CONVERSATION AS WE REVIEW THE ELECTION YEAR SESSION, NEXT ON INSIGHTS.

>> STATE LAWMAKERS PUT A LOT ON THEIR PLATE THIS YEAR.

BILLS TO HELP MAUI RECOVER FROM LAST SUMMER'S DISASTER, PUBLIC SAFETY, INCLUDING WILDFIRE MITIGATION, RENEWAL ENERGY, THE HOUSING CRISIS, EDUCATION, TAXES AND RECREATIONAL MARIJUANA WERE DISCUSSED.

WHICH BILLS PASSED, WHICH BILLS DID NOT AND WHAT DOES THE FATE OF WHAT EACH BILL MEAN FOR YOU.

JOIN THE DISCUSSION AS WE REVIEW THE 2024 LEGISLATIVE SESSION NEXT ON INSIGHTS.

>> Daryl: ALOHA AND WELCOME TO INSIGHTS ON PBS HAWAI'I I'M DARYL HUFF.

MAUI RECOVERY EFFORTS, THE COST OF LIVING, GOVERNMENT CORRUPTION, TAXES, AND RECREATIONAL MARIJUANA WERE ALL TOP OF MIND FOR OUR LEGISLATURE THIS 2024 SESSION.

AND AFTER MONTHS OF HEARINGS AND DEBATE THE STATE LEGISLATURE SENT NEARLY 200 BILLS TO THE DESK OF GOVERNOR JOSH GREEN WHERE THEY AWAIT HIS REVIEW.

WHAT BILLS PASSED, WHAT BILLS DIDN'T, AND WHAT DO THESE NEW LAWS AND SPENDING PLANS MEAN FOR US?

WE LOOK FORWARD TO YOUR PARTICIPATION IN TONIGHT'S SHOW.

YOU CAN EMAIL OR CALL IN YOUR QUESTIONS.

AND YOU'LL FIND A LIVE STREAM OF THIS PROGRAM AT PBSHAWAII.ORG AND THE PBS HAWAII FACEBOOK AND YOUTUBE PAGES.

NOW, TO OUR GUESTS.

NEAL MILNER IS A RETIRED PROFESSOR OF POLITICAL SCIENCE AT THE UNIVERSITY OF HAWAI'I.

HE IS A COLUMNIST FOR CIVIL BEAT, A REGULAR CONTRIBUTOR TO HPR'S "THE CONVERSATION," AND A POLITICAL ANALYST FOR KITV.

HE IS THE AUTHOR OF THE BOOK, "THE GIFT OF UNDERPANTS."

REPRESENTATIVE NADINE NAKAMURA SERVES HOUSE DISTRICT 15, WHICH INCLUDES THE KAUA'I TOWNS OF HANALEI, PRINCEVILLE, KAPA'A AND WAILUA.

SHE IS THE HOUSE MAJORITY LEADER.

BEFORE SERVING IN THE HOUSE SHE WAS THE MANAGING DIRECTOR FOR THE COUNTY OF KAUA'I.

SENATOR CHRIS LEE SERVES DISTRICT 25 ON THE ISLAND O'AHU REPRESENTING KAILUA AND WAIMANALO.

HE CURRENTLY SERVES AS MAJORITY WHIP AND CHAIRMAN OF THE SENATE TRANSPORTATION COMMITTEE.

HE WAS BORN AND RAISED IN KAILUA.

HE ATTENDED 'IOLANI SCHOOL, AND LATER OREGON STATE UNIVERSITY.

REPRESENTATIVE GENE WARD SERVES DISTRICT 18 WHICH INCLUDES PORTLOCK, HAWAI'I KAI AND KALAMA VALLEY ON THE ISLAND OF O'AHU.

HE IS THE MINORITY POLICY LEADER.

HE IS A VIETNAM VETERAN AND SERVED AS THE COUNTRY DIRECTOR FOR EAST TIMOR FOR THE PEACE CORPS.

LET ME START WITH NEAL MILNER, OUR ONLY NONPOLITICIAN ON THIS PANEL.

WHAT DID YOU THINK OF THIS SESSION?

PARTICULARLY THE OUTCOME?

WERE YOU SURPRISED?

>> I WAS NOT SURPRISED.

YOU COULD SEE THE MOMENTUM HAPPENING.

I THINK A LOT OF INTERESTING BILLS HAPPENED.

I'M A LITTLE WARY ABOUT CALLING WHAT HAPPENED HISTORIC BECAUSE HISTORY DEPENDS UPON THE RESULTS OF LEGISLATION.

IT DOESN'T DEPEND ON WHAT THE LEGISLATION SAYS.

SURE, THE WORDS ARE IMPORTANT.

WHEN YOU GIVE A BILLION DOLLARS TO MAUI, WHICH IS GOOD CHUNK OF MONEY AND VERY IMPORTANT.

WHAT IS REMAIN IMPORTANT THAT WILL MAKE THAT HISTORIC IS HOW THAT MONEY GETS USED.

DOES IT GET USED IN THE WAY WE EXPECT?

WHAT KIND OF COMPLICATIONS WILL THERE BE?

AND I THINK THAT'S A REGULAR.

I'M TRYING TO WRITE ABOUT THIS SORT OF THING NOW.

I WORRY ABOUT THE EMPHASIS ON WORDS MATTERING.

WORDS CERTAINLY MATTER.

BUT WHEN YOU LABEL SOMETHING IN ADVANCE, AS LANDMARK OR AS HISTORIC, YOU GOT TO REMEMBER THAT THIS IS THE BEGINNING OF A TALE.

IT'S NOT END OF THE TALE.

AND THAT GETTING IT STARTED IS ONE THING BUT WE'VE ALL BEEN AROUND LONG ENOUGH TO KNOW ALL SORTS OF THINGS -- SURPRISES, GOOD SURPRISES, BAD SURPRISES CAN HAPPEN.

>> Daryl: GENE WARD, THE ONLY REPUBLICAN ON THE PANEL.

>> I AGREE WITH THE GENTLEMAN ON HAWAI'I KAI, WHICH IS MY CONSTITUENT.

OF COURSE I AGREE WITH HIM.

HE THREW OUT GIFT OF UNDERPANTS.

HOW DID YOU LET THAT GO BY?

>> IT'S AVAILABLE -- YES.

IT'S A SERIES OF MEMOIR KIND OF SHORT STORIES BASED ON SOME STORYTELLING PERFORMANCE I USED TO DO.

THE LEAD STORY IS CALLED GIFT OF UNDERPANTS.

UNDERPANTS AS A FORM OF CURRENCY THAT GENERATIONS GIVE TO ONE ANOTHER AS A MEANS OF KEEPING CONNECTION.

>> Daryl: YOU CAN PAY ME A HUNDRED DOLLARS FOR PROMO.

BACK TO GENE WARD.

>> I WAS GOING TO GIVE IT AN, A, BECAUSE OF THE TAX CREDITS, TAX CUTS.

IN THE SENSE OF HISTORIC.

THE REPUBLICANS HAVE BEEN CALLING ON THIS YEARS AND YEARS.

GD TAXES FOR MEDICAL SHOULD BE EXEMPT.

FOOD.

I THINK THE GOVERNOR PROVIDED FOR BOTH OF THOSE.

BUT THE REASON I DIDN'T GIVE IT AN A, I GAVE IS IT A B MINUS, DARYL, I'M AFRAID THAT WE ARE ABOUT READY TO LOSE OUR LOCAL OWNERSHIP OF OUR POWER SYSTEM, HECO.

I THINK WE LEFT SOMETHING ON THE BOARD.

SECURITIZATION.

BASICALLY, GIVE THEM A CHANCE TO BORROW MONEY TO GET OUT FROM UNDERNEATH ALL THE LAWSUITS.

TO BE ABLE TO SURVIVE, AND RATHER THAN HAVE THE MAINLAND COME OVER, AND IF THEY THINK 5% INCREASE BY WHICH SECURITIZATION IS THERE, I THINK WE HAVEN'T SEEN ANYTHING YET.

>> Daryl: WHAT WE'LL DO, LATER IN THE SHOW IS TALK MORE OR FOCUS MORE ON MAUI.

LET ME GIVE SENATOR LEE A CHANCE.

WHAT WOULD YOU HIGHLIGHT FROM THIS PRODUCT?

>> I THINK ON AN AVERAGE YEAR WHEN WE DIDN'T HAVE TO DEAL WITH MAUI OR ANY OF THESE LARGER, BIG ISSUES, IT WOULD HAVE BEEN A GOOD YEAR, CONSIDERING EVERYTHING THAT WE'VE DONE.

WHEN YOU ADD THAT ON TOP OF MAUI AND UNCERTAINTY WITH THE BUDGET AND ECONOMY AND ALL THE THINGS THAT COULD HAVE BEEN GOING INTO THE START OF THE SESSION, THIS WAS AN INCREDIBLE ACHIEVEMENT THAT WE GOT NOT ONLY REPUBLICANS AND DEMOCRATS TOGETHER, BUT THE HOUSE AND THE SENATE, THE ADMINISTRATION AROUND A SERIES OF BILLS THAT SOLVED ISSUES THAT HADN'T BEEN TOUCHED IN PERHAPS A GENERATION.

TALKING NOT ONLY ABOUT THE TAX CREDITS, MADE A MASSIVE INVESTMENT IN BIOSECURITY, WE HAVE INVASIVE SPECIES LIKE FIRE ANTS AND COCONUT RHINOCEROS BEETLES AND OTHER THINGS OUT THERE.

WE CREATED MASSIVE AMOUNTS OF FUNDING AND POSITIONS TO DEAL WITH THIS STUFF THAT WE HAVEN'T SEEN THE LIKES OF BEFORE.

THERE'S A WHOLE SLEW OF OTHER THINGS THAT WE KEEP SEEING YEAR AFTER YEAR THAT GOT DONE THIS YEAR.

SO I THINK IT WAS A GREAT START.

>> Daryl: NADINE NAKAMURA, WHAT WOULD YOU HIGHLIGHT?

>> I THINK IT WAS A HISTORIC YEAR BECAUSE OF THE THINGS THAT SENATOR LEE MENTIONED, BUT ALSO WE CAME INTO THIS SESSION KNOWING THAT MAUI IS TOP OF MIND.

AND WE DELIVERED FOR MAUI THE ONE BILLION PLUS DOLLARS IN AID.

