Key Legislative Measures in Hawaiʻi’s 2025 Session
As the Hawaiʻi State Legislature approaches the end of its 2025 session, several critical measures are under consideration. Hawaiʻi Public Radio has identified four key areas that lawmakers are focusing on, all of which have passed through the conference committee stage.
1. Climate Impact Fee: A Step Towards Climate Resiliency
Governor Josh Green has been advocating for a climate impact fee on tourists for some time, and this year, there’s optimism about its potential passage. “This is going to be a legacy item for the state of Hawaiʻi,” Green said, highlighting its long-term significance. The proposed measure, SB1396, suggests increasing the transient accommodations tax by 0.75 percentage points and imposing an 11% tax on cruise ships. The expected revenue is approximately $100 million annually, which, although far below the estimated $500 million needed, can be leveraged to secure larger funds through bonds.
2. Property Insurance Stabilization: Addressing the Crisis
Lawmakers are also considering SB1044, a measure aimed at stabilizing the state’s property insurance market. The bill proposes allowing the state to issue commercial and hurricane insurance policies through the Hawaii Hurricane Relief Fund and the Hawaii Property Insurance Association. Senator Jarrett Keohokalole, chair of the Senate Consumer Protection Committee, noted that this could make insurance more accessible by summer. The measure also includes a condominium loan program to help buildings address deferred maintenance.
3. Crackdown on Illegal Fireworks
Following the devastating New Year’s Eve explosion, lawmakers are pushing for stricter regulations on illegal fireworks. Two bills, HB550 and HB1483, have passed through conference hearings. HB550 allows law enforcement to use drones to establish probable cause for fireworks-related arrests, while HB1483 introduces harsher penalties for repeat offenders and those causing injuries or death.
4. Liability Caps and Securitization for Utility Companies
SB897 is another significant measure that could allow the Public Utilities Commission to set a liability cap for Hawaiian Electric Company in the event of a catastrophic wildfire, with the governor having final approval. The bill also enables HECO to securitize bonds for infrastructure upgrades backed by customers. Representative Nicole Lowen, chair of the House Energy and Environmental Protection Committee, explained that securitization could help the utility borrow funds at a lower interest rate, potentially saving consumers money.
These measures represent significant steps towards addressing some of Hawaiʻi’s most pressing challenges, from climate change to insurance accessibility and public safety.
