Category: Business

Source: US State of Hawaii

STATE OF HAWAIʻI 
KA MOKU ʻĀINA O HAWAIʻI 
 
JOSH GREEN, M.D. 
GOVERNOR
KE KIAʻĀINA 
 

GOVERNOR GREEN RELEASES INTENT-TO-VETO LIST 

FOR IMMEDIATE RELEASE
June 6, 2025

HONOLULU – Governor Josh Green, M.D., today informed legislative leaders and stakeholders of his intent to veto 19 bills passed during the 2025 regular session of the Hawai‘i State Legislature.

Governor Green is not required to veto every bill indicated on the Intent-to-Veto list, but cannot veto a bill that is not included. The release of this list provides additional time to continue ongoing discussions with key stakeholders concerning implementation and impact. Due to the record-setting number of bills enrolled to the governor this legislative session, potential changes to the state’s federal funding and reduced revenue projections from the Council on Revenues, additional time to analyze bills will ensure each bill is given the nuanced, thoughtful consideration it deserves. Governor Green has until July 9 to issue final vetoes. All other bills will become law by July 9.

“Let me be clear: of the 320 bills passed by the Legislature this session, 19 are on our Intent-to-Veto list,” said Governor Green. “Our team has completed a review of every measure and the overwhelming majority of legislation will become law. 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 Hawai‘i, protect our resources and strengthen our future.”

To date, Governor Green has signed 200 bills into law benefiting the people and ‘āina of Hawai‘i, with core themes including environmental stewardship, educational access and success, as well as public safety. These represent key focus areas so far; additional bills awaiting signature will build upon this foundation to address state priorities. The remaining 101 bills are on track to become law by July 9.

Over 300 bills were reviewed by state departments and agencies, the Attorney General and the Governor in the last month. The Governor has until July 9 to issue final vetoes from today’s list.

The following bills are being considered for vetoes, line-item vetoes, or reductions.

Fiscal Bills:

HB126: RELATING TO PROPERTY FORFEITURE

Bill Description: Increases transparency and accountability surrounding property forfeiture. Clarifies which property is subject to forfeiture. Amends the authorized disposition of forfeited property and the proceeds thereof. Requires the Attorney General to adopt rules necessary to carry out the purpose of the Hawaiʻi Omnibus Criminal Forfeiture Act. Repeals language that requires the Hawaiʻi Omnibus Criminal Forfeiture Act to be construed liberally.

Veto Rationale: Asset forfeiture serves as a powerful deterrent against and punishment for criminal activity. The one-year deadline to return seized property for which the owner has not been charged with a covered offense, significantly weakens the efficacy of this dual deterrent and punishment. Many covered offenses, including felonies, often involve complex investigations that extend beyond a year, rendering this bill’s one-year deadline for law enforcement to file charges unrealistic. Seized property can serve as critical evidence in investigations, and its return before an investigation’s completion would severely hamper the investigation as well as the administration of justice at large.

HB300: RELATING TO THE STATE BUDGET

Bill Description: Appropriates funds for the operating and capital improvement budget of the Executive Branch for fiscal years 2025-2026 and 2026-2027.

Veto Rationale: Potential shifts in federal funding, coupled with recent projections from the Hawaiʻi Council on Revenues, require the state to reevaluate its budget to ensure essential services and priorities remain supported. Specific line-item reductions based on program feasibility, stability, and sustainability will help the state enter the fiscal year with a balanced budget and sound financial plan.

HB302: RELATING TO CANNABIS
Bill Description: Part I: Authorizes DOH to inspect qualifying patient medical records held by the physician, advanced practice registered nurse, or hospice provider who issued a written certification for the qualifying patient. Amends and adds definitions for purposes of the medical use of cannabis law. Clarifies the conditions of use for the medical use of cannabis. For purposes of issuing written certifications, authorizes the establishment of a provider-patient relationship via telehealth and limits the maximum amount of fees that can be assessed by providers. Authorizes the sale of hemp products and accessories for the medical use of cannabis at retail dispensing locations, except in waiting rooms. Clarifies transportation requirements for certain inter-dispensary sales of cannabis and manufactured cannabis products. Part II: Establishes criminal penalties for the unlicensed operation of a medical cannabis dispensary. Part III: Authorizes expenditures from the Medical Cannabis Registry and Regulation Special Fund to fund programs for the mitigation and abatement of nuisances related to illegal cannabis and hemp products and medical cannabis dispensaries and appropriates funds from the Special Fund to the AG’s Drug Nuisance Abatement Unit for these purposes, including establishing positions. Part IV: Beginning 1/1/2028, prohibits the cultivation of cannabis without a cannabis cultivator license issued by DOH.

