State legislature hear proposed bills advocating for Hawaiʻi's keiki Kauai Now N/A January 28, 2025 Original Article Hawaiʻi state legislators and community advocates joined together to present the 2025 Keiki Caucus Bill Package and priorities dedicated to improving the lives of Hawaiʻi’s children and families. The Keiki Caucus, established in 1994, is a collaboration between Hawaiʻi state legislators, community leaders, and youth-centered organizations who come together to propose, draft, support, and implement policy changes that will improve the lives of Hawaiʻi’s young people. The Keiki Caucus is co-convened by Sen. Joy A. San Buenaventura representing Puna, Rep. Lisa Marten representing Waimānalo, Keolu Hills, Lanikai and parts of Kailua, and Rep. Ikaika Olds representing McCully-Mōʻiliʻili. Legislators identified five top priority issues impacting Hawaiʻi’s youth and families for the upcoming legislative session. They include: Tax credits for household and dependent care services; Funding for community schools; Paid family leave; E-cigarette regulation; Universal free school breakfast and lunches. “During the interim, we collaborated with community advocates to develop proposals that address top-of-mind issues such as the rising cost of childcare, which significantly impacts the cost of living for Hawaiʻi’s keiki and families,” said Keiki Caucus co-convenor and Representative Lisa Marten. “We also identified ways to support our youth in schools, ensuring they receive a quality education while feeling empowered and supported to succeed.” The 2025 Keiki Caucus Bill Package consists of the following measures: HB753 – Relating to the Household and Dependent Care Services Tax Credit Increases a taxpayer’s applicable percentage of employment-related expenses that is used to calculate the household and dependent care services tax credit. Extends the sunset date of the temporary increase in maximum employment-related expenses that are used to calculate the household and dependent care services tax credit, established by Act 163, SLH 2023, to 6/30/2030. Sunsets 6/30/2030. HB754 / SB821 – Relating to Community Schools Appropriates funds to the Department of Education for community schools and a program manager position. HB755 / SB852 – Relating to Paid Family Leave By 1/1/2028, requires the Department of Labor and Industrial Relations to establish a family and medical leave insurance program and begin collecting payroll contributions to finance payment of benefits. By 1/1/2029, requires the Department to start receiving claims and paying benefits under the program. Specifies eligibility requirements and employee protections under the program. HB756 / SB972 – Relating to Health (E-Liquids) Prohibits the sale of flavored nicotine products and the mislabeling of e-liquids as nicotine-free, Establishes penalties for violations, Authorizes the Department of Health to appoint, commission, or contract for services of inspectors, Establishes two full-time equivalent program specialist positions and one full-time equivalent hearing officer position. HB757 – Relating to Education Beginning with the 2025-2026 school year, requires the Department of Education to provide free breakfast and lunch to all students enrolled in department schools. Community advocates from Campaign for Tobacco-Free Kids, Ceeds of Peace, Hawaiʻi Afterschool Alliance, Hawaiʻi Appleseed, and Hawaiʻi Children’s Action Network Speaks! rallied their support for the bills outlined in today’s press conference. The Keiki Caucus, established in 1994, is a collaboration between Hawaiʻi state legislators, community leaders, and youth-centered organizations who come together to propose, draft, support, and implement policy changes that will improve the lives of Hawaiʻi’s young people.

Hawaii’s Medical Cannabis Caregiver Program Set to Expire December 31 Ganjapreneur TG Branfalt December 2, 2024 Original Article Beginning January 1, Hawaii’s network of medical cannabis caregivers will be outlawed under “sunset” provisions included in the state’s medical cannabis law, HawaiiNewsNow reports. House Public Safety Chair Rep. Della Belatti (D) indicated that the sunset provision is a mistake that lawmakers will try to address, but for now the state’s registered caregivers will be forced to stop serving patients by the start of the new year. Registered caregivers are allowed to raise up to 10 medical cannabis plants for patients who cannot cultivate the plants. The system is an alternative to dispensaries, which some say are too expensive or inconvenient. Belatti told HawaiiNewsNow that the impending shut down of the caregiver program is “a failure” that lawmakers did not address which has led to a “crisis.” State Sen. Joy San Buenaventura (D), who chairs the chamber’s Health and Human Services committee, said the deadline would impact thousands of the state’s medical cannabis patients. “Especially for Oahu patients who live in condos where they are dependent upon caregivers to grow their medical cannabis for them,” she told HawaiiNewsNow, “they won’t be able to have that access and that’s huge.”

