The first crossover deadline at the legislature has come and gone. On March 7 more than 600 bills moved over from the House to the Senate and from Senate to House. The legislative session, which ends on May 4, is nearly two-thirds over as bills are positioned in the various chambers for second cross coming up on April 11. Among the many bills still in play are the following:

SENATE MODIFIES HOUSE REPEAL BILL

The House passed out a bill to repeal the gas cap. HB 3115 passed by a vote of 49 - 1 with Rep. Bev Harbin voting "no" on first crossover. The House also passed HB 2877 to suspend the General Excise Tax on gasoline for 2 years. It passed by a vote of 48 - 2, with Reps. Lyla Berg and Hermina Morita voting "no".

Last Thursday, March 23, the Senate Consumer Protection and Housing (CPH) committee under the direction of Senator Ron Menor modified the HB 3115. The version that passed out of the CPH committee reduces the gas cap regulation's severity, but is highly misleading to say that the law has been "suspended."

Under the new rules, the Public Utility Commission calculates a "fair gas price," which is what the wholesale gasoline price would have been had the gas cap remained continuously in effect. If a gasoline wholesaler charges a price higher than that of the PUC's "fair price" for two weeks in a row, the PUC will be allowed to resume its authority, for a period of two consecutive weeks, to make its "calculated fair price" the mandatory price limit.

Essentially, the gas cap will continue under this modified bill. Only the hierarchy of escalating penalties has changed. HB 3115 will be heard in the Senate Ways & Means committee before it goes to a floor vote on second crossover. The issue will probably have to be resolved in conference committee next month.

The CPH committee also voted to amend HB 2877 by stripping the suspension of the GET on gasoline. Instead the exemption will apply to gasoline blended with alcohol and to diesel fuel.

The Senate passed out SB 2911 that only modifies the gas cap and does not eliminate it. Four members of our minority caucus including myself voted against this bill. The bill has not been heard in the House.

CONTAINER TAX LAW

The Senate voted on 3 bills that will expand the scope of the beverage container tax law. The first bill (SB 3114) authorizes the state to raid the beverage container special fund (currently at $23 million) for the community workday program. The second, SB 3105 would allow more taxpayer subsidies to firms that choose to set-up reverse vending machine centers. The 3rd, SB 3181 will expand the beverage container tax to include containers of 2 liters, which are currently exempt from the tax. I voted "no" on all of these taxpayer hostile bills.

WHAT ABOUT TAX RELIEF?

A lot of lip service was made at the start of the session in regards to taxpayer relief. So far no bills on a promised increase to the standard income tax deduction nor relief on GET on food and medicine were voted on by the Senate. SB 97 which would allow for a larger standard deduction, is in conference committee limbo from last year.

The Senate passed out SB 3040 which proposes an amendment to the constitution that would allow the legislature to withhold budget surplus funds for emergency or other use. This would negate the requirement to return an amount of surplus back to taxpayers. I voted "no" on this bill.

BILLS DEFEATED ON FLOOR

Two bills (SB 2749 & SB 2750) that would have limited the use of genetically modified taro and coffee were defeated on the Senate floor by a rare vote of 11 to 13. I was among the prevailing vote both times.

In other actions, the Senate passed out a tougher pedestrian safety bill (SB 2385) that increases the penalties for violations. The bill has already been heard in the House and was amended to include the revival of the red light camera ticketing system, which I oppose.

Implementation of an internet sales tax may be in the works as SB 2222 was passed by a 21 to 3 vote. I vote against all new taxes.

Smokers will probably have to pay more if the new annual Cigarette Tax bill (SB 2761) becomes law. I voted "no" on this measure. Making a comment on a bad bill during first crossover on the Senate floor. The minority caucus is always standing up against bad legislation.

Taken from the Hawaii Kai Neighborhood Board Report #1, 3-28-2006