Veto Rationale: This administration remains committed to Hawai‘i’s existing medical cannabis program and supports efforts to expand access to medical cannabis for any medical condition. Although this bill’s authorization of medical cannabis certifications via telehealth expands access to medical cannabis, provisions authorizing the inspection of patients’ medical records without warrant constitute a grave violation of privacy. Given that the federal government classifies cannabis as a Schedule I substance, patients’ reasonable fears of repercussions based upon information gained from inspection of their personal medical records may deter patients from participating in the medical cannabis program.

HB496: RELATING TO MĀMAKI TEA

Bill Description: Prohibits the use of certain words and misleading Hawaiian imagery, place names, and motifs on the label of a consumer package that contains or includes tea or dried leaves from the plant Pipturus albidus, unless 100% of the tea or dried leaves were cultivated, harvested, and dried in the state. Appropriates funds for a Measurement Standards Inspector position.

Veto Rationale: While the intent of this measure is to ensure consumer protection and reliable Made in Hawai‘i labeling, the bill imposes overly strict labeling requirements that could harm small businesses and māmaki producers who responsibly blend leaves from multiple sources. Prohibiting the labeling of products composed of less than 100% māmaki tea as “māmaki” ignores the economic contributions of and impacts to producers who mix or process māmaki with other herbs, undermining producers who support local māmaki farmers while meeting broader demand.

HB796: RELATING TO TAX CREDITS

Bill Description: Requires that income tax credits existing on 12/31/2025 or established or renewed after 12/31/2025 include a five-year sunset or an annual one-third reduction, beginning with the sixth year of the credit.

Veto Rationale: This bill would have a significant long-term impact on income tax credits across a variety of 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. Categorically sunsetting income tax credits will not only disincentivize future investors from doing business in Hawai‘i, but will destabilize existing businesses that currently rely upon these tax credits.

HB1369: RELATING TO TAXATION 

Bill Description: Amends and repeals certain exemptions under the general excise tax and use tax laws.

Veto Rationale: The amendments to the general excise tax and use tax contained in this bill would impact sugarcane producers, commercial fishing vessels and securities exchanges. Removing the specific tax exemptions afforded to these entities would provide little financial benefit to the state while harming, in particular, sugarcane producers.

SB583: RELATING TO NAMING RIGHTS

Bill Description: Allows the naming rights of the Stadium Facility and Convention Center Facility to be leased to any public or private entity. Requires any revenues derived from advertising or marketing in or on the Stadium Facility or Convention Center Facility to be deposited into the appropriate special fund of the facility. Authorizes the display of the name of any entity that leased the naming rights to a stadium operated by the Stadium Authority on the exterior of the stadium.

Veto Rationale: Pursuant to section 14, article III, of the Hawai‘i State Constitution, each bill may only contain one subject, which must pertain to the bill’s title. The exemption of concessions in the stadium facility and Convention Center from typical concession procurement procedures may violate section 14, article III, of the Hawai‘i State Constitution since the exemption appears to fall outside the titular scope of the bill, naming rights.

SB589: RELATING TO RENEWABLE ENERGY

Bill Description: Requires the Public Utilities Commission to establish an installation goal for customer-sited distributed energy resources in the state. Requires the Public Utilities Commission to establish tariffs to achieve the installation goal and for grid services programs, microgrids and community-based renewable energy. Ensures that certain levels of compensation are provided for solar and energy storage exports from customer-sited distributed energy resources as part of grid service programs and requires the Public Utilities Commission to establish grid service compensation values. Clarifies when a person who constructs, maintains, or operates a new microgrid is not considered a public utility. Authorizes wheeling of renewable energy and requires the Public Utilities Commission to establish policies and procedures to implement wheeling and microgrid service tariffs.

Veto Rationale: Maintaining Hawai‘i’s leadership in clean energy through established goals and initiatives remains a priority. The Public Utilities Commission has already opened or plans to open proceedings relating to microgrid services tariffs and customer-sited distributed energy resources and grid services. The mandates contained in this bill therefore risk duplication and delay of already existing efforts.

Non-Fiscal Bills: 

HB235: RELATING TO TRAFFIC SAFETY

Bill Description: Requires the Department of Transportation, after the City and County of Honolulu educates the public and adjusts any systems, to expand the use of photo red light imaging detector systems and automated speed enforcement systems to locations on the North Shore of O‘ahu.