Senate WAM Committee gains fire management insights during visit to Maui Maui Now September 10, 2025 Original Article The Senate Committee on Ways and Means met with the Department of Law Enforcement, The Department of Land and Natural Resources’ Division of Forestry and Wildlife, and the Office of the State Fire Marshal to receive updates on fire management in the state. Ernest Robello, DLE Deputy Director of Administration, Dawn Chang, Chair of DLNR, and Dori Booth, Hawaiʻi’s newly-instated State Fire Marshal (Act 302, 2025) presented recent efforts in fire mitigation, including a community fuels reduction project (Act 303, 2025). Members walked through the DOFAW’s Kahului Baseyard, where DLNR is leading current fire management efforts. “Hawaiʻi is facing urgent challenges when it comes to fire risk,” said Sen. Brandon J.C. Elefante (D 16 – ‘Aiea, ‘Aiea Heights, Hālawa, Pearlridge, Newtown, Royal Summit, Waimalu, Waiau, Momilani, Pacific Palisades, and Pearl City), Chair of the Senate Committee on Public Safety and Military Affairs. “I am confident that with the reinstatement of our State Fire Marshal and team, along with the support of our departments, we are better positioned to respond effectively and protect our communities from the growing threats of wildfires.” “The risk of wildfires is growing in Hawaiʻi, and we must always be prepared when it comes to responding to these threats,” said Sen. Donovan M. Dela Cruz (D 17 – Portion of Mililani, Mililani Mauka, portion of Waipi‘o Acres, Launani Valley, Wahiawā, Whitmore Village), Chair of the Senate Committee on Ways and Means. “Our continued investments in disaster preparedness and development of mitigation strategies, such as reestablishing the Office of the State Fire Marshal, demonstrate how state and county agencies can work together on wildfire prevention.” “As someone who represents communities that have faced the real and growing threat of wildfires, I deeply appreciate the collaborative efforts being made to strengthen fire prevention and response across our state,” said Sen. Lynn DeCoite (D7 – Hāna, East and Upcountry Maui, Moloka‘i, Lānaʻi, Kaho‘olawe and Molokini), Chair of the Senate Committee on Economic Development and Tourism. “We must continue to prioritize these proactive, community-based strategies to ensure the safety and resilience of all our islands.” “Today’s briefing in Kahului emphasized the importance of coordinated, on-the-ground fire management strategies for Hawaiʻi’s future,” said Sen. Troy N. Hashimoto (D5 – Wailuku, Kahului, Waihe‘e, Waikapu Mauka, Waiehu), Vice Chair of the Senate Committee on Housing. “From fuels reduction to erosion control, it’s encouraging to see state agencies continuously implementing and developing strategies that strengthen resilience in my district and across our state.” “The DLE will continue to work with and support the Fire Marshal, DLNR, and our community partners to improve prevention, mitigation, and suppression of wildfires across Hawaiʻi,” said Ernest Robello, DLE Deputy Director of Administration. “I want to extend my sincere gratitude to our legislators for their leadership in passing Act 302,” said State Fire Marshal Dori Booth. “This landmark legislation not only strengthens Hawaiʻi’s wildfire preparedness, but also elevates our entire approach to fire and life safety across the state. By investing in public education, enhancing code enforcement, improving fire investigations, and building a statewide data analysis hub for the fire service, we are laying the foundation to reduce risk on every front. Act 302 positions Hawaiʻi to be a national leader in fire prevention and community resilience, and I am proud of the collective commitment to safeguarding the people and places we cherish most. I look forward to continuing this strong partnership with our legislators on future projects and policies that will further strengthen our capacity to protect and serve Hawaiʻi’s communities.” “Mahalo nui to WAM for joining us on Maui and for the opportunity to share how DLNR is building out a strong fire management program,” said DLNR Chair Dawn Chang. “The 2023 wildfires were a wake-up call for all of us, and we are deeply grateful to the legislature for the increased funding support you have provided. With this support, our DOFAW team has been able to expand its capacity statewide, with added positions and equipment in all districts. Our expanded capacity has already proved critical in our response to wildfires this dry season. We will continue to work alongside the DLE and our community partners to improve prevention, mitigation, and suppression of wildfires across Hawaiʻi.”

