House committee advances broadband consolidation, caregiver tax credit and package of economic bills

House Committee on Economic Development and Technology members in Honolulu on Feb. 5, 2025, voted to advance a package of measures on broadband, business support and tax credits, approving amendments to several bills and deferring one broadband navigator bill for further work.

The committee chair said the panel would adopt technical and substantive changes before sending measures to the Finance Committee, noting several appropriation amounts would be left “blank” in bills and recorded in committee notes. The panel approved amendments to HB455 (small-business startup support), moved HB437 (office/office location for trade and investment) and HB9 34 (broadband consolidation) with amendments, advanced HB701 (family caregiver tax credit) as HD1, and passed HB753 as drafted; lawmakers deferred HB935, a bill to fund digital navigators, citing funding uncertainty.

Why it matters: The measures affect multiple policy areas — small-business startup support, state broadband governance and consumer access, tax credits for families and caregivers, and tax relief proposals — and several contain appropriations or funding directives that the committee deferred to the Finance Committee for dollar decisions.

Broadband consolidation and access

Lieutenant Governor Sylvia Luke, speaking for the administration’s Connect CAHCO initiative, said broadband is an equity issue and urged consolidation of broadband functions under the state’s chief information officer. "Coming out of COVID, we realized that broadband is not just... it's an equity issue," Luke said in testimony. The committee approved an HD1 for HB9 34 that directs statutory consolidation of broadband policy functions under the Office of Enterprise Technology Services, and includes a technical amendment excluding development of retail broadband infrastructure from the office's responsibilities. The amended bill’s appropriation amount was left blank and recorded in committee notes for Finance to consider.

Supporters and commenters raised access concerns for smaller islands. Sean McLaughlin, testifying in support, said human assistance and library-based help remain critical for remote islands and urged inclusion of Molokai and Lanai in programs. "I think it's equally important or maybe even more so on islands like Molokai and Lanai," McLaughlin said, urging attention to consumer representation as the state deploys federal and state broadband funds.

The panel deferred HB935, a bill to create or fund local digital navigator positions, because members said the program may overlap existing library efforts and because federal funding for navigator positions was uncertain.

Small-business startup support (HB455)

The committee adopted DBEDT’s suggested amendment for HB455 to transfer administrative responsibility from the Hawaii Technology Development Corporation to the Community-Based Economic Development Program, blank out the appropriation in the bill and add one FTE for a business loan officer. The chair’s notes specified the new FTE would total $95,000; the bill’s defective effective date was amended to read 07/01/3000 in committee language (a placeholder to be corrected later). DBEDT and local business groups including the Hawaii Food Industry Association and Holumua Collaborative testified in support, saying the program would fill a gap for startups that cannot yet obtain commercial loans. Josh Wish of Holumua Collaborative said the proposal would help "businesses that aren't yet able to get commercial loans and to help get them up to that point." The committee voted to pass HB455 with the amendments.

Tax and credit measures: family caregivers, groceries, childcare

The committee advanced HB701 (family caregiver tax credit) as HD1. AARP Hawaii's Audrey Suga Nakagawa described the measure as aimed at caregivers who may be retired or have left the workforce to provide care, and said it would expand qualifying expenses for credits. The committee amended HB701 to make the family caregiver tax credit nonrefundable, to require the director of taxation to consult with the Executive Office on Aging on implementation, and to require the Executive Office on Aging to certify claims for the credit. The chair added a committee-note appropriation request of $750,000 for Finance to cover certification activities and set the application to taxable years beginning after Dec. 31, 2025.

On HB572 (removing or changing the grocery tax), the Hawaii Food Industry Association and others testified in favor of aligning Hawaii’s tax policy with most U.S. states and noted local food insecurity concerns. Tom Yamachika of the Tax Foundation of Hawaii offered a technical comment: "We do question the need for another special fund," and separately raised technical issues where relevant to other tax-related proposals. Supporters said reducing or eliminating grocery taxation would provide immediate relief and could increase consumer spending.

Childcare credits and related tax changes (HB753 and related bills) drew broad support from advocates. Testimony from Catholic Charities Hawaii, Hawaii Children's Action Network, and many individual supporters described high childcare costs and the policy rationale for increasing tax credit support and smoothing phaseouts.

Votes at a glance

- HB455 — Passed with amendments (transfer administration to Community-Based Economic Development Program; appropriation blanked; add 1 FTE business loan officer at $95,000; defective effective date amended to 07/01/3000). Committee vote: Chair (aye), Vice Chair (aye), Rep. Holt (aye), Rep. Tim (aye), Rep. Tempo (aye), Rep. Todd (aye), Rep. Matsumoto (aye). Outcome: adopted for referral to Finance.

- HB437 — Passed with amendments (blank appropriation; committee-note appropriations: $200,000 FY25–26 to establish office/startup, and $175,000 recurring FY26–27; study to determine office location; defective effective date set to 07/01/3000). Outcome: adopted for referral to Finance.

- HB650 — Passed with amendments (appropriation blanked; defective effective date amended). Outcome: adopted for referral to Finance.

- HB935 — Deferred (committee cited redundancy with public library services and uncertainty about federal funding for digital navigator positions). Outcome: deferred.

- HB9 34 (broadband consolidation) — Passed as HD1 with technical amendments (exclude retail broadband infrastructure development; appropriation blanked and moved to committee notes). Outcome: adopted for referral to Finance.

- HB1442 — Passed as HD1 (technical amendments, defective effective date; appropriation blanked). Outcome: adopted for referral to Finance.

- HB572 (grocery tax change) — Passed with HD1 technical edits (defective effective date amended; technical changes). Outcome: adopted for referral to Finance.

- HB572-related and childcare/child-dependent care credit bills (including HB753) — Multiple bills on childcare tax credits and dependent-care credits received broad testimony in support; HB753 passed as drafted. Outcome: adopted or moved forward as noted above.

- HB701 — Passed as HD1 (family caregiver tax credit nonrefundable; Executive Office on Aging to certify claims; $750,000 committee-note appropriation for certification; applies to taxable years beginning after Dec. 31, 2025). Outcome: adopted for referral to Finance.

- HB753 — Passed as HD1 (technical amendments and defective effective date as noted). Outcome: adopted.

What the committee directed next

Committee leaders left specific dollar amounts blank in bill texts and placed requested appropriation figures in committee notes for Finance consideration; multiple bills now move to the Finance Committee for dollar-level decisions. HB935 (digital navigators) was deferred to allow the sponsors and staff to reconcile overlap with library programs and to resolve federal funding uncertainty.

Meeting context and next steps

The committee heard approximately three dozen public testimonies across the bills, including administration witnesses, nonprofits, business groups and civic advocates. Several measures will go next to the House Finance Committee for appropriation decisions. Where committee language used a defective effective date (07/01/3000), that placeholder will be corrected in subsequent drafting or in conference. Public hearings and committee notes show consensus on the policy intent of many bills, but funding details remain to be resolved in Finance.

Ending: The committee adjourned after voting on the agenda items; sponsors and staff will draft final HD language and appropriation requests for Finance. Testimony and committee notes will be posted with the bills for the next stage of consideration.