THAT'S GOING TO DO HELP MAUI TO DO ALL THE THINGS THEY NEED TO DO TO HEAL AND TO GET RESIDENTS BACK INTO HOMES.

SO TEMPORARY HOUSING, PERMANENT HOUSING FUNDING.

FUNDING FOR INFRASTRUCTURE TO REBUILD ROADS AND WATER LINES AND SEWER LINES.

ALL OF THESE THINGS HAVE BEEN FUNDED, AND IT GIVES MAUI THE RESOURCES TO DO WHAT THEY NEED TO DO, WHICH IS TO GET BACK TO NORMALCY.

AND THEN THE OTHER HISTORIC PIECE IS THE TAX REFORM THAT WILL DO TWO THINGS.

IT'S GOING TO DOUBLE THE STANDARD DEDUCTION AND MOST PEOPLE USE STANDARD DEDUCTION, SO THAT'S GOING TO HELP.

THE SECOND PART IS CHANGE THE INCOME BRACKETS SO IT IS GOING TO BE A MUCH MORE PROGRESSIVE INCOME TAX STRUCTURE FOR OUR STATE.

AND WE'RE GOING TO GO FROM BEING THE SECOND HIGHEST STATE IN THE NATION OF RESIDENTS WHO HAVE TO PAY INCOME TAXES RIGHT NEXT TO OREGON TO THE FOURTH LOWEST IN OUR COUNTRY.

TO IT'S HISTORIC, IN MY OPINION.

>> I DISAGREE WITH THE AMOUNT THAT'S GIVEN TO MAUI.

YOU AND I WERE THE ONLY ONE IN THE LEGISLATURE -- >> Daryl: IN THE LEGISLATURE?

>> AROUND IN 1992 WHEN THEY DID INIKI, THEY GIVE THREE BILLION DOLLARS, AND THE ESTIMATE FOR MAUI IS ABOUT SIX.

MY SENSE IS THAT MAUI IS GOING TO HAVE TO COME BACK AGAIN AND AGAIN.

I'M NOT CONVINCED THAT THE ORGANIZATIONAL LEADERSHIP OF THE RECOVERY IS ALL IN PLACE YET.

SO I DON'T THINK WE'VE HEARD THE LAST OR HAVE WE DONE FULLY DUE DILIGENCE FOR REBUILDING AND RESTORING MAUI.

>> JUST ON THAT POINT, AT LEAST IN THE SENATE, I KNOW THE HOUSE HAD A BUNCH OF WORK THEY HAD DONE ON THIS AS WELL.

BUT WE HAD A NUMBER OF HEARINGS EARLY ON WITH SOME OF THE MAUI COUNTY OFFICIALS, WITH THE ATTORNEY GENERAL AND ALL THE DIFFERENT STAKEHOLDERS TRYING TO GET TO THE BOTTOM OF WHAT IS GOING ON AND WHAT HELP IS NEEDED.

AND TO REP WARD'S POINT, THIS ISN'T A ONE AND DONE SITUATION.

THERE'S GOING TO BE ADDITIONAL RESOURCES THAT MAUI NEEDS IN THE FUTURE, BUT WE CAN'T GIVE THEM A MASSIVE AMOUNT OF MONEY.

THEY'RE NOT GOING TO BE ABLE TO LEVERAGE OR SPEND DOWN AND GET PROJECTS ON THE GROUND ON A REGULAR BASIS OR ON A TIMELY BASIS.

WE'VE GIVEN THEM I THINK THE BULK OF WHAT WAS ASKED FOR TO DEAL WITH CRITICAL STUFF LIKE INFRASTRUCTURE, GETTING WATER, ROADS, ELECTRICITY BACK IN PLACE SO RECOVERY CAN START TO HAPPEN BUT IN A WAY THAT'S MANAGEABLE.

KNOWING THAT DOWN THE ROAD, AS THE PROCESS UNFOLDS, THERE'S GOING TO BE A LOT OF UNKNOWNS.

SO SURELY WE'LL BE BACK AT THE TABLE WORKING PARTNER TO PARTNER WITH LOCAL STAKEHOLDERS.

IT'S NOT THE END.

>> IT'S THE UNKNOWNS I FIND THAT ARE IMPORTANT.

THE MONEY IS NECESSARY BUT NOT SUFFICIENT.

JUST PUT ASIDE WHETHER WE NEED MORE, WE PROBABLY WILL.

YOU'VE CREATED THE RESOURCES THAT ARE THERE, BUT WE'VE BEEN AROUND POLITICS LONG ENOUGH TO KNOW THE PROCESSES THAT IT'S GOING TO TAKE TO BRING THEM TO BEAR.

HOW DO YOU PLAN TO REBUILDING?

HOW DO YOU NEGOTIATE WITH FEMA TO GET WHAT YOU THINK YOU SHOULD GET FROM FEMA?

WHICH IS STILL AN ONGOING SITUATION.

HOW DOES -- HOW DO YOU ALLOW PEOPLE TO PARTICIPATE, REGULAR PEOPLE TO PARTICIPATE IN THIS DECISION WITHOUT DRAGGING IT ON FOREVER AND FOREVER.

THOSE ARE THE KINDS OF QUESTIONS.

I'M NOT PESSIMISTIC ABOUT IT.

I'M REALISTIC ABOUT IT IN THE SENSE THAT SAYING IT'S NOW A POT OF MONEY THAT IS GOING INTO THE GREAT UNKNOWN.

THE GREAT UNKNOWN IS NOT SIMPLY ABOUT INCOMPETENCE OR ANYTHING ELSE.

IT'S ABOUT THE COMPLEXITY OF GOVERNMENT AND ABOUT THE COMPLEXITY TRYING TO DO -- TRYING TO REBUILD THE PLACE.

>> Daryl: NADINE NAKAMURA, A LARGE PORTION OF THAT MONEY WAS TO HOUSE SURVIVORS.

THAT'S -- I THINK THAT'S THE BIGGEST PART OF THE BILL.

AND ALSO, THERE WAS A DECISION MADE NOT TO GIVE MAUI WHAT THEY WERE ASKING FOR.

I UNDERSTAND THE SENSE OF THEY DON'T HAVE A WAY OF SPENDING IT QUICKLY.

THERE WAS ALSO A BILL THAT DIED, I THINK IN THE SENATE, THAT WOULD HAVE SET UP SOME ORGANIZATIONAL -- LIKE A COMMITTEE ABOVE ALL ELSE TO PLAN OUT WHAT SHOULD HAPPEN FOR LAHAINA AND WEST MAUI.

WHY WOULD THAT IDEA NOT RESONATE WITH LEGISLATORS?

>> I THINK THERE ARE A LOT OF BILLS FLOATING AROUND THIS SESSION TO DEAL WITH THE MAUI SITUATION.

I THINK AT THE END OF THE DAY, THE SENATE HELD HEARINGS.

OUR HOUSE FINANCE COMMITTEE HELD HEARINGS.

WE TALKED TO THE MAUI OFFICIALS.

WE LEARNED WHAT THEIR NEEDS WERE, THEIR CAPACITY.

I THINK WE ALL GOT ASSURANCES THAT THE COUNTY WAS GOING TO BE ABLE TO HANDLE THIS LEVEL OF FUNDING.

AND WE ALSO NEED TO KEEP IN MIND THAT RIGHT NOW, THERE'S A LOT OF FEMA FUNDS COMING IN FROM THE FEDERAL GOVERNMENT.

AND THAT SHOULD -- WE DON'T WANT TO OVERBUDGET IN A YEAR WHERE ALL OF THE FEDERAL FUNDS ARE COMING IN, BUT MAYBE IN FUTURE YEARS WHEN THAT DRIES UP, THE STATE MAY NEED TO COME IN TO ASSIST.

SO WE'RE LOOKING AT IT IN THE LONG RUN.

IT'S NOT GOING TO BE SOLVED IN ONE OR TWO YEARS.

SO WE NEED TO KEEP THOSE OPTIONS OPEN.

WORK COLLABORATIVELY.

I THINK THE GREEN ADMINISTRATION, THE MAUI COUNTY ADMINISTRATION ARE WORKING TOGETHER.

THEY NEED TO BE DOING MORE OF THAT.

BRINGING IN THE COUNCIL AND PUBLIC IN THAT DISCUSSION SO THAT THEY'RE MEETING THE GOALS AND THE TIMELINES THAT THEY'VE SET FOR THEMSELVES.

>> Daryl: LET ME GO BACK TO THE POINT THAT REPRESENTATIVE WARD WAS MAKING.

THE BIG THREE ISSUES THAT WERE LEFT UNDONE IN TERMS OF THE GOVERNOR'S CONCERNS.

ONE WAS SECURITIZATION.

GIVING HECO TO BORROW, AS I WOULD PUT IT AGAINST THE STATE'S CREDIT RATING IN ORDER TO DO ITS MITIGATION.

NOT PAY ITS LEGAL FEES.

AND I THINK ALSO THERE WAS THE BILL TO PROVIDE FOR THE CONDO INSURANCE CRISIS THAT IS PENDING.

AND THE GOVERNOR ANNOUNCED HE'S GOING TO HAVE THIS SPECIAL COMMITTEE ON CLIMATE ADVISORY TEAM.

I'M WONDERING, CHRIS LEE, WHY DID THOSE THINGS BE LEFT ON THE TABLE?

THE HELP FOR HECO, WILDFIRE FUND AND INSURANCE FUNDS?

>> THESE ARE, FIRST OF ALL, ENORMOUSLY COMPLICATED ISSUES.

SO LET ME PREFACE EVERYTHING BECAUSE YOU GO TEN MILES DEEP AND STILL NOT HIT THE BOTTOM.

BUT I THINK IN A NUTSHELL, THE HECO SECURITIZATION BILL MORPHED SIGNIFICANTLY THROUGHOUT SESSION.

AND THERE ARE DIFFERENT PURPOSES AT DIFFERENT POINTS AND DIFFERENT LEVELS OF FUNDING.

INITIALLY IT WAS FOR $500 MILLION TO BE ABLE TO ACCESS CREDIT AND BASICALLY DRAW DOWN ON A WHOLE BUNCH MORE MONEY TO BUILD INFRASTRUCTURE GOING FORWARD TO DEAL WITH WILDFIRES AND THINGS LIKE THAT.