Big Island lawmakers to host virtual meeting on invasive beetle impacts to agriculture Big Island Now September 6, 2025 Original Article Big Island Sen. Herbert “Tim” Richards, III, will host a virtual meeting to address the increasing threat of the Coconut Rhinoceros Beetle and its impact on agriculture. “The spread of the Coconut Rhinoceros Beetle poses a serious threat to Hawaiʻi’s agriculture and economy,” said Richards, who represents North Hilo, North Kona and Kohala communities. “This meeting will provide important updates on the beetle’s presence across the islands and highlight the coordinated efforts underway to combat its spread.” The coconut rhinoceros beetle poses a serious threat to Hawai‘i’s agricultural and natural resources. It damages and kills coconut and oil palms, and has also been known to attack bananas, sugarcane, papayas, sisal and pineapple, according to the U.S. Department of Agriculture. The invasive bug has been found in several locations on Hawai‘i Island. The most recent infestation was discovered in green waste piles in July at Keāhole Agricultural Park on the west side of Hawaiʻi Island. A coordinated multiagency effort took place to prevent the invasive pests from spreading. Also in attendance at the Sept. 10 meeting will be Rep. David A. Tarnas and Hawai‘i County Council Member James E. Hustace. The community meeting will feature updates from experts from the Big Island Invasive Species Committee who will provide an overview of current response measures, and opportunities for participants to ask questions and share concerns. Members of the public, especially those in agricultural communities, are encouraged to attend and learn more about how these infestations are being managed and what actions can be taken to help prevent further spread. The meeting will start at 6 p.m. Those interested in attending must register here .

Parkway Village adds 400 affordable units, 2 preschools in Kapolei Pacific Business News Janis Magin December 23, 2024 Original Article Developers Kobayashi Group and Ahe Group, along with the City and County of Honolulu, have completed the first units in Parkway Village at Kapolei, which will have 401 affordable units, from studios to four-bedroom apartments, when complete. Parkway Village is being built on land owned by the City and County of Honolulu in a $199 million public-private partnership between the city, the developers, the Hawaii Housing Finance and Development Corp. and financial partners CREA LLC and Bank of Hawaii, and financed with low-income housing tax credits and Hula Mae bonds. The project broke ground in September 2023 and a blessing for the first completed units was held last week. The apartment complex is being built for residents earning 30 to 60 percent of the area median income, which equates to between $41,760 and $83,250 for a family of four. The project will also include two preschools, including Hawaii’s first privately developed public charter preschool, in partnership with Kamehameha Schools and operated by Parents And Children Together. The second preschool for residents will be operated by Keiki O Ka Aina. "Parkway Village provides quality homes, access to early education, and a focus on sustainability, health, and well-being for families in West Oʻahu," said Alana Kobayashi Pakkala, CEO and managing partner of Kobayashi Group. "Affordable housing and early childhood education play a vital role in building strong communities, and we are honored to contribute in a way that supports the well-being of residents.” Kahu Kordell Kekoa blesses Parkway Village with developers and elected leaders on Dec. 17, 2024, in Kapolei. From left: Makani Maeva of Ahe Group; BJ Kobayashi of Kobayashi Group; Alana Kobayashi Pakkala of Kobayashi Group; Gov. Josh Green; Mayor Rick Blangiardi; and state Sen. Mike Gabbard.

