House Committee on Finance approves five study resolutions on construction costs, tax policy and fiscal notes

The House Committee on Finance on March 31 in Conference Room 308 voted to adopt five concurrent resolutions directing state agencies and research partners to study issues ranging from construction-management fees to how other jurisdictions prepare fiscal notes.

The measures—HCR 59/HR 55, HCR 60/HR 56, HCR 182/HR 177, HCR 183/HR 178 and HCR 61—were taken up in two hearing blocks. Committee members moved each resolution “as is” during decision making and recorded votes show the measures were adopted; two members were marked excused on the roll calls.

HCR 59 and HR 55 ask the Department of Accounting and General Services (DAGS) to study the feasibility of limiting project and construction-management costs on state construction projects to 10% of total project cost. Gordon Wood, public courts administrator, appeared representing DAGS in support; no opposing testimony was recorded. The committee’s recommendation to pass the resolutions as submitted was approved in the roll call and the measure was adopted.

HCR 60 and HR 56 request that the Office of Planning and Sustainable Development, together with appropriate state and county departments or agencies, develop methods to estimate costs associated with delays in certain public and private development projects. The Office of Planning and Sustainable Development provided comments; no additional witnesses opposed the measure. The committee adopted the recommendation to pass as is.

HCR 182 and HR 177 ask the Tax Review Commission to consider specified goals for an equitable, efficient and adequate tax policy structure. Alexis Chapman of the Hawaii Food Industry Association testified in support and suggested adding language to evaluate the impact of the current tax code on residents across income brackets so lower-income taxpayers are not disproportionately affected. “We are in support of this measure and 1 potential suggested, addition to the list of goals. We suggested adding evaluating the impact of our current tax code on Hawaii residents of different income brackets and ensuring that lower income taxpayers are not disproportionately impacted by certain taxes,” Chapman said. The committee approved the recommendation to pass the resolutions as filed.

HCR 183 and HR 178 request that the Department of Taxation and the Economic Research Organization at the University of Hawaii (UHERO) collaborate on data-driven analyses of how tax policies affect economic development, migration patterns and other public-policy factors. Testimony in support was recorded from UHERO, the University of Hawaii system, the National Federation of Independent Business (NFIB), and the Hawaii Government Employees Association; Department of Taxation submitted comments. The committee approved the recommendation to pass as is.

HCR 61 asks for a study examining how certain other jurisdictions produce fiscal notes. The Legislative Reference Bureau submitted comments and the Grassroot Institute of Hawaii submitted support and comments; no speakers opposed. The committee recommended passage as filed and adopted the measure.

All five resolutions were passed without amendment. Roll-call remarks recorded during the decision-making block show the chair and vice chair voted aye and multiple representatives recorded aye; two members were excused on the roll calls. No formal amendments, substantive dissent or direction to staff to prepare alternatives was recorded in the transcript for these items. The committee proceeded to a separate 10:15 a.m. consent agenda after concluding the 10:00 a.m. decision block.

Votes at a glance HCR 59 / HR 55 — Study limiting project and construction-management costs to 10%: Adopted (committee recommendation: pass as is). HCR 60 / HR 56 — Methods to estimate delay costs for development projects: Adopted (pass as is). HCR 182 / HR 177 — Tax Review Commission goals for tax policy structure: Adopted (pass as is). HCR 183 / HR 178 — DOTAX–UHERO collaboration on tax-policy impacts: Adopted (pass as is). HCR 61 — Study of how jurisdictions produce fiscal notes: Adopted (pass as is).

Background and context The resolutions are study requests and do not themselves change law or appropriate funds. Each directs one or more state agencies or research partners to investigate questions and report findings; the measures specify study topics but do not set funding levels or deadlines in the hearing record. Testimony recorded during the hearing was limited; the committee took no amendments and did not refer any item for immediate statutory change.

Reporting and next steps The resolutions instruct agencies and research partners to complete analyses or provide findings to the Legislature; the transcript does not record specific deadlines, funding sources, or required report dates. Future committee agendas or subsequent legislation would be needed to convert these study findings into statutory changes or budget actions.