BUT PART OF THE CONCERN WAS OVER SESSION, IT WENT FROM $500 MILLION TO A BILLION TO $2.5 BILLION.

AT THE END, THERE WAS NO CAP.

JUST UNLIMITED.

TO NEAL'S POINT ABOUT MONEY GOING INTO AN ABYSS, THERE IS LEGITIMATE PURPOSE.

WE NEED A UTILITY THAT IS STRONG AND HEALTHY.

WE NEED THE LIGHTS TO COME ON WHEN THE LIGHT IS FLIPPED.

WE ALSO NEED TO MAKING SURE THERE'S RESPONSIBLE USE OF THOSE FUNDS.

WHAT SECURITIZATION DOES IS ASSESS COST TO RATEPAYERS AND PASS THAT COST ON.

EVERYBODY'S ELECTRIC BILL WILL FEEL IT.

WHEN YOU'RE TALKING ABOUT MULTIPLE BILLIONS OF DOLLARS WITH REALLY NO END IN SIGHT POTENTIALLY OVER THE COURSE OF 30 YEARS WHEN THERE'S NO PLAN, WE HAD A NUMBER OF HEARINGS IN DIFFERENT COMMITTEES IN THE HOUSE AND SENATE.

BUT AT THE END, THERE WAS NO PLAN FOR WHAT THE MONEY OUGHT TO BE USED FOR.

YOU HAD BROUGHT UP THIS SHOULDN'T BE USED FOR LITIGATION AND PAYING DOWN IN CASE THERE'S NEGLIGENCE ON THE PART OF THE UTILITY.

UP UNTIL THE VERY END, UTILITY SAID THAT'S WHAT WE WANT THAT FOR.

WE WANT THAT ACCESS.

AND THEY TESTIFIED TO THAT IN THEIR FINAL COMMITTEE HEARING.

SO IT DIDN'T SEEM RESPONSIBLE ON BEHALF OF SOME OF THE FOLKS TO MOVE FORWARD WITH SOMETHING THAT WOULD ASSESS 30 YEARS OF ESSENTIALLY BILLIONS OF DOLLARS OF COSTS WHEN WE DON'T EVEN KNOW WHAT THE SHORT-TERM PLAN IS.

AND LET ME FINISH THAT BY SAYING AGAIN, WE DO NEED A UTILITY.

I THINK THERE'S AN OPENING TO HAVE A DISCUSSION ON HOW TO PROCEED RESPONSIBLY AND NOT MAKE SAME MISTAKES THAT MADE IN OTHER PLACES THAT HAVE RESPONDED TO THIS.

>> Daryl: NEAL MILNER, IT SEEMS LIKE THE CONSENSUS AT THE LEGISLATURE WAS THAT HECO NEEDS TO BE PROTECTED FROM WHATEVER.

BUT IF HECO WAS NEGLIGENT AND WAS RESPONSIBLE FOR THIS HORRIBLE DISASTER, SHOULD THEY BE ALLOWED TO SURVIVE OR SHOULD THEY BE PROTECTED FROM THESE RISKS?

>> WELL, YOU'RE ASKING A TOUGH QUESTION ABOUT THE MARKET.

ONE DIRECTION TO TAKE IT IS TO SAY ARE THERE OTHER MODELS, DOES THIS GIVE US AN OPPORTUNITY?

THERE WAS A PIECE TODAY, I THINK, IN THE "STAR-ADVERTISER" ABOUT MAKING IT SORT OF LIKE KAUA'I.

BUT THE OTHER ISSUE HERE, THE SHOULD ISSUE, I THINK, IS KIND OF A PUBLIC ISSUE.

AND SOME OF IT YOU CAN SEE IF YOU READ NEXT DOOR.

IT'S ABOUT THE FACT THAT WE WANT VINDICATION AND REVENGE.

HECO DOESN'T DESERVE THIS BREAK.

THEY DON'T DESERVE THIS BREAK BECAUSE THEY MESSED UP, AND THEY'RE GOING TO HAVE TO FIND THE RESPONSIBILITY OF DOING IT.

SO I RESPOND BY SAYING, WELL, ANY WAY YOU DO IT, THE RATEPAYERS ARE GOING TO BE INVOLVED.

BUT I THINK THERE'S A SENSE LURKING HERE, WHICH I'M SYMPATHETIC ABOUT BUT DON'T REALLY ACCEPT FROM MY OWN VIEW, THAT THEY NEED TO BE PUNISHED.

THEY NEED TO BE PUNISHED FOR BEING BAD.

AND THEY NEED TO BE PUNISHED FOR BEING BAD AND THE FACT THAT LIGHTS GO OUT ALL THE TIME AND THEY DON'T TELL US WHAT'S WRONG.

SO I THINK THAT'S OUT THERE.

THERE'S A KIND OF ANGER.

I DON'T KNOW IF IT SHOWED UP IN THE TESTIMONY BUT THEY NEED TO GET THEIR JUST DESSERTS.

>> Daryl: IT SHOWED UP IN THE TESTIMONY SUBMITTED ONLINE FOR PEOPLE ON MAUI.

GENE, YOU WANT TO RESPOND?

>> WE DON'T EVEN KNOW THE CAUSE OF FIRE YET.

>> THAT'S RIGHT.

>> I'M NOT GOING TO DEFEND HECO.

THEY SCREWED UP AND EVERYBODY WHO LEFT THE FIRE TO GO.

>> OH, NO.

I'M NOT PASSING JUDGMENT.

OTHER PEOPLE ARE PASSING JUDGMENT.

THAT'S A FACTOR HERE.

>> Daryl: WE'RE NOT GOING TO KNOW THE CAUSE UNTIL AROUND CHRISTMASTIME.

>> YOU DON'T KNOW WHY THE CAUSE, WHY PREVENT THE CONSEQUENCE?

>> WHY PUNISH THEM WHEN YOU KNOW IF THEY ARE THE CAUSE?

>> ALSO, YOU'RE NOT GOING TO KNOW THE CAUSE WHEN THE REPORT COMES OUT.

THE CAUSE IS GOING TO TAKE ON KIND OF A MULTIFACETED DIRECTION, RIGHT.

SOME OF THE CAUSE IS GOING TO BE DETERMINED BY LITIGATION.

AND -- >> Daryl: GOOD.

BUT -- >> WE'RE TALKING ABOUT TAXPAYERS AND WE'RE TALKING ABOUT RATEPAYER.

WHEN KAUA'I NEEDED THREE BILLION DOLLARS, ALL THE TAXPAYERS PAID.

NOW WE GOT A RATE ISSUE WITH THE, QUOTE, RATEPAYERS, WE'RE SAYING, WE DON'T WANT TO DO THAT.

WE ALL PAID FOR WHAT HAPPENED ON KAUA'I, BUT WE DON'T WANT TO PAY FOR WHAT HAPPENED ON MAUI.

I DON'T GET THE LOGIC ON THAT.

>> Daryl: NADINE NAKAMURA, LAST WORD ON THAT PARTICULAR ISSUE.

>> I THINK GOVERNOR GREEN HAS SAY THAT HE WOULD BE USING THIS INTERIM TO BRING THE DIFFERENT PARTIES TOGETHER TO HAVE THE CONVERSATION THAT WE COULD NOT COMPLETE DURING OUR FOUR MONTHS AT THE CAPITOL.

SO I THINK THAT'S A GOOD THING.

THAT THE CONVERSATION NEEDS TO HAPPEN.

THE ARTICLE SAID, THERE ARE DIFFERENT GOVERNANCE MODELS AS WELL.

WE DON'T KNOW WHAT'S GOING TO HAPPEN TO HECO, AND WE SHOULD KEEP ALL OF OUR OPTIONS OPEN.

AND SECURITIZATION IS A TOOL THAT WILL HELP ONCE WE HAVE A CLEAR WILDFIRE PLAN FROM HECO THAT TELLS US WHAT THEY'RE GOING TO DO, HOW MUCH IT'S GOING TO DO COST, AND HOW LONG RATEPAYERS WILL HAVE TO BE PAYING FOR THIS ADDITIONAL CAPITAL TO DO ALL THE WORK THAT'S GOING TO BE NEEDED.

>> Daryl: OKAY.

SO NOW I'M GOING TO START PAYING ATTENTION TO OUR VIEWERS NOW.

IT'S BEEN ABOUT 15 MINUTES, AND I NEED TO GET TO THESE.

LAST WILDFIRE QUESTION FOR TODAY UNLESS WE GET A REALLY LOLLAPALOOZA LATER ON.

FROM BROOK FROM WAIKIKI.

FOLLOWING THE MAUI WILDFIRES, A LOT OF FOCUS HAS BEEN ON WILDFIRE PREVENTION.

WHERE DO WE STAND ON PREVENTION AND PREPAREDNESS FROM OTHER TYPES EMERGENCIES SUCH AS HURRICANES, MASS FLOODING AND TSUNAMI?

WOULD YOU SAY OUR GOVERNMENT IS REACTIVE OR PROACTIVE AS IT COMES TO DEALING WITH EMERGENCIES AND HOW DOES OUR -- THIS IS A LOT OF QUESTIONS.

CHRIS LEE, WHAT HAVE WE LEARNED?

IN TERMS OF OUR PREPAREDNESS FOR EMERGENCIES?

THIS WAS A WAKE-UP CALL FROM A LOT OF ANGLES.

>> YEAH, ABSOLUTELY.

THIS IS NOT THE FIRST TIME THAT ANYWHERE IN THE UNITED STATES HAS EXPERIENCED THIS.

THERE ARE A LOT OF LESSONS AND BEST PRACTICES WE CAN LEARN FROM AND HELP IMPLEMENT.

THAT WAS PART OF THE DISCUSSION.

HOW DO WE PROACTIVELY GET AHEAD OF THIS BECAUSE THERE IS GOING TO BE A NEXT TIME EVENTUALLY.

IT IS INEVITABLE, WHETHER IT'S A HURRICANE, WILDFIRE, WHATEVER.

ONE OF THE SILVER LININGS OUT OF THIS TERRIBLE TRAGEDY IS, WE'RE AT A POINT WE GET TO ARE BUILD A TOWN.

AND THE COMMUNITY GETS TO DECIDE WHAT KIND OF TOWN THEY WANT TO MAKE, AND WHAT KIND OF COMMUNITY THEY WANT TO HAVE.

