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2009 Potential Vetoes

Bill No. Title


HB3I SDI CDI RELATING TO EMPLOYMENT PRACTICES.
Veto Explanation: Creates a new restriction on employers that prevents them from being able to inquire into
an individual’s credit history for employment purposes. If enacted, this bill could jeopardize
the work of public safety officials and financial institutions, among others.

HB36 HDI SD2 RELATING TO HEALTH.


CDI
Veto Explanation: Greatly increases the amount of money the Department of Health may retain in its
Sanitation and Environmental Health Special Fund. Under current law, the Department is
allowed to retain up to $300,000 in the Special Fund; the remainder goes into the General
Fund. This bill would allow the Department to retain up to $2,445,000 in the Special Fund.
Given the State’s current budget shortfall, this is not practical nor the best use of limited
resources.

HB128 HDI SDI RELATING TO ELECTIONS.


CD2
Veto Explanation: Restricts the ability of the Governor to fill vacancies of the Campaign Spending
Commission, changes the percentage of political contributions by non-residents, and allows
political campaigns to provide substantial sums to political parties.

HBIS3 KDI SD2 RELATING TO EDUCATION.


CDI
Veto Explanation: Fails to address fundamental problems identified by the Legislative Auditor in the operations
and authority of the Hawaii Teacher Standards Board. The Auditor found that the licenses
of 3,800 teachers may not be valid, sole source contracts were mishandled, and Hawaii’s
ability to meet the requirements of No Child Left Behind have been compromised. The
Auditor recommended that the laws governing the standards board be repealed, which this
bill does not do.

H8343 HDI SD2 RELATING TO RURAL PRIMARY HEALTH CARE TRAINING.


CDI
Veto Explanation: Appropriates $140,000 in general funds to the University of Hawaii Medical School to
develop a statewide rural health care training program. The funding was not included in the
University’s budget priorities and it is likely the program would not meet federal
accreditation standards. We do not have money for a new program.

HB358 HDI SDI RELATING TO DRUG TREATMENT.


CDI
Veto Explanation: Would allow the courts to place drug offenders convicted of crimes in secure drug treatment
facilities, but there are no such facilities in Hawaii, nor are there plans to build any by the
Judiciary or any other State Department. The potential fiscal impacts of such a facility
would be significant and could not be afforded at the present time.

Tuesday, June 30, 2009 RI’I PVL-AI.L Page 1 of 12


Bill o. Title
HB541 HDI SDI RELATING TO CIVIL SERVICE PERSONNEL.
CDI
Veto Explanation: Unnecessarily extends the Department of Education’s reliance on the Department of
Human Resources Development’s personnel system, especially since the Department of
Education insisted that it needed its own personnel system since 2004 when Act 51, the
Reinventing Education Act, became law. This bill would require the Department of Human
Resources Development to manage the Department of Education’s personnel services until
June 30, 2011 and provides no incentive for the Department of Education to implement the
autonomous and flexible personnel system they claim to need. Moreover, this bill is fatally
flawed because its effective date of July 1, 2009 is after the sunset date of the act this bill is
attempting to amend.

HB589 HDI SD2 RELATING TO RENEWABLE ENERGY FACILITIES.


CDI
Veto Explanation: Circumvents county subdivision requirements for renewable energy projects using less than
an entire legal lot. Hampers the Department of Land and Natural Resources’ ability to lease
out the balance of the parcel when public lands are involved.

HB590 HDI SD2 RELATING TO RENEWABLE ENERGY FACILITIES.


CDI
Veto Explanation: This bill is unnecessary because it duplicates language in another bill, House Bill No. 1464,
also passed by the Legislature. It contains the same provisions which attempt to clarify
deadlines for the processing of renewable energy permits. House Bill No. 1464 became Act
155 on June 25,2009.

HB690 HD2 SD2 RELATING TO INSURANCE.


CDI
Veto Explanation: Violates federal requirements governing employee benefits as set forth in the Employee
Retirement Income Security Act (ERISA). Requires insurers who offer health care
coverage to regular employees of a group or association to offer the same coverage to part-
time employees who work at least 15 hours per week. Provisions in this bill are pre-empted
by federal law.

HB754 HDI SDI RELATING TO THE HAWAII TOURISM AUTHORITY.