Veto Rationale: The Department of Transportation has developed specific criteria for the selection of communities within which to implement traffic safety systems. This criteria incorporates data-driven crash, citation and traffic volume metrics, which ensure communities are chosen based on need and potential for greatest impact. Ignoring this criteria in favor of legislatively mandated location selection threatens the integrity of the photo red light imaging detector system and automated speed enforcement system programs.

HB800: RELATING TO GOVERNMENT

Bill Description: Provides for the transfer of certain parcels in the Liliha Civic Center area and Iwilei Fire Station area from various state agencies to the City and County of Honolulu. Provides for the transfer of the parcel of land upon which Ali‘i Tower is sited from the City and County of Honolulu to the Department of Land and Natural Resources. Exempts the lands transferred to the Department of Land and Natural Resources from the definition of public lands for purposes of Chapter 171, HRS.

Veto Rationale: The land transfers provided in the bill would negatively impact the City and County of Honolulu, which relies upon Ali‘i Tower’s land lease revenues and office spaces. Additionally, the state would face indeterminate additional costs, as Ali‘i Tower’s age likely necessitates capital improvements and ongoing maintenance. Although the intent of this bill is to reduce the state’s reliance on private commercial office space, no analysis exists identifying the amount of office space the acquisition of Aliʻi Tower would provide the state.

HB958: RELATING TO TRANSPORTATION

Bill Description: Establishes safe riding behaviors for electric bicycles. Prohibits the operation of high-speed electric devices in certain locations. Establishes labeling and signage requirements for electric bicycles. Prohibits the operation of a moped or electric motorcycle in certain locations. Amends the definition of “bicycle” for purposes of county vehicular taxes. Defines “electric bicycle” in place of “low-speed electric bicycle.” Defines “electric micro-mobility device” and requires the same regulations as electric foot scooters to apply to electric micro-mobility devices. Prohibits a person under the age of 16 from operating a class 3 electric bicycle. Authorizes a person under the age of 14 to operate class 2 electric bicycles under supervision. Prohibits a person from riding a class 3 electric bicycle on a sidewalk. Authorizes a person to ride a class 1 or class 2 electric bicycle on a sidewalk under certain circumstances. Prohibits a person from operating a bicycle or electric foot scooter under the age of 18 without a helmet. Repeals the requirement that moped drivers use bicycle lanes and substitutes the term “motor-driven cycle” with the term “motor scooter.”

Veto Rationale: While mopeds and motorcycles are exempt from the prohibition established within this bill, on “high-speed electric devices” driving on public roadways, electric cars are not exempt. Such a prohibition would likely violate the Commerce Clause and Equal Protection Clause of the United States Constitution and conflict with the administration’s commitment to reducing greenhouse gas emissions.

HB1296: RELATING TO THE MAJOR DISASTER FUND

Bill Description: Establishes timely notice and reporting requirements to the Legislature by the Governor regarding the transfer of appropriations to the Major Disaster Fund. Effective 7/1/2025. Sunsets 7/1/2026.

Veto Rationale: The administration is committed to the transparent, efficient management of state funds. During times of emergency, flexibility and the quick release of funds is necessary to respond to rapidly changing situations. This bill disrupts the delicate balance between reporting requirements facilitating government transparency and fiscal flexibility undergirding efficient response and recovery efforts. Placing additional administrative oversight over funds expended for emergencies jeopardizes public safety.

SB15: RELATING TO HISTORIC PRESERVATION 

Bill Description: Amends the definition of “historic property” to require that the property is over 50 years old and meets the criteria for inclusion in the Hawaiʻi Register of Historic Places. Excludes proposed projects on existing residential property and proposed projects that are in nominally sensitive areas from the State’s Historic Preservation Program review, under certain circumstances.

Veto Rationale: Exempting proposed projects on any existing residential property from historic preservation review fails to consider properties that have never undergone such a review and may contain historically significant artifacts or iwi kūpuna. This categorical exclusion increases the risk for desecration of iwi kūpuna and historical resources. Although Governor Green supports amending the historic preservation review process to facilitate housing production, a more nuanced approach to protecting iwi kūpuna is needed, such as that advanced in SB 1263.

SB31: RELATING TO PROPERTY

Bill Description: Authorizes a person who discovers a recorded discriminatory restrictive covenant to take certain actions, without liability, to invalidate the covenant. Defines discriminatory restrictive covenant.

