Senate WAM Committee advances bills relating to wildfire recovery, economy, homelessness and housing

The Hawaiʻi State Senate Committee on Ways and Means passed out several bills aimed at addressing key priorities for the Senate, including bills to assist in wildfire recovery, agriculture, economic development, homelessness and housing.

Wildfire Recovery

The Committee on Ways and Means reports it continues to support bills that aid and assist the people of Maui, and the survivors and victims of the August 2023 wildfire. Senate Bill 2831 Senate Draft 1 would authorize the Department of Taxation to assist with the collection of Maui County’s Transient Accommodations Tax, which will allow Maui County’s administration to focus on core services and the needs of their wildfire impacted communities. This bill received testimony in support from the County of Maui’s Office of the Mayor and the Maui Chamber of Commerce.

Housing, both temporary and permanent, continue to be major themes and needs for West Maui. Senate Bill 2836 Senate Draft 2 would create an interagency council of housing and development agencies within the State and the County of Maui to ensure that housing is prioritized in a coordinated and meaningful manner. Testimony in support was received from the Hawaiʻi Housing Finance and Development Corporation and the Hawaiʻi Public Housing Authority.

Senate Bill 3068 Senate Draft 1 would commit over $230 million in operating funds and $178.5 million in general obligation bonds to support on-going recovery efforts as well as housing and infrastructure for displaced residents for fiscal year 2025. This is on top of the already over $600 million spent and obligated that the State has put forward to support displaced residents in non-congregate sheltering, interim housing, and wrap around services. These costs represent a significant investment in the West Maui area and its residents. The Committee remains concerned that without a clear plan from the Administration on interim and long-term housing, these investments will not give residents a path to true recovery and rebuilding. This bill received testimony in support from the Hawaiʻi State Library System, the Department of Defense, the Department of Human Services, and Maui County Council Chair Alice Lee.

There has been a desire for those in Lahaina to have their rebuilding effort led by residents of Lahaina. The Committee supports this desire for self-determination and seeks to empower the Lahaina community to control how their community is rebuilt. Senate Bill 3381 Senate Draft 2 would create the Lele Community District, run by an elected board of Lahaina residents, to create a community master plan that incorporates the unique geography, history, and culture of Lahaina.

To address community concerns and feedback over election integrity, Ways and Means amended the bill to restrict donations that can go to a candidate to $100 in each two-year term to promote grassroots efforts and elections. Additionally, the Committee clarified that the use of eminent domain can only be used for the greater public good and as it conforms to the community master plan. The Committee encourages further discussion on this opportunity to empower the Lahaina community as the bill progresses. Testimony in support of this measure was received by various State agencies and members of the West Maui community.

Agriculture

Local meat producers face many challenges, including a lack of having certified meat inspectors resulting in costly delays of meat processing. The inspection of livestock prior to slaughter is a critical step to ensuring the quality and safety of the State’s locally produced meat supply. The State’s meat inspection program was discontinued in the mid-1990s and since then, the State has been wholly relying on the United States Department of Agriculture Food Safety Inspection Service to perform meat inspection services statewide. Senate Bill 1590 Senate Draft 1 would establish three new meat inspector positions to assist with the growing local meat industry. The Department of Agriculture, Land Use Research Foundation of Hawaiʻi, Hawaiʻi Cattlemen’s Council, Inc., Hawaiʻi Farm Bureau, and Ulupono all expressed support of this bill. 

Economic Development

The Committee on Ways and Means remains committed to encouraging investment and innovation in Hawaiʻi. One way to do this is to provide businesses and entrepreneurs with tax credits to perform research activities that can lead to valuable intellectual property and local businesses. The Legislature had previously placed an annual cap of $5,000,000 for the income tax credit for research activities, and this cap was reached almost as soon as online applications were opened.  In 2022, out of the twenty-six companies that applied for the tax credit, only nine have received the credit due to the existing annual cap. Senate Bill 2497 Senate Draft 2 would extend the sunset date of the existing research activities tax credit and increase the total credit amounts. The Department of Business, Economic Development, and Tourism, Hawaiʻi Technology Development Corporation, Hawaiʻi Food Industry Association, Chamber of Commerce Hawaiʻi, Nalu Scientific Enabling Innovation, and Oceanit submitted testimonials in support of this bill.

Homelessness and Housing

As homelessness continues to be a pressing issue across the State, the Committee continues to review ways to help move people off the streets and into sustainable housing. One strategy that has seen great success are triage centers that help direct homeless households to connect with wrap around services and a housing solution. The ʻImi Ola Piha Homeless Triage Center, piloted by the Institute for Human Services and operating since June 5, 2023, has been successful in moving homeless from the street to permanent housing.  Within six months of operation, through collaborating with police, outreach specialists, and other community providers, the eight-bed service site has triaged over one hundred fifty referrals.  Of the eighty-three clients in intake, the Homeless Triage Center has detoxed sixty-three clients and stabilized the mental illness of thirty-five clients.  The Homeless Triage Center has also transitioned those detoxed and stabilized into housing or shelter, enabling continued treatment in the community.  Senate Bill 2885 Senate Draft 2 would establish a working group to coordinate expansion of triage centers statewide. The Governor’s Coordinator on Homelessness, Partners In Care, State Health Planning and Development Agency, Aloha United Way, all expressed support for this bill.

In addition to the State, the Counties have opportunities to expand affordable housing through their zoning, planning, and permitting requirements. Senate Bill 2337 Senate Draft 2 would provide Counties the opportunity to utilize the same authorities and powers as the Hawaiʻi Housing Finance Development Corporation to facilitate the development of mixed-use developments. The Office of Planning and Sustainable Development, City and County of Honolulu’s Department of Planning and Permitting, City and County of Honolulu’s Office of Housing, Hawaiʻi Regional Council of Carpenters, County of Maui’s Office of the Mayor, and the Maui Chamber of Commerce supported this bill.

“As we reach the half-way point of the legislative session, the Committee on Ways and Means is encouraged by the progress we have made on advancing the priorities of the Senate Majority for the benefit of Hawaiʻi,” said Senator Donovan Dela Cruz, (District 17-Portion of Mililani, Mililani Mauka, portion of Waipi‘o Acres, Launani Valley, Wahiawā, Whitmore Village), Chair of the Committee of Ways and Means. “We look forward to continuing the people’s work and reviewing the bills we will receive from the House next week.”

Each of these bills will be voted on by the entire Senate on March 5, and if approved, will be transmitted to the House of Representatives for further consideration.