Hawaiʻi State Senate President Ronald D. Kouchi  was elected as a board member of the NCSL Foundation for State Legislatures  during the National Conference of State Legislatures’  (NCSL) 2024 Legislative Summit in Louisville, Ky. this week. NCSL, a bipartisan organization serving the nation’s 7,386 legislators and more than 30,000 legislative staff, created the Foundation as a nonprofit tax-exempt 501(c)(3) corporation in 1982. Its sponsors—businesses, national associations, nonprofit organizations, and unions—work to improve the state legislative process and enhance NCSL's services to all legislatures.   In addition to helping lawmakers confront and solve critical issues through public-private dialogue, the Foundation supports the Center for Legislative Strengthening, the Leaders’ Center and other special projects of NCSL.    Senate President Kouchi has served as President of the Hawai’i State Senate since May 5, 2015. In the past, Senator Kouchi served as the Senate Majority Caucus Leader, Vice Chair for the committee on Tourism, and Vice Chair for the committee on Ways and Means. Prior to coming to the Senate, Senate President Kouchi served for twenty-two years as a Kaua‘i County Councilman, including twelve years as Council Chair. Senate President Kouchi was raised on the west side of Kaua‘i and attended Drake University.   “I am honored to serve on the NCSL Foundation Board. I look forward to working with my colleagues and peers to strengthen the legislative institution and by extension, our legislative processes at the state level,” says Senate President Kouchi.   The Foundation’s volunteer board of directors is composed of corporate, nonprofit and union executives, as well as state legislative leaders and senior legislative staff. The directors serve one-year terms, with the possibility of renewal for up to four years for the vice president’s position.

Representative Cedric Asuega Gates (District 45, Wai‘anae, Mākaha)  and Senator Cross Makani Crabbe (District 22,  KoʻOlina, Nānākuli, Māʻili, Waiʻanae, Mākaha, Mākua) issued the following joint statement:   “Our Waiʻanae Coast is already mourning the loss of Aunty Twinkle Borge and now we are faced with another tragedy. From our understanding, this incident is completely unrelated to the Puʻuhonua o Waiʻanae community.   Reflecting on this incident and the location, we are reminded of what the word Puʻuhonua means, a place of peace and safety. Aunty Twinkle named this location Puʻuhonua, and we believe that every part of our community should reflect and honor this meaning. Yet, it is sincerely heartbreaking that our community has experienced another senseless tragedy due to gun violence today.   The residents of 96792 are devastated by this news and condemn all acts of violence on the Leeward Coast. We are relieved to hear that the suspect in this shooting has been apprehended and will face the consequences of their actions.   We must continue to do better as a community – we need to come together to lead by example of what it means to show peace and unity. Violence is never the answer. Let's keep our community, the victim, his family, and those affected in our prayers during this difficult time."

West Oʻahu legislators issued the following statements celebrating the life of community leader Twinkle Borge: " We are deeply saddened by the passing of Aunty Twinkle Borge, whose innovative housing solutions and unwavering compassion profoundly impacted our community. Working with her was a transformative experience; her visionary approach and genuine care inspired all who had the privilege to collaborate with her. As we mourn this significant loss, we remember her enduring legacy and extend our heartfelt condolences to her family, friends, and all who feel her absence," said Senator Cross Makani Crabbe  (Senate District 22,  KoʻOlina, Nānākuli, Māʻili, Waiʻanae, Mākaha, Mākua). "I'm at a loss for words with the passing of Aunty Twinkle Borge. Hawai’i has lost an icon, an incredible human being who was filled with overwhelming aloha for her community and village. Aunty Twinkle has left a lifetime of impact and will forever be in our hearts while being remembered for her pure heart of gold. I’m beyond proud of how far Aunty Twinkle and Puʻuhonua O Waiʻanae has come in creating permanent housing solutions for our residents. We will do everything in our power to continue carrying out her wishes for long-term housing and creating a thriving community, especially for our keiki. My sincere condolences to the entire Borge and Puʻuhonua O Waiʻanae 'Ohana," said Representative Cedric Asuega Gates  (House District 45, Wai‘anae, Mākaha). "The Waiʻanae Coast mourns the tremendous loss of a cherished community pillar. Twinkle Borge was a fierce advocate for Native Hawaiians and was dedicated to providing shelter and refuge for our houseless community. Aunty Twinkle's unwavering commitment to kauhale as a housing solution and restoring normalcy and dignity for local families leaves a lasting legacy for our state. Our hearts remain with the Borge and Puʻuhonua O Waiʻanae ʻohana,"  said Representative Darius K. Kila  (House District 44, Honokai Hale, Nānākuli, Mā‘ili).

