental agencies and offices.

Hawaii First in Nation to Adopt 100% Renewable Portfolio Standard

A bill passed by the Legislature today makes Hawaii the first state in the nation to adopt a 100 percent Renewable Portfolio Standard, which means Hawaii utilities will generate 100 percent of their electricity from renewable sources by 2045.

HB623, CD1—which increases renewable portfolio standards to 30 percent by December 31, 2020, 70 percent by December 31, 2040, and 100 percent by December 31, 2045—will boost the state's local energy industry and save ratepayers hundreds of millions of dollars in years to come.

“As the first state to move toward 100 percent renewable energy, Hawaii is proving to the rest of the country that renewable energy can be cheaper, cleaner and can help consumers to cut their electric bills down to near-zero,” said Rep. Chris Lee (Kailua, Waimanalo) who introduced the bill. “These big steps forward will accelerate the savings consumers are seeing around the state and will speed the growth of jobs in our local renewable energy industry.”

“Local renewable projects are already cheaper than liquid natural gas and oil, and our progress toward meeting our renewable energy standards has already saved local residents hundreds of millions on their electric bills. Moving to 100 percent renewable energy will do more to reduce energy prices for local residents in the long term than almost anything else we could do.”

Hawaii has been transitioning from a near-total dependence on imported fossil fuels, doubling its renewable energy production in the last decade. The state currently produces about 21 percent of its power from renewable energy.

Hawaii’s current renewable portfolio standards call for 40 percent renewable energy by 2040, which will now grow to 100 percent by 2045. Progress in meeting the existing renewable portfolio standards has saved local consumers hundreds of millions of dollars in avoided energy costs, including more than $67 million in 2012 alone.

Renewable energy from new projects currently proposed in the state is now coming in cheaper per kilowatt hour than fossil fuel energy. Accelerating the rate of renewable energy adoption will help advance savings for consumers as the state eliminates its dependence on fossil fuels subject to increasingly expensive and volatile prices.

The measure also requires the Public Utilities Commission to include the impact of renewable portfolio standards, if any, on the energy prices offered by renewable energy developers and the cost of fossil fuel volatility in its renewable portfolio standards study and report to the Legislature.

Other groundbreaking energy related bills passed this session include:

HB 1509, CD1 makes the University of Hawaii system the first university in the nation to have a goal of being 100 percent renewable and generate all their own power by 2035, according to Lee. Achieving this goal will save students about $40 million in tuition every year that is now used to pay the university’s electric bill. It will also save taxpayers countless millions by encouraging the use of innovative energy-savings financing to pay for campus upgrades, instead of the state paying the bill.

SB1050, CD1 establishes the nation's first state-wide community renewables program which will allow any resident to buy into a solar PV or other renewable project off-site and receive credit for it on their electric bill as though it was installed on their own roof. This opens the renewable energy market to condo owners, renters, and countless others who previously could not take advantage of renewable technology to save on their electric bill.

Lawmakers Advance Medical Marijuana Dispensaries Bill for Final Reading

House and Senate conferees today advanced a bill that would create medical marijuana dispensaries throughout the state. The measure now goes to both chambers for a full floor vote. If passed, the bill will be sent to the Governor for his signature, veto or passage without his signature.

HB321, CD1 closely aligns with recommendations of a task force commissioned by a House Concurrent Resolution authored last year by House Health Committee Chair Rep. Della Au Belatti (Makiki, Tantalus, Papakolea, McCully, Pawaa, Manoa).

The measure would establish a medical marijuana dispensary system and provide a total of eight dispensary licenses statewide, three in Honolulu, two on Maui County and Hawaii Island, and one on Kauai. Each dispensary licensee would have the option to open up to two retail locations. The state will begin taking licensee applications from January 11-29, 2016. Each dispensary may commence dispensing medical marijuana and related products to qualifying patients or primary caregivers on July 15, 2016.

“It’s been a long haul, to get this bill to this point, going to back to last session when we deferred an earlier effort to provide legal access to medical marijuana,” Belatti said. “Because of a number of issues, including those relating to the safety and security of the dispensaries, we sought more studied input so that we would be on firm ground when drafting this year’s measure.

“The Task Force’s findings are what informed the House’s version of the bill and why we felt strongly about following its recommendations when we went to conference. If we were intensely focused on seeing this measure passed this session, can you imagine how patients who require medical marijuana to get by each day must have felt? Some have waited 15 years for this day to come,” added Belatti, who was an active participant on the Task Force and co-introducer of the bill with House Speaker Joseph M. Souki (Kahakuloa, Waihee, Waiehu, Puuohala, Wailuku, Waikapu).

