Representative Andria Tupola STATE CAPITOL, Room 317 HONOLULU, HAWAII 96813 To our valued guest, Thank you for joining us today as we share our caucus bill package with you. In this press packet, you will find the minority caucus bill package intro sheet, and a copy of the bills. The House Minority Caucus includes: Representative Andria Tupola, District 43, Minority Leader Health & Human Services Finance Legislative Management Representative Gene Ward, District 17, Minority Floor Leader, Minority Leader Emeritus Finance Intrastate Commerce Tourism Veterans, Military, & International Affairs, & Culture and the Arts Representative Lauren Matsumoto, District 45 Economic Development & Business Concerns Rep. Matsumoto cont. Labor & Public Employment Education Higher Education Representative Bob McDermott, District 40 Energy & Environmental Protection Housing Transportation Consumer Protection & Commerce Judiciary Representative Cynthia Thielen, District 50 Agriculture Ocean, Marine Resources & Hawaiian Affairs Public Safety Water & Land Judiciary If you have any questions, or would like a digital copy of this press packet, please email Mahealani Kahala at m.kahala@capitol.hawaii.gov. Mahalo, Representative Andria Tupola District 43, Minority Leader 808-586-8465 reptupola@capitol.hawaii.gov BETTER SOLUTIONS FOR THE BEST The House Republican Caucus is committed to making Hawai'i a?ordable, accountable, and accessible. AFFORDABLE Stop Raising Taxes. A bill to require agreement by 2/3 ofthe Legislature before raising any tax orfee. Stop Taxing Life. A bill to eliminate General Excise Taxes on life's necessities, like groceries. Stop Taxing Death. A bill to eliminate Hawai'i?s death taxes, which unfairly double-tax small family farms and businesses. PLEASE JOIN ACCOUNTABLE Show Us the Price Tag. A bill to institute public Fiscal Notes, showing the estimated costs of all legislation. Show Your Work. A bill to eliminate loopholes in the public records law that of?cials use to avoid transparency. End Permit Purgatory. A resolution demanding that Honolulu reduce its shameful permitting delays. Voice your support. Your voice matters. Contact your legislator and encourage them to vote in support of these bills. ACCESSIBLE Let the People Speak. A bill to ensure equal access to State Government for neighbor island citizens. Charter School Equality. A resolution to study and recommend a complete overhaul of Hawai?i's broken charter school system. Extend Aloha to Veterans. A bill to allow, without mandating, private businesses to offer a hiring preference for Veterans. i/ Meet us face-to-face. Make an appointment with a Republican legislator to discuss the bills. Testify. Attend the hearings during the legislative session and testify in support of the bill or submit testimony online at capitol.hawaii.gov. Rep. Andria Tupola (District 43) Rep. Gene Ward (District 17) Rep. Thielen (District 50) Rep. Bob McDermott (District 42) Rep. Lauren Matsumoto (District 45) reptupola@capitol.hawaiigov (808) 586-8465 repward@capitol.hawaii.gov (808) 586-6420 (808) 586-6480 repthielen@capitol.hawaii. gov (808) 586-9730 (808) 586-9490 HOUSE OF REPRESENTATIVES TWENTY-NINTH LEGISLATURE, 2018 STATE OF HAWAII A BILL FOR AN ACT RELATING TO FISCAL IMPACT STATEMENTS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1. The legislature finds that fiscal impact 2 statements provide decision makers and the general public with 3 helpful nonpartisan estimates of the fiscal impact of proposed 4 legislation on state revenues and expenditures. 5 statements may be used by legislators to decide whether or not a 6 proposed bill has merit, 7 or raise more revenues, or to make decisions about the state’s 8 budget. 9 impact statement to evaluate pending legislation. 10 Currently, Fiscal impact to revise a bill to make it less costly over forty states use a form of fiscal The legislature further finds that properly utilized fiscal 11 impact statements can be a valuable tool for making financial 12 decisions in challenging economic times. 13 bill may include increasing or decreasing the yield of an 14 existing tax, 15 of service, 16 changing the funding of an existing program. 17 important factors that should guide the legislature’s financial Fiscal impacts of a changing personnel requirements, affecting levels imposing or shifting a tax to a new base, HB HMIA 2018-l-02.doc or These are HUB. Page2 NO.(1j~ 1 policy. 2 face of a bill, publishing fiscal impact statements enhances the 3 transparency of the legislative process. 4 Because such impacts are often not self-evident on the The purpose of this Act is to require the office of the 5 legislative analyst to create fiscal impact statements for 6 certain bills that have a fiscal impact, and to appropriate 7 funds to the office of the legislative analyst. 8 9 10 SECTION 2. Chapter 21F, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows: 11 “~21F-A Creation of fiscal impact statements. (a) 12 Beginning with the 2019 regular session of the legislature, 13 before either house of the legislature may pass a draft of a 14 bill upon third reading, there shall be attached to the draft of 15 that bill a fiscal impact statement, 16 (b), 17 draft. 18 compliant with subsection that specifically addresses the fiscal impact of that (b) The office of the legislative analyst shall prepare 19 each fiscal impact statement, which shall, 20 contain: HB HMIA 2018-1-02.doc at a minimum, 2 H.B.NO.Il2~ Page3 1 (1) The fiscal impact on existing and new programs or 2 activities; provided that the fiscal impact statement 3 shall reflect the estimated cost of the program or 4 activity that is stated in the text of the bill, 5 if that cost estimate differs from the amount actually 6 being appropriated for that program or activity in the 7 bill at that time; 8 (2) 9 even A fiscal impact projection for the current fiscal year and for the two succeeding fiscal years, including an 10 estimate of the amount of the appropriation increase 11 or decrease that would result from enactment of the 12 bill for the current fiscal year and five succeeding 13 fiscal years; 14 (3) The source of funds expected to be utilized by the 15 general fund source, 16 identified source; 17 (4) 18 19 20 federal fund source, The number of new positions that may be required, identified as full-time, part-time, (5) or other or temporary; An analysis of how the figures in the fiscal impact statement were derived; HB HMIA 2018-l-02.doc 3 H.B. NO. 1 (6) 2 3 (12’t Any additional information that may be necessary to explain the fiscal impact statement; and (7) The date the fiscal impact statement was prepared; the 4 name of the persons that prepared the fiscal impact 5 statement; and the state agencies, programs, or 6 subprograms affected. 