BOTH FROM A TECHNICAL PERSPECTIVE, HOW DO YOU BUILD OUT MORE RESILIENCY SO YOU HAVE SHELTERS THAT CAN KEEP POWER AND CELL PHONES THAT CAN KEEP WORKING EVEN IN SPACE WHERE POWER IS CUT OFF OR THINGS LIKE THAT.

HOW DO YOU BUILD OUT MORE SUFFICIENT INFRASTRUCTURE THAT REDUCES COST FOR EVERYBODY?

BUT MORE THAN THAT, HOW DO YOU BRING A COMMUNITY BACK TOGETHER AGAIN IN A WAY THAT IS COLLABORATIVE?

YOU MENTIONED EARLIER THERE WAS A BILL THAT SET UP A CERTAIN ADVISORY COUNCIL THAT BASICALLY WOULD HAVE LET THE COMMUNITY ITSELF IN LAHAINA ELECT ITS OWN LEADERS TO DECIDE WHAT THAT FUTURE OUGHT TO LOOK LIKE.

I THINK THERE'S LESSONS THERE.

WE'VE NEVER HAD TO GO THROUGH THIS IN THIS DEGREE IN THE MODERN HISTORY IN HAWAII.

IF WE CAN DO THIS WELL AS A SOCIETY AND STATE, I THINK WE CAN DO ANYTHING.

SO I'M OPTIMISTIC.

>> Daryl: OKAY.

GENE.

>> MY BIG BEEF IS THEY DIDN'T HAVE AN EMERGENCY EVACUATION PLAN.

EVERYBODY IS SUPPOSED TO HAVE A PLAN.

THAT'S WHY THEY HAVE HIEMA, THE HAWAII EMERGENCY.

THEY HAVE MAEMA, THE MAUI EMERGENCY.

THERE WAS NO GAME PLAN, WHICH TO ME, IT WAS LIKE THEY WERE FLATFOOTED.

THEY DIDN'T HAVE COMMUNICATION.

WHY NOT HAVE WALKIE-TALKIES.

YOU DON'T NEED A CELL TOWER IF YOU HAVE WALKIE-TALKIES.

IF YOU'RE POLICE, YOU CAN'T TALK TO FIRE?

THOSE ARE KIND OF, LIKE, NOT EXCUSABLE.

IF YOU'VE GOT A PLAN, YOU WORK THE PLAN.

EVEN SCHOOLS HAVE FIRE DRILLS.

THERE WAS NO PLAN.

THAT GOES BACK TO LEADERSHIP.

IT GOES BACK TO THE GOVERNANCE MODEL, AND I THINK THERE'S PROBABLY GOING TO BE SOME CHANGES IN NOVEMBER.

>> Daryl: TALK ABOUT CHANGES, THIS IS A QUESTION FROM MALIA FROM KALIHI ABOUT ANOTHER BIG ISSUE YOU GUYS TOOK ON THIS YEAR.

IS THE BILL ALLOWING COUNTIES DO WHAT THEY WANT WITH SHORT-TERM RENTALS TOO LITTLE TOO LATE OR JUST PASSING THE BUCK TO THE COUNTIES?

WILL IT ADDRESS AFFORDABLE HOUSING?

NADINE NAKAMURA, DO YOU SEE THE KIND OF DRAMATIC CHANGE THAT THE GOVERNOR KEEPS TALKING ABOUT?

IF WE GET RID OF ALL THE ILLEGALS, IT WILL SOLVE OUR HOUSING CRISIS?

>> NO.

I THINK THIS BILL WILL HELP THE COUNTIES WHO CURRENTLY DON'T HAVE AUTHORITY TO REGULATE NONCONFORMING SHORT-TERM RENTALS IN RESIDENTIAL DISTRICTS.

THERE'S THIS LOOPHOLE IN STATE LAW THAT THEY HAVE THE AUTHORITY FOR NONCONFORMING RESIDENTIAL USES IN OTHER DISTRICTS BUT NOT IN RESIDENTIAL DISTRICTS.

SO THIS IS SOMETHING THE COUNTIES WOULD LIKE TO SEE, AND WE'VE GIVEN THEM THE AUTHORITY.

EIGHT YEARS AGO WHEN I CAME TO WORK AT THE LEGISLATURE, I INTRODUCED THAT BILL.

EVERY YEAR IT GOT SHUT DOWN.

SO IT TOOK THE MAUI WILDFIRE TO GET THE APPROVAL TO MOVE FORWARD.

>> Daryl: NEAL MILNER, YOU THINK THIS IS GOING TO BE A DRAMATIC CHANGE?

>> I DON'T KNOW.

IT'S POSSIBLE.

THERE'S A NUMBER OF THINGS THAT ARE GOING TO HAPPEN IN THE INTERVENING TIME.

ONE OF WHICH IS THERE'S GOING TO BE LITIGATION.

AND THE OTHER, OF COURSE, IS WHICH COUNTIES ARE GOING TO PASS IT AND WHETHER PEOPLE ARE GOING TO MOVE IN.

THESE ARE ALL THINGS THAT HAVE TO BE DEALT WITH ALONG THE WAY.

AND IT'S JUST TOO SOON TO TELL.

THE IRONY, OF COURSE, IS THAT STATE LIKE TO DO THIS TO COUNTIES.

WHEN AN ISSUE IS REALLY ROCKY AND REALLY CONTROVERSIAL, YOU DELEGATE IT DOWN IN THE NAME OF GRASSROOTS DEMOCRACY TO THE COUNTIES.

WHEN A COUNTY WANTS TO DO SOMETHING AT THE STATE LEGISLATURE, AND NOT JUST THIS STATE LEGISLATURE.

THIS IS A DYNAMIC ALL OVER THE COUNTRY.

WHEN THE COUNTIES WANT TO DO SOMETHING THAT STATE DON'T WANT THEM TO DO, THE STATE LEGISLATORS DON'T WANT THEM TO DO, THEN YOU USE LEGAL TERMS THAT SAY IT'S OUR KULEANA AND ONLY OURS.

SO THIS IS AN INTERESTING ONE.

OTHER LIKE THAT IS THE ADU ONE.

THE HIGHER DENSITY.

>> OH, BOY.

HE'S PUSHING MY BUTTON.

HAWAI'I KAI WILL NEVER BE HAWAII KAI IF THAT BILL IS PASSED.

AND IT HAS PASSED, AND THE NEIGHBOR ISLAND PEOPLE LOVED IT BECAUSE THEY HAVE BIG LOTS.

>> I LIKE IT.

>> BUT IT'S GOING TO BE ALMOST LIKE THE ADUS.

THE BIG GUYS WHO OWN 20 OR 30 UNITS, THEY'RE THE GUYS THAT THIS SHORT-TERM RENTAL IS GOING TO DO.

WE'RE GOING TO HURT IS THE KUPUNA.

UNDER 3202, WE'RE GOING TO HAVE ALL OF OAHU CHANGE CHARACTER OF ITS NEIGHBORHOOD.

>> Daryl: WE HAVE TO MAKE CLEAR WHAT WE'RE TALKING ABOUT.

WE'RE TALKING ABOUT SHORT TERM RENTALS.

>> HE BROUGHT UP 3202.

>> Daryl: TRY NOT TO TALK BILL NUMBERS ON THIS SHOW.

BUT WHAT YOU'RE TAKING ABOUT IS ANOTHER HOUSING INITIATIVE THAT DID PASS, IT WAS ONE OF THE MOST CONTROVERSIAL IN THE STATE HOUSE AND SENATE.

AND GO AHEAD, GENE.

DESCRIBE WHAT THIS BILL -- YOU THINK WHAT THIS BILL WILL DO FROM YOUR PERSPECTIVE.

MANY OF THE SUBURBAN REPRESENTATIVES CAME OUT AGAINST THIS.

>> ALL OF US LIVE IN NICE COMMUNITIES, REGARDLESS IF IT'S THE NEIGHBOR ISLANDS.

>> YOU DON'T WANT CHANGE, RIGHT?

>> THERE ARE CERTAIN CHARACTERISTICS AND CHARACTER TO A NEIGHBORHOOD.

AND ONCE YOU START FILLING IN WITH AT LEAST TWO ADUs -- AND THIS IS KIND OF AN OPEN INVITATION FOR MAINLAND DEVELOPERS.

MAINLAND PROPERTY PEOPLE COMING IN HAVE ALREADY SCARED US WITH ALL THE AIRB&B THEY PUT TOGETHER.

THEY COME AND BUY A PIECE OF LAND AND THEY GOT ONE HOUSE AND PUT THREE OR FOUR DIFFERENT ONES ON IT.

YOU TALK ABOUT THE TRAFFIC AND INFRASTRUCTURE AND UTILITY.

IT'S GOING TO MAKE IT ALL WORSE.

IT SHOULD BE FOR THE NEIGHBORHOOD ISLANDS BUT NOT HONOLULU.

>> Daryl: YOU HAVE A DISTRICT WHERE YOU HAVE DECENT SIZE LOTS.

DO YOU FEEL LIKE THIS IS A THREAT TO THOSE NEIGHBORHOODS?

>> I WANT TO START BY SAYING NO BILL'S PERFECT.

I THINK SOME OF THE CONCERNS RAISED ARE LEGITIMATE ABOUT WHAT IT'S GOING TO MEAN FOR NEIGHBORHOODS IN SOME AREAS.

IT'S THE PRODUCT OF COMPROMISE AND WE HEARD FROM THE CITY AND COUNTY OF HONOLULU AND FOLKS OUT IN THE COMMUNITY THROUGHOUT THE PROCESS THAT THERE'S A LOT OF CONCERNS AND A BUNCH GOT ADDRESSED.

THE BILL GOT SLIMMED DOWN.

ULTIMATELY, THE END GOAL IS HOW DO WE PROVIDE HOUSING FOR OUR NEXT GENERATION?

THIS IS ONE OF THOSE PERENNIAL ISSUES THAT COMES UP EVERY SINGLE ELECTION, EVERY SINGLE YEAR, EVERY LEGISLATIVE SESSION.

AND YET HERE WE ARE 15, 20 YEARS INTO THIS OR PROBABLY LONGER.

HOW WE PROVIDE HOUSING FOR KIDS OUR GROWING UP.

