May 2, 2000

2000 LEGISLATURE EMPHASIZES FISCAL RESPONSIBILITY AND EDUCATION REFORM

The 2000 Legislative Session adjourned today following final votes on measures agreed to by both House and Senate lawmakers. House Majority Leader Rep. Ed Case (D - Manoa) said the Twentieth Legislature's main accomplishments were a moderate and responsible state fiscal policy, and major support for education and educational reform.

"We adopted a balanced, fiscally responsible budget that stays the course we first set in 1998 when we enacted the largest individual tax cuts in our history, and continued in 1999 when we substantially reduced business taxes," Case said. "While we cannot say how much our tax cuts are responsible for our current economic recovery, we can say that the choices we made clearly fostered economic revitalization throughout that period."

Education garnered the lion's share of the general fund budget (over $1 billion out of a total $3.1 billion). The Legislature also enacted all of Schools Superintendent Paul LeMahieu's proposals giving the public schools important new powers to reform public education through a comprehensive accountability system. Public schools and the University of Hawaii together received $65 million in combined general funds and general obligation bonds for the next fiscal year to repair and maintain facilities statewide.

The Legislature also passed a comprehensive New Economy package, regulatory reforms, a compromise fireworks measure, as well as support for rural health care services and other pressing social needs. Case said strides were made in civil service reform, efforts to reform the public employees health fund, state energy policy reform, good government initiatives, environmental protection and women's and children's issues, but that much remains for action by the Twenty First Legislature.

"We've made responsible choices over the past three years, but our toughest choices still lie ahead," Case said.

Measures passed this year that support the House's overall goals include:

HB 1900 - Directs 35 percent (over $1 billion) of the state's $3.1 billion supplemental budget to public schools and higher education. Provides funding for additional teachers to reduce class sizes. Authorizes $20 million in general obligations bonds for system-wide repair and maintenance of school facilities.

SB 3026 - Appropriates $30 million in general funds for repair and maintenance of public school facilities statewide and appropriates $15 million for the repair and maintenance of University of Hawaii facilities system-wide.

SB 2837 - Expands DOE accountability system and calls for a collaborative process among all stakeholders in developing accountability system that provides for rewards and sanctions based on measurable performance goals.

HB 1874 - Establishes within the Department of Education an interagency educational accountability working group to review and recommend changes to statutes, rules, procedures, policies and practices that impede re-structuring for the educational system.

HB 1873 - Allows the Department of Education to retain federal funds it receives rather than returning such monies to the state general fund.

HB 2092 - Running Start Program, which allows eligible public high school students to enroll in any qualified course offered by the University of Hawaii system.

SB 2218 - Provides legal protection for New Century Charter School boards and allows groups of teachers at a school to form a charter school.

SB 3038 - Expands DOE zero tolerance policy by allowing a principal to suspend a student possessing, selling, or using intoxicating beverages or illicit drugs on school property or at school functions.

HB 2492 - Allows the DOE to carry over 5 percent of appropriations to the next fiscal year for school support services.

SB 539 - Proposes a constitutional amendment granting the University of Hawaii autonomy in management and operations of the system.

HB 2062 - Allows UH to carry over unspent funds from one fiscal year to the next.

HB 2901 - Comprehensive New Economy Bill to encourage the growth and development of high technology through tax credits and incentives for high tech businesses; appropriates funds to market and promote Hawaii for high tech development; provides incentives to encourage venture capital investment in Hawaii.

SB 2420 - Establishes the New Economy Technology Scholarship Program with the Department of Business, Economic Development & Tourism to create a sustained pool of highly trained technology workers for purposes of attracting businesses in high technology.

SB 2779 - Expands the state's Enterprise Zone law to include businesses engaged in research, development, sale or production of all types of genetically engineered medical, agricultural, or maritime biotechnology products, as well as business that repair assisted technology equipment, and call centers.

SB 2409, SB 2781 - Establishes a graduated hotel/resort improvement tax credit from 4 percent up to 20 percent depending on the size of investment. Also, exempts certain call center activities from the general excise tax and public service company tax.

HB 1956 - Establishes permanently the Small Business Regulatory Flexibility Act and the Small Business Defender. Transfers the Small Business Defender position to DBEDT from the Legislature.

SB 2711 - Automatically repeals any administrative rule six months after the statute or ordinance of its origin is repealed; requires that rules adopted to comply with federal law do so at a minimum; and requires state agencies to develop and use flexible approaches to rule-making to meet unique or special conditions.