A $42.5M education hub broke ground in Wahiawa Hawaii News Now HNN Staff July 29, 2025 Original Article WAHIAWA (HawaiiNewsNow) - The state broke ground on Monday for a new $42.5 million dollar education hub. The 43,000 square-foot facility known as “Wahiawa Center for Workforce Excellence” will serve as the future home of the new Wahiawa Public Library, UH Community College satellite classrooms, and Department of Education offices. “The goal is clear — a space that is central that brings together education and public service,” said Governor Josh Green. The three-story building will be on California Avenue. The project is anticipated to be completed in two years.

Avian flu prompts state to request pause on interisland transportation of birds Hawaiʻi Public Radio HPR News Staff December 16, 2024 Original Article In response to the detection of the avian flu virus in Hawaiʻi, state agencies are asking the public to hold off on moving poultry and other bird species between islands for the next three months to prevent the spread. The state Department of Agriculture made the request in a news release on Friday. It said the ask for a voluntary pause was a suggestion from Moloka‘i Sen. Lynn DeCoite, who is also a farmer. The virus was first detected in Hawaiʻi last month and had not been detected in the islands prior. It is highly pathogenic and can spread between birds through contact or if birds come into contact with contaminated material. The public can report animal illnesses to the agriculture department by calling 808-483-7100. Though human cases are rare, residents can call the state Department of Health at 808-586-4586 if they develop symptoms after being exposed to sick birds.

Hawaii bans ticket scalping after Bruno Mars Fan uproar Hypebot Chris Castle January 31, 2025 Original Article Bruno Mars fans have been hit hard by ticket scalpers, with resale prices soaring to thousands of dollars. Now the state of Hawaii bans ticket scalping via new legislation that bans re-sale markups, stop bots and protect consumers. Bruno Mars is a huge star everywhere but has exceptionally loyal fans in Hawaii. Unfortunately, this means he is a top target for bots and ticket resellers. At a 2018 concert at Honolulu Stadium, second row seats priced at $125 face were reportedly resold for $6,972 . As usual, the artist had nothing to do with these resellers and the artist did not make the reseller’s margin. If that’s not a market failure , I don’t know what is. That margin was driven by bots that are as close to resellers as one is to two and have been the subject of a lot of attention by lawmakers at the federal level and increasingly in the states. Bots have been illegal under federal law since 2016, but federal law enforcement authorities have done little to enforce that law to the great frustration of Senators Marsha Blackburn and Richard Blumenthal who sponsored the legislation. This leaves enforcement to states and Hawaii is no exception. Hawaii state senators Chris Lee (D)*, Karl Rhoads (D)*, Joy San Buenaventura (D)*, and Lorraine Inouye (D), have introduced legislation under Hawaii’s consumer protection authority that would limit resale prices to the face price of any ticket . The bill language states: "The legislature finds that popular events held in the State attract secondary market profiteers, commonly known as scalpers. Scalpers often utilize computer software to navigate a ticket-selling platform and its security measures in a fraction of the time as a human being to purchase multiple tickets and conduct multiple transactions simultaneously. For example, in 2018, thousands of tickets for a concert held in the State by recording artist Bruno Mars ended up on third party websites at inflated prices. Accordingly, the purpose of this Act is to eliminate the impact of scalpers on Hawaii residents by prohibiting tickets to be sold at a higher price than the original price charged by the primary venue ticket provider." See how easy that was? Does it make me uneasy to have government setting prices? It does, but it’s about the only way I can see in the current environment to stop resellers like StubHub from blatantly ripping off fans by leveraging their confederates in the vast bot ecosystem . If the federal government is not going to prosecute these people under existing laws, then don’t be surprised if the states pass their own consumer protection legislation with a host of penalties. The Hawaii legislation is scheduled for a January 30 hearing before Hawaii’s Senate Transportation and Culture and the Arts Committee. Fingers crossed it gets voted out of the committee. We should not be surprised. It’s gotten so bad, fans are not going to tolerate bot scalping and under well-trodden principles of subsidiarity, it’s only appropriate for states to take charge. To coin a phrase, “don’t believe me just watch.”