“Sometimes it takes a while for the stars to align, especially when it comes to legislation,” said Souki, who has been a long time and vocal proponent of legalizing both medical marijuana and creating dispensaries. In fact, in last year’s opening day remarks, he called for the establishment of medical marijuana dispensaries.

“It is long overdue, but it is the humanitarian thing to do; it is the right thing to do,” he added.

In 2000, the Legislature passed a bill legalizing the use of medical marijuana, but left the nearly 13,000 patients who qualify to use it no legal way of accessing the drug. For them, including very young children, medical marijuana was the only way to treat or alleviate pain or other symptoms associated with certain debilitating illnesses.

Lawmakers send bills on rail tax, Turtle Bay, Alii Place for final floor vote

House and Senate conferees today agreed to advance bills relating to the extension of the general excise tax for rail, the purchase of Turtle Bay lands for conservation and the purchase of Alii Place. Today was the deadline for House and Senate conferees to pass bills out of their respective committees before a final floor vote. If the bills pass both houses, they will be forwarded to the Governor for his signature, veto, or passage without his signature.

After months of discussion and negotiations, the conferees voted to send HB134, CD1, extending the rail tax, for a final floor vote in both the House and Senate. The conference draft proposed extending the 0.5% General Excise Tax for another five years on Oahu until 2027. It would also allow the neighbor island counties to implement a 0.5% GET increase starting 2018 through 2022 to fund transportation related projects only. In addition, the amended bill would give the state “air” (advertising and development) rights above the rail stations.

SB284, CD1 allows the state to enter into an agreement with the owners of Turtle Bay that would protect about 665 acres from development in perpetuity, which includes the purchase in fee of 65 acres around Kawela Bay.

HB1366, CD1 allows the state to enter into negotiations for the purchase of Alii Place in downtown Honolulu to house state agencies and offices. Bristol Alii Holdings LLC of San Francisco has offered to sell the property to the state for $90 million. Currently, the state rents about 420,888 sq. ft. of office space in the downtown area and spends about $10.15 million in rent. It would cost the state approximately $270 million to design and construct a comparable size building compared to the $90 million for Alii Place.

State budget includes over $200 million for projects on Hawaii Island

Big Island legislators secured over $200 million in Capital Improvement Project (CIP) funding for various projects across the island in HB500 CD1, the state budget bill for the next fiscal biennium.

The proposed budget includes funding for various highway improvements, monies for Big Island schools, and continued financial support to complete the Kona Judiciary Complex. The measure is scheduled next week for final reading in both the House and Senate.

Hilo
“Our Hawaii Island Legislative delegation has worked very hard to secure funding for many of the much needed projects throughout our island,” said Rep. Richard Onishi (Hilo, Keaau, Kurtistown, Volcano). “Although we didn't get everything we asked for and that is needed for our communities, our residents can be assured that we will continue to work hard during the interim to secure funding for those projects.”

“We have been successful in securing funds for Capital Improvement Projects for Hilo although we were faced with fiscal restraints,” added Sen. Gilbert Kahele (Hilo).

“For the last several years, I have been working with the tech community to increase the availability of jobs for Hawaii Island residents,” said Rep. Mark Nakashima (Hamakua, North Hilo, South Hilo). “The $8.5 million available for the purchase of a Workforce Development Facility to support tech activities demonstrates the state's commitment to growing this important economic sector.”

“House District 2 will see funding for schools, infrastructure improvements, and major construction for our airport, harbor, and roads,” added Rep. Clift Tsuji (Keaukaha, parts of Hilo, Panaewa, Waiakea).

“I am a strong supporter of alternative learning for our young men and women, and so I am grateful that an additional $1.7 million is being invested for the Youth Challenge Academy in Keaukaha. The Hilo Airport and Harbor continue to receive funding for necessary improvements.

“Other smaller projects are just as important, like Waiakea High School's batting cage and pipeline replacement along Nohea Street and Santos Lane. Regardless of the amount, project dollars will improve our quality of life and provide continued economic activity.”

Kohala, Waimea
“Two of my priorities are farming and agriculture and I am pleased that three projects in Senate District 4 have received funding,” said Sen. Lorraine Inouye (Hilo, Hamakua, Kohala, Waimea, Waikoloa, Kona). “After being invited to visit the Kohala Ditch to witness the damage in December, improvements and repairs to the ditch became my top priority for the future of agriculture. With the collaboration of many constituents and the State Department of Agriculture, we submitted a CIP request and were approved for $1.5 million.