SB 2121 - Repeals unnecessary administrative rules; provides means to expedite obsolete administrative rules.

SB 3199 - Allows the importation of microorganisms for research and commercial purposes.

HB 1994 - Appropriates funds to maintain current levels of research and development at the Hawaii Agriculture Research Center.

HB 2405 - Allows the Pesticide Use Revolving Fund to be used for the development of integrated pest management strategies and personnel costs.

HB 2406 - Allows the Department of Agriculture to make agreements with authorized federal agencies for the purposes of enforcing laws and rules on pest control, animal disease control, and the movement of restricted items to or within the state.

SB 2303 - Transfers certain public service company taxes to the Harbor Special Fund and Boating Special Fund to improve passenger cruise ship facilities within the state.

SB 2716 - Applies the wholesale tax rate of 0.5 percent for sales by a printer to a magazine publisher provided the magazine is distributed to the public.

SB 3190 - Authorizes captive insurance companies to establish branch operations.

HB 2802 - Authorizes the issuance of special purpose revenue bonds to assist the Hawaii Food Resource Center in planning and constructing a multi-function food processing facility on Oahu.

HB 2023 - Allows an individual to claim an agricultural infrastructure improvement tax credit equal to 10 percent of the cost of improvements over $200,000 for irrigation, drainage and drought mitigating water storage systems.

HB 1938 - Repeals and replaces Article 9 of the Uniform Commercial Code.

HB 2480 - Updates state law regarding limited liability partnerships; eliminates insurance and financial responsibility requirements; deletes prohibitions against attorneys forming LLPs.

HB 2484 - Updates state law by adoption of 1984 amendments to the Model Business Corporation Act.

HB 2585 - Adopts the Uniform Electronic Transaction Act allowing business, commercial and government transactions to be conducted electronically, if parties agree.

SB 2859 - Enacts initial steps for reform of 30-year-old civil service laws. Allows each jurisdiction to develop its own civil service system based on the merit principle. Allows for termination based on performance. Amends the criteria arbitrators may use to resolve impasses.
Expands the Office of Collective Bargaining to include managed competition. Establishes incentives for voluntary separation.

SB 2838 - Permits government agencies to charge for value added electronic services provided through the Internet portal manager. Establishes the Access Hawaii Committee in the Office of the Governor to oversee the Internet portal manager.

SB 3043 - Authorizes the State Comptroller to establish a captive insurance company to insure the general liabilities of state agencies.

SB 2433 - Authorizes the Governor to negotiate, under managed competition procedures, for a new, privately operated medium- and minimum-security prison. Establishes that treatment and rehabilitation services will be major components of the new facility. Authorizes the Governor to build the prison in Hawaii.

SB 680 - Requires individuals to obtain a $25 use permit per every 5,000 firecrackers. Makes it unlawful to sell fireworks to someone without a permit. Makes illegal the possession of aerial fireworks. Establishes a new schedule of fees for the importation, storage and sale of fireworks. Requires counties to enforce new laws in return for the majority share of any fees or penalties collected.

SB 2151 - Authorizes police to seize firearms and ammunition from a person disqualified or denied a permit for firearms. Requires health care providers to disclose mental health histories to law enforcement provided the information is used solely to determine a person's fitness to own firearms.

HB 1881 - Consolidates all laws relating to the operation of a vehicle, including boats, while using intoxicants.

SB 3073 - Provides for preliminary alcohol screening to determine probable cause for arrest.

SB 2108 - Directs the State Auditor to initiate development of a comprehensive trust inventory of all public lands transferred by the federal government to the state at statehood, as well as parcels alienated or acquired since statehood, and directs all state and county agencies to assist the auditor in establishing the trust information system.

SB 2722 - Establishes the Hawaiian Language Immersion Program statutorily and permits it to be a complete educational program provided to students via the Hawaiian language.

SB 2843 - Allows the Department of Hawaiian Home Lands to lease out improvements on available lands to the public and dispose of improvements on available land to a native Hawaiian or an organization owned or controlled by native Hawaiians.

HCR 41 - Concurrent resolution supporting the sovereign rights of Native Hawaiians and furthers supporting federal recognition of a Hawaiian nation in order to develop and government-to-government relationship.

HB 1947 - Bans importation and landing of shark fins in Hawaii unless the whole fish is landed. Penalties for violations include seizure and forfeiture of fins, commercial marine license, vessel, and fishing equipment. Applies to vessels home-ported in the state of Hawaii.