7 §21F-B Fiscal impact statements; exemptions. Except as 8 required by section 2lF-C, 9 be required for a general appropriations bill or a supplemental 10 11 a fiscal impact statement shall not appropriations bill. §21F-C 12 funds. 13 measure concerning any program wholly or partially funded by 14 federal moneys that involves an expenditure of state funds or a 15 legislative appropriation of funds. 16 17 18 (b) 21 A fiscal impact statement shall be required for any A fiscal impact statement required by this section shall: (1) 19 20 (a) Fiscal impact statements on programs using federal Reflect the immediate and long-range fiscal effect on the state of any applicable program; (2) State the length of time the federal funds are expected to be provided; HB HMIA 2018-l-02.doc 4 H.B.NOI(1’Zq Page5 1 (3) 2 State the probable amount of state funds required to continue the program; 3 (4) Comply with all rules; and 4 (5) Contain all the information required by subsection (b) 5 6 7 8 9 10 of section §21F-A. SECTION 3. Section 2lF-7, Hawaii Revised Statutes, amended to read as follows: “[-E-H21F-7[)-) General purposes of analyst. (a) The purpose of the office of the legislative analyst shall be: (1) To provide the legislature with research and analysis 11 of current and projected state revenues and 12 expenditures; 13 is (2) To provide the legislature with a report analyzing the 14 governor’s proposed levels of revenue and expenditures 15 for biennial budgets submitted under chapter 37 as 16 well as other supplemental budget submittals to the 17 legislature by the governor; 18 (3) To provide an analysis of the impact of the governor’s 19 proposed revenue and expenditure plans for the next 20 biennium; HB HMIA 20l8-l-02.doc H.B. NO. 1 (4) (iis~ To conduct research matters of economic and fiscal 2 policy and to report to the legislature on the result 3 of the research; 4 (5) To provide economic reports and studies on the state 5 of the State’s economy, 6 for consideration by the legislature; 7 (6) 8 9 including trends and forecasts To conduct budget and tax studies and provide general fiscal and budgetary information; (7) To review and make recommendations on the operation of 10 state programs in order to appraise the implementation 11 of state laws regarding the expenditure of funds and 12 to recommend means of improving their efficiency; 13 [ai~4] 14 (8) To recommend to the legislature changes in the mix of 15 revenue sources for programs, 16 state expenditures devoted to major programs, 17 the role of the legislature in overseeing state 18 government expenditures and revenue projections[--]; in the percentage of and in 19 20 (9) To prepare fiscal impact statements. HB HMIA 2018-l-02.doc 6 H.B. NO. Page7 1 (b) In performing the duties under subsection 2 legislative analyst shall consider, 3 matters: 4 (1) among other (a), (12~ the [thinga:] The relative dependence on state tax revenues, federal 5 funds, 6 and whether the existing mix of revenue sources is 7 appropriate, 8 (2) 9 and user fees to support state-funded programs, given the purposes of the programs; The relative percentages of state expenditures that are devoted to major programs such as education, 10 assistance to local government, 11 state agencies and institutions, 12 (3) aid to individuals, and debt service; and The role of the legislature in overseeing state 13 government expenditures, 14 appropriation of money from the general fund, 15 legislative appropriation of money from funds other 16 than the general fund, 17 into revolving and other dedicated funds and 18 expenditure of money from these funds, and state 19 agency expenditure of federal funds.” 20 21 SECTION 4. including legislative state agency receipt of money There is appropriated out of the general revenues of the State of Hawaii the sum of $ HB HMIA 20l8-l-02.doc or so much 7 H.B. NO. (1~ct Page8 1 thereof as may be necessary for fiscal year 2018-2019 for the 2 purposes of this Act. 3 4 5 6 7 8 The sum appropriated shall be expended by the office of the legislative analyst for the purposes of this Act. SECTION 5. and stricken. SECTION 6. Statutory material to be repealed is bracketed New statutory material is underscored. This Act shall take effect on July 1, 2018. INTRODUCED BY: — HB HMIA 2018-1-02.doc ‘T22O1~~~ 8 H.B. NO. (‘~i~ Report Title: Legislature; Office of the Legislative Analyst; Fiscal Impact Statements Description: Requires the office of the legislative analyst to create fiscal impact statements for certain bills that have a fiscal impact. Makes an appropriation to the office of the legislative analyst. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. HB HMIA 2018-l-02.doc HOUSE OF REPRESENTATIVES TWENTY-NINTH LEGISLATURE, 2018 STATE OF HAWAII ~ IN A BILL FOR AN ACT RELATING TO GOVERNMENT TRANSPARENCY. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1. The legislature finds that government 2 transparency is the foundation of our republic. Our system of 3 government holds officials accountable by entrusting the people 4 with the ultimate decision-making power. 5 best protected when government operations are open to public 6 scrutiny. The public interest is 7 To that end, Hawaii’s Uniform Information Practices Act 8 states that “the formation and conduct of public policy--the 9 discussions, deliberations, decisions, and action of government 10 agencies--shall be conducted as openly as possible.” 11 words, officials should be held accountable for not only their 12 decisions, but also the discussions and deliberations that lead 13 to those decisions. 14 be transparent to the people. 15 Too often, however, In other The decision-making process itself should reality has not lived up to these 16 ideals, and the process of government has been hidden from the 17 people. The Uniform Information Practices Act allows for five HB HMIA 2018-l-04.doc H.B.NO.II~ 1 narrow exceptions to public disclosure, 2 records that must be confidential in order for the government to 3 function. 4 exemption and the related “deliberative process privilege” into 5 an excuse to withhold vast numbers of documents from disclosure. 