Hawaiʻi has long led the nation in gender equality in sports, most notably with the lead sponsor and namesake of the federal Title IX law being Hawaiʻi Representative Patsy T. Mink and Hawaiʻi being the first state to sanction girls high school wrestling in 1998. Today, the Department of Education and the Hawaiʻi High School State Athletic Association announced, for the first time in nearly twenty years, there will be a new sport for high school girls to compete in. Beginning in Spring 2025, girls flag football will be in public and private high schools across the state. In response to this historic announcement, Senate Vice President Michelle N. Kidani, Chair of the Education Committee, issued the following statement:   "Continuing the legacy of Patsy T. Mink and her ground-breaking law has long been a motivating influence in my life, which makes today's announcement so exciting! Girls flag football is a fantastic new opportunity for the young women in our high schools, especially considering how much interest in participation has already been expressed by our students. As the Chair of the Senate Education Committee, a former high school athlete, and a Bobby Sox and girls' softball coach, I know the importance of supporting our girl student athletes, and the impact that sports can have on our student's growth and development.   With this announcement coming as the Olympics capture our imagination, and exceptional athletes like Carissa Moore, Daniela Moroz, and Simone Biles share their talents with the world, it is important that we develop multiple avenues for our young women to grow in sport here at home. Expanded opportunities such as this are exactly what Patsy T. Mink envisioned when she fought for equality in our schools. Girls flag football will be in the 2028 Olympics, and I trust that we will have local girls in Los Angeles in 2028 representing Hawaiʻi and the United States on the flag football field. In the meantime, I look forward to cheering from the bleachers next spring as our young wahine score touchdowns!"

Senator Cross Makani Crabbe (District 22 – KoʻOlina, Nānākuli, Māʻili, Waiʻanae, Mākaha, Mākua) issued the following statement regarding his appointment to fill the vacancy left by the retirement of former Senator Maile Shimabukuro in May 2024:   “As a lifelong resident of the 96792 community, I deeply understand the importance of strong representation for the Leeward Coast. I am most honored and humbled to accept this opportunity to serve our community during this interim period. My neighbors from the Leeward Coast have repeatedly said that they felt neglected by government, and I am determined to lift their voices and reverse that perception. This is why I am accepting the kuleana to fill the District 22 Senate seat until the general election on November 5.      I look forward to advocating for the people of 96792, focusing on the issues that matter most to our residents. The office has been vacated for 60 days, so there are many constituent-related matters to attend to. My focus as our interim Senator includes working on issues facing the community, including:    Cost of Living: Advocating for affordable housing and lower utility costs to ensure everyone can thrive in our community.  Local Economy: Supporting small businesses and creating job opportunities to strengthen our local economy.  Education: Ensuring our keiki have access to quality education and resources to succeed.  Public Safety and Infrastructure: Improving transportation and public services to enhance our quality of life and keep public safety as a top priority.  Native Hawaiian Advancement: Supporting initiatives that respect and uplift the Native Hawaiian community.  Houselessness: Working on practical solutions to address homelessness with compassion and effectiveness.     I intend to be a voice for those who feel unheard and to assure you that our government does care. I do not take this responsibility lightly and look forward to working with Representatives Cedric Gates and Darius Kila to provide the services and support for our community.    Mahalo to Representative Cedric Gates for being an exemplary teacher and encouraging me to fight for my community. Having worked with Representative Gates for four years, I know what it takes to be an effective and accomplished leader, and I hope to live up to his example over the next few months.    I extend my appreciation to the Democratic Party District Council Representatives of House Districts 44 and 45 for electing me to be on the short-list along with other eligible nominees.     Mahalo to Governor Josh Green for appointing me to fill this vacancy and upholding the law. Together, we will work to ensure that the Leeward Coast has the representation and support it deserves.”   Senator Crabbe is a former legislative staffer for Representative Cedric Gates and has also worked for the City and County of Honolulu – Office of Housing. He has a Bachelor's of Arts degree in Social Justice and Cultural Studies and a Bachelor’s of Arts degree in Life Sciences from Seattle Pacific University. He has a Master’s of Public Administration degree from Hawaiʻi Pacific University. He has served as the Vice-Chair of the Waiʻanae Coast Neighborhood Board and is a member of the Waiʻanae Hawaiian Civic Club.