HB 2701 - Establishes a renewable energy demonstration project within the Department of Education to illustrate the feasibility and cost effectiveness of installing photovoltaic systems and energy storage devices in public schools utilizing performance contracting and net metering.

SB 2221 - Provides an income tax credit for investors in qualifying ethanol production facilities, provided that the facility manufactures motor fuel grade ethanol produced from renewable organic materials.

HB 2574 - Deposits all money collected for mineral and water rights into the Special Land & Development Fund to be used for the protection, planning, management, and regulation of water resources.

HB 2835 - Establishes a watershed protection board within the Department of Land & Natural Resources. Requires the board to develop a watershed master plan.

SB 2513 - Allows the portion of the real estate conveyance tax revenues deposited into the natural area reserve fund to be used to fund watershed management projects.

SB 2879 - Imposes a $1 per tire surcharge on tire importers to be used to regulate proper disposal of used tires. Requires all tire handlers maintain thorough records of the receipt, transfer and disposal of tires.

HB 1984 - Clarifies law regarding return of campaign contributions following withdrawal of candidacy or the resignation or retirement from elective office.

HB 1925 - Extends to 10 days the time after which a candidate shall file an organizational report after filing nomination papers.

SB 3045 - Increases the investigative authority of the State Auditor with regard to accounts, files and documents. Provides for criminal penalties in failing to comply with a subpoena issued by the Auditor.

HB 2774 - Disallows discrimination of the use of public facilities to a woman who is breast-feeding a child.

SB 2154 - Defines "dating relationship" and extends coverage of family court domestic abuse protective orders to persons who are or have been in a dating relationship.

SB 2056 - Encourages low-income individuals to accumulate capital through a special saving account program called the Individual Development Account. Provides tax credits of 50 percent of the amount contributed to an IDA.

SB 862 - Approves the use of marijuana under strict medical supervision and only for certain medical conditions.

SB 2062 - Extends the sunset date for the Joint Legislative Committee on Long Term Care to June 30, 2002.

HB 2392 - Requires health care plans cover outpatient diabetes self-management, training, education, equipment and supplies.

HB 2429 - Expand the rent supplement program of the Housing and Community Development Corporation of Hawaii to include "very low income" households. Makes eligible for the program single persons who are not elderly or disabled.

SB 2873 - Authorizes the Hawaii Health Systems Corporation to issue $38 million in revenue bonds under the Supplemental Budget Appropriations Act of 2000.

SB 3179 - Makes the sale and distribution of export-only cigarettes and of mislabeled imported (foreign) cigarettes a Class C felony. Prohibits alteration of cigarette packaging that would conceal manufacturer's intent to sell the cigarettes outside the U.S.

HB 2273 - Appropriates funds into the Hawaii Children's Trust Fund from the Hawaii Tobacco Settlement Special Fund to be used for prevention of child abuse and neglect.

HB 2277 - Provides for the immediate transfer of tobacco settlement money from the Hawaii Tobacco Settlement Fund as follows: 40 percent into the emergency and budget reserve fund; 35 percent into the Department of Health tobacco special fund; and 25 percent into the Hawaii tobacco prevention and control trust fund.

HB 1763 - Requires bicycle riders under the age of 17 to wear helmets.

SB 2579 - Provides supportive housing for homeless persons with mental illness and substance abuse addiction through a special needs housing fund under the Housing & Community Development Corporation of Hawaii.

SB 3123 - Creates the Bridge to Hope Program, a post-secondary education benefits program for heads of households in the Temporary Assistance to Needy Families program.

HB 2280 - Continues development of the School-to-Work system.

SB 2486 - Creates a system to impose cigarette taxes through the use of stamps to wholesalers and dealers. Requires stamps be placed on cigarette packages before distribution.

SB 2074 - Establishes the Task Force on Parity for Female Offenders review and identify inadequacies in programs offered to female adult and juvenile offenders.

SB 2475 - Promotes gender equity in sports in the 9^th through 12^th grades of all public high schools.

HB 540 - Provides medical assistance up to 200 percent of the federal poverty level for Hawaii to persons under 19 years of age who are legal immigrants with permanent residence as well as non-immigrants from the former U.S. Trust Territories.

HB 2098 - Requires the Department of Health develop procedures for criminal history checks for persons seeking employment or who seek to be contractors or subcontractors in providing child and adolescent mental health services.