6 This goes against the original intent of the Uniform Information 7 Practices Act, and must end. 8 9 Unfortunately, including for government some officials have twisted this The legislature further finds that transparency in the budgetary process is of the utmost importance. Yet some of the 10 most egregious examples of resistance to public disclosure have 11 occurred in budgeting. 12 Honolulu recently used the aforementioned exemptions to justify 13 hiding its departmental budget requests from the public. For example, the City and County of 14 Taxpayers and the people of Hawaii expect officials to 15 steward public funds in a responsible manner for the public 16 good. 17 overfunded or unfunded. 18 policymakers, and deserve to know not only how public money is 19 actually being spent, but how government officials have proposed 20 to spend it. The public should know if a department’s needs are going HB HMIA 20l8-l-04.doc The voters are this state’s ultimate 2 .H.B. NO. (1~o Page3 1 The purpose of this Act, therefore, is to ensure that the 2 public has access to budget-related documents from all 3 government agencies. 4 that one of the purposes of the Uniform Information Practices 5 Act is to ensure that budgeting happens as openly as possible; 6 by specifying that agencies shall release all budget and budget- 7 related documents; and by clarifying that the narrow exceptions 8 to disclosure under section 92F-13 shall not apply to budget or 9 budget-related documents in the absence of a legitimate public 10 11 12 13 The Act accomplishes this by specifying safety justification for nondisclosure. SECTION 2. Section 92F-2, Hawaii Revised Statutes, is amended to read as follows: “[-E]~92F-2[]-] Purposes; rules of construction. In a 14 democracy, the people are vested with the ultimate decision 15 making power. 16 the formation and conduct of public policy. 17 government processes to public scrutiny and participation is the 18 only viable and reasonable method of protecting the public’s 19 interest. 20 policy of this State that the formation and conduct of public 21 policy--the discussions, Government agencies exist to aid the people in Opening up the Therefore the legislature declares that it is the HB HMIA 2018-l-04.doc deliberations, decisions, budgeting, 3 H.B. NO. (1~O 1 and action of government agencies--shall be conducted as openly 2 as possible. 3 The policy of conducting government business as openly as 4 possible must be tempered by a recognition of the right of the 5 people to privacy, 6 article I of the constitution of the state of Hawaii. 7 8 as embodied in section 6 and section 7 of This chapter shall be applied and construed to promote its underlying purposes and policies, which are to: 9 (1) Promote the public interest in disclosure; 10 (2) Provide for accurate, 11 12 (3) Enhance governmental accountability through a general policy of access to government records; (4) Make government accountable to individuals in the 15 collection, use, 16 relating to them; and 17 and complete government records; 13 14 relevant, timely, (5) and dissemination of information Balance the individual privacy interest and the public 18 access interest, 19 constitute a clearly unwarranted invasion of personal 20 privacy.~ HB HMIA 2018-1-04.doc allowing access unless it would 4 H.B.NO.’1~0 Page5 1 2 3 SECTION 3. Section 92F-12, Hawaii Revised Statutes, amended by amending subsection (a) “~92F-12 Disclosure required. is to read as follows: (a) Any other provision in 4 this chapter to the contrary notwithstanding, 5 make available for public inspection and duplication during 6 regular business hours: 7 (1) Rules of procedure, each agency shall substantive rules of general 8 applicability, 9 interpretations of general applicability adopted by 10 11 statements of general policy, and the agency; (2) Final opinions, including concurring and dissenting 12 opinions, as well as orders made in the adjudication 13 of cases, except to the extent protected by section 14 92F-13(l); 15 (3) Government purchasing information, 16 results, 17 92F-13; 18 (4) including all bid except to the extent prohibited by section Pardons and commutations, as well as directory 19 information concerning an individual’s presence at any 20 correctional facility; HB HMIA 2018-l-04.doc H.B. NO. (1’)L’ 1 (5) Land ownership, transfer, and lien records, including 2 real property tax information and leases of state 3 land; 4 (6) Results of environmental tests; 5 (7) Minutes of all agency meetings required by law to be 6 7 public; (8) Name, address, and occupation of any person borrowing 8 funds from a state or county loan program, and the 9 amount, purpose, and current status of the loan; 10 (9) 11 12 Certified payroll records on public works contracts except social security numbers and home addresses; (10) Regarding contract hires and consultants employed by 13 agencies: 14 (A) The contract itself, 15 (B) The duration of the contract; and 16 (C) The objectives of the contract, 17 except social security numbers and home addresses; 18 (11) 19 20 21 the amount of compensation; Building permit information within the control of the agency; (12) Water service consumption data maintained by the boards of water supply; HB HMIA 2018-1-04.doc 6 H B. F\I 0. (‘?3~J Page 7 1 (13) . Rosters of persons holding licenses or permits granted 2 by an agency that may include name, business address, 3 type of license held, 4 (14) The name, and status of the license; compensation (but only the salary range for 5 employees covered by or included in chapter 76, 6 sections 302A-602 to 302A-639, 7 bargaining unit 8 business telephone number, 9 and training background, previous work experience, (8)), and and 302A-701, or job title, business address, job description, education 10 dates of first and last employment, position number, 11 type of appointment, 12 occupational group or class code, bargaining unit 13 code, 14 division, branch, office, 15 employment, 16 of the agency; provided that this paragraph shall not 17 require the creation of a roster of employees; and 18 provided further that this paragraph shall not apply 19 to information regarding present or former employees 20 involved in an undercover capacity in a law 21 enforcement agency; service computation date, employing agency name and code, department, HB HMIA 20l8-1-04.doc section, unit, and island of of present or former officers or employees 7 H.B. NO. (11,0 Page8 1 (15) Information collected and maintained for the purpose 2 of making information available to the general public; 3 La~d1 4 (16) Information contained in or compiled from a 5 transcript, minutes, 6 proceeding open to the public [--]; and 7 (17) report, or summary of a Budget and budget-related documents, including but not 8 limited to agency budget requests; provided that this 9 paragraph shall not require the disclosure of 10 information regarding undercover activities of law 11 enforcement agencies. 