Honolulu, Hawaiʻi  – Today, Senate President Ronald D. Kouchi (District 8 – Kauaʻi, Niʻihau) issued the following statement regarding Governor Josh Green’s appointment of Croccifixio (Cross) Makani Crabbe to Senate District 22 (KoʻOlina, Nānākuli, Māʻili, Waiʻanae, Mākaha, Mākua), filling the vacancy left by the retirement of former Senator Maile Shimabukuro in May 2024:   “Congratulations and welcome to Senator Crabbe as our chamber’s newest member. I am happy that the people from the Leeward Coast of Oʻahu have representation in the Senate through November 5, 2024.”

As little fire ants continue to cause problems for Windward O‘ahu, Senator Jarrett Keohokalole, (District 24, Kāne‘ohe, Kailua), Chair of the Senate Committee on Commerce and Consumer Protection, continues to seek answers and accountability from the Hawai‘i Department of Agriculture.   Today, Senator Keohokalole sent a letter to Chairperson of the Board of Agriculture, Sharon Hurd, requesting an update on the adoption of administrative rule changes to address little fire ant and other invasive pest species infestations across the State. In February 2023, the Board of Agriculture approved changes to these rules that would allow the Hawai‘i Department of Agriculture (HDOA) to require commercial entities to quarantine and treat products offered for sale that are infested with invasive pests. The enactment of these rules requires a public hearing and final approval from the Governor. Keohokalole's letter lays out a series of missteps by HDOA in adopting the rules, which the department says it needs to hold businesses accountable.   Nearly a year after HDOA approved the rules, it held a public meeting for review of the rules in January 2024. Seven months have gone by since HDOA held its public meeting, and it has yet to finish the review of the comments submitted during the meeting. Until the review is completed, the Department said it cannot proceed with further action. "The Department continues to slow walk action on this with little concern for the impact these invasive species infestations are having on residents and farmers across the state," said Senator Keohokalole. "The HDOA has said that without these rule changes, they cannot require businesses quarantine and treat infested products. Instead, they must rely on voluntary compliance from regulated businesses. Agriculture and commerce are heavily impacted by pest infestations, and we need the Department to act with an urgency that shows it understands the risks we face."   In the letter, Senator Keohokalole asked Chair Hurd to answer a series of questions relating to rule changes and the public hearing, including: ·         What were the total number of comments submitted at the public hearing? ·         What is the number of comments that have been reviewed? ·         What is the number of outstanding comments that need to be reviewed? ·         What are the numbers of comments supporting and opposing the proposal? ·         When is the anticipated date in which the review will be completed, and further action can be expected?   Keohokalole requested a response from Hurd by Tuesday, August 6, 2024.   A copy of Senator Keohokalole's letter to Chair Hurd is attached.

In response to the August 2023 Wildfires, Senator Angus McKelvey (District 6, West Maui, Māʻalaea, Waikapū, South Maui) introduced Senate Concurrent Resolution 223 , urging the United States Congress to pass legislation that would allow COFA migrants to benefit from federal emergency aid.  On Saturday, March 9, President Biden signed the Consolidated Appropriations Act, 2024, into law, which in part, restores federal benefits to Compact of Free Association (COFA) migrants. One specific result of the restoration of federal benefits is that COFA migrants will also have access to federal emergency aid. In light of this monumental bill being signed, Senator McKelvey issued the following statement:   “Survivors of the Lahaina wildfire include COFA migrants, and the lack of access to federal emergency aid has limited the ways these survivors recover from tragedy. It's good to see the federal government set up and live up to their responsibilities to COFA migrants. I am confident and encouraged that this action by Congress and President Biden will hasten and broaden the recovery of our community as a whole. Funding aid for COFA residents since the tragedy has been a burden to our State and this action will help free up these funds to further assist our local residents.”