Federal lawsuit filed to block tax on visiting cruise ships Hawaii News Now Ben Gutierrez August 28, 2025 Original Article HONOLULU (HawaiiNewsNow) - A consortium of cruise ship operators and tour businesses have filed a lawsuit in federal court to block the state’s new law to tax cruise ships in the same way as hotels. Cruise Lines International Association, Inc. v. Suganuma contends that Hawaii is blatantly violating the U.S. Constitution by imposing the 11% tax on out-of-state cruise passengers in January, and letting the counties add an extra 3%. It’s the first time cruise ships would have to pay the transient accommodations tax charged to guests at hotels and vacation rentals. “Here you have a floating hotel, right? You have a floating hotel,” said state Sen. Lynn DeCoite, who chairs the Senate Economic Development and Tourism Committee. “The hotel industry has paid their fair sure for the past years.” The group that filed the lawsuit wouldn’t do an interview. But the lawsuit claims that “As the Supreme Court long has recognized, the Constitution’s Tonnage Clause bars States from imposing any “charge for the privilege of entering, trading in, or lying in a port.” The complaint also said, “For an average family, Act 96 will add hundreds of dollars to the cost of popular cruise itineraries that dock in Hawaii ports. That substantial price increase will cause many families to forego trips to Hawaii in favor of other destinations.” “‘It’s going to hurt the industry and people are not going to come.’ Well then find me a tourist on your ship that is going to publicly say that. Say it publicly. If that’s the case, then this is not the place for you,” DeCoite said. Last year, the state said more than 150,000 out-of-state cruise line passengers came to Hawaii. “One of the challenges is because they don’t pay any tax when they come to port, yet they still have stress on the infrastructure,” said Jerry Agrusa, a professor with the University of Hawaii School of Travel Industry Management. The new tax also includes a .75% “Green Fee” to fund projects that help the environment. “I spoke with a lot of tourists this weekend while I was sitting there playing tourist myself and I didn’t hear anybody complain about it,” DeCoite said. “I brought up the Green Fee just like that, and they’re like, we don’t mind.” The state Department of the Attorney General said it was just served with the complaint and won’t comment until they have a chance to review it.

Competing bills seek to define power of Mauna Kea Authority Star Advertiser Michael Brestovansky January 28, 2025 Original Article Hawaii lawmakers will battle it out this session with competing bills dictating the powers of the Mauna Kea Stewardship and Oversight Authority. Hilo Sen. Lorraine Inouye has reintroduced this year a measure she acknowledged would neuter the power of the state authority, which will take over management of the Mauna Kea Science Reserve from the University of Hawaii in 2028, by making it subservient to the state Board of Natural Resources. That measure, Senate Bill 6, follows up on a similar one she introduced in 2023, which failed to pass. The 2023 bill would have added minimal language to state laws clarifying that all powers and jurisdiction over state conservation district land, which includes all of the science reserve, will remain with the BLNR. While SB 6 goes into more detail than the 2023 bill, it serves a similar purpose. It states that the MKSOA will be “the principal authority for the management of state-managed lands within the Mauna Kea lands; provided that the natural resource management enforcement and emergency response over these lands shall remain the responsibility of … the Department of Land and Natural Resources.” “Conservation land should remain in the control of the BLNR,” Inouye said Thursday, explaining she considers the matter a public land trust issue. Inouye noted she was “the only naysayer” when the Legislature passed a measure in 2022 to form the MKSOA in the first place. At the time, she expressed concerns about the ability of the Mauna Kea Observatories to renew their leases with the state between the transition of power in 2028 and the expiration of UH’s master lease in 2033. In 2023, Inouye also was concerned about what she saw as ambiguity in MKSOA’s jurisdiction. The wording of its powers, she said in 2023, could suggest that the MKSOA has authority over nearly 56,000 acres across Mauna Kea instead of just the 11,000-acre science reserve. Inouye said Thursday she believes there was no problem with UH’s land management before 2022, and that the bill forming the MKSOA was railroaded into passage for political reasons and without consultation with UH’s Center for Maunakea Stewardship. But while Inouye said she hopes some of her colleagues in the Legislature have come around to her way of thinking since 2023, she has opponents this time around. Two bills, House Bill 143 and Senate Bill 769, would clarify the MKSOA’s powers following the 2028 transition, allowing it to approve or deny conservation district use permits and ensure lessees’ compliance with permit requirements. Kohala Rep. David Tarnas, who introduced HB 143, called his bill “an