001good afternoon everyone thank you for joining us for this joint committee with the committees on energy economic development and tourism and our good friends from the committee on education it's friday march 18th three o'clock in room two to nine we have one measure on this agenda and we need to make some housekeeping announcements that this uh hearing is being taped live and can be viewed on youtube at your pleasure over the christmas holidays if you want to revisit this day um and if you are testifying remotely your audio and video will be turned off until just before you are allowed to speak and um and that is our announcement so we're going to go into house bill 2470 relating to government operations on our testifiers list we have craig kiri from budget and finance and
002vice chairs and members of the committee d-bad stands on his written testimony supporting the intent of this measure thank you kurt otto from dykes yeah a little different so thank you uh chair okay donnie members of the committee colonel to grow state comptroller we appre really appreciate you hearing this build on the nasa project as you know it's been a long time project it's been a project that has had a lot of different components to it um it's 15 years in the making probably five years hard with the with all the various team members but the the current bill suggests that uh we also include the d-bed organization as part of this development and our friends from hcda as well as the city authorities so what we thought is that we would testify together if
003you don't mind because we we've collaborated since the bill has come out and as you may recall the bill originally started with hcda in the fix and so there is a current moa already in place but we thought that we'd start off with with uh craig to to provide his testimony and then we'll add on to that if you don't mind yep thank you okay hi hi chair please cheers uh members of committee craig nakamoto i'm the interim executive director of the hawaii community development authority our written testimonies that we've submitted um are very basic but if you allow us to kind of um deviate from that a little bit as controller what the girl said you know this this project stadium and astronomy air is probably one of the most important and visible projects
004in the state in a long time i think everybody can agree that you know we want to get this project moving as quickly as we can as efficiently as we can so the controller tags sorry the com sorry comptroller tags and stadium authority and acda got together we collaborate collaborated and in light of the importance of this project and the divergent views of where the senate is going and the house is going we just wanted to provide you with some context so if you can kind of indulge for a little bit on the senate side as you call with senate bill street speech before the intent was to insert hawaii community development authority as a regulate uh regulatory authority uh agency to eventually put its zoning and regulatory framework in place the bill didn't transfer
005any land from the stadium authority to hawaii community development authority the stadium authority was envisioned as retaining control over that whole 98 acres and being able to you know develop as they saw fit and as well as i think manage and control the existing stadium um that regulatory process of putting in order to use our entitlement acd's entitlement and zoning would probably take us a couple of years to do up to two years to put planet rules in place to allow zoning uh zoning to occur or utilize our zoning now since then we've gotten some feedback from potential developers that you know what this does is while adding hcda adds a different regulatory agency and may speed up some of the approval process down the road once we have entitlement and sony that developers may
006be getting you know sort of worried that there's another level of you know bureaucracy or another level of you know jurisdiction in place stadium authority um maybe dags is there too and then you have aca so what what we kind of talked about this morning with on the house side was to if the intent is to have hcv in as the zoning and regulatory authority to do kind of a delay date of hcda's establishment in other words maybe choose like a july 1st 2025 effective date what it would allow is the rfp rfps to proceed using city entitlement and zoning and then without the added layer of hcd but have hcd come into play in let's say july 2025 and if we still need it if we still needed hcd at that point we could
007start promulgating plan and rules to have a you know our own kind of rules and a different approval process for the development that's going to occur in the 73 acres um we thought that that would be the best solution or the path forward for this he would allow he would carry out the path that i think the senate wants to do with a little bit of tweaks to kind of delay the effect that they allow the rfp to proceed um and using city zoning entitlement and then in july 1st 2025 you would have uh hcd sort of coming to come into play so you know so we're asking for time um we're at a crossroads just like other legislative bodies 50 years ago with that uh back in the 60s the legislature had to make
008a decision to move or repair honolulu statements some of us were there to know that that was a courageous decision back then and it was a right decision as you look back when the decision would be made obviously it was very controversial fast forward to the 21st century here we are again and we have a major crusher decision that will be a long-term vision for this legislative body as well as for the executive branch it's important it's a very important project not not just for a stadium but just remember we're building a district we're trying to revitalize halawa we're trying to create new experiences we're trying to invigorate the economy through jobs of course in the spending of the construction aspect but there are jobs to be had in the district there's going to be
009housing different components of housing everybody focuses on the stadium entertainment district but you know there's a lot more to it as we've talked to both house and senate just alignment with um different state agencies to to foster the culinary program as an example i mentioned this morning the oe and uh community colleges are very interested in aligning their culinary program to something where they can sell their product at the stadium as an example swap beat on steroids the old stadium didn't have parking so now we have a big 73 acre parking lot but no vendors and so that was born that's what born the or created tailgating and swap meet and so we believe in this new district that we want to create it's it's going to accommodate a new community that had way back
010in the day but we can create something more permanent we can we can absolutely create incubator businesses for the small shop vendors and make it more permanent they do this in in japan and korea uh we can have tailgating in a different manner because the population has changed some people absolutely want to watch a game when the stadium would sit there before it was ben sees some wooden seats then we had personal seats it may be tomorrow someone do that or somebody want to dine in the dining room we can absolutely create a better do a better job with hospitality suites uh we can align with the university of hawaii from the core club cornueno in plaza whatever the case may be we're the state authority and i'll let ryan speak but the same author