State Senator Angus McKelvey (District 6, West Maui, Māʻalaea, Waikapū, South Maui) announced the release of $1,020,000 in funding for vital improvements at Lokelani Intermediate School in Maui. This capital improvement project will address crucial infrastructure needs including parking lot resurfacing, upgrades to gutters and drainage systems, air conditioning enhancements, and general repairs. "These funds are more necessary than ever," Senator McKelvey remarked. "They will help to address the overlong need of the parking lot, air conditioning, and other infrastructure which is being placed under more stress now due to the influx of new residents from Lahaina." The funding will also facilitate improvements to storm drains and other water management systems, which are critical in mitigating locally generated runoff that affects the school and surrounding areas. "Even though the focus has rightly been on fire, flooding is still one of South Maui's biggest challenges," added McKelvey. "Efforts like these show that every bit that can be done to address runoff and storm water will collectively help us address this issue." "I am thankful to Governor Green for advancing the funds needed to make these improvements possible," McKelvey said. “Now it is important to ensure that permitting and procurement can be done as expeditiously as possible so we can get this project done sooner than later.” This initiative not only addresses immediate infrastructure needs but also contributes to a safer and more sustainable environment for the kupuna, keiki, and all residents of Hawaiʻi. For more information on the improvements at Lokelani Intermediate School and other community projects, please contact Senator McKelvey's office at 808-586-6070 or senmckelvey@capitol.hawaii.gov .

The Hawaiʻi State Legislature will host the Annual Education Week, a longstanding celebration at the Hawaiʻi State Capitol, from March 18 – 22, 2024. Co-sponsored by Senate Vice President Michelle N. Kidani (Senate District 18, Mililani Town, Waipiʻo Gentry, Crestview, Waikele, Portion of Waipahu, Village Park, Royal Kunia) and Representative Justin H. Woodson (House District 9, Kahului, Puʻunēnē, Portion of Wailuku), Education Week will honor Hawaiʻi’s educators, students, counselors, principals, and staff.   “Each year, we designate a week to invite educators and students to our State Capitol to be recognized for their contributions to education,” said Senate Vice President Kidani. “It is our honor to celebrate administration, teachers, students, and staff for making a difference in the classroom. We are thrilled to welcome our special honorees to the Capitol to celebrate their achievements in educational excellence.”   “It is with great honor to be a part of Education Week, a tradition that was implemented to celebrate our students, teachers, faculty, and staff for their outstanding contributions to Hawaiʻi schools and our community at large. The distinguished individuals and schools we will recognize go beyond, dedicating their creativity, outstanding skill, and countless hours to inspire and invoke change. On behalf of the Hawaiʻi House of Representatives, mahalo nui loa to all of you for joining us this week to honor these exemplary individuals,” said Representative Woodson.   “I'm excited to celebrate the amazing achievements of our students, teachers, faculty, and employees during Education Week,” said Superintendent Keith Hayashi. “As we work to ensure that all of our graduates are globally competitive and locally committed, I'm looking forward to continuing to partner with our lawmakers to build on the positive academic trajectory our students are on coming out of the pandemic. Mahalo to our legislators for their continued support and investment in our public schools.” Each day of Education Week will feature various activities, including a student showcase and career pathway expo. Awardees will be recognized during Senate and House floor sessions throughout the week.   WHAT: Education Week at the Hawaiʻi State Capitol   WHO: Senate Vice President Michelle N. Kidani, Senate Committee on Education Chair Representative Justin H. Woodson, House Committee on Education Chair Members of the Hawaiʻi State Legislature   WHERE: Hawaiʻi State Capitol 415 S. Beretania St. Honolulu, HI 96813   WHEN: Monday, March 18 – Friday, March 22, 2024 Senate Floor Session – 11:30 a.m. House Floor Session – 12:00 p.m. Awardees will be recognized daily on the floor respectively by Senate and House.   