I'M 43 NOW.

A LOT OF MY FRIENDS STILL CAN'T AFFORD TO BUY THEIR OWN PLACE.

THEY'RE DOCTORS.

THEY'RE LAWYERS.

THEY'VE GOT GREAT JOBS HERE IN HAWAII.

AND SO THE LEGISLATURE ISN'T GOING TO HAVE ONE SILVER BULLET TO FIX THIS.

LET ME FINISH ONE POINT.

THE MEASURE TASKS THE COUNTIES WITH ACHIEVING THIS BROADER GOAL.

IT GIVES THEM THE ABILITY AND FLEXIBILITY.

THE RESPONSIBILITY IN SOME CASES TO FIGURE OUT HOW TO DO IT.

>> Daryl: IT'S A COUNTY AUTHORITY, RIGHT?

>> IT GIVES THE COUNTIES AUTHORITY TO FIGURE OUT HOW TO MAKE SURE THERE'S HOUSING FOR THE NEXT GENERATION.

>> DOWN FROM THE STATE TO THE COUNTIES.

>> Daryl: ALL RIGHT.

I HAVE TO GIVE SOME CREDIT TO MULTIPLE PEOPLE ASKING ABOUT THE SAME SUBJECT.

WHY NO GREEN FEE BILL FOR TOURISTS TO FUND MAINTENANCE OF BEACHES, TRAILS, ET CETERA.

TERRIBLE OVERTOURISM IS DESTROYING HAWAI'I.

CAN THE LEGISLATURE DO ANYTHING TO STOP OVERTOURISM?

WHY DID THE STATE REAPPROVE MUFI, THE POWERFUL MUFI HANNEMANN?

>> HAWAI'I TOURISM AUTHORITY MADE THAT APPOINTMENT.

>> Daryl: BUT HERE AGAIN THIS ATTITUDE OF OVERTOURISM.

NADINE NAKAMURA, WHAT DID YOU FOLKS DO ANYTHING ABOUT OVERTOURISM?

>> WELL, ONE THING THAT WE DID WAS TO FUND IN THE GENERAL PLAN THE HAWAI'I TOURISM AUTHORITY.

FOR THE PAST FEW YEARS, THESE HAVE NOT BEEN FUNDED.

AND SO GOVERNOR GREEN HAD TO REARRANGE FUNDS AND DO MAKESHIFT CHANGES TO THE BUDGET, BUT THIS YEAR, THE FUNDING FOR HTA IS IN THERE.

THE FUNDING FOR THE CONVENTION CENTER IMPROVEMENTS ARE IN THE BUDGET, IN THE CIP BUDGET.

WE ARE ALSO DOING A DESTINATION MANAGEMENT APPLICATION DEVELOPMENT, SO FUNDING IS IN PLACE SO THAT VISITORS WHO COME HERE CAN LOOK AT THIS APP AND KNOW WHICH BEACH PARKS ARE AVAILABLE, WHETHER THEY NEED TO PAY A RESERVATION FEE FOR PARKING AND SO FORTH.

IT'S ALL GOING TO BE ON ONE APP.

THE OTHER THING IS THE GOVERNANCE OF HAWAI'I TOURISM AUTHORITY AND THE USE OF STAFFING TO ADDRESS DESTINATION MANAGEMENT BECAUSE I THINK THE -- WE'RE MOVING IN THAT DIRECTION.

HAWAI'I TOURISM AUTHORITY WOULD LIKE TO MOVE AND TAKE MORE ACTIVE ROLE IN THIS DIRECTION.

AND I THINK THE BOARD IS -- THE HTA BOARD WANTS TO MOVE IN THAT DIRECTION.

IT'S JUST MAKING IT HAPPEN.

>> Daryl: WHAT DO YOU MAKE OF THIS?

NUMBER OF QUESTIONS IN THIS CONTINUING -- I MEAN, DO YOU THINK IT'S SUFFICIENT WHAT THEY'RE TALKING ABOUT TO SATISFY THE PUBLIC?

>> NOT SOME ASPECTS.

LOOK, WE'VE ALL LIVED HERE FOR A LONG TIME.

I WOULD RATHER WE DIDN'T LIVE IN A ECONOMY SO MUCH DEPENDENT UPON THE MILITARY AND UPON TOURISM.

NO ONE HAS A BETTER MODEL, AND IF THERE IS A BETTER MODEL, MORE SUSTAINABLE, DIVERSE ECONOMY, IT'S GOING TO TAKE A LONG, LONG TIME.

I NEVER WANT TO BE UNSYMPATHETIC TO THE IDEA THERE'S TOO MUCH TOURISM, BUT THAT'S THE WAY WE LIVE, AND THAT'S THE WAY WE ARE GOING TO LIVE FOR A WHILE.

THE TOURIST AUTHORITY ONE, LOOK, I'M AN OUTSIDER, RIGHT.

HERE IS WHAT I ALWAYS THOUGHT ABOUT THE HAWAI'I TOURISM AUTHORITY.

SO THEY EXIST, AND ALL OF A SUDDEN, THE LEGISLATURE IS SO ANGRY WITH THEM, THEY BARELY GIVE THEM MONEY FOR A CANDY BAR.

NEVER MIND THE REPAIRS.

THAT'S ANOTHER ISSUE.

THEY'RE SOMEWHERE OUT THERE.

THINGS HAPPENED AND ALL OF A SUDDEN, THEY'RE FUNDED AGAIN.

I WOULD LIKE TO KNOW MORE ABOUT WHAT HAPPENED.

NOT ME PERSONALLY.

THAT'S THE JOB OF BOTH THE AUTHORITY AND LEGISLATORS.

WHAT'S THE MAGIC HERE THAT SUDDENLY FOLKS ABOUT AS FAR INTO THE DUNGEON AS YOU COULD GET ARE LEADING THE PACK TO CREATE A -- >> Daryl: LET ME GIVE CHRIS LEE A CHANCE.

>> ONE BILL IN PARTICULAR ON THIS QUESTION OF TOURISM.

I THINK A LOT OF THE PUSHBACK COMES FROM COMMUNITIES WHERE YOU HAVE OVERSATURATION OF PEOPLE CLOGGING BEACHES AND ROADS AND PARKING AND ALL THESE THINGS.

ONE OF THE BILLS THAT SNUCK UNDER THE RADAR, IT WASN'T ONE OF THESE GRANDIOSE STORIES YOU WOULD CATCH IN THE NEWS IS THAT WE GAVE THE PUBLIC UTILITIES COMMISSION, WHO GENERALLY HAS ENFORCEMENT AUTHORITY TO GO AFTER ILLEGAL TOUR COMPANIES THAT ARE TAKING TOURISTS INTO RESIDENTIAL AREAS AND DOING SOME OF THIS STUFF MORE ABILITY TO ENFORCE.

AND THEY'RE GOING TO BE PARTNERING WITH DEPARTMENT OF TRANSPORTATION TO TRY AND FIGURE OUT HOW WE CAN LEVERAGE SOME OF THE STAFF THERE TO DO REAL ENFORCEMENT ON THE GROUND SO WE'RE NOT TAKING UP HPD'S TIME.

POLICE HAVE THEIR OWN SET OF ISSUES THAT THEY'RE DEALING WITH, BUT WE WILL HAVE A LITTLE BIT MORE ABILITY TO GO AFTER THOSE WHO ARE CAUSING REAL PROBLEMS.

AND THAT SEEMS TO BE WHERE THE RUBBER MEETS THE ROAD IN A LOT OF CASES.

WHEN IT IMPACTS YOUR OWN BACK YARD AND YOUR OWN COMMUTE TO SCHOOL AND YOUR KIDS OUTSIDE AND YOUR TIME ON THE BEACH AND ALL OF THAT.

>> Daryl: FIGURE OUT THE HECO THING.

>> IT TAKES IT OFF THEIR PLATE.

>> Daryl: OH, I SEE.

GENE.

>> THE LACK OF FUNDING FOR HTA WAS A SHOT ACROSS THE BOW.

YOU EITHER DO WHAT WE WANT TO DO.

MANAGE TOURISM.

DON'T KEEP PROMOTING TOURISM.

ONE OF THE THINGS WE DON'T DO OR THINK MUCH OF IS DIVERSIFICATION OF THE COMMITTEE.

WE COULD BECOME THE HOLLYWOOD OF THE PACIFIC LIKE THAT.

SPACE TOURISM.

>> Daryl: I WANT TO ENDORSE THAT POINT BECAUSE THE QUESTION FROM KO'OLAU.

DO ANYTHING TO DIVERSE THE ECONOMY AND GOOD PAYING JOBS FOR RESIDENTS LIKE SUPPORT FILM AND TV.

>> IT'S SITTING RIGHT IN FRONT OF US.

WE GOT GEORGIA AND KENTUCKY BEATING US OUT AS NATIONAL LEADER MAKING FILMS.

BECAUSE WE CAN ONLY GIVE YOU SO MUCH OF A CAP FOR REIMBURSEMENT.

IF WE OPEN THAT CAP UP -- >> Daryl: TAX BREAK.

>> TAX CREDIT ACTUALLY.

EXACTLY.

WE WOULD DEFINITELY BE THE HOLLYWOOD OF THE PACIFIC.

WE DON'T EVEN TALK ABOUT DIVERSIFICATION OF THE ECONOMY.

WE KIND OF BEMOAN IT.

WE CAN'T REALLY RELY UPON IT.

BUT LET'S BE WISE.

UNTIL YOU ACROSS THE BRIDGE, DON'T BURN THE BRIDGE BEHIND YOU UNTIL YOU CROSS IT.

THAT'S WHERE TOURISM -- WE ARE STUCK WITH THE MILITARY.

FOR WHAT'S GOING ON WITH XI JINGPING AND TAIWAN, I'D SAY WE'RE IN A GOOD POSITION TO HAVE THAT ONE, >> Daryl: SO I'M GOING TO HAVE NADINE ANSWER THAT.

BUT MIKE IN KAKAAKO.

ANOTHER QUESTION, DID THE LEGISLATURE ADDRESS THE PLAN FOR AN ALTERNATIVE OPTION FOR THE ECONOMY BESIDES TOURISM?