CD2
Veto Explanation: Transfers DBEDT’s tourism and research statistics function to the Hawaii Tourism Authority,
which may jeopardize the independence, accuracy, and reliability of the data since tourism
statistics will no longer be developed by an independent, neutral party. In addition, this bill
removes the Directors of the Department of Business, Economic Development and
Tourism, Department of Land and Natural Resources, and the Department of
Transportation from the Hawaii Tourism Authority Board. The input of these directors is
critical and their elimination from the Board is a political move by the Legislature.

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Bill No. Title
HB952 HDI SD2 RELATING TO LABOR.
CDI
Veto Explanation: Removes the right of workers to vote by secret ballot regarding whether or not they want to
join a union. This bill eliminates one of the most fundamental and valued democratic
principles---the secret ballot. It subjects workers to possible harassment and intimidation.
Also known as card check, the Governor vetoed a similar version of this bill last year.

HB975 HDI SDI RELATING TO AGRICULTURAL WATER SYSTEMS.


CDI
Veto Explanation: Unnecessarily exempts the transfer of agricultural water systems from the long-standing
county subdivision and land recordation process. Burdens the State with potentially old,
deteriorated irrigation systems that will increase the public’s liability and require millions of
dollars of repairs. This is a special interest bill for parts of Wahiawa Ditch to allow the
current ditch owner to avoid a costly and sometimes lengthy survey and subdivision to
transfer the ditch to the Agribusiness Development Corporation.

HB982 HD3 SDI RELATING TO FAMILY LEAVE.


CDI
Veto Explanation: Appropriates $10,000 from the Department of Labor’s Special Fund for Disability Benefits to
finance a family leave data collection system. Such a system is not critical to the
functioning of State government and this bill represents an inappropriate use of these funds.

HB986 HDI SDI RELATING TO PUBLIC SCHOOL FACILITIES.


CDI
Veto Explanation: Establishes conflicting standards for the design and construction of public school facilities.
The Department of Education estimates that attempting to comply with these standards will
increase school renovation, repair, and construction costs by 8 to 12%, at a time when
funding for school repairs is limited.

HB989 HDI SD2 RELATING TO CHILDREN’S HEALTH CARE.


CDI
Veto Explanation: Appropriates $200,000 from the general fund to extend the Hawaii Children’s Health Care
Program (Keiki Care) for three more years. In 2008 the Administration closed the program
because it failed to achieve its purpose of providing health insurance to “gap group”
children and instead benefitted children from families that were paying for their children’s
health insurance. It is unwise to use limited State resources to fund a program that is
fiscally unsustainable, particularly when there are other health insurance programs available
to uninsured children.

Tuesday, June 30, 2009 Page 3 of 12


Bill No. Title
HB1271 HD3 RELATING TO GOVERNMENT.
SD2 CDI
Veto Explanation: Would increase the tax imposed on the sale of a barrel of oil from 5 cents to $1.05,
extracting an additional $31 million per year from State residents and prolonging the
economic recovery. This increase is substantial and will be passed on to consumers
through higher gas prices, utility costs, airfare, and costs of all goods and services. Clean
energy and food self-sufficiency initiatives are making significant progress without imposing
this tax.

HBI 316 HD2 RELATING TO TORTS.


SDI CDI
Veto Explanation: Gives the negligent design professional more protection from liability than the law affords
the developer, the State of Hawaii, the counties, or the construction entities by protecting
design professionals from joint and several liability beyond their insurance policy limits on
highway tort claims. May encourage highway designers and engineers to carry less
insurance than is prudent.

HBI 379 HD2 RELATING TO PHYSICIAN ORDERS FOR LIFE SUSTAINING


SD2 CDI TREATMENT.
Veto Explanation: Has the potential to allow a surrogate to make life or death decisions for a patient who is
incapacitated, even if the patient has not authorized or appointed a surrogate to do so.

HB1405 HD2 RELATING TO THE GENERAL EXCISE TAX.


SD2 CDI
Veto Explanation: Places Hawaii companies, particularly those involved in on-line website development that
make customer referrals to out-of-state businesses, at a competitive disadvantage to
mainland and international firms by attempting to tax the activities of these out-of-state
businesses. Furthermore, the bill is legally defective in that it violates Article III, Section 14
of the Hawaii State Constitution regarding the subject matter each bill can include within its
scope.

HB1470 HDI RELATING TO HAWAII PUBLIC PROCUREMENT CODE.


SDI CDI
Veto Explanation: Limits the ability of firms to legitimately contest the award of bids by the State and
unneccessarily restricts the scope of firms who can bid and supply certain products to the
State. Hurts the ability of the State to procure perishables, particularly fresh meats and
produce, from local producers, making it more difficult for local farmers to sell their products
to the State. Allows some firms to self-certify that they meet specific State requirements,
without providing an ability for the State to verify this certification.

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Bill No. Title
HBI 471 HD2 RELATING TO FARMS.
SDI CDI
Veto Explanation: Diverts State tourism funds to a pilot food safety program that has already been adopted by
some Hawaii farmers on a voluntary basis without a clear link between how this program will
help increase tourism in the State during this challenging economic period. The use of
tourism dollars for this purpose fails to meet the legal criteria established for the collection
and placement of these moneys in the Tourism Special Fund.

HB1479 HD2 RELATING TO LABOR.


SDI CDI
Veto Explanation: Places an undue burden on contractors by requiring them to submit a fringe benefit
reporting form to the Department of Labor for both union and non-union workers working on
public works contracts. Contractors must already comply with all applicable laws for doing
business with the State and this bill imposes an unnecessary burden on them which has no
public benefit.

HBI 504 HDI RELATING TO HEALTH.


SD2 CDI
Veto Explanation: It is premature and duplicative to establish the Hawaii Health Authority (HHA) in the
Department of Budget and Finance. Given that the federal government is currently
addressing the issue of health care, it is an unwise use of State resources to appropriate
$50,000 from the State Health Planning and Development Special Fund to create HHA-
especially for the purpose of developing a comprehensive plan to provide universal health
care in Hawaii. Currently, the State’s health planning is performed by the State Health
Planning and Development Agency in the Department of Health. This bill would duplicate
responsibilities already handled by the State Health Planning and Development Agency.

HB1525 HDI RELATING TO MEDICAID.


SD2 CDI
Veto Explanation: Requires the Department of Human Services to include stricter reporting requirements in all
future Medicaid health insurance plan contracts. This measure communicates an anti for-
profit sentiment and is designed to protect Aloha Care, HMSA, and Kaiser from competition
by for-profit health maintenance organizations, Evercare and Ohana Health Plan, in the
QUEST and QEXA Medicaid programs. Many of the reporting requirements are irrelevant
to the State’s monitoring for quality of care, fiscal and federal compliance, and covers
information either already in the public domain or already required by Med-QUEST.

HBI 538 HDI RELATING TO ENVIRONMENTALLY-SENSITIVE PRODUCTS.


SDI
Veto Explanation: Requires the Department of Education (DOE) to give first preference to the purchase of
environmentally-sensitive cleaning products with the Green Seal label, which could limit the
types of disinfectants used in public schools to protect human health. In addition, this bill
could increase DOE’s costs for cleaning and maintenance.

Tuesday, June 30, 2009 Page 5 of 12


Bill No Title
HBI 544 HDI RELATING TO TAX EXEMPTIONS.
SDI CDI
Veto Explanation: Reduces the amount of Hawaii income tax personal exemptions by 2% for every $2,500
over the income threshold of $179,963 for joint filers and $119,963 for single filers. This bill
will increase tax liabilities for a specific group of taxpayers who are already being targeted
by the income tax increase this Administration vetoed earlier during session. Hawaii’s
personal exemption is already very low at $1,040, less than a third of what is allowed at the
federal level.

HB1550 HD2 RELATING TO TAXATION.


SDI CDI
Veto Explanation: Imposes a State tax on rollovers of funds from the State’s deferred compensation plan to
the hybrid retirement plan, but inadvertently does not tax transfers between the two
accounts done by an investment institution. This creates an unequal treatment of current
State and county employees, whose conversions will likely take place by institutional
transfers, and former State and county employees, whose conversions will likely take place
through rollovers.

HBI 552 HD2 RELATING TO PUBLIC LANDS.


SD2 CDI
Veto Explanation: Special interest legislation that establishes a moratorium against the eviction of Kahana
Valley residents, even when there are illegal activities occurring on the premises or these
tenants fail to pay their rents and fulfill certain legal obligations to live in the valley.

H81611 HD2 RELATING TO LABELING OF MEAT AND FISH PRODUCTS.


SD2 CDI
Veto Explanation: Institutes a State-based labeling system for meat and fish that is legally preempted by
federal Food and Drug Administration (FDA) requirements.

HB1676 HDI RELATING TO PUBLIC WORKS.


SD2 CDI
Veto Explanation: Inappropriately requires the Department of Labor to enforce private collective bargaining
agreements covering workers on public works projects financed through Special Purpose
Revenue Bonds. Grievances related to collective bargaining agreements should be
addressed through the Hawaii Labor Relations Board or the National Labor Relations
Board, not the Department of Labor.

HBI 692 HD2 RELATING TO HOUSING.


5D2 CDI
Veto Explanation: Requires the Hawaii Public Housing Authority to conduct a pilot project in a State public
housing project that restricts tenant occupancy to five years for current occupants and
seven years for new tenants.

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Bill No Title
HBIBO9 HD2 RELATING TO RECYCLING.
SDI CDI
Veto Explanation: Establishes a State-run television recycling program at a time when the State can least
afford it. The Governor vetoed a similar State-run recycling program for electronic devices
last year on the basis that the private sector, rather than government, should handle
recycling of these products.

SBI 801 HD2 RELATING TO OPIHI.


CDI
Veto Explanation: Establishes unenforceable and inconsistent standards and procedures for the harvesting of
opihi. The Department of Land and Natural Resources can handle this issue through
existing ocean management regulations.

SBIB 801 HD2 RELATING TO PROCUREMENT.


CDI
Veto Explanation: Skews State procurements towards contractors with apprenticeship programs by giving
them a 5% preference when bidding on State projects. This places construction contractors
that do not have certified apprentice programs at a disadvantage and will unnecessarily
increase the administration and/or oversight responsibilities of the government contract
agencies. Implementation of this new bid preference may result in the payment of higher
costs for construction projects.

5B43 502 HD2 RELATING TO PHYSICIAN WORKFORCE ASSESSMENT.


CDI
Veto Explanation: Assesses a temporary $60 “physician workforce assessment” fee when physicians and
surgeons renew their medical license, on top of the $240 they already pay to renew their
medical license every two years. Given the State’s current shortage of doctors, increasing
the cost of practicing in Hawaii works counter to the goal of attracting more physicians.
This bill also inappropriately uses Compliance Resolution Funds in the Department of
Commerce and Consumer Affairs (DCCA) for non-DCCA purposes.

SB5O SDI HD2 RELATING TO RENEWABLE ENERGY PRODUCERS.


CDI
Veto Explanation: Sets onerous terms and conditions for leasing public lands without auction to renewable
energy producers, further impeding the State’s ability to attract and establish renewable,
clean energy projects.

SB199 SDI HDI RELATING TO TAXATION.


CD2
Veto Explanation: Suspends the capital goods excise tax credit for 2009 and scales back the Act 221 high
technology business investment tax credit by eliminating the 2:1 multiples and capping the
credit at 80% of investments.

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Bill No. Title
SB266 SD2 HD2 RELATING TO GLOBAL WARMING.
CDI
Veto Explanation: Appropriates $50,000 from the Tourism Special Fund for a Climate Change Task Force.
Moneys in the Tourism Special Fund should be prioritized for programs that generate
revenue such as tourism marketing and promotion rather than on task forces. There
already is an active Greenhouse Gas Emissions Reduction Task Force in the State, whose
work is similar.

5B300 SD2 HD2 RELATING TO INTOXICATING LIQUOR.


CDI
Veto Explanation: Has the potential to increase the cost of doing business in the State or force smaller firms
out of business by mandating that various establishments, such as bars, hotels, and
restaurants, obtain $1 million in liquor liability insurance in order to obtain a liquor license.

SB387 SDI HDI RELATING TO THE STATE BUDGET.


CD2
Veto Explanation: Transfers various programs and divisions from the Department of Business, Economic
Development and Tourism to other departments, which will not reduce the cost of
government or improve the delivery of public services. The programs being transferred fit
with the department’s mission and function as an economic development agency. These
transfers will disrupt operations and have an adverse impact on both the programs and the
departments affected at a time when we are facing the most serious economic downturn in
State history.

SB415 SD2 HDI RELATING TO HOME CARE AGENCIES.


CDI
Veto Explanation: Requires the Department of Health to license home care agencies at a time when the
Department can least afford to take on new programs and responsibilities. Additionally, the
licensing of home care agencies is more appropriately suited for the Department of Human
Services, which has expertise in monitoring these types of services.

SB420 SD2 HD2 RELATING TO NATUROPATHIC MEDICINE.


Veto Explanation: Expands the scope of practice of naturopathic physicians by authorizing them to administer
injections, perform minor office procedures (i.e., minor surgeries), and prescribe medicines
and certain drugs. Naturopathic practitioners may not have sufficient training in the
medical and surgical evaluation of patients to perform minor surgeries, nor in
pharmacology, physiology, and related basic sciences to safely prescribe pharmaceutical
products.

Tuesday, June 30, 2009 PageS of 12


Bill No. Title
SB423 SDI HD2 RELATING TO HEALTH.
CDI
Veto Explanation: Appropriates $12.2 million from the general funds of the State in order to access matching
federal funds for payments to hospitals in the State. Due to the State’s unprecedented
decline in revenues, there are no general funds available to provide the requisite State
match. The Department of Human Services has been distributing several hundred million in
federal funds to hospitals since 2005, with the latest distribution occurring on March 11,
2009.

SB470 HDI CDI RELATING TO LIQUOR.


Veto Explanation: Allows liquor establishments to renew their liquor licenses without a tax clearance if they
enter into a payment plan with the Department of Taxation. The Department is concerned
that if the liquor establishment enters into a payment plan, acquires its liquor license, but
then does not pay its taxes, there is no mechanism in place for the State Tax Department to
revoke the license. Also unnecessarily postpones the period of time when liquor
commissions must render decisions, to the detriment of the industry.

SB539 SDI HDI RELATING TO CORRECTIONS.


CDI
Veto Explanation: The bill proposes an inappropriate, vague, and unfunded legislative reorganization of the
Department of Public Safety’s Intake Services Division and proposes the establishment of a
Reentry Commission which is unnecessary and duplicative of the work the Department of
Public Safety already performs in its Corrections Division.

SB603 SDI HDI RELATING TO PUBLIC UTILITIES.


CD1
Veto Explanation: Makes a blanket declaration that the local exchange intrastate telephone services are fully
competitive, without providing proof or presenting their findings to the authorized regulatory
agency. Removes much of the Public Utility Commission’s oversight over Hawaiian
Telcom’s services, including the Public Utility Commission’s ability to control the prices
charged for basic telephone service. Enactment of this legislation could result in an
increase in the price of telephone services.

SB605 SDI HD3 RELATING TO NOISE.


CDI
Veto Explanation: Establishes an unrealistic maximum nighttime noise level for certain urban areas that may
be unenforceable by the Department of Health and County Liquor Commissions.

S8695 SDI HDI RELATING TO WORKERS’ COMPENSATION.


CD
Veto Explanation: Upsets the balance between employers and employees in worker’s compensation cases. If
enacted, the bill will require employers to continue paying for “disputed” medical treatments,
even though the treatments may be later disallowed. The Governor vetoed a nearly
identical bill last year.

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Bitt No. Title
5B777 501 HDI RELATING TO COMPREHENSIVE SEXUALITY HEALTH
EDUCATION.
Veto Explanation: Requires that any sex education program that receives funding from the State provide
information that is medically accurate and factual. The Department of Health notes that
federal requirements for these types of programs already mandate and set standards for
medically accuracy and factual content. There is no need to legislate on this matter.

SB912 SD2 HD2 RELATING TO PERMANENCY HEARINGS.


CDI
Veto Explanation: Fails to meet the requirements of Section 475(5) of the federal Social Security Act and does
not ensure compliance with the federal requirements governing hearings for the placement
of foster wards of the State.

SBIOO5 SD2 RELATING TO PUBLICITY RIGHTS.


HD2 CDI
Veto Explanation: Inappropriately attempts to establish a “publicity right” and to allow that right to be
registered as a trade name when, in fact and in law, trade names and publicity rights are
not related. Publicity rights are covered as intervivos and estate transfers and are not
connected to the uses and conveyances of business trade names.

SBIO5B SD2 RELATING TO CONTROLLED SUBSTANCES.


HD2 CDI
Veto Explanation: Sets up a Task Force on medical marijuana. Both the medical cannabis task force and the
salvia divinorum (a psychoactive herb) task force established under this measure will
require significant financial resources and manpower from the Department of Public Safety,
a department that must focus on running our correctional facilities and meeting its safety
obligations. Until federal marijuana laws are changed, it is inappropriate for State law
enforcement agencies to recommend ways to access, transport, or increase the use of
marijuana. Salvia divinorum can be added to the list of controlled substances, if deemed
necessary, without the convening of a task force.

5B1160 502 RELATING TO THE HAWAII PUBLIC HOUSING AUTHORITY.


HD2 CDI
Veto Explanation: Prohibits the sale of any land developed for public housing. This will inhibit the
Administration’s ability to manage State resources, as well as conflict with Hawaii Public
Housing Authority’s ongoing plans for mixed-use development. The bill is technically flawed
because it adds new statutory language prohibiting the sale of public housing land while still
retaining the old statutory law allowing Hawaii Public Housing Authority to “sell, exchange,
transfer, assign, or pledge, any property, real or personal, or any interest therein to any
person or government.” If this bill is enacted, one section of the Hawaii Revised Statutes
will purport to take away a power that another section of the Hawaii Revised Statutes still
clearly grants.

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Bill No. Title
SBI 183 SD2 RELATING TO DISCRIMINATORY PRACTICES.
HD2 CDI
Veto Explanation: Unnecessarily requires the Hawaii Civil Rights Commission to adopt administrative rules by
the end of the year to change certain definitions related to the Americans with Disabilities
Act when they already have the authority to do so. Further, there is no federal requirement
to change these definitions at the state level at this time.

SB1206 SDI RELATING TO COUNTIES.


HDI CDI
Veto Explanation: Authorizes a board of a county with a resident population of 500,000 or more to issue
revenue bonds in its own name if authorized under the county charter, inappropriately
bypassing the elected County Council.

SB1218 SD2 RELATING TO MORTGAGE LOAN ORIGINATORS.


HD2 CDI
Veto Explanation: Fails to provide the regulatory framework for the State of Hawaii to comply with the Secure
and Fair Enforcement of Mortgage Licensing Act (SAFE Act) and would leave certain
mortgage loan originators unlicensed and unregulated.

581224 SDI RELATING TO AIRPORT CONCESSIONS.


HD2 CDI
Veto ExplanatIon: Unilaterally grants certain airport concessions lower rents without regard to their contract
terms, shifting costs to other airport users. Ignores the authority the Department of
Transportation director already has to provide economic relief when the facts merit it. Could
hamper the sale of revenue bonds for the Airports Modernization Initiative.

581248 SDI RELATING TO STATE ENTERPRISE ZONES.


HDI CDI
Veto Explanation: Negatively impacts the general fund by extending tax credits for businesses located in an
enterprise zone for an additional three years. The estimated annual general fund impact is
$750,000.

SB1250SDI RELATING TO EDUCATION.


HDI CDI
Veto Explanation: Increases the number of years that unlicensed, emergency hire teachers are allowed to
teach in the classroom from three to four years, provided that they are actively seeking
licensure. This misaligns State law with federal requirements under No Child Left Behind
that stipulate licensure in three years. This may lead to more non-highly qualified teachers
in the classroom and prolong Hawaii’s status as having the highest percentage of classes
taught by non-highly qualified teachers in the nation.

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Bill No Title
SBI 345 SDI RELATING TO AGRICULTURE.
HDI CDI
Veto Explanation: Requires the Department of Land and Natural Resources upon withdrawal of a portion of
leased lands for other uses, to disproportionately compensate affected leaseholders and
automatically offer a lease extension for the balance of the land. This legislation makes it
more difficult to allow energy producers to use previously leased ranch lands, which runs
counter to the goals of the Hawaii Clean Energy Initiative.

SBI 350 SD2 RELATING TO KAKAAKO.


HDI CDI
Veto Explanation: Would adversely impact affordable housing options in the State by creating a new reserved
housing mandate for developers of both commercial and residential property in Kakaako
that is unrealistic and unworkable. This bill will hurt large and small landowners alike by
halting development for owners with lots larger than 20,000 square feet and discouraging
owners with lots smaller than 20,000 square feet from consolidating their properties. Places
a temporary moratorium on building permits during a period of economic decline when we
should be encouraging construction activity.

SB1665SD2 RELATING TO HIGHER EDUCATION.


HDI CDI
Veto Explanation: Appropriates $2.4 million out of the unemployment insurance trust fund to create business
development centers at each of the University of Hawaii community colleges at a time when
the unemployment insurance trust funds need to be conserved and used to administer the
State’s unemployment insurance benefits due to our high unemployment rates.

SB1673 SD2 RELATING TO THE HAWAII HEALTH SYSTEMS CORPORATION.


HD2 CDI
Veto Explanation: Makes major changes to the Hawaii Health Systems Corporation structure, which could
have an adverse impact on the delivery of health care on the neighbor islands.

SB1678 SD3 RELATING TO TAXATION.


HDI CD1
Veto Explanation: It is premature to prepare for the implementation of the Streamline Sales and Use Tax
Agreement (SSUTA) when businesses are still not required to participate and when
Congressional timetables for consideration are unclear. Diverts resources to the
establishment of an oversight committee at a time when economic recovery, not tax
increases, should be our primary focus.

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