important refinement” of Act 255, the 2022 law that established the MKSOA. He said Inouye’s bill is an attempt to fundamentally change the purpose of the MKSOA beyond the terms of Act 255, and that he would prefer to keep moving forward with the authority instead of going backward. HB 143 and SB 769 also specify that the current conservation district use permits for every one of the summit telescopes will not be transferred from UH to the MKSOA in 2028. Hamakua and Kohala Sen. Tim Richards, co-introducer of SB 769, said where those permits would go is yet to be determined by the MKSOA. John De Fries, MKSOA board member, said that question is still a hotly debated one. “But I’m confident we can resolve the issue,” De Fries said. “We’ve got experts in the field working on it and talking about it.” De Fries said he met with Inouye on Thursday and has “agreed to disagree” about her measure. He said Act 255 has as its central tenet the concept of “mutual stewardship,” whereby representatives of diverse groups including UH, the Mauna Kea Observatories and the Hawaiian community can make decisions about the mountain, which would be undermined by SB 6. “Sen. Inouye would like the return decision-making power back to BLNR … which would reduce the authority to only an advisory capacity,” De Fries said. Ultimately, De Fries said, the mutual stewardship concept is what drew him to join the MKSOA board, and he hopes the board can continue to operate as intended. “What attracted me to this board was this new way of resolving issues this complex and critical to Hawaii’s future,” De Fries said. Richards said he was not wedded to the specific solutions of SB 769 and that there may well be better solutions for the authority yet to be developed. But, he added, “we’ve got to get something in the pipeline now because we’re running out of time. We have three years, and if we can’t get something started now, we’ll be a year behind.” All three bills — SB 6, HB 143 and SB 769 — have been referred to multiple committees in their respective chambers, but no hearings have been scheduled for any of them.

Statewide Traffic Fatalities surpasses last years total: Changes new and present coming KHON2 Nathan Shinagawa October 25, 2025 Original Article WAIPIO, Hawaii (KHON2) — Statewide traffic deaths recently hit an unfortunate milestone Friday, Oct. 24, with the total deaths on Hawaii’s roads reaching 106, compared to last year’s 102. Now, the state is looking to take action to bring the numbers down, both in the long run and in day-to-day life. “In the past we thought if we just tell everybody how bad things are and everybody will take care of each other and adjust. It’s not happening,” said Director Ed Sniffen of the Hawaii Department of Transportation. “So we’re going to make sure that we start adjusting the system to ensure that we minimize fatalities.” Changes include a variety of projects from the DOT, including red light cameras, multiple speed hump installations, and more, and the DOT says that they’re far from finished. “So far we have about 260 speed humps throughout the state. There’s going to be another 30 more coming in by the end of the year,” said Sniffen. “We’re also adding in rapid flashing beacons with street lights on top of them. We’re putting them in 50 different locations throughout the state.” But the state is also making efforts on safety on a day-to-day scale, including this weekend, by coning off almost the entirety of the portion of Kamehameha Highway, between Waipahu and Waipi’o Uka street, during a joint mural painting project between Mililani, Waipahu, and Pearl City High School. Senator Michelle Kidani partnered with the DOT, Department of Education, local artists, and student interns and volunteers from the three schools to create a three-quarter-long mural on the wall across the portion of Kamehameha Highway. “This project is not only dependent on the artists, but on the DOE and DOT,” said Blythe Yoshikane Simpliciano, one of the lead artists for the project, on the importance of coning off the road. “The community is also playing a huge part in having patience for us right now, and making sure all of our students are safe.” “The students safety comes first,” said Senator Kidani. “So without having that aspect that the road lanes were closed, we could not have done this project at all.” And having this project was an important one, as it not only gives the wall a lot more color, but also helps tell the Mauka to Makai story of the area, and gives the students a chance to be a part of that. “As their families drive up and down the road from now, they can say to their brothers and sisters ‘I was part of that project,'” said Hawaii State Superintendent Keith Hayashi. “Unifying the highway, it’s a win for everyone.” While all the improvements and projects are meant to help reduce the traffic fatalities, the DOT also reminds the community that keeping the roads safe are a two-way street. “93% of the fatalities occur because we make really bad decisions. We drive drunk, we speed excessively, we drive distracted, all of those things,” said Sniffen. “If we take care of those things tomorrow, 93% of the fatalities of the 106 people that died, go home.”