Education Week Events taking place at the Hawaiʻi State Capitol:   MONDAY, March 18 Friends of the Library Book Fair Conference Room 224 8:30 a.m.-11:30 a.m.   TUESDAY, March 19 Department of Education Student Showcase State Capitol 4th Floor Lanai 9:00 a.m.-12:00 p.m.   WEDNESDAY, March 20 Student Career Pathway Expo State Capitol 4th Floor Lanai 1:00 p.m.-3:00 p.m.   THURSDAY, March 21 Department of Education Leadership Institute Presentation State Capitol Auditorium 12:30 p.m.-1:30 p.m.   FRIDAY, March 22 Early Learning Day State Capitol Rotunda 9:00 a.m.-12:00 p.m.   From March 12 – March 28 Art Exhibit: Not All Backpacks Carry the Same Weight Chamber Hallway   The 2024 Awardees include the following:   Award Award Category Awardee HI DOE – 2024 Hawaiʻi State Teacher of the Year Teacher of the Year Jackie Freitas HI DOE – Charter Schools Teacher of the Year Teacher of the Year John “Parker” Sawyer District Teacher of the Year - Honolulu District's Kaimukī-McKinley-Roosevelt Complex Area Teacher of the Year Laurie Chang District Teacher of the Year - Hawaiʻi District's Hilo-Waiākea Complex Area Teacher of the Year Christopher Pike District Teacher of the Year - Honolulu District's Farrington-Kaiser-Kalani Complex Area Teacher of the Year Norman R ay Sales District Teacher of the Year - Maui District's Hāna-Lahainaluna-Lāna‘i-Moloka‘i Complex Area Teacher of the Year David "Kawika" Gonzales District Teacher of the Year - Leeward District's Campbell-Kapolei Complex Area Teacher of the Year A riel Villanueva District Teacher of the Year - Kauaʻi District's Kapaʻa-Kauaʻi-Waimea Complex Area Teacher of the Year K ara Kitamura District Teacher of the Year - Leeward District's Nānākuli-Wai‘anae Complex Area Teacher of the Year D onna Soriano District Teacher of the Year - Windward District's Kailua-Kalāheo Complex Area Teacher of the Year Gregory  Kent District Teacher of the Year - West Hawai‘i District's Honoka‘a-Kealakehe-Kohala-Konawaena Complex Area Teacher of the Year Jennifer Ilaban District Teacher of the Year - Maui District's Baldwin-Kekaulike-Kūlanihākoʻi-Maui Complex Area Teacher of the Year Melanie Teraoka District Teacher of the Year - Windward District's Castle-Kahuku Complex Area Teacher of the Year Laura Cummings District Teacher of the Year - Central District's ‘Aiea-Moanalua-Radford Complex Area Teacher of the Year Marina Higa District Teacher of the Year - Leeward District's Pearl City-Waipahu Complex Area Teacher of the Year Jessica Peterson District Teacher of the Year - Hawai‘i District's Ka‘ū-Kea‘au-Pāhoa Complex Area Teacher of the Year Pinky Grace Francisco 2023 Milken Teacher of Promise Faculty R itela “Shiela” Sproule 2023 National Association of Elementary School Principals (NAESP) Hawaiʻi National Distinguished Principal Faculty Glen Miyasato 2023 American School Counselor Association’s Hawai‘i School Counselor of the Year Faculty Brittnie Caraulia 2023 NAESP National Outstanding Assistant Principal and the 2023 Hawaiʻi Association of Secondary School Administrators (HASSA) Assistant Principal of the Year Faculty Bebi Davis 2023 HASSA Hawaiʻi State Principal of the Year and 2023 Masayuki Tokioka Excellence in School Leadership Award Faculty Sharon Beck 2023 HASL Outstanding Library Service Award Library G rant Tokooya 2023 Hawaiʻi Association of School Librarians (HASL) Golden Key Award Library N icole Goff 2023 HASL Golden Key Award Library J enny Yamamoto 2024 United States Senate Youth Program Delegate Student Ahryanna McGuirk 2024 United States Senate Youth Program Delegate Student Lehua Norris 2023 Prudential Emerging Visionary Student Kylee Hamamoto 2023 U.S. Presidential Scholar Student Vaeanui Peck 2024 Hawaiʻi LifeSmarts State Competition 1st place Student Kalani High School (Brandon Tran, Andy Chen, Michelle He, Kyla Iglesia, and Mason Vuong) 2024 Hawaiʻi LifeSmarts State Competition 2nd place Student Maryknoll School (Kaya Pettit, Cassandra Barut, Aaron Broderick, Kevin Ng and Tyler Takahashi) 2024 Hawaiʻi LifeSmarts State Competition 3rd place Student Waipahu High School (Reagan Chinen, Ross Angel Bagaoisan, Stephanie Menor, Jordan Nguyen and Joybel Parinas) U.S. Department of Education- 2023 National Blue Ribbon School Blue Ribbon Kaʻelepulu Elementary School U.S. Department of Education- 2023 National Blue Ribbon School Blue Ribbon Maunawili Elementary School

