The Legislature has completed another rushed round of lawmaking, but there’s a lingering lack of certainty that the job is done. Senate President Ron Kouchi characterized his chamber’s work as “I” for incomplete, acknowledging a widespread expectation that federal funding cutbacks, tariffs’ whip-sawing effects on the global economy and international trade will disrupt budget expectations and lead to a special session later this year to balance things out.
Under the layer of fed-induced turbulence, however, work got done. Among bills passed by the Leg: authorization for an increase to the hotel room tax; approval for continued kauhale (tiny home community) development; money to move ahead with planning for the Oahu Community Correctional Center (OCCC); and a higher cigarette tax for the benefit of the University of Hawaii Cancer Center. These bills provide support for absolutely essential endeavors within our state, though future refinements may be necessary.
• Senate Bill 1396 raises the state’s hotel room tax — but only by .75%, rather than Gov. Josh Green’s ask of 1%. It also charges the tax on cruise ship passengers, if docked in the state. A portion of the added revenue is dedicated — in equal parts — to natural resource management, climate-related disaster mitigation and mitigating tourism impacts on the natural environment. Additional funds will be generated to conserve forestland, mitigate effects of drought and fire, address battered shorelines and eroding beachside roads and manage popular tourist destinations — to which we say, hele on!
• House Bill 431’s big win is establishment of the Ohana Zones program as permanent, under the Statewide Office on Homelessness and Housing Solutions (OHHS). It also continues funding for the kauhale initiative spearheaded by Gov. Josh Green, but moves the program in a more bureaucratic direction: changing references to the Governor’s Coordinator on Homelessness to a “Coordinator on Homelessness,” who reports directly to the Director of Human Services; requiring a state audit of the kauhale program and requiring OHHS to “conduct a comprehensive needs assessment,” and report to the Leg every four months with details on spending. Reports are all good, but let’s not lose momentum in getting kauhale operational, because it’s already clear that kauhale housing saves the state money over leaving people on the street.
• OCCC’s step forward came with passage of the budget bill, which included an appropriation of $30 million to move forward on additional planning and design work to replace the aging facility. OCCC must be relocated away from Kalihi without delay, which only adds to potential costs. The outdated and perpetually overcrowded facility is unfit for use, and constructing a new jail on state property in Halawa will improve conditions for those confined there. Criminal justice reform advocates oppose more funding directed at a new jail, calling for a state overhaul of public safety policies and programs and more funding for services, in particular, to divert homeless people from a incarceration; this should be done, but a new, relocated jail is still needed.
• House Bill 441 practically went down to the wire before being approved. That shouldn’t have been necessary for a sensible move to support the University of Hawaii Cancer Center — one of the many Hawaii entities subject to federal funding uncertainties. The bill raises Hawaii’s cigarette tax from 16 cents to 18 cents, and as of Jan. 1, allocates 4 cents of the tax per cigarette (previously 2 cents) to the Hawai‘i Cancer Research Special Fund, requiring that all of this money go to debt service for the Cancer Center’s building and maintenance costs through June 30, 2030, with 2 cents reserved for debt service after that date.
• Bonus bill: With little fanfare, HB 1007 went to the governor, adding to the Hawaii Community Development Authority’s (HCDA’s) plate but promising to make transit-oriented development (TOD) a more consistent and streamlined process. Working with both public and private entities, HCDA is tasked with combining affordable housing and “complete community infrastructure,” such as pedestrian-friendly roadways, services and shopping, and public parking — which takes the cost of parking off of developers, and buyers. A (much-needed) park-and-ride transit hub next to Skyline’s Waiawa station in Pearl Highlands looks to be major motivation for this legislation — the bill suggests it should be one of the first projects undertaken. Additionally, the bill stands up a Transit-Oriented Development Infrastructure Improvement Program and changes up expectations for HCDA’s board — calling for expertise in big-picture community planning. And it authorizes HCDA to issue bonds financing TOD infrastructure outside of previously designated community development districts — as is the Waiawa station.