“The Kamuela Vacuum Cooling Plant, is another project and my office staff and I have met with them to clarify their needs” she added. “This operation is vital to the farmers in the greater Waimea community. A CIP for $1 million to help repair their equipment has also been awarded. And finally, for Waipio Valley, and specifically Ha Ola o Waipio Valley, a GIA in the amount of $150,000 has been approved for flood control and stream bank stabilization work.”

“I'm pleased the budget contains funding for North Kohala and South Kohala and makes progress on locally grown produce and much needed improvements for our public schools,” said Rep. Cindy Evans (North Kona, North Kohala, South Kohala).

Puna, Ka’u
“For Puna & Ka’u districts, I’m happy to announce that our district schools will receive $2.3 million for laptops and the school infrastructure needed to implement the ‘One on one’ computer learning program, starting with Pahoa and Mountain View public schools,” said Sen. Russell Ruderman (Puna, Ka’u).

“This will expand the program that has been so successful in Keaau Elementary & Intermediate schools. Our Puna public school students, many of whom are extremely challenged economically, will have the tools to compete in our modern computer-based workplace.”

“Lower Puna is the fastest growing district in the State and I appreciate that the current budget recognizes our road and traffic problems by allocating $15 million for improvements to Highway 130,” added Rep. Joy San Buenaventura (Puna).

Kona
“After many years fighting for projects like the Kona Courthouse, I was so pleased to see our team's collaboration pay off for the Big Island,” added Sen. Josh Green (Kona, Ka‘u).

“The Kona Courthouse was a top priority for me and I’m very thankful that we now have full funding and the project will move forward,” said Rep. Nicole Lowen (Kailua-Kona, Holualoa, Kalaoa, Honokohau). “The funds in the budget for the airport are also really important for Kona’s future—the federal inspections stations will cement Kona as a destination for international arrivals to the state, and the planned regional ARFF training facility will serve as a source of revenue to keep our airports systems sustainable.

“We were gratified the two projects in District 5 received grant-in-aid money,” said Rep. Richard Creagan (Na'alehu, Ocean View, Capt. Cook, Kealakekua, Kailua-Kona). “The community kitchen project at Kona Pacific Charter School will receive $1.2 million. This project will help provide healthy food and value added products to the Kona community.

“The Community Enrichment and Historical Center in Precinct 3 will receive $800,000 which should help complete this very important and long-awaited project.”

Notable CIP funding highlights for Hawaii County include:

• $55 million in continued funding for the design and construction of a Judiciary Complex in Kona
• $4.99 million for photovoltaic projects for East Hawaii HHSC region 
• $1 million for the design and construction of a Kamuela post-harvest facility and vacuum cooling plant
• $1.5 million for improvements to the Kohala ditch irrigation system
• $30.212 million for the construction of a new combined support maintenance shop complex for Hawaii Army National Guard at the Keaukaha military reservation
• $1.675 million for Youth Challenge Academy renovations and improvements at Keaukaha military reservation
• $300,000 for parking improvements at Kealakehe Elementary School
• $1 million for the plans, design, construction and equipment for the transition from Keaau Elementary School to Keonepoko Elementary School
• $230,000 for the construction of drainage improvements and a raised covered walkway at Mountain View Elementary School
• $2.3 million for laptop computers and the installation of necessary infrastructure for laptop use in Senate District 2 schools, especially at Pahoa High and Intermediate School and Mountain View Public Schools
• $450,000 for a new baseball batting cage at Waiakea High School
• $1.58 million for the design of a new classroom building at Waikoloa Elementary and Middle School
• $300,000 for parking improvements at Kealakehe Elementary School
• $2 million for the design of Building A phase 1 renovations at Hilo Intermediate School
• $8.5 million for the land acquisition, design, construction and equipment for a multi-purpose workforce development processing facility
• $330,000 for improvements to the research campus in the Hawaii Ocean Science and Technology Park
• $1 million for the design and construction for Pu’u Wa’awa’a structure improvements and dam compliance
• $400,000 for the plans and design for improvements at the North Kawaihae small boat harbor
• $600,000 for the land acquisition and design for a community center in Waiakea Uka
• $550,000 for the replacement of water lines and service laterals along Nohea Street and Santos Lane
• $3.5 million for airfield improvements at Hilo International Airport
• $3.89 million for the demolition of existing structures at the west ramp and construction of site improvements at Hilo International Airport
• $61 million for the design and construction of a new airport rescue firefighters regional training facility at the Kona International Airport at Keahole
• $2.5 million for the plans and design of a federal inspection station at Kona International Airport at Keahole
• $50,000 for a feasibility study of constructing a small commercial airport in south Puna
• $1.425 million for physical modifications to improve navigational safety and operational efficiencies at Hilo Harbor
• $660,000 for land acquisition to extend the Daniel K. Inouye Highway from the Hilo terminus to the Queen Kaahumanu Highway
• $15 million for repair and maintenance of feeder roads and alternate routes for Highway 130
• $2.45 million for Keaau-Pahoa Road improvements to widen the two lane highway to four lanes or implement alternate alignments
• $3.6 million for Kohala Mountain Road drainage improvements by mile post 10.60
• $8 million for the rehabilitation of Ninole Bridge along Mamalahoa Highway (route 11)
• $1.5 million for the construction of portable trailers at Hawaii Community College
• $800,000 to the Hawaii County Economic Opportunity Council #1 for the construction of Milolii community enrichment and historical center (Grant-in-Aid)
• $150,000 to the Panaewa Community Alliance for the design of the Kamoleao Laulima Community Resources Center (Grant-in-Aid)
• $285,000 to the Friends of the Volcano School of Arts & Science for the design and construction of a certified commercial kitchen (Grant-in-Aid)
• $1.2 million to the Friends of Kona Pacific Charter School for the design, construction and equipment for community food kitchen for Friends of Kona Pacific Public Charter School (Grant-in-Aid)
• $315,000 to the Kailapa Community Association for the design and construction of the Kailapa community resource center (Grant-in-Aid)

