Governor Plans to Veto Eight Bills; Rail Tax Extension Survives
UPDATED: Bills on sex trafficking, UH grad student union and renewable fuels production tax credit are among those Hawaii Gov. David Ige currently intends to veto.
Hawaii Gov. David Ige announced Monday that he currently plans to veto eight聽of the 252 bills the Legislature approved this past session.
Bills to combat聽sex trafficking, allow University of Hawaii graduate students to unionize and clarify聽the order of succession for lieutenant governor were among those he’ll potentially veto.
Monday was the deadline for the governor to submit his聽 that he intends to veto. He has until July 14 to actually do so 鈥 or change his mind. The Ige has yet to take action on聽will become law, with or without his signature.
The most notable bill not on the governor’s聽intent-to-veto list is聽legislation that will聽allow聽Honolulu, with approval from the City Council, to extend the half-percent General Excise Tax surcharge to fund the $6 billion rail project, now聽facing a nearly $1 billion shortfall.
The surcharge is currently set to expire in 2022. would extend the sunset date five years, far less than what Honolulu Mayor Kirk Caldwell sought.
The legislation also lets the neighbor-island counties levy a similar half-percent GET surcharge for public transportation projects and gives them the same sunset date of 2027.
The聽bill will聽become law since it wasn’t on Ige’s intent-to-veto list, but it may do so without his signature in part over聽information that surfaced Friday suggesting Caldwell misled the Legislature when lobbying for its passage.
The mayor had said聽the extension was needed to cover the shortfall for the 20-mile route or else the county would have to look at raising property taxes by 30 percent to 43 percent. But internal emails obtained by the Honolulu Star-Advertiser show the Honolulu Authority of Rapid Transportation had estimated the city would only have to increase the median property tax by 5.6 percent.
“That’s聽part of the equation as to whether I sign or not,” Ige told reporters at a press conference Monday.
“The reason I did not have it on my veto list is that in my review of the information provided, it鈥檚 clear that HART聽is short in terms of the funding that鈥檚 required for that first segment,” he said.
The governor said the measure will聽ensure, based on the current budget, that there is聽enough money to finish the聽first segment and possibly plan for additional routes.
“I am committed to seeing the rail project successfully completed,” Ige said, but added that “any funds for future expansion should be decided by future legislation.鈥
Another important bill not on the governor’s intent-to-veto list is the one聽establishing medical marijuana dispensaries in Hawaii. That too will become law with or without his signature.
Ige said he hasn’t decided yet whether he will sign , which will allow eight companies to open two pot dispensaries each as soon as July 15, 2016.
He said he may not sign the bill over concerns about its “aggressive”聽implementation schedule and the amount of resources the Legislature聽appropriated. The bill includes $1.5 million over the next two years and five permanent positions for the Department of Health.
As of Monday, the governor had signed .
Here is the list of bills Ige聽intends to veto and his rationale.
- , relating to the University of Hawaii Accounting and Financial Management System. Extends authority of UH to maintain separate accounting and financial management system.
- “The University of Hawai鈥榠 believes, and I agree, that this measure contains聽provisions that violate the Hawai鈥榠 state constitution regarding autonomy聽for University System management over university finances.”
- , relating to collective bargaining. Allows UH graduate student assistants employed by UH to collectively bargain their wages, hours and other terms.
- “Our administration appreciates the contributions graduate students make聽throughout the university system. Their valid concerns can and should be聽addressed internally through Board of Regents policy followed by a聽commitment from the University administration to implement such policy.聽We strongly encourage this option rather than amending state collective聽bargaining laws that govern management and employee relations.”
- , relating to the budget. Requires estimated future debt service for proposed Capital Improvement Projects to be included in the budget documents submitted to the Legislature.
- “Our administration believes that this measure, while well-intended, would聽be difficult to implement given the uncertainty of capital finance markets.聽Thus, it would be difficult to calculate long-term debt and might lead to聽inaccurate projections that could ultimately affect our bond rating. We聽would prefer to voluntarily work toward more accurate projections driven聽by administrative policy rather than state law.”
- , relating to the order of succession. Clarifies the order of succession to the lieutenant governor’s office.
- “We believe that the existing order of succession is adequate and聽appropriate. We further believe that these changes might leave a gap in聽succession that would be difficult to address in a state of emergency or聽disaster.”
- , relating to sex trafficking. Changing wording in statute from “promoting prostitution in the first degree” to “sex trafficking.”
- “I understand the concerns raised about exploitation of women that have聽driven advocates to seek strong penalties for sex trafficking.聽Unfortunately, this measure creates a special crime that eliminates the聽opportunity for prosecution of lesser related offenses. Thus, our Attorney聽General and three of our four county prosecutors are advising that this bill may聽result in fewer prosecutions for these types of crimes. I am asking our聽Attorney General and county prosecutors to propose a bill that will allow聽them to prosecute the full range of prostitution and sex trafficking聽offenses.”
- , relating to taxation. Repeals ethanol facility tax credit; establishes a five-year renewable fuels production tax credit.
- “We have been advised by our Attorney General that the definition of聽qualified taxpayers is flawed in that it does not allow for companies outside聽of Hawai鈥榠 to be qualified. This potentially violates the Commerce Clause of聽the U.S. Constitution, and could subject our state to potential litigation.”
- , relating to theft. Increases the dollar threshold with respect to property or services for theft in the second degree to $750 from the current $300.
- “We have been advised by county prosecutors that increasing the聽threshold for felony theft from $300 to $750 will eliminate the deterrent聽effect within retail markets. The retail merchants, in particular, are聽concerned that this will increase their revenue loss from shoplifting.”
- , relating to divorce. Provides authority for Employees’ Retirement System to make direct payments of benefits to a non-member former spouse of a member on order of court judgment, order or divorce decree.
- “Our administration supports the intent of this measure. However, we聽believe that working with the Employees’ Retirement System Board聽and administration, we can accomplish this without state law.”
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Nathan Eagle is a deputy editor for Civil Beat. You can reach him by email at neagle@civilbeat.org or follow him on Twitter at , Facebook and Instagram .