12 13 14 15 16 SECTION 4. Section 92F-l3, Hawaii Revised Statutes, is amended to read as follows: ~92F-l3 Goverxmtent records; exceptions to general rule. This part shall not require disclosure of: (1) Government records which, if disclosed, would 17 constitute a clearly unwarranted invasion of personal 18 privacy; 19 (2) Government records pertaining to the prosecution or 20 defense of any judicial or quasi-judicial action to 21 which the State or any county is or may be a party, HB HMIA 2018-l-04.doc to 8 H B. NO. (1?jo Page 9 . 1 the extent that such records would not be 2 discoverable; 3 (3) Government records that, by their nature, must be 4 confidential in order for the government to avoid the 5 frustration of a legitimate government function; 6 provided that this paragraph shall not apply to budget 7 or budget-related documents unless the agency can show 8 a legitimate public safety justification for 9 nondisclosure; 10 (4) Government records which, pursuant to state or federal 11 law including an order of any state or federal court, 12 are protected from disclosure; and 13 (5) Inchoate and draft working papers of legislative 14 committees including budget worksheets and unfiled 15 committee reports; work product; records or 16 transcripts of an investigating committee of the 17 legislature which are closed by rules adopted pursuant 18 to section 21-4 and the personal files of members of 19 the legislature.” 20 21 SECTION 5. and stricken. Statutory material to be repealed is bracketed New statutory material is underscored. HB HMIA 2018-l-04.doc 9 Page 10 1 SECTION 6. H.B. NO. ~ This Act shall take effect upon its approval. 2 INTRODUCED BY: ~JA~&L 2~-~~jë JAN 122018 HB HMIA 2018-l-04.doc 10 H.B. NO. tTk~ Report Title: Government transparency; Budgeting; Uniform Information Practices Act Description: Clarifies that agencies must provide public disclosure of budget documents. Clarifies that exceptions to disclosure do not apply to budget documents unless agency can show a legitimate public safety justification for nondisclosure. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent HB HMIA 2018-l-04.doc H B. N ~J. HOUSE OF REPRESENTATIVES TWENTY-NINTH LEGISLATURE, 2018 STATE OF HAWAII . A BILL FORAN ACT PROPOSING AN AMENDMENT TO ARTICLE III, SECTION 15, OF THE HAWAII STATE CONSTITUTION TO ENACT A SUPERMAJORITY VOTING REQUIREMENT FOR PASSAGE OF LEGISLATION PROPOSING TO RAISE OR CREATE TAXES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1. The legislature finds that proposed legislation 2 that would create new taxes or raise existing taxes should be 3 considered and enacted in a different manner than other 4 legislation. 5 huge impact on the cost of living in Hawaii. 6 takes in taxes, 7 own priorities. 8 raise taxes should only be exercised after the greatest care and 9 deliberation. 10 The power of the State to tax its citizens has a The more the State the less local families have to spend on their Therefore, the legislative power to create or The legislature further finds that requiring a 11 supermajority to create or raise taxes would do two important 12 things for the State of Hawaii. 13 consensus on new or additional taxes. 14 requirement would encourage lawmakers to work within existing 15 revenue streams rather than seek new ones. HB HMIA 2018-l-06.doc First, it would require Second, a supermajority H.B. NO. 1 The purpose of this Act is to propose an amendment to 2 Article III, 3 Hawaii, 4 legislation proposing to raise taxes or create new taxes. 5 6 section 15, 9 of the Constitution of the State of to require a two-thirds supermajority for passage of SECTION 2. Article III, section 15, of the Constitution of the State of Hawaii is amended to read as follows: 7 8 I1~.?1 “PASSAGE OF BILLS Section 15. No bill shall become law unless it shall pass three readings in each house on separate days. No bill shall 10 pass third or final reading in either house unless printed 11 copies of the bill in the form to be passed shall have been made 12 available to the members of that house for at least forty-eight 13 hours. 14 Every bill when passed by the house in which it originated, 15 or in which amendments thereto shall have originated, 16 immediately be certified by the presiding officer and clerk and 17 sent to the other house for consideration. 18 shall Any bill pending at the final adjournment of a regular 19 session in an odd-numbered year shall carry over with the same 20 status to the next regular session. HB HMIA 2018-l-06.doc Before the carried-over 2 H.B. NO. Page3 1 bill is enacted, 2 in which the bill originated. 3 I1~$ it shall pass at least one reading in the house Passage of legislation proposing to increase the rates for 4 any tax collected by the State or to enact a new tax to be 5 collected by the State shall require a two-thirds vote of all 6 members to which each house is entitled.” 7 SECTION 3. 8 be as follows: 9 The question to be printed on the ballot shall “Shall the Constitution be amended to include a two-thirds 10 supermajority voting requirement for the legislature to pass 11 laws that would raise taxes or create new taxes?” 12 SECTION 4. New constitutional material is underscored. 13 SECTION 5. This amendment shall take effect upon 14 compliance with Article XVII, 15 the State of Hawaii. 16 section 3, of the Constitution of INTRODUCED BY: HB HMIA 2018-l-06.doc JAN 122018 3 H.B. NO. Report Title: Constitutional Amendment; Bill Passage; Taxation; Supermajority Description: Proposes a constitutional amendment to include a two-thirds supermajority voting requirement for the legislature to pass laws that raise taxes or create new taxes. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. HB HMIA 2018-l-06.doc HOUSE OF REPRESENTATIVES TWENTY-NINTH LEGISLATURE, 2018 STATE OF HAWAII K I IN A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX EXEMPTIONS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1. The legislature finds that Hawaii has the 2 highest cost of living in the nation. The general excise tax 3 levied on nearly all forms of economic activity contributes to 4 the high cost of goods and services in Hawaii. 