Contact Information:

Senators
Senator Gilbert Kahele (Hilo)
808-586-6760
senkahele@capitol.hawaii.gov

Senator Russell Ruderman (Puna, Ka‘u)
808-586-6890
senruderman@capitol.hawaii.gov

Senator Josh Green (Kona, Ka‘u)
808-586-9385
sengreen@capitol.hawaii.gov

Senator Lorraine Inouye (Hilo, Hamakua, Kohala, Waimea, Waikoloa, Kona)
808-586-7335
seninouye@capitol.hawaii.gov

Representatives
Representative Mark Nakashima (Hamakua, North Hilo, South Hilo)
(808) 586-6680
repnakashima@capitol.hawaii.gov

Representative Clift Tsuji (Keaukaha, parts of Hilo, Panaewa, Waiakea)
(808) 586-8480
reptsuji@capitol.hawaii.gov

Representative Richard Onishi (Hilo, Keaau, Kurtistown, Volcano)
(808) 586-6120
reponishi@capitol.hawaii.gov

Representative Joy San Buenaventura (Puna)
(808) 586-6530
repsanbuenaventura@capitol.hawaii.gov

Representative Richard Creagan (Naalehu, Ocean View, Capt. Cook, Kealakekua, Kailua-Kona)
(808) 586-9605
repcreagan@capitol.hawaii.gov

Representative Nicole Lowen (Kailua-Kona, Holualoa, Kalaoa, Honokohau)
(808) 586-8400
replowen@capitol.hawaii.gov

Representative Cindy Evans (North Kona, North Kohala, South Kohala)
(808) 586-8510
repevans@capitol.hawaii.gov

House and Senate Agree to $28 Million for Local Organizations

House and Senate budget conferees funded $28 million in Grant-in-Aid (GIA) for local organizations serving the public and working to improve the state of Hawaii. The total appropriations, amounted to nearly $20 million in capital improvement projects (CIP) funding and $8 million in operating funds. The funding agreements were made as lawmakers agreed on House Bill 500, relating to the state budget.

Lead by House Finance Chair Sylvia Luke and Senate Ways and Means Chair Jill Tokuda, the two sides focused on developing a responsible financial plan that lawmakers hope will create a continuing mindset in state government of “spending within its means.” That’s why lawmakers are looking to control government growth and spending even in good years.

“This year we received over two hundred eighty applications for Grant-in-Aid assistance. It was tough to make a decision from the many worthwhile requests, but the decisions that we made fit into what we could afford in this year’s state budget and our conservative fiscal plan,” said Rep. Ty Cullen (Royal Kunia, Village Park, Waipahu, Makakilo, West Loch), lead House GIA manager.

“Fortunately, the House and Senate were able to put together just over $28 million to support our local community and service groups, who assist a wide range of individuals within our community and are an integral part of our social safety net providing essential services for our state.”

The agreement culminated nearly two weeks of discussions on a wide range of issues such as social services, mass transit, healthcare, education, the environment and support for statewide government services. HB500, CD1 will now go before the full House and Senate for a final vote.

All GIA applications received this year and the full list of operating and CIP appropriations are available on the Capitol website at http://www.capitol.hawaii.gov/GIA/2015GIA.aspx.