011is very open to working out with the stadium and with uh so that they're beneficiaries and that's a very important component of it growing up in hawaii stepping into aloha stadium myself was a big deal and it gives you aspirations and so some of that is for that uh for the high school in neighbor islands but um just remember and i'm preaching to the choir this is a long-term vision it's a long-term commitment uh but it's going to take all of us to collaborate and that's why we want to represent all of us together because it's not just us it's it's across the table with the legislature to work together because this is a major project i can't think of a bigger one that the state has tackled in recent years but we appreciate your
012opportunity to do this because we can embrace what's not there today and we're getting chastised for it watching a game we'll focus on eight games for you wait as an example why not the other seven or six away games we could create the venue outside with a large screen tv where vendors can continue to sell their goods when it's away and it doesn't have to be football it could have been the national volleyball team there's a lot of opportunity if we just stop and think what we can do with this facility not to mention community events cultural events picnics whatever the case may be but technology will play a big role in this i'm sure of that because that's what the consumer wants the consumer wants different options and that's what we're here to create
013if we're allowed to do that the reason why it's now is thanks to you we've invested a lot of time and money to get to this point of rfp we're very close i mean very close so if we're allowed to continue with funding um better yet we can actually issue an rpa go from a subjective phase to an objective phase so right now it's been conceptual what we've shown you what we've talked to you about has been our aspirations and we had to scale that back during the pandemic rightfully so we got a little too big with our dreams it cost too much so the pandemic actually helped to narrow the focus and so we believe we have a good product to show you uh financially as well as uh economically uh so but but
014now is the time to make that decision where everybody has economic cycles in the world uh i wish we did it a few years ago rate for a little more but that wasn't the case uh we're on the cusp on the trough oh i think what's going to be another economic increase we're seeing rates start to increase now so this is a good time to make this decision uh before it gets out of that so i'll stop with that manager thank you microphone good afternoon chairs vice chairs members of the committee ryan andrews acting manager of law stadium and the stadium authority is appreciative of any and all efforts to facilitate this project and move it forward as quickly as possible i know speaking of the choir when i say this is a once in
015a generation opportunity that when this project reaches maturity it will not only bring dividends to the state but to the people of hawaii as well i'm happy today to be sitting with hcda and dags uh working collaboratively and we want that opportunity to be able to provide the feedback or recommended language that can help this bill reach its intended goals since we have these three gentlemen at the table now does anyone have questions now for them i do yes senator rivera thank you thanks for uh the presentation and the comments today so hcda would prefer to come have the responsibility in 2025 is that what i understood so so i think um i think it's the it's the joint sort of consensus among us that on the senate side obviously on the senate bill the
016way it was in the sd-2 it had obviously a defective date but the idea was to bring and establish hcda upon approval because of some factors with how developers may feel about that sort of the extra layer of you know sticks eight state agency on there and what control what the girl said that there's a um that we're close to yeah you don't you don't want to get in you know interfere with where yeah yeah but i would come in afterwards to be the manager is that the idea no so we would you know the effective date of hcda's district would be in july of 2025 it would allow time for all of the you know rfp to proceed without hcda and then in july of 2025 we will be established we could develop planning
017rules that with our own entitlement of zoning and zoning and approval process going forward going forward so between now and 2025 what will we see will there be a stadium right so so the way the project is defined center theory it's both a stadium rfp and a real estate artist roughly 23 acres of stadiums and that's the rfp that's looming already already there we procured it we had our fuel we got three respondents good respondents and so now they're prepared to respond to an rfp based on the preliminary requirements and should that all go swimmingly then the break ground and the stadium is operational by july 2025 that's what we're gonna that's what we're hoping for that's what we're gonna issue the rfp the longer we wait for longer it's not gonna happen right so
018that was a sense of urgency and then hcda would manage the the rest of the development the next next wave they're following for the real estate aspect of it hcda's zoning powers are needed as potential we also have a good working relationship with the city uh working with the mayor and his dp guy and other groups so we believe that either way it can work but yes the rp would refer for that we have two respondents from the rfq but the state would not the way to manage this is the state would not give the developer all 73 acres all at once as you know we would give it an increment and we would manage it and watch it and make sure that they perform through the state satisfaction the funding the 350 million that
019has been is sort of coming again funding um will cover the development of the of the stadium or is that going to go beyond the stadium into other parts of this yeah thanks for that question the 350 where we looked at it was for the entire district right that incorporated building of a stadium as well as the real estate aspect which would be infrastructure and so that's where the private uh public partnership came in and so the developers in a bid are all interested in pursuing such a venture i wouldn't say it's the first of its kind but it's a very large-scale one where we would share in the financing of a stadium as well as in the district and therefore it would be financially feasible the way we worked out the models that we
020had with goldman sachs the directive that we were given by the legislature was to make it debt zero which means whatever monies we generate ryan generates from the stadium need to offset the availability payments so we've recommended an affiliate is to the developer for the financial aspect of it and the maintenance of the facility so we we've recommended to the legislature how we would structure such a deal with the remaining financing so some of them would go to infrastructure so as i mentioned in the chair i have a i get anxious thinking about oh the grade of 350 is the final cost but things do seem to overrun when the state's involved there is that concern i mean when we first talked about it was 2019 or 18 really and so but we we've downscaled
021the stadium there it's absolutely rising cost i don't know what the shipping cost is going to be i don't know what the water is going to do to the cost just gas prices but we're still and that's why it's important to get from subjective to objective we need the developer to engage we need to know whether our concepts are actually solid or did we miss the vote we don't think so but that that's where we're at and so we need to provide you with the final numbers as well as the governor and that's what we promised governor that when we get to our fee we will get the financial protect not projections of the bids and we will we'll know where we are tomorrow yeah thank you senator and if you find me and i
022want to send a reviewer before me i just want to clarify something that you asked um hcb's role like in kakaako you know right now and kalai law we we're like a redevelopment agency and a regