Money legislation has been all over the map this session, ranging from proposals for a state-run bank and a tax on sugary drinks to hiking the minimum wage and granting employers a payroll tax break.
With the economy on the mend and the Council on Revenues forecasting healthy tax collections for the year, there are no major tax or fee hikes in play right now other than a proposed increase in tobacco taxes on non-cigarette products to equal the tax on a pack of cigarettes.
That’s a big change from last session, when lawmakers considered hiking the general excise tax before approving measures to generate about $600 million in new tax revenue.
All budget-related bills faced a crossover deadline this week, meaning they had to make their way to the other chamber in order to survive.
Here’s a look at what’s been signed into law, what’s still alive, and what’s as good as dead as of this week. The Legislature is scheduled to adjourn May 3.
The Budget
: The House finalized its budget bill, which proposes $11.16 billion in spending for the year that begins July 1, and sent the measure over to the Senate.
That’s about $54.5 million higher than what Gov. Abercrombie proposed in December. The budget for the current fiscal year is $11.05 billion.
To review the line-by-line departmental budgets as proposed in HB2012, go .
: The Senate’s so-called “Invest in Hawaii Act” is an aggressive $500 million general-obligation-bond-funded capital improvement plan intended to spur the economy, create jobs and tackle maintenance backlogs.
The proposal aims to streamline the building process by exempting contracts of $1 million or less from the state procurement code, as well as exempting projects from county-level permitting and licensing requirements.
The measure crossed over to the House in late February, but the House Finance Committee has yet to hear the bill.
Not surprisingly, the bill has strong support from construction and subcontractor groups. The Sierra Club opposes the measure, calling it misguided.
State-Owned Bank
: To get the ball rolling, the measure would set up a task force to review, investigate, and study the feasibility and cost of establishing a state-owned bank.
Note: Only one other state — North Dakota — operates its own bank.
Critics include the Hawaii Bankers Association, which that the venture would “put public funds in a potentially highly risky venture.” It also noted that the state lacks the expertise to operate a bank.
The bill made its way to the Senate and was heard by the Commerce and Consumer Protection committee, which has scheduled decision-making for Friday. If it survives, it would then head to Ways and Means.
: This measure would take things a little further by appropriating money (an unspecified amount at this time) for the Department of Commerce and Consumer Affairs to review relevant state laws to develop legislation for setting up a state bank. It would also direct the to establish and operate an interim purchase program for distressed residential properties until a bank is operational.
The measure has been referred to the Economic Development and Technology/Commerce and Consumer Protection committees, and Ways and Means.
: This measure would set up a state-run Clean Economy Bank. One of the state goals: To lessen the burden on the state and other participating entities to finance qualified renewable energy.
The bill has been referred to the Senate committees on Energy and Ways and Means.
Tax Credits for Film, TV Productions
: Lucrative refundable tax credits for film and television production in the islands would be extended until 2031 from the current Jan. 1, 2016 sunset date. The measure also proposes raising the credit ceiling from $8 million to an unspecified amount. (The bill at one time proposed raising it to $10 million.)
The Senate committee on Economic Development and Technology heard the bill this week, and has scheduled decision-making for Friday.
A similar bill, , proposed increasing the credits — which currently sit at 15 percent on Oahu and 20 percent on the neighbor islands — as well as creating additional non-refundable tax credits for media infrastructure projects. That bill crossed over to the Senate, but the Senate Economic Development and Technology committee held the measure.
Tobacco Tax
: In what appears to be the only proposed tax increase, the measure would increase the tax on non-cigarette tobacco products other than large cigars to be at least equal to the tax on a pack of cigarettes.
The tax is currently equal to 70 percent of the wholesale price of the article or item sold. The bill would increase it to $3.20 or 70 percent of the wholesale price, whichever is greater. (The general excise tax on cigarettes is 16 cents per cigarette, or $3.20 per pack. Cigarettes are selling for about $9 a pack these days.)
Cigarette and tobacco taxes brought in more than $106 million in revenue for the state last fiscal year.
SB 2422 is scheduled to be heard by the House Health committee Friday.
OHA Land Deal
: The proposal would give $200 million worth of Kakaako land to the Office of Hawaiian Affairs to settle all past disputes and claims relating to OHA’s portion of income from the public lands trust.
Shortly after crossing over to the House, the bill cleared the committees on Hawaiian Affairs and Water, Land and Ocean Resources. Those two committees have sent it on — unamended — to the Judiciary and Finance committees. If it sails through totally unamended from the Senate version, the bill will avoid facing a conference committee and can head to the governor for final approval.
Settlements Against the State
: The measure would pay out past-due settlements against the state totaling $5.8 million. The bill got the OK from both chambers and has been sent to Gov. Neil Abercrombie for final approval.
: This bill would authorize payments totaling $2.4 million in settlements for the 2011-2012 budget year. Since crossing over to the Senate, the bill has cleared the Judiciary and Labor committee, and would next head to Ways and Means.
Pension Anti-Spiking
: To curb so-called spiking, the bill would cap how much overtime can count toward pension benefits and would require the state and counties be on the hook for costs tied to employees who spike their retirement benefits.
The proposal is strongly opposed by labor unions that argue that employers — the state and counties — are the ones who authorize overtime work, and therefore employees shouldn’t be penalized. The public retirement system says the changes are needed in light of the $8.1 billion it faces in unfunded liabilities.
At least 14 other states have passed legislation in the past five years to curb pension spiking.
The bill has crossed over, but has yet to be heard by the Labor and Finance committees. A similar stalled earlier in the session.
Signed into Law
Abercrombie has already signed two budget-related bills into law.
: The measure staves off a scheduled increase in the state’s unemployment tax rate through the end of 2012.
The increase would have gone into effect at the end of March, and was expected to cost employers an additional $550 annually per employee. The tax goes into the , which pays out unemployment benefits.
: In light of the closure of the Hawaii Medical Center hospitals on Oahu, this measure provided $1.8 million in emergency funding via grants to The Queen’s Medical Center ($1.5 million) and the National Kidney Foundation of Hawaii ($300,000).
The money is subject to dollar-for-dollar private matching funds, and is intended to support Queen’s effort to perform kidney and liver transplants, and the Kidney Foundation’s chronic kidney disease management program.
Stalled: Soda Tax, Minimum Wage Hike
: Big Island Sen. Josh Green’s measure would have charged distributors a 1 cent tax per teaspoon of sugar in a beverage, syrup or powder. (A can of Coke contains about .)
A similar attempt last year by Gov. Neil Abercrombie failed amid strong pushback from the businesses and some lawmakers who argued whether the move was more of a revenue grab instead of an effort at health reform. This year, the governor said he plans to form a task force to come up with the best solution to wean Hawaii off of sugary beverages.
, : The House version would have raised the minimum wage to $8.14 per hour beginning Jan. 1, 2013. The Senate version would have hiked it to $7.75, effective July 1, 2012, and to $8.25 the following year.
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