Gov. Green raises concerns about 19 bills

Gov. Josh Green may veto more bills this year than he did in each of his first two terms as the state’s chief executive, including one to regulate electric bicycles and motorcycles on Hawaii roads.

The governor informed state lawmakers Friday of his intent to possibly veto 19 bills.

Green in a news release said further scrutiny of the bills on his list was needed in part due to an exceptionally high number of bills passed by the Legislature this year, a recently downgraded forecast for state tax revenue and uncertainties over the impacts on state finances from federal policies and funding.

Some of the bills on the list may end up becoming law with or without Green’s signature. The governor has until July 9 to issue vetoes.

To date, Green has signed 200 bills into law, and an additional 101 bills are set to become law by July 9.

“Our team has completed a review of every measure and the overwhelming majority of legislation will become law,” Green said in Friday’s written announcement. “Each bill on today’s list is based on thorough legal and fiscal analysis, and as always, was guided by what will best serve the people of Hawaii, protect our resources and strengthen our future.”

Green noted that lawmakers this year passed a relatively high number of bills. The 322 bills passed this year compares with 262 last year and 274 the year before.

In 2024, Green put 17 bills on his veto intent list and ended up vetoing seven. In 2023, he vetoed one bill ahead of putting out his veto intent list with 12 bills, then vetoed 10 more bills. One vetoed bill in 2023 became law in a veto override by lawmakers.

The number of bills on Green’s veto intent list this year is not high compared to his predecessor David Ige, who listed 30 bills in 2022 and 28 bills in 2021 as being subject to veto.

As with all the bills on Green’s list, the governor said more time exists to discuss implementation and impact issues with key stakeholders. Lawmakers are contemplating holding a special session later this year, when they could amend bills that get vetoed. They also could override vetoes.

Some bills on the veto intent list have to do with historic property, tax credits, a city-state land swap, medical marijuana, affordable housing and naming rights for the Hawai‘i Convention Center and a new Aloha Stadium.

One of the higher-profile bills on the governor’s list is House Bill 958 that aims to regulate use of high-speed electric bicycles and motorcycles.

The bill establishes three classes of e-bikes in part by speed capability, and prohibits people under the age of 16 from operating the higher-speed class as well as any use of such bikes on sidewalks, among other things.

Green said the bill fails to exempt electric cars from a definition of “high-speed electric devices” prohibited from driving on public roadways.

Another bill he included on his list due to a technical point of law would allow a public or private entity to pay to have their name on the Hawai‘i Convention Center and a planned replacement of Aloha Stadium.

Green said Senate Bill 583 may run afoul of a provision in Hawaii’s Constitution limiting bills to one subject pertaining to the bill’s title. The title of SB 583 is “Naming Rights,” but the bill also exempts stadium and convention center concessions from typical procurement procedures.

The biggest bill on Green’s veto intent list is HB 300, the state budget bill. The budget bill is often on the list, given that governors can make line-item vetoes that nix specific appropriations while the overall bill becomes law.

One bill on Green’s list that raised a rather strong objection was HB 796, which would dial down use of state income tax credits by having such credits that are in existence on Dec. 31, 2025, or established or renewed after Dec. 31, 2025, sunset after five years or be reduced annually by one-third beginning with the sixth year of the credit.

Green said the bill would have a significant long-term negative impact on industries including film and television, research and renewable energy.

“These tax credits are critical to supporting economic development and diversification, particularly within growing and emerging sectors,” he said in the news release. “Categorically sunsetting income tax credits will not only disincentivize future investors from doing business in Hawaii, but will destabilize existing businesses that currently rely upon these tax credits.”

Another bill opposed by Green aims to exclude some kinds of real property over 50 years old from existing required review under a state historic preservation program in connection with development of the property.

This measure, SB 15, would exclude from review residential property, property in nominally sensitive areas and property that doesn’t meet criteria for inclusion on the Hawaii Register of Historic Places.

Green said the exemption is too broad and fails to consider properties that may contain historically significant artifacts and ancient Hawaiian burials.

The governor also objected to lawmakers trying to acquire city land under a downtown Honolulu office tower in return for state land in Iwilei via HB 800.

Green said the state’s acquisition of land under Ali‘i Place would harm the city by taking away the city’s free use of office space in the building and income from the land lease without any analysis of the cost for the state to maintain the building if acquired from its private owner.

If the Legislature reconvenes later this year for a special session, it would take a two-thirds majority vote to override bills vetoed by the governor.

Other bills on Gov. Josh Green’s veto intent list

• HB 235, requiring use of automated photo traffic enforcement for red light and speed infractions on Oahu’s North Shore. Concern: The state Department of Transportation plans to expand such enforcement in locations based on crash and other data that should not be ignored in favor of a legislatively mandated area.

• HB 302, amending the state’s medical marijuana law pertaining to clarified conditions for use, accessory sales, cultivation licensing, transportation requirements, unlicensed dispensary penalties and other things. Concern: A provision authorizing the state Department of Health to inspect medical record certifications for patient use without a warrant constitutes a grave violation of privacy.

• HB 496, prohibiting use of the words “mamaki,” “Hawaii” or “Hawaiian,” as well as Hawaii imagery, place names and motifs on the label of packages containing tea or dried leaves from the endemic mamaki plant unless 100% of the tea or dried leaves was cultivated, harvested and dried in the state. Concern: Ignores economic benefits from producers who support mamaki farmers but blend mamaki with other teas or herbs on responsibly labeled products.

• HB 1369, repealing certain general excise tax exemptions, including one for sugarcane producers and one for commercial fishing vessels. Concern: Removing such exemptions would provide little state financial benefit while harming, in particular, sugarcane growers that make spirits from the crop.

• SB 104, amending regulations for restricted housing in state-operated and state-contracted correctional facilities. Concern: Certain requirements in the bill would negatively affect inmates and jeopardize the safety, security and good governance of correctional facilities that can be avoided by the state Department of Corrections and Rehabilitation changing its restricted housing policy in consultation with the Hawaii Correctional Systems Oversight Commission.

• SB 1102, requiring that the state Department of Transportation director appoint a chief for the state aircraft rescue firefighting unit from a list produced by the State Fire Council, subject to Senate confirmation. Concern: Such a process is inconsistent with the selection process for other DOT leadership positions and may cause delays that impact operations.

• HB 126, modifying state law related to asset forfeiture. Concern: A one-year deadline in the bill to return seized property for which the owner has not been charged with a covered offense is problematic in part because many covered offenses often involve complex investigations that extend beyond a year.

• SB 589, imposing certain regulations related to community-based renewable energy, microgrids and grid services programs. Concern: Mandates in the bill risk duplication and delay of existing efforts by the state Public Utilities Commission.

• HB 1296, establishing requirements for the governor to be timely in informing the Legislature of appropriation transfers to the Major Disaster Fund. Concern: The requirement could jeopardize public safety during emergencies when flexibility and quick release of funds is necessary.

• SB 31, allowing anyone who discovers a discriminatory restrictive covenant in property records to take certain actions to invalidate the covenant without liability. Concern: Would subject property owners to potential malicious actions with no recourse.

• SB 38, prohibiting county councils from imposing certain conditions on affordable-housing projects developed under a state law governed by the Hawaii Housing Finance and Development Corp. Concern: County council concerns have not been addressed.

• SB 66, creating an expedited residential building permit process for counties. Concern: A provision in the bill allowing a project consultant to determine whether the project impacts historical resources allows for self-serving determinations.

• SB 447, establishing a pilot program for state Department of Health hiring. Concern: The state’s merit-based civil service system would be undermined, and disparities in job classification and compensation would occur.