Hawaiʻi’s 5-cent beverage deposit program plagued by fraud and ‘honor system’ failure, State Auditor says Maui Now Brian Perry October 22, 2025 Original Article For two decades, Hawaiʻi’s Deposit Beverage Container program has been run as an “honor system,” reliant on unverified self-reported data and plagued by alleged fraud, State Auditor Leslie Kondo told a state Senate committee during an informational meeting Thursday. Established by the state Legislature in 2002 and administered by the state Department of Health’s Office of Solid Waste Management, the deposit beverage program places a 5-cent deposit on most beverage containers. Distributors pay the deposits to the state and the funds are reimbursed to consumers when they return the containers to certified redemption centers. There are a half-dozen recycling centers on Maui as well as facilities on Lānaʻi and Molokaʻi. The beverage recycling program’s aim has been to reduce litter and encourage recycling statewide. According to the department, the program has helped residents recycle more than 10 billion containers since its inception. The State Auditor reviews the beverage recycling program every two years and has continuously noted problems with the “honor system,” accountability and fraud. “Our prior reviews have repeatedly raised concerns that DOH’s reliance on self-reported information from beverage distributors and redemption centers increases the risk of fraud,” the current audit says. “Specifically, we have pointed out that distributors and redemption centers have financial incentive to under- or over-report the amounts that the former must pay into the Special Fund and the latter may claim for reimbursement from the Special Fund.” The auditor found that the Health Department has not taken corrective action, despite repeated biennial audit findings of deficiencies. “We repeatedly discovered that DOH had done nothing to address the recurring findings and had not implemented any of the recommendations to address those findings,” it says. “We found that the program viewed these biennial audits as a replacement for internal controls, expecting the auditor to perform the program’s job of reviewing records and conducting ‘secret shopper’ activities to identify errors in the amounts received from distributors or claimed by redemption centers.” Now, as the state moves to tighten compliance, a Maui business owner is cautioning that new rules mandating third-party audits of beverage distributors will only punish honest companies. Garrett Marrero, chief executive officer and co-founder of Maui Brewing Company, testified Thursday before the Senate Committee on Health and Human Services that the program “does not work.” Marrero criticized the state’s recent move to mandate expensive third-party audits for distributors — a measure intended to address the long-standing problem of unverified data and non-compliance. Under Act 12, enacted in 2022, beverage distributors must develop and submit an internal control process for Health Department approval, and they are required to obtain independent audits in odd-numbered years. Marrero estimated the cost of the audit to his business at $15,000 to $20,000 per location (multiplied by Maui Brewing’s two locations on Maui and two on Oʻahu, $60,000 to $80,000) while his smallest location pays only $48 in annual fees to the program. “I think this was just an unintended consequence of the legislation, not an intentional hurting of small businessmen,” Marrero said, arguing that the true fraud risk lies with the redemption centers, not the distributors and wholesalers. Citing one instance of alleged fraud, Marrero said he thought it was a “lack of education and guidance from the department, as opposed to actual criminal fraud,” noting that the business involved is a publicly traded company. “I would find it very difficult to believe that they’re engaged in some method to defraud the state of Hawaiʻi,” he said. Act 12 was intended to resolve chronic problems with data integrity in the state’s deposit beverage container program. The law addressed State Auditor recommendations to compel the Health Department to develop and implement robust procedures to verify the accuracy and completeness of data reported by beverage distributors and redemption centers. The key requirements of the Act are: Risk-based audits: The Health Department is required to create a risk-based