>> I'M REALLY HAPPY THAT THIS YEAR WE FUNDED A NUMBER OF PROGRAMS THAT'S GOING TO THE BUSINESS ECONOMIC DEVELOPMENT AND TOURISM THAT'S DEALING WITH GRANT FOR NEW STARTUPS AND BUSINESSES.

SO FOR MANUFACTURING GRANTS, ACCELERATOR GRANTS, ALL OF THESE COHORTS THAT ARE CREATED WITH GIVEN RESOURCES, STARTUP FUNDS.

AND WE'RE SEEING THIS WITH THE PROGRAMS THAT THE BUSINESSES CAN MOVE FROM CONCEPT AND JUST STARTING OFF TO SCALING UP AND DOING HIRING FOLKS, USING GOOD JOBS AND CREATING ALTERNATIVE PATHWAYS AND BUILDING A STRONGER BUSINESS COMMUNITY.

>> Daryl: SO I WANT TO TALK ABOUT ENVIRONMENTAL BILLS -- ENERGY AND ENVIRONMENT.

I DID GET A QUESTION FROM TAPANI.

WE CAN UTILIZE OUR ONE WATER FROM WASTEWATER PLANTS TO CREATE GREEN BELTS TO PROTECT RESPECTIVE COMMUNITIES.

THE OUTCOME OF THE FIRE.

DIVERSION OF THE WATER CREATED DRY CLIMATE.

ANYTHING HAPPENED, CHRIS LEE, TO DEAL WITH OR ENCOURAGE THAT?

OUR WATER LEGISLATION.

THE WATER COMMISSION IDEA DIED, BUT IS THERE ANYTHING THAT CAME OUT TO ASSIST THAT OR ANY MAJOR ENVIRONMENTAL THING THAT YOU'D LIKE TO POINT TO?

>> WE HAVE OUR STATE CLIMATE COMMISSION, WHICH HAS BEEN AROUND OW ABOUT TEN YEARS IN ONE FORM OR ANOTHER THAT'S DOING A LOT OF WORK.

GREEN HAWAI'I OVER THE LONG TERM.

CERTAINLY, IN PARTNERSHIP WITH THE COUNTIES, HOW DO WE HAVE ENOUGH WATER, NOT ONLY FOR DRINKING BUT ALL THE OTHER USES.

SO THAT'S AN ONGOING CONVERSATION.

I THINK THE MAUI FIRES DIDN'T NECESSARILY CHANGE THAT BECAUSE THAT'S THE INTENT ANYWAY.

BUT WE DO HAVE A TASK FORCE THAT'S GOING TO BE CONVENING THIS SUMMER TO LOOK AT GREEN CORRIDORS ALONG HIGHWAYS AND THINGS LIKE THAT, WHICH A LOT OF PLACES AROUND THE COUNTRY DO.

NOT ONLY FOR WILDLIFE AND CREATING ECOSYSTEMS AND POLLINATOR HABITATS AND ALL OF THAT BUT ALSO FOR DRAWING IN WATER THAT WOULD OTHERWISE GO INTO THE SEWER SYSTEM AND LETTING IT SOAK INTO THE GROUND TO REPLENISH OUR WATER TABLE.

SO THERE'S A LOT HAPPENING THERE FOR SURE.

AND THERE ARE FUNDING FOR DLNR TO FUND A LOT OF PROJECTS THAT TOUCH ON WATERSHED MANAGEMENT AND CONSERVATION AND ALL OF THAT.

>> Daryl: NEAL, DID YOU SEEN ANYTHING ON ENVIRONMENT THAT JUMPED OUT AT YOU?

I HAVE ANOTHER QUESTION FROM BOB IN KANEOHE.

WE LIVE ON AN ISLAND.

THE STATE IS AWARE OF CLIMATE CHANGE.

WHAT HAS THE LEGISLATURE DONE?

DID YOU SEE ANYTHING COME UP?

>> ONE THING THAT WAS A LITTLE CONTROVERSIAL HAD TO DO WITH PERMITTING FOR SOLAR AND SOME OF THE OTHERS.

I'M AGNOSTIC ABOUT THAT ONE.

IT SEEMS TO ME THAT THAT WAS A WAY OF INCENTIVIZING PEOPLE TO DO THINGS.

THE WHOLE THING ABOUT GOALS AND SUSTAINABILITY SORT OF FLOATS AROUND THERE.

THERE'S A LONG-TERM GOAL, AND IT'S AROUND AND THEN WE CHANGES AND SO ON.

I HAVE TROUBLE PUTTING MY HANDS AROUND SOMETHING CALLED ENVIRONMENTAL POLICY BECAUSE I THINK IT'S ESSENTIALLY PIECES OF THINGS ABOUT SUSTAINABILITY.

>> Daryl: FOLDED INTO SO MUCH.

>> RIGHT.

AND IT TOUCHES A LOT OF -- >> LET ME HOP ON THAT REAL QUICK.

I KNOW THERE'S MORE TO SAY BUT THIS IS ONE OF THOSE PLACES WHERE HAWAI'I DOES EXCEL.

IF YOU LOOK AT THE OTHER STATES, MY OTHER HAT, I HEAD UP AN ORGANIZATION THAT'S NATIONWIDE -- LEGISLATORS, REPUBLICANS AND DEMOCRATS FROM ALL 50 STATES.

LOOKING AT ENVIRONMENTAL ENERGY POLICY.

AND WE ARE HELD OUT AS ONE OF THOSE CHAMPION CASES.

THIS IS HOW YOU REALLY DIVERSIFY THE ECONOMY AND DO THINGS.

BECAUSE WE CAN INVEST IN OUR ENVIRONMENT, INVEST IN CONSERVATION, INVEST IN, IN PARTICULAR, RENEWABLE ENERGY AND CREATE JOBS.

WE'VE SEEN THE FASTEST GROWING SEGMENT OF OUR ECONOMY OVER THE LAST DECADE BE THE RENEWABLE ENERGY BAR NONE.

IT'S NOT ONLY CREATING JOBS IN INVESTMENT IN HAWAI'I BUT ALSO REDUCING COSTS FOR RATEPAYER.

IT'S A HUGE WIN.

WE SAID WE WANT TO BE 100% RENEWABLE ENERGY.

WE'RE DONE WITH FOSSIL FUEL, HAS CREATED AN INVESTMENT PLATFORM AND HAS CREATED AN INVESTMENT PLATFORM AND RISK-FREE PLACE IN HAWAI'I.

PEOPLE DOING ALL THESE RENEWABLE PROJECTS WANT TO SAY, WE WANT TO PUT OUR MONEY IN HAWAI'I AND DO PROJECTS BECAUSE THE GOVERNMENT, SOCIETY, PEOPLE ARE GOING THE SAME DIRECTION, AND THAT'S BEEN A HUGE WIN FOR US.

>> THAT'S A POLITICAL GOAL.

PEOPLE ARE NOT BUYING EVs.

THEY SAY THERE'S NOT THE CHARGERS, THERE'S NOT THE DISTANCE.

THE BIG COMPANY THAT'S BUILT THEM ARE LOSING MONEY BECAUSE NOBODY'S BUYING THEM.

AND THE INFRASTRUCTURE IS JUST NOT THERE.

>> Daryl: THAT -- >> THE GOOD SENATOR HAS A BEAUTIFUL TESLA.

>> LET ME CLARIFY.

THAT WAS A $29,000 CAR.

>> YOU HAVE THAT?

>> YEAH.

I HAVE THE BASE MODEL.

>> Daryl: I'VE GOT REALLY GOOD QUESTIONS HERE SITTING HERE, AND WE'VE GOT ABOUT 15 MINUTES.

I WANT TO MOVE ALONG.

WHAT ABOUT DECRIMINALIZATION AND LEGALIZATION OF CANNABIS?

WHY DIDN'T THOSE BILLS PASS?

THEY DIED IN THE HOUSE.

NADINE NAKAMURA, WHAT HAPPENED?

>> IT WAS A CLOSE VOTE.

WE WERE HAPPY TO HAVE THE CONVERSATION.

IT'S VERY DIFFICULT FOR A LOT OF MEMBERS.

THEY'RE REPRESENTING THEIR COMMUNITIES, AND WE HAD TWO HEARINGS ON THIS, AND THEY PASSED BOTH THE JUDICIARY COMMITTEE, PASSED THE CONSUMER PROTECTION COMMITTEE AND THEN IT DIED IN THE FINANCE COMMITTEE.

AT EACH LEVEL, WE WERE ABLE TO HAVE THE DISCUSSION, FLUSH OUT THE CONCERNS.

IT'S GONE FURTHER THAT IT HAS GONE THROUGH THE LEGISLATURE.

THE ATTORNEY GENERAL SPENT A LOT OF TIME IN THE INTERIM WORKING ON THIS BILL THAT IS PROBABLY THE MOST COMPREHENSIVE BILL THAT WE'VE SEEN SINCE -- EVER SINCE I STARTED, AND IT'S, I THINK, WE HAD A REALLY HEALTHY DISCUSSION ABOUT IT.

>> Daryl: ARE YOU SAYING ADVOCATES CAN LOOK FORWARD TO SOMETHING NEXT YEAR?

>> I'M SURE THERE'S GOING TO BE MORE ADULT USE CANNABIS BILLS NEXT YEAR.

>> Daryl: REPRESENTATIVE WARD, I SAW YOUR FACE.

>> LOOK, CALIFORNIA AND COLORADO HAS ALREADY BEEN THERE, DONE THAT IN TERMS OF PUBLIC SAFETY, IN TERMS OF THE KIDS.

WE'RE GOING TO KEEP IT OUT OF THE HANDS OF YOUTH.

NO WAY.

RIGHT NOW, WE PROBABLY HAVE DE FACTO LEGALIZATION.

YOU CAN GET MARIJUANA ANY TIME, ANY PLACE FOR ANY AMOUNT.

AND WHAT HAS HAPPENED IS THE BLACK MARKET TAKES OVER WHEN THESE THINGS HAPPEN.

RIGHT NOW WE'VE GOT THE MEDICAL MARIJUANA, WHERE MOST OF THE PEOPLE, BECAUSE THE PRICE TO BUY AT THE DISTRIBUTION CENTERS, THEY GO AND BUY ON THE STREET.

THAT'S NOT SAFE.

THAT'S NOT THE INTENTION, BUT THE POINT, IS IF WE WANT TO NUMB AND DUMB DOWN OUR KIDS, LET'S DO IT.