A coffee labeling bill to protect local farmers and preserve the authenticity of Hawaiʻi -grown products has passed the 2024 Legislative Session and is expected to become law upon the governor's signature.   House Bill 2298 CD1 , introduced by Representative Nicole E. Lowen, mandates that beginning July 1, 2027, any coffee labeled or advertised with a Hawaiʻi geographic origin must consist of at least fifty-one percent coffee by weight from that geographic region. The current requirement, set at ten percent, means that coffee products can be labeled as a specialty product from a specific region when in fact ninety percent of what is being sold is not from that region. This measure aims to protect Hawaiʻi's origin products, combat deceptive labeling, and ensure that products that bear regional names contain at least a majority of product from that region.   "This initiative is about protecting Kona's world-renowned coffee and ensuring that local farmers receive the prices they deserve for their products, and that dollars stay in Hawaiʻi's economy," said Representative Nicole E. Lowen ( D-7 Kailua-Kona, North Kona, South Kohala ). "The percentage of Kona Coffee required for it to be labeled Kona should be 100 percent, but given that this is the first progress made on this in more than thirty years, it’s a huge win."   For over three decades, the debate over the required percentage of coffee originating from the geographic area to qualify as Hawaiian coffee has persisted, with existing regulations set at a minimum of ten percent. In 2022, the Legislature passed Act 222, which requested that the HDOA conduct a study on the impact of coffee labeling laws on coffee farmers and to determine the economically ideal proportion of Kona beans in products marketed as Kona coffee.   "By gradually implementing an increase in minimum standards, this bill protects the integrity of all regional coffee brands in Hawaiʻi, like Kona and Kaʻū, and supports our local farmers," said Representative Kirstin Kahaloa  (D-6 Hōnaunau, Nāpō‘opo‘o, Captain Cook, Kealakekua, Keauhou, Hōlualoa, Kailua-Kona ).   On January 18, 2024, the HDOA submitted the Final Report on the Economic Study on Changes in Coffee Labeling Law . The  report highlights that increasing the minimum amount of Kona coffee from 10 percent to either fifty-one percent or one hundred percent would be advantageous for local farmers, with a higher increase providing the most benefit. Additionally, the report anticipates that proposed labeling changes could result in a price increase for Kona coffee while seeing minimal impact on quantities grown or sold.   “For too long, we have allowed products that are not Kona coffee to use the Kona coffee name and reputation for profit at the expense of farmers. This law is a step forward in doing the right thing for Hawaiʻi's farmers and supporting their economic growth,” said Representative Jeanne Kapela  (D-5 Portions of Kea‘au and Kurtistown, Mountain View, Glenwood, Fern Forest, Volcano, Pāhala, Punalu‘u, Nā‘ālehu, Wai‘ōhinu, Hawaiian Ocean View, Ho‘okena ).   "HB2298 CD1 is a pivotal advancement in our ongoing commitment to safeguarding the integrity of Hawaiʻi’s cherished agricultural industries. By requiring a majority percentage of coffee from the specified geographic region in labeled products, we’re not only protecting our farmers’ livelihoods but also ensuring that consumers receive authentic, high-quality coffee synonymous with our beloved regions like Kona and Kaʻū. This legislation reflects our dedication to fostering a sustainable and transparent agricultural sector, one that honors our traditions while promoting economic prosperity for generations to come.  I look forward to continuing the work ahead to further strengthen and preserve the rich heritage of Hawaiʻi’s coffee industry for all," said Senate Majority Leader Dru Mamo Kanuha  (D- 3 Kona, Ka‘ū, Volcano).   "This session, the Legislature was able to pass out a bill that ultimately supports our coffee farmers and in reality, the whole coffee industry in the State of Hawai‘i. By increasing the required percentage of Hawai‘i regional coffee to fifty-one percent for the use of geographic monograms, we are raising standards, enhancing transparency in labeling, and will ultimately advance the coffee industry over time. Mahalo to the coffee processors and farmers who worked together to find middle ground," said Senator Tim Richards  (D-4 North Hilo, Hāmākua, Kohala, Waimea, Waikoloa, North Kona).