process to select distributor and redemption center reports for periodic audits, using data analytics and considering factors like transaction amounts and prior findings to target unusual activity. Enhanced reporting: Distributors are required to submit detailed monthly or semi-annual distribution reports and supporting records. The informational briefing, chaired by Sen. Joy San Buenaventura and attended by Sen. Kurt Fevella , focused on the Office of the State Auditor ’s latest review of the program for the fiscal year ended June 30, 2024. Audit finds ongoing fraud and lack of controls Kondo presented findings consistent across multiple audits since the program’s 2002 inception, stating the deposit beverage container program is “a program in name only” with “very little structure” and “no internal controls.” Latest audit findings included: Self-reported data: The Health Department still cannot verify if distributors are paying what they owe, and it reimburses redemption centers based solely on the centers’ own, unverified numbers. Fraud examples: Kondo detailed a 2016 “secret shopper” exercise by a certified public accounting firm that found what appeared to be fraud at a redemption center in Honolulu. On one visit, the center’s reimbursement request to the Health Department was for an additional $52.48 beyond what was paid to the consumer for 12 bottles. The department referred the matter to the Department of the Attorney General, which took no further action because there were “only two instances.” Growing fund balance: Kondo reported that between fiscal 2024 and fiscal 2025 the program’s special fund increased by more than $12 million. The program’s special fund as of June 30, 2024, had a fund balance of $77,860,170. The special fund reported total revenues of $33.57 million and total expenditures of $23.03 million. Fevella, whose wife previously worked at a redemption center, called the program a “failure” and noted that a lack of computerized tracking allows fraud to persist. “People have been getting rich over the taxpayers’ money,” he said. San Buenaventura called the Health Department’s lack of staff and reliance on self-reported data “unacceptable” given the sizable special fund that could be used to hire personnel. Health officials promise improvements, face skepticism “The Department of Health has faced longstanding challenges in its implementation of the deposit beverage container program,” said Kathleen Ho, deputy director for Environmental Health. “I want to assure you that we are committed to addressing these challenges.” The director’s office meets twice a month to try to get the program “back on track,” she said. “We are committed to administering the program responsibly and achieving the statutory objectives and to increase recycling.” Lane Otsu, Solid Waste Management coordinator, said: “We’re working to implement the auditors’ recommendations. We’ve gotten started on much of the actions, and feel that we are making progress and are continuing to move forward.” The department’s plans for immediate improvement include: Audits and controls: Finalizing a request for proposals for a contractor to perform risk-based audits on both distributors and redemption centers and to improve the department’s financial control processes. Compliance: Issuing enforcement letters to the approximately 100 distributors who have failed to submit required internal control process documents. Technology: Developing an electronic reporting system for distributors and redemption centers to reduce manual data entry and increase reporting accuracy. Staffing: Advancing a reorganization plan for the Solid and Hazardous Waste Branch to increase program staff, now with nine dedicated employees, despite the auditor’s long-standing recommendation that the program use its large special fund to hire personnel. Kondo acknowledged the department’s plans, but noted that his office will perform another mandatory audit in two years. He pointed out that his office has been doing “management work” for years because the program lacked structure. The committee gave the Health Department leeway until the next audit, but San Buenaventura said that after two decades of poor performance with the program, the Legislature will look for improvement in the next audit review. Otherwise, “the Legislature needs to seriously look at whether or not there’s better recycling programs,” she said.