Veto Rationale: By enabling any person, including those without any interest in the specified real property, to record a statement that a real property’s title includes a discriminatory restrictive covenant, this bill provides a statutorily authorized mechanism for the circulation of disinformation. This disinformation has the potential to negatively affect the marketability of a property. Because the person who recorded the statement claiming a discriminatory restrictive covenant exists is waived of any liability, no recourse is available to those who suffer financial loss due to inaccurate claims concerning their property’s title.

SB38: RELATING TO HOUSING

Bill Description: Requires the Hawaiʻi Housing Finance and Development Corporation to provide counties with an opportunity to comment on certain housing development projects. Prohibits the legislative body of a county from imposing stricter conditions than the Hawaiʻi Housing Finance and Development Corporation, stricter area median income requirements, or a reduction in fee waivers to housing development proposals that would increase the cost of the project.

Veto Rationale: County councils have expressed concerns that this bill hampers their ability to work with developers to modify housing projects to reflect the specific needs of their communities. While the administration supports measures intended to facilitate the production of affordable housing, further dialogue with the counties on this measure’s implementation is required.

SB66: RELATING TO HOUSING

Bill Description: Establishes procedures and requirements for single-family and multifamily housing project applicants to apply for an expedited permit, including requirements for completeness of expedited permit applications, duties of licensed professionals and the counties during construction, and applications for owner-builder exemptions. Takes effect 7/1/2026. Sunsets 6/30/2031.

Veto Rationale: By allowing any qualified professional to determine a project’s impact on historical resources, this bill permits a project proponent to evaluate and determine the impact of its own projects on historical resources. This is a conflict of interest that allows for self-serving determinations, undermines the authority and purpose of regulatory agencies’ independent evaluations, and increases risk to iwi kūpuna.

SB104: RELATING TO CORRECTIONS

Bill Description: Beginning 7/1/2026, restricts the use of restrictive housing in state-operated and state-contracted correctional facilities, with certain specified exceptions. Establishes a restrictive housing legislative working group to develop and recommend more comprehensive laws, policies and procedures regarding restrictive housing for members of vulnerable populations by 1/8/2027. Requires the Hawaiʻi Correctional System Oversight Commission to review restrictive housing placements on an annual basis. Authorizes the Department of Corrections and Rehabilitation, by 12/1/2027, to implement policies and procedures recommended by the restrictive housing working group related to committed persons. Requires interim and final reports to the Legislature and Hawaiʻi Correctional System Oversight Commission.

Veto Rationale: The Department of Corrections and Rehabilitation has policies in place governing the use of restrictive housing. These policies and procedures comply with National Institute of Corrections and American Correctional Association standards. Rather than improve the health and safety of those in the department’s care, the implementation of certain requirements proposed in this bill will jeopardize the safety, security and good governance of the department’s facility, negatively impacting inmates. In lieu of this measure and to address stakeholders’ concerns, the department is working with the Hawaiʻi Correctional Systems Oversight Commission to amend its policies and procedures.

SB447: RELATING TO A DEPARTMENT OF HEALTH PILOT PROGRAM

Bill Description: Establishes a Hiring Pilot Program within the Department of Health, which includes an amended hiring procedure for delegated position classifications, certain flexibilities regarding minimum qualifications for positions having a salary range at or below SR-10, the ability to directly hire certain individuals into a civil service position if certain conditions are met, and the authority to make certain temporary appointments at the merited civil service pay scale without step limitation. Applies to recruitments initiated before 7/1/2028. Requires annual reports to the Legislature. Sunsets 7/1/2028.

Veto Rationale: The governor strongly supports efforts to streamline the state’s hiring process to address our workforce vacancies, especially those in our state’s public health sector. However, this bill conflicts with state civil service law, undermining the state’s merit-based civil service system. Disparities in hiring, classification and compensation throughout the state are expected to occur should this bill become law.

SB1102: RELATING TO THE AIRCRAFT RESCUE FIRE FIGHTING UNIT

Bill Description: Specifies the appointment processes and terms for the Fire Chief of the Hawaiʻi State Aircraft Rescue Fire Fighting Unit of the Airports Division of the Department of Transportation.

Veto Rationale: The appointment process proposed in the bill is inconsistent with the selection process for other department leadership positions. Further, due to the need to obtain legislative approval for the appointment of the Fire Chief, following the appointment process contained in this bill may delay the appointment of this critical leadership position, impacting airport operations, safety and readiness.

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Media Contacts:  
Erika Engle
Press Secretary
Office of the Governor, State of Hawai‘i
Office: 808-586-0120
Email: [email protected] 

Makana McClellan
Director of Communications
Office of the Governor, State of Hawaiʻi
Cell: 808-265-0083
Email: [email protected]

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