RIGHT NOW, I THINK THE BEST DECISION IS LET'S KEEP IT.

THEY'VE ALREADY GOT ACCESS.

>> HERE'S THE THING AS FAR AS I'M CONCERNED.

IF YOU LOOK AT THE ORGANIZATIONS, THE HERITAGE FOUNDATION, THEY DID VERY DETAILED, COMPREHENSIVE WHAT'S CALLED META-ANALYSIS.

THEY BOTH HAVE COME TO THE SAME CONCLUSION.

THE CONCLUSION IS IT'S NOT AS BAD AS THE OPPONENTS SAY IT IS.

IT'S NOT NEARLY AS GOOD AS THE ADVOCATES SAY IT IS.

SO THAT SUGGESTS TO ME TWO THINGS.

ONE OF WHICH, IF YOU'RE GOING TO MAKE IT ABOUT THE SCIENCE -- THERE REALLY DIDN'T VERY MUCH.

AND ALL OF THIS STUFF THAT STEVE ALM BROUGHT FORWARD AND SO ON, IT'S CHERRY PICKING.

IT'S JUST A LITTLE PIECE OF EVIDENCE HERE, LITTLE PIECE OF EVIDENCE THERE.

BUT THERE'S A LOT OF STUFF HERE THAT GETS THROWN INTO THE MIX.

ONE OF WHICH IS INDIVIDUAL RIGHTS.

ONE OF WHICH IS A LIBERTARIAN VIEW THAT PEOPLE SHOULD BE ABLE TO DO WHAT THEY WANT.

IF IT'S NOT LEGAL, THE WORKING CLASS -- SO THAT'S MY FEAR.

I'M FASCINATED BY THE ISSUE.

IT'S NOT CLEAR TO ME HOW I WOULD VOTE ON IT.

>> Daryl: LET ME MOVE QUICKLY.

AGAIN, LIKE TEN MINUTES TO GO.

AND I'LL LET YOU DO THIS, CHRIS.

YOU WERE QUIET ON THE MARIJUANA THING.

DO LAWMAKERS ON THE PANEL FEEL THEY DID ENOUGH TO ADDRESS GOVERNMENT CORUPTION?

PUBLIC FINANCE ON ELECTION DIED.

AS DID OTHER MEASURES TO RESTORE TRUST IN GOVERNMENT?

DO YOU SEE MORE TRUST IN GOVERNMENT OR DO YOU THINK THERE WERE THINGS LEFT ON THE TABLE THAT SHOULD HAVE PASSED?

>> IN THE CONTEXT OF WHERE THE PUBLIC IS -- NOT JUST IN HAWAII, I DON'T THINK THERE'S A THING WE COULD HAVE DONE THAT WOULD SUDDENLY GET EVERYBODY TO TRUST GOVERNMENT.

THERE ARE STEPS WE CAN TAKE AND WE HAVE TAKEN OVER THE LAST COUPLE YEARS TO START MOVING THE NEEDLE.

ONE OF THE THINGS THAT WAS DISCUSSED THIS YEAR WITH AN ELECTION CYCLE SORT OF UPON US, WAS THE INFLUENCE OF FOREIGN INFLUENCE IN OUR SYSTEM.

NOT ONLY BECAUSE OF THE SAME CONCERNS PEOPLE HAVE ABOUT PEOPLE BUYING UP LAND AND TOURISM.

>> Daryl: DO YOU MEAN FOREIGN LIKE OUT OF STATE OR FOREIGN LIKE FOREIGN COUNTRIES?

>> LIKE OUT OF COUNTRY.

AND CERTAINLY OUT OF STATE TO A CERTAIN EXTENT.

WE HAD A REALLY GOOD CONVERSATION THIS YEAR AROUND -- AND THIS IS ONE OF THESE ISSUE LIKE WE TALK ABOUT FINANCE, TERM LIMITS AND HIGH-PROFILE ISSUES.

IN REAL TERMS AROUND THE COUNTRY, THERE'S BEEN A SLEW OF STORIES ABOUT FOREIGN INVESTMENT, FOREIGN INFLUENCE COMING INTO LOCAL ELECTIONS.

PARTICULARLY AT THE STATE LEVEL.

AND THAT'S SOMETHING THAT WE'RE STARTING TO TRY AND GET OUR HANDS AROUND.

THERE'S A WORKING GROUP THAT THE HOUSE PUT TOGETHER LAST YEAR.

ON SENATE SIDE, WE HAD A NUMBER OF HEARINGS.

SENATOR RHOADS AND THE JUDICIARY COMMITTEE HAD PUSHED FORWARD ON A NUMBER OF FRONTS ON THAT.

I'M CAUTIOUSLY OPTIMISTIC THAT IN THE NEXT YEARS, ONCE WE GET PAST THE POLITICS AND POLARIZATION OF THIS ELECTION CYCLE, WE DO REAL STUFF ON THESE OTHER ISSUES THAT HAVEN'T SEEN THE LIGHT OF DAY.

>> Daryl: NADINE NAKAMURA.

>> I WAS GOING TO ADD THAT I THINK THE TWO JUDICIARY COMMITTEE CHAIRS, DAVID ON THE HOUSE SIDE AND KARL ON THE SENATE SIDE DID A GREAT JOB PUTTING FORWARD GOOD GOVERNMENT BILLS, WHETHER IT WAS THE CAMPAIGN SPENDING COMMISSION BILLS, SUNSHINE LAW BILL, ETHICS COMMISSION BILLS.

THERE'S A SLEW OF BILLS THAT THE GOVERNOR JUST SIGNED AND I THINK IT'S ALL MOVING IN THE RIGHT DIRECTION.

SOME OF THE FULLY COMMISSIONED RECOMMENDATION THAT DIDN'T GET ADDRESSED LAST YEAR GOT ADDRESSED THIS YEAR.

ON THE HOUSE SIDE, WE PASSED AND SENT OVER TO THE SENATE A BILL TO IMPROVE AND MODERNIZE PUBLIC FINANCING PROGRAM, WHICH HASN'T BEEN UPDATED IN MANY, MANY YEARS.

THAT WAS SENT OVER TO THE SENATE BUT DIED THERE.

>> PUBLIC FINANCING, I VOTED FOR IT.

BUT THE PEOPLE AREN'T READY TO PAY THE AMOUNT OF ISSUES.

IN TERMS OF THE ETHICS COMMISSION, THERE WERE 22 BILLS, WE PASSED THREE.

WHAT INFLUENCES ON THE EVERYDAY FUNDRAISING, IT'S THE STRUCTURE OF THE LEGISLATURE.

THERE'S A FAMOUS SAYING CALLED, I CAN KILL A BILL ANY THIS TIME I WANT, AND THE GUY WHO'S FAMOUS FOR THAT IN PRISON.

WE HAVE A STRUCTURE, AND I'M IN FRONT OF TWO CHAIRS.

THEY CAN KILL A BILL ANY TIME THEY WANT.

IF THEY WANT TO PASS A BILL, THEY LET EVERYBODY VOTE.

TO ME THAT IS AN ANATHEMA SO DEMOCRACY, THE WAY WE'VE BEEN STRUCTURED.

THE PUBLIC'S NOT PAYING ATTENTION.

THEY SHOULD KNOW THAT IF SOMEBODY IS OFFERED A BRIBE, LIKE IN THE CASE OF A COUPLE OF COLLEAGUES, THAT THEY CAN KILL THE BILL AND GET MONEY FOR IT.

THAT'S THE WAY THE SYSTEM IS.

IT'S STRUCTURED IN A WAY THAT INVITES PEOPLE TO PAY TO PLAY.

>> Daryl: I DO WANT TO ASK NADINE NAKAMURA, WHAT WE SEE EVERY YEAR IS THAT EVERYTHING THAT IS DONE BUBBLES OUT, BUT IT ULTIMATELY COMES DOWN TO ONE OR TWO OR THREE PEOPLE WHO ARE CONTROLLING THE DOLLARS AT THE END.

THAT'S WHERE THE POWER IN THE LEGISLATURE LIES.

DO YOU FOLKS THINK THAT YOU NEED TO DO BETTER AT INVOLVING MORE LEGISLATORS WHO REPRESENT MANY MORE PEOPLE INSTEAD OF A HANDFUL OF PEOPLE AT THE END OF THE CONDUIT?

>> I THINK IT'S A BALANCE.

I DO WANT TO GO BACK TO REP WARD'S POSITION, AND SAY THAT THERE ARE A COUPLE OF LEGISLATORS THAT CROSSED THE LINE, AND THEY'RE IN PRISON FOR THAT.

I THINK THAT DOES NOT COVER THE MAJORITY OF THE MEMBERS WHO, DAY IN AND DAY OUT, REPRESENT OUR COMMUNITIES.

THEY DO THE HARD WORK.

THEY'RE IN DURING THE SESSION WORKING LONG HOURS.

THEY'RE DOING THE WORK AND EVIDENCE OF THAT IS THEY'RE GETTING REELECTED.

THEY'RE DOING THE WORK IN THEIR COMMUNITIES.

TO SAY THAT RIGHT OFF THAT EVERYBODY IS TAINTED SENDS THE WRONG MESSAGE.

WE HAVE SO MANY COMMITTED LEGISLATORS WHO ARE DOING GOOD WORK.

>> THEY'RE GOOD PEOPLE BUT THE STRUCTURE IS TAINTED.

THAT'S THE POINT.

>> GO AHEAD, CHRIS.

>> THE SENATE SENT IT THE HOUSE BILL.

WE CAN GET TOGETHER AND CONFERENCE THAT OVER THE INTERIM BUT THIS BRINGS UP A BIGGER POINT.

HOW CAN WE HAVE EFFECTIVE GOVERNMENT IF PEOPLE DON'T BELIEVE IT'S POSSIBLE TO INFLUENCE AND CHANGE IT?

THE BAD APPLES, THE FOLKS WHO ENDED UP IN JAIL, NOT JUST HERE BUT IN OTHER PLACES AS WELL, GET ALL THE ATTENTION.

EVERYBODY ASSUMES EVERYBODY'S CORRUPT SO I'M GOING TO DISENGAGE AND DO SOMETHING ELSE THAT'S A DISSERVICE TO SOCIETY OR OUR COMMUNITIES BECAUSE MOST LEGISLATORS -- ALL ARE FROM OUR COMMUNITIES.