5 businesses are required to pay general excise taxes out of their 6 gross receipts, 7 form of higher prices for goods and services. Although those taxes are passed on to citizens in the 8 The general excise tax is regressive, meaning that it 9 disproportionately affects poor and middle-class families. The 10 State of Hawaii is far more reliant on this consumption tax than 11 most other states, 12 revenues. 13 should be for an average family to afford basic staples like 14 food and medical care. 15 depending on it for over half of State This tax policy has made it more difficult than it Food is a major expense for Hawaii families. In 2014, the 16 average spent on food annually for a two-person household was 17 $9,978 in Maui county, HB HMIA 2018-l-03.doc $9,901 in Kauai county, $9,467 in H.B. NO. (11)1- 1 Honolulu county, 2 person household would save over $400 each year if food were 3 exempt from the general excise tax, 4 low-income food/excise tax credit under section 235-55.85. 5 Larger households would see even greater savings. 6 states plus the District of Columbia exempt groceries from their 7 sales taxes; another six states tax groceries at lower rates 8 than other goods. 9 Hawaii to join this majority. 10 and $7,676 in Hawaii county. An average two- far more than the existing Thirty-two The Legislature finds that it is time for Health care is another major expense for local families. 11 Hawaii is one of only a handful of states that taxes medical and 12 dental services. 13 million in annual economic output and 13.84 jobs. 14 policy inhibits the ability of medical professionals to support 15 the local community, 16 Forty-one states generally exclude medical services from their 17 sales taxes, 18 Each physician supports an average of $2.2 Hawaii’s tax and makes their services less affordable. and Hawaii should join this majority. The purpose of this bill is to help alleviate the general 19 excise tax burden on local households by exempting food and 20 medical services. HB HMIA 20l8-l-03.doc 2 H.B. No.(va~ Page3 1 SECTION 2. Chapter 237, Hawaii Revised Statutes, is 2 amended by adding a new section to be appropriately designated 3 and to read as follows: 4 §237-A Amounts not taxable for food. (a) The excise tax S assessed under this chapter shall not apply to amounts received 6 for food or food ingredients. 7 (b) The excise tax assessed under this chapter shall apply 8 to food or food ingredients that are furnished, prepared, or 9 served as meals, 10 (1) except: In the case of persons sixty years of age or over, or 11 who receive supplemental security income benefits, or 12 disability or blindness payments under Title I, 13 XIV, 14 et seq., 401 et seq., 15 et seq.) and their spouses, meals prepared by and 16 served in senior citizens’ 17 buildings occupied primarily by such persons, public 18 or private nonprofit establishments, eating or 19 otherwise, 20 establishments that contract with the appropriate or XVI of the Social Security Act HE HMIA 2018-l-03.doc 1201 et seq., centers, II, X, (42 U.S.C. 1351 et seq., 301 1381 apartment that feed such persons, private 3 H.B. NO. (Va 1 agency of the State to offer meals for such persons at 2 concessional prices, 3 to residents of federally subsidized housing for the 4 elderly; 5 (2) and meals prepared for and served In the case of persons sixty years of age or over and 6 persons who are physically or mentally handicapped or 7 otherwise so disabled that they are unable to 8 adequately prepare all of their meals, meals prepared 9 for and delivered to them and their spouses at their 10 home by a public or private nonprofit organization or 11 by a private establishment that contracts with the 12 appropriate state agency to perform such services at 13 concessional prices; 14 (3) In the case of disabled or blind recipients of 15 benefits under Title I, 16 Social Security Act (42 U.S.C. 301 et seq., 17 seq., 1351 et seq., 18 are residents in a public or private nonprofit group 19 living arrangement that serves no more than sixteen 20 residents and is certified by the appropriate state 1201 et seq., HB HMIA 20l8-l-03.doc II, X, XIV, or XVI of the 401 et 1381 et seq.), who 4 i—i B. Page 5 . r~ic. (“t’i2— 1 agency or agencies, meals prepared and served under 2 such arrangement; 3 (4) In the case of women and children temporarily residing 4 in public or private nonprofit shelters for battered 5 women and children, meals prepared and served by such 6 shelters; and 7 (5) In the case of households that do not reside in 8 permanent dwellings and households that have no fixed 9 mailing addresses, meals prepared for and served by a 10 public or private nonprofit establishment approved by 11 an appropriate state or local agency that feeds such 12 individuals and by private establishments that 13 contract with the appropriate agency of the State to 14 offer meals for such individuals at concessional 15 prices. 16 (c) 17 “Alcoholic beverages” means beverages that are suitable for As used in this section: 18 human consumption and contain one-half of one per cent or more 19 of alcohol by volume. HB HMIA 2018-l-03.doc 5 i—i B. 1\I ED’. Page 6 1 2 3 . “Dietary supplement” means any product, I~l’~12~~’ other than tobacco, intended to supplement the diet that: (1) Contains one or more of the following dietary 4 ingredients: 5 (A) A vitamin; 6 (B) A mineral; 7 (C) An herb or other botanical element; 8 (D) An amino acid; or 9 (E) A dietary substance for use by humans to 10 supplement a person’s diet by increasing the 11 total dietary intake; or a concentrate, 12 metabolite, 13 of any ingredient described in this definition; 14 (2) constituent, extract, Is intended for ingestion in tablet, or combination capsule, powder, 15 softgel, gelcap, 16 for ingestion in such form, 17 conventional food and is not represented for use as a 18 sole item of a meal or of a diet; and 19 20 (3) or liquid form, or if not intended is not represented as Is required to be labeled as a dietary supplement, identifiable by the “supplement facts” box found on HB HMIA 2018-l-03.doc 6 H B. F\I c. Page 7 . 1 the label as required pursuant to title 21 Code of 2 Federal Regulations section 101.36, 3 renumbered. 