Today, the Legislature passed a bill to provide relief to the healthcare system in Hawaiʻi.   Senate Bill 1035 SD2 HD1 CD1 , introduced by Senator Lorraine R. Inouye (Senate District 1, Hilo, Paukaʻa, Papaikou, Pepeʻekeo), exempts hospitals, infirmaries, medical clinics, health care facilities, pharmacies, and medical and dental providers from General Excise Tax (GET) on goods or services that are reimbursed through Medicaid, Medicare, or TRICARE. If approved by the Governor, this law will go into effect on January 1, 2026.   Under current law, there is incongruity in the way medical services are treated with regard to GET. Only medical services rendered at a nonprofit hospital, infirmary, or sanitarium are exempt from GET, but services rendered by individual or group practices or clinics are fully taxable. Government health programs such as Medicare, Medicaid, and TRICARE, do not compensate for the tax differential, which requires some providers to cover added costs.   “At the behest of my constituents from Hilo who are local medical practitioners, I proudly introduced Senate Bill 1035 to address the issue of unsustainable taxation on healthcare services in Hawaiʻi, particularly impacting underserved populations covered by Medicare, Medicaid, and Tricare,” said Senator Inouye. “With a dwindling number of providers able to accept these essential insurances, the bill aims to relieve financial burdens and stimulate economic growth by exempting healthcare and dental services from the General Excise Tax. This measure especially benefits rural healthcare providers and patients, who often face challenges in accessing quality care due to limited resources and funding. Additionally, SB1035 promotes equity and access to healthcare, strengthens our healthcare infrastructure, and ensures compliance with federal regulations. With endorsement from over one-hundred and fifty-five healthcare professionals, I could not be more thrilled that SB1035 has passed the Legislature – this transformative bill will enact meaningful change in our healthcare system.”   The State already faces a shortage of nearly eight-hundred physicians, and a recent survey of physicians by the John A. Burns School of Medicine found that the elimination of GET on medical services could be an effective means of recruiting and maintaining more physicians.   “We have not passed a GE tax exemption bill ever since I have been in office and thus, the passage of SB1035 to benefit medical providers who care for our kūpuna and ALICE families, is a momentous occasion,” said Senate Committee on Health and Human Services Chair Senator Joy San Buenaventura (Senate District 2, Puna). “Ever since Senator Inouye brought this bill to my attention as Health and Human Services Chair , I have championed it.  Unlike store owners who are allowed to pass on General Excise Tax to consumers, the federal government makes it illegal for medical providers of Medicare, Medicaid, and Tricare services to pass on General Excise Tax to their patients. Thus, by requiring these medical providers to pay General Excise Tax, we are actually dismissing them by increasing their costs. With this bill's passage, we remove a major disincentive in servicing the underserved community and hope we can prevent the further loss of physicians, dentists and other medical providers, and save the health industry approximately $74 million per year.”   “For the medical community in Hawaiʻi, May 1, 2024 will be marked as an historic day. Today, we see the passing of SB1035, which brings crucial tax equity to Hawaiʻi’s independent medical providers,” said Hawaiʻi Medical Association president, Elizabeth Ann Ignacio, MD. “This legislation returns fairness to the taxation of medical practices, allowing more physicians to work in Hawaiʻi and increasing access to care for Hawaiʻi’s most vulnerable populations. The members of the Hawaiʻi Medical Association thank our government leaders for their foresight in passing this important legislation; this is a critical step in creating the medical infrastructure needed for a healthier Hawaiʻi.”   Senate Bill 1035  now advances to the Governor’s desk for consideration.