IT'S PEOPLE OFF THE STREET WHO GET ELECTED SOMETIMES WITH NO GRAND AMBITION TO BE PRESIDENT.

THEY'RE THERE TO DO THEIR JOB.

WE FOCUS SO MUCH ON WHO'S RUNNING FOR PRESIDENT.

IT'S ALL THAT MATTERS.

WHAT'S HAPPENING IN D.C., BUT 90% OF DECISIONS THAT AFFECT PEOPLE'S LIVES -- WHAT OUR ROADS LOOK LIKE, SCHOOLS, HEALTHCARE, ENVIRONMENT, ALL THAT IS DECIDED BY FOLKS HERE.

YOU CAN PICK UP A PHONE AND CALL, WALK DOWN TO THEIR OFFICE SEND AN EMAIL, AND THEY'RE THERE TO HEAR YOU.

>> Daryl: NEAL, 30 SECONDS ON THAT SUBJECT.

>> I NEVER VIEWED THE TWO LEGISLATORS WHO WENT TO PRISON AS AN EXAMPLE OF WHAT THE LEGISLATURE IS LIKE.

I ALWAYS VIEWED THOSE GUYS AS KIND OF CHUMPS, BASICALLY.

THEY WENT WAY OVER A LINE.

>> Daryl: A PRETTY CLEAR LINE THEY CROSSED.

>> YEAH.

REALLY?

IT WAS A DAMON RUNYUN KIND OF CASE, BUT I THINK WHAT'S MORE IMPORTANT IS PAY TO PLAY, WHICH IS THE IDEA THAT THERE ARE PEOPLE IN THE COMMUNITY THAT GIVE A LOT OF MONEY TO LEGISLATORS.

THAT'S STILL MORE OR LESS LEGAL.

IF YOU WANT TO BRING TRUST IN GOVERNMENT, AND I THINK IT'S EVEN MORE COMPLICATED THAN YOU SAY, IF YOU DO SOMETHING ABOUT THAT AND IF YOU HAVE SOME EFFECTIVE PUBLIC FINANCING THAT I THINK THOSE ARE THE MOST IMPORTANT ISSUES.

WHAT ALWAYS BOTHERED ME ABOUT THAT ETHICS COMMITTEE THAT WAS SET UP LAST TIME IS THAT THEY DID A LOT OF THINGS, BUT THEY DANCED AROUND THE BIG ONE.

>> I THINK THEY COULDN'T GET AGREEMENT.

>> I'M SURE, YEAH.

>> THAT'S WHY THEY PUT FORTH THE PARTIAL PUBLIC FINANCIALS AND MODERNIZE IT SO PEOPLE WILL ENGAGE IN THAT PROCESS.

>> PUBLIC RATING APPROVAL IS AT 18%.

>> Daryl: I NEED TO MOVE ON.

SORRY.

I GOT FIVE MINUTES AND I HAVE A BUNCH OF QUESTIONS.

SO AGAIN, THE INSURANCE CONDO CRISIS.

IT DIDN'T GET DEALT WITH THIS TIME.

IS THIS A FRONT OF THE LINE ISSUE FOR NEXT YEAR?

>> IT WAS LEFT THE TABLE.

AND MY HURRICANE INSURANCE JUST GOT CANCELED.

THEY SAID YOU'RE LUCKY IF IT'S DOUBLE OR TRIPLE.

>> Daryl: CHRIS LEE?

>> I'M SURE IT WILL BE BACK.

>> Daryl: OKAY.

>> MAYBE A SPECIAL SESSION.

>> Daryl: SO TAXES.

WE TOUCHED ON IT A LITTLE BIT.

THE BIGGEST TAX BREAK IN THE HISTORY OF HAWAI'I.

A LOT OF IT IS OUT YEARS, WHICH ALWAYS CAN MAKE YOU NERVOUS.

BUT A COUPLE OF SPECIFIC QUESTIONS.

IN REGARDS TO INCREASE WITH STANDARD DEDUCTION, WHY IS IT SO SMALL?

IT DOESN'T KEEP UP WITH INFLATION.

IT'S TINY COMPARED TO FEDERAL.

DO YOU INCREASE PERSONAL EXEMPTION?

THAT'S WILL FROM PEARL CITY.

NADINE FROM THE HOUSE.

>> THE STANDARD DEDUCTION AND CHANGE IN INCOME TAX BRACKETS WILL HAPPEN OVER TIME AND IS A GRADUAL CHANGE.

SIX YEARS OUT.

BUT IT ALSO TRACKS INCREASES TO MINIMUM WAGE.

AS OUR MINIMUM WAGE EARNERS GET AN INCREASE IN PAY, THEY WILL NOT BE TAXED AT A HIGHER RATE.

WE'RE GOING TO GET RID OF THE LOWER TAX BRACKETS SO IT'S MUCH MORE PROGRESSIVE.

AND SO THE FAMILY OF FOUR MAKING $88,000 A YEAR MAY BE PAY $5,000 IN TAXES, AND THE END OF SIX YEAR, THEM BE PAYING MAYBE 1500.

$3,500 MORE IN THEIR POCKETBOOKS TO SPEND ON EVERYDAY EXPENSES.

>> Daryl: NEAL, WERE YOU SURPRISED AT THAT SIZE OF THE TAX?

>> YEAH, I WAS SURPRISED.

ESPECIALLY IN THE CHAOS OF THIS SESSION WHEN YOU HAD MAUI.

IT'S HARD FOR ME TO DO THE MATH.

WE DON'T KNOW WHAT IT'S GOING TO LOOK LIKE.

WE KNOW WHAT THE RULES SAY.

WE DON'T KNOW WHAT THE EFFECT OF THE RULE.

IS THAT GOING TO CUT INTO REVENUE STATE NEEDS?

ONE OF THE THINGS ABOUT THE TAX BILLS, YOU HEARD ME TALKING ABOUT HOW HARD IT IS TO IMPLEMENT SOME OF THESE.

I THINK IT'S PRETTY EASY TO IMPLEMENT THE TAX BILL.

AS LONG AS THE TAX DEPARTMENT HAS COMPUTERS THAT CAN TURN THINGS OUT.

>> IT'S ALL BASED ON SIX YEARS PROJECTION.

WE HAVE TO DO A SIX-YEAR BUDGET AND SEE HOW IT'S GOING TO TRACK.

WE HAVE DETAILED SPREAD SHEETS THAT LAY IT OUT.

>> Daryl: IS THERE ANY WORRY ON YOUR PART, NADINE OR CHRIS, THAT IN A COUPLE YEARS, THEY'RE GOING TO HAVE TO ROLL IT BACK AGAIN?

CHRIS?

>> ULTIMATELY, THE GOAL IS YOU GOT TO BALANCE THE BUDGET EVERY YEAR.

IT'S A CONSTITUTIONAL MANDATE.

RIGHT NOW THE BUDGET PLAN THAT WAS SET OUT AND PARTICULARLY FOR THE NEXT TWO YEARS AND OUT YEARS DOES BALANCE.

YOU NEVER KNOW WHERE THE ECONOMY IS GOING TO GO.

ARE WE GOING TO HAVE ANOTHER MAUI SITUATION?

IS THERE GOING TO BE ANOTHER PANDEMIC?

ALL THAT IS QUESTION MARKS.

WE PUT A TON OF MONEY INTO THE EMERGENCY BUDGET RESERVE FUND.

THE RAINY DAY FUND.

SO WE ARE IN BETTER SHAPE THAN WE'VE PROBABLY EVER BEEN BEFORE WITH THE RESERVES WE HAVE TO WEATHER THOSE RAINY DAYS.

>> Daryl: WE HAVE THE REGRESSIVE EXCISE TAX.

WE GOT ONE MINUTE.

IN 15 SECONDS, TELL ME ONE THING WE HAVEN'T TALKED ABOUT THAT PEOPLE SHOULD BE PLEASED ABOUT.

GENE.

>> THE SILLIEST BILL WAS JAYWALKING BEING LEGALIZED.

IT FAILED.

TWO BILLS THAT SHOULD NOT HAVE BEEN IN THE LEGISLATURE.

THE REPUBLICANS ARE NOT TERRORISTS, WHICH ONE BILL SAID.

AND THE PALESTINIAN RESO WAS SO UNBALANCED.

THOSE TWO THINGS DIDN'T BELONG THERE.

>> Daryl: NADINE NAKAMURA.

>> I'M SORRY- SOMETHING PEOPLE SHOULD BE PLEASED ABOUT.

>> OH.

WE'RE VERY PLEASED THAT THERE'S A RENTAL HOUSING REVOLVING FUND TIER TWO FOR WORKING FAMILIES SO WE CAN BUILD RENTAL HOUSING FOR WORKING FAMILIES.

RIGHT NOW NOBODY'S BUILDING.

>> Daryl: NOW YOU'RE UNDER TEN SECONDS.

>> PUT A LOT OF EFFORT AND THERE'S MULTIPLE BILLS LOOKING AT MAKING ROADS SAFER IN WAYS THAT WE HAVEN'T DONE BEFORE.

LOOKING AT THE MOST DANGEROUS INTERSECTIONS, CROSSWALKS, ROADS AND TASKING COUNTIES WITH NOT ONLY PLANS BUT ALSO WITH THE STATE'S SUPPORT TO FIX IT.

>> Daryl: AND SPEED CAMERAS.

WE'RE OUT OF TIME.

I WANT TO SAY THANK YOU TO ALL OF YOU FOLKS AT HOME FOR JOINING US TONIGHT.

AND WE THANK OUR GUESTS -- RETIRED PROFESSOR NEAL MILNER, SENATOR CHRIS LEE, REPRESENTATIVE NADINE NAKAMURA, AND REPRESENTATIVE GENE WARD.

NEXT WEEK ON INSIGHTS -- THE HEADLINES MAKE IT SEEM LIKE VIOLENT CRIME IS ON THE RISE IN HAWAI'I.

WE WILL TAKE A DEEPER LOOK INTO WHAT THE CRIME NUMBERS TELL AS AND WHAT CAN BE DONE TO KEEP US AND OUT VISITORS SAFE.

PLEASE JOIN US THEN.

I'M DARYL HUFF FOR INSIGHTS ON PBS HAWAI'I.

ALOHA!