4 as amended or “Food” or “food ingredients” mean substances, whether in 5 liquid, 6 that ar 7 consumed for their taste or nutritional value. 8 ingredients does not include alcoholic beverages, 9 prepared food, concentrated, solid, frozen, dried, or dehydrated form, sold for ingestion or chewing by humans and are soft drinks, dietary supplements, Food or food tobacco, or food or food 10 ingredients sold from a vending machine, whether cold or hot; 11 provided that food or food ingredients sold from a vending 12 machine that is subsequently heated shall be subject to this 13 chapter. 14 “Prepared food” means: 15 (1) Food sold in a heated state or heated by the seller; 16 (2) Food sold with eating utensils provided by the seller, 17 including plates, 18 cups, napkins, 19 container or packaging used to transport the food; or HB HMIA 2018-l-03.doc knives, or straws. forks, spoons, glasses, A plate does not include a 7 H.B.NO.(I@ Page8 1 (3) Two or more food ingredients mixed or combined by the 2 seller for sale as a single item, 3 (A) 4 Food that is only cut, except: repackaged, or pasteurized by the seller; or 5 (B) Raw eggs, fish, meat, poultry, or foods 6 containing these raw animal foods requiring 7 cooking by the consumer as recommended by the 8 federal Food and Drug Administration in Chapter . 9 3, part 401.11 of the Food Code, published by the 10 Food and Drug Administration, as amended or 11 renumbered, to prevent foodborne illness. 12 Prepared food does not include the following food or food 13 ingredients: 14 (1) 15 16 Food sold in an unheated state by weight or volume as a single item; or (2) Bakery items, such as bread, rolls, buns, biscuits, 17 bagels, 18 tortes, pies, tarts, muffins, bars, 19 tortillas. croissants, pastries, donuts, Danish, HB HMIA 20l8-l-03.doc cookies, cakes, or 8 1 (7,j. H.B. NO. Page9 “Soft drinks” means nonalcoholic beverages that contain 2 natural or artificial sweeteners. 3 beverages that contain: Soft drinks do not include 4 (1) Milk or milk products; 5 (2) Soy, 6 (3) Greater than fifty per cent vegetable or fruit juice 7 8 9 10 rice, or similar milk substitutes; or by volume. “Tobacco” means cigarettes, tobacco, cigars, chewing or pipe or any other item that contains tobacco.” SECTION 3. Chapter 237, Hawaii Revised Statutes, is 11 amended by adding a new section to be appropriately designated 12 and to read as follows: 13 “~237-B 14 be exempted from, 15 imposed by this chapter all of the gross proceeds arising from 16 the sale of medical services. 17 (b) Exemption for medical services. (a) and excluded from the measure of, As used in this section, There shall the taxes “medical services” means: 18 Professional services provided by hospitals and medical clinics 19 and facilities that are licensed by the appropriate state 20 agencies and services rendered under chapters 436E, 442, 447, HB HMIA 2018-l-03.doc 9 H.B. NO. (1~fi- Page 10 1 448, 2 457G. 3 468E.” 4 448B, 45lA, 458, 459, SECTION 4. 45lJ, 460, 451K, 452, 461, 461J, 453, 453D, 463E, 455, 465, 465D, 457, 457A, 466D, 466J, and In codifying the new sections added by sections 5 2 and 3 of this Act, the revisor of statutes shall substitute 6 appropriate section numbers for the letters used in designating 7 the new sections in this Act. 8 SECTION 5. New statutory material is underscored. 9 SECTION 6. This Act shall take effect upon its approval 10 and shall apply to taxable years beginning after December 31, 11 2018. 12 INTRODUCED BY: ___________________________ 0 U,’ hu~% HB HMIA 2018-l-03.doc 2018 H.B. NO. 11W Report Title: General Excise Tax; Food Exemption; Medical Services Exemption Description: Provides an exemption for food and medical services from the general excise tax. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. HB HMIA 2018-l-03.doc HOUSE OF REPRESENTATIVES TWENTY-NINTH LEGISLATURE, 2018 STATE OF HAWAII U A BILL FOR AN ACT RELATING TO THE REPEAL OF DEATH TAXES BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1. The legislature finds that any tax on death, 2 whether labeled an inheritance, 3 insult to the dignity of life and the right to private property. 4 estate, or transfer tax, Death taxes raise little money for the State. is an In the 2015- 5 2016 fiscal year, Hawaii’s estate and transfer tax totaled only 6 $49.6 million and accounted for just 0.7 percent of general fund 7 revenues. 8 since its reinstatement in 2010. 9 generating ability is far outweighed by their negative impact on 10 11 This was the most the estate and transfer tax raised Death taxes’ limited revenue- the overall economic wellbeing of the citizens of Hawaii. Death taxes create powerful disincentives that discourage 12 wealth-generating activities from which everyone in Hawaii 13 stands to benefit. 14 one of only twelve states, plus the District of Columbia, 15 impose an estate tax. 16 thousands to millions of dollars in taxes upon death, 17 affluent people often divert liquid cash or capital away from After New Jersey’s 2017 repeal, Hawaii is HB HMIA 2018-1-01.doc to Faced with the prospect of losing aging 1 H.B. NO. (11~, Page2 1 wealth-generating investments and enterprises in Hawaii to the 2 mainland, 3 families who have worked hard to build small businesses or farms 4 should not have to make this choice. 5 form of double taxation that discourages healthy economic growth 6 and further wealth creation in our State. 7 in order to avoid Hawaii’s heavy death taxes. Local Death taxes are an unjust The legislature also finds that death taxes only marginally 8 affect long-term inequality. Instead, inequality is best 9 combatted by encouraging the creation of new wealth. Some of 10 the richest businesspeople in the world are self-made. 11 of those with over $3 million in net worth found that about 70 12 percent received no inheritance or help from family. Surveys 13 The purpose of this bill is to repeal the excessive 14 taxation imposed on the transfer of property upon death. 15 16 17 18 19 SECTION 2. Chapter 236D, Hawaii Revised Statutes, is Chapter 236E, Hawaii Revised Statutes, is repealed. SECTION 3. repealed. SECTION 4. This Act shall take effect on July 1, 2019. 20 21 HB HMIA 2018-1-01.doc 2 H B. N c~. L’1~i~ Page 3 . £941%.....~ INTRODUCED BY: _JAN 12 2018 HB HMIA 2018-1-O1.doc 3 H.B. NO.I1~) Report Title: Inheritance and Estate Tax; Death Tax Description: Repeals the inheritance and estate taxes that act as a form of double taxation on individual tax payers. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. HB HMIA 2018-l-Ol.doc H. B. NO. I1?,41 STATE OF HAWAII A BILL FOR AN ACT RELATING TO NEIGHBOR ISLAND EQUAL ACCESS TO LEGISLATIVE HEARINGS THROUGH VIDEOCONFERENCING. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1. The legislature finds that Hawaii’s geographic 2 formation as an archipelago of islands is an obstacle to active 3 participation in the legislative process by neighbor island 4 residents. 5 person, 6 legislators and the media. 7 however, physically attending a legislative committee hearing 8 and testifying on a measure can cost upwards of $300 per day and 9 require taking time off from work. While committees accept written testimony, in- face-to-face testimony can have more influence on For a neighbor island resident, This is an unreasonable and 10 undemocratic barrier for the approximately four hundred thousand 11 people living in neighbor island counties, who deserve an equal 12 chance to be heard. 13 Alaska, Nevada, Nebraska, and Washington have successful 14 remote testimony programs. 15 can join these states by creating a way for citizens to testify 16 on legislation through audiovisual technology. HB HMIA 2018-l-05.doc The legislature finds that Hawaii H.B. No. 1 The purpose of this Act is to require that each chamber of 2 the legislature establish the procedures and technical setup 3 necessary for Hawaii residents to present oral testimony at 4 legislative committee hearings through audiovisual technology. 5 SECTION 2. Chapter 21, Hawaii Revised Statutes, is amended 6 by adding a new section to be appropriately designated and to 7 read as follows: 8 9 Legislative hearing videoconferencing; rules. Each chamber of the legislature shall establish, by rule, 10 procedures that enable all Hawaii residents to present oral 11 testimony at legislative committee hearings through the use of 12 audiovisual videoconferencing technology. 13 SECTION 3. H There is appropriated out of the general $ 14 revenues of the State of Hawaii the sum of 15 much thereof as may be necessary for fiscal year 2018-2019 for 16 the purpose of establishing audiovisual videoconferencing 17 technology in all legislative conference rooms. 18 19 or so The sum appropriated shall be expended by thedepartment of accounting and general services for the purposes of this Act. 20 SECTION 4. New statutory material is underscored. 21 SECTION 5. This Act shall take effect on July 1, HB HMIA 2018-1-05.doc 2018. 2 H.B. NO. WM INTRODUCED BY: fix?a MM JAN 1 2 2013 HB HMIA 3 H.B. NO. 11~* Report Title: Videoconferencing; Legislative Hearings; Audiovisual Technology; Remote Testimony Description: Requires each chamber of the legislature to establish rules that enable oral testimony through audiovisual videoconferencing technology. Appropriates funds for audiovisual technology in conference rooms. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. HB HMIA 2018-1-05.doc HOUSE OF REPRESENTATIVES TWENTY-NINTH LEGISLATURE, 2018 STATE OF HAWAII U A BILL FOR AN ACT RELATING TO EXTENDING ALOHA TO VETERANS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1. The legislature finds that Hawaii is one of 2 only thirteen states that does not extend legal protection to 3 private businesses that want to offer preferential hiring for 4 veterans. 5 sacrifices for our national security, 6 our nation honorably can offer special skills, 7 work ethic to employers. 8 choose to incorporate a veterans’ hiring preference policy. 9 Veterans and their families make significant personal and those who have served experiences, Employers should have the option to Without legal protection from the state, however, private 10 businesses currently cannot establish pro-veteran hiring 11 policies without risking claims of discrimination and costly 12 lawsuits. 13 and In response to these concerns, thirty-seven other states 14 have created laws protecting employers that choose hiring 15 policies favoring veterans. 16 includes a specific exception, 17 States Code section 2475, HB HMIA 2018-l-07.doc Title VII of the Civil Rights Act codified as title 42 United that allows states to authorize a H.B. NO. (lIPS] Page2 1 private sector employer to establish a veterans’ preference. 2 Hawaii should join the thirty—seven states that have already 3 done so in honoring veterans’ 4 benefits they can provide in the private sector economy. 5 service and recognizing the unique The purpose of this Act is to authorize, without mandating, 6 private businesses, 7 to adopt preferential hiring policies for honorably discharged 8 veterans in accordance with Title VII of the Civil Rights Act. 9 SECTION 2. employment agencies, and labor organizations Chapter 378, Hawaii Revised Statutes, is 10 amended by adding a new section to be appropriately designated 11 and to read as follows: 12 “~378- Veterans preference in private employment. (a) 13 A private employer, 14 adopt an employment policy that gives preference in hiring to an 15 honorably discharged veteran, 16 a policy shall be applied uniformly to employment decisions 17 regarding hiring and promotion. 18 (b) employment agency, or labor organization may as defined in section 363-1. Such These preferences shall not be considered violations 19 of any state or local equal employment opportunity law, 20 including but not limited to any statute or regulation adopted 21 under chapter 378.” HB HMIA 2018-1-07.doc 2 Page 3 H.B. NO. I1~i5’ 1 SECTION 3. New statutory material is underscored. 2 SECTION 4. This Act shall take effect upon its approval. 3 INTRODUCED BY: 7~L M~c—fr JAN 122018 HB HMIA 2018-l-07.doc 3 H.B. NO. Report Title: Nondiscrimination law; Veterans hiring preference Description: This Act allows private businesses, employment agencies, or labor organizations to adopt preferential hiring policies for honorably discharged veterans in accordance with Section 11 of Title VIII of the Civil Rights Act. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. HB HMIA 2018-l-07.doc HOUSE OF REPRESENTATIVES TWENTY-NINTH LEGISLATURE, 2018 STATE OF HAWAII a a HOUSE RESOLUTION URGING THE CITY AND COUNTY OF HONOLULU TO REDUCE WAIT TIMES FOR HOUSING CONSTRUCTION PERMITS 1 2 3 WHEREAS, according to the Department of Business, Economic Development, and Tourism, Hawaii needs 65,000 new housing units in the next ten years to meet growing demand; and 4 5 6 7 8 WHEREAS, a chronic housing shortage has caused and continues to cause home prices to surge, which increases housing costs for renters and denies young people and working families the opportunity of owning a home; and 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 WHEREAS, despite Hawaii’s desperate need for more housing, Honolulu takes more than seventeen months on average to approve a building permit, the longest wait time in the entire nation; and WHEREAS, such delay greatly discourages new housing construction by raising the cost and risk involved; and WHEREAS, a 2016 study by Trulia’s chief economist, Dr. Ralph McLaughlin, concluded that bureaucratic delay in the permitting process was the greatest single factor contributing to low housing elasticity, which in turn contributes to a lack of affordable housing as demand rises; and WHEREAS, Honolulu’s lengthy permitting delays also make it harder for residents to start businesses, raising the cost and risk for potential entrepreneurs; and WHEREAS, the City and County of Honolulu’s permitting process is so slow and overburdened that people are often forced to work around the system, by hiring private third-party companies to check plans for code compliance; and 32 HR HMIA 2018-l-09.doc Page2 1 2 3 4 5 H.R. r\Ic~.q WHEREAS, the long wait is due in part to a growing number of environmental rules, land-use regulations, and building codes, which require developers to navigate a bureaucratic system of costly studies and legal requirements, resulting in fewer, more expensive houses; and 6 7 8 9 10 11 12 13 14 15 WHEREAS, accessory dwelling units and ohana units are important ways to utilize vacant space and contribute to the housing supply, but permits for such units remain difficult to get and are subject to restrictive regulations; and WHEREAS, the City and County of Honolulu has taken little action to streamline its permitting processes to make it easier for landowners and developers to build desperately-needed housing and accessory dwelling units; now, therefore, 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 BE IT RESOLVED by the House of Representatives of the Twenty-ninth Legislature of the State of Hawaii, Regular Session of 2018, that the City and County of Honolulu is urged to review its permit requirements, processes, and zoning laws and reduce the time it takes to receive a building permit to less than six months; and BE IT FURTHER RESOLVED that the City and County of Honolulu is urged to reevaluate and shorten the time it takes to receive permits for accessory dwelling units and ohana units that will be rented for a period greater than 180 days; and BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Mayor of the City and County of Honolulu and the Director of the Honolulu Department of Planning and Permitting. OFFERED BY: HR HMIA 2018-1-09.doc 2 HOUSE OF REPRESENTATIVES TWENTY-NINTH LEGISLATURE, 2018 STATE OF HAWAII H R. NO. . HOUSE RESOLUTION REQUESTING THE AUDITOR TO PERFORI’4 A STUDY OF THE PUBLIC CHARTER SCHOOL SYSTEM AND TO CREATE ACTIONABLE PROPOSALS FOR FUNDANENTAL STRUCTURAL REFORM. 1 2 3 WHEREAS, public charter schools are an essential part of Hawaii’s public education system and provide a quality education to over 11,000 students; and 4 5 6 7 8 9 10 11 12 13 WHEREAS, public charter schools improve education standards by giving families a choice, implementing innovative education strategies, and often by integrating Hawaiian language, culture, and history into the curriculum; and WHEREAS, although the public charter school system benefits Hawaii’s students, the existing legal and financial frameworks under which public charter schools must operate continue to shortchange students; and 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 WHEREAS, the existing legal framework gives an unclear scope of authority to the charter school commission, leading to inconsistent enforcement of regulatory standards ranging from inadequate to overbearing, and leaving students without clear due process rights; and WHEREAS, the broken financial system too often leaves charter schools with inadequate facilities, underfunded special education programs, and understaffed faculties; and WHEREAS, according to section 302D-28, Hawaii Revised Statutes, charter schools should receive the same per-pupil allocation from general fund appropriations as Department of Education schools, but public charter schools must use per-pupil dollars to pay for rent, salaries, and other expenses while Department of Education schools use rent-free state-owned HR HMIA 2018-l-08.doc HR. NcJ.c 1 2 3 facilities and receive funds for other costs in addition to perpupil allotments; and 4 WHEREAS, the practical effect of this financial system is that public charter schools must operate with thousands of dollars less per student than Department of Education schools; and 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 WHEREAS, because the pervasive financial and legal inequalities in Hawaii’s education system are so great and the flaws too complex to fix piecemeal, the system needs to be fundamentally rethought and reworked to protect children’s educational futures; and WHEREAS, the State Auditor’s independence and autonomy makes the office ideally suited to produce objective and trustworthy recommendations for structural reform, therefore, BE IT RESOLVED by the House of Representatives of the Twenty-ninth Legislature of the State of Hawaii, Regular Session of 2018, that the Auditor is requested to perform a study of: (1) The current legal frameworks pertaining to public charter schools; and (2) The current financial systems pertaining to public charter schools; and BE IT FURTHER RESOLVED that the Auditor is requested to create: 31 32 33 34 35 (1) Actionable proposals for structural reform of the legal frameworks and financial systems pertaining to public charter schools, incorporating multiple philosophical perspectives; and (2) Actionable proposals for financial reform aimed at providing equal per-pupil funding for charter school students; and 36 37 38 39 40 HR HMIA 20l8-l-08.doc 2 H.R. NcD.~ 1 2 3 4 S 6 7 8 9 10 11 BE IT FURTHER RESOLVED that the Auditor is requested to submit a report of the study to the Legislature no later than twenty days prior to the convening of the Regular Session of 2019; and BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Auditor, the Chairperson of the Board of Education, and the Chairperson of the Charter School Commission. OFFERED BY: ~t JAN 172018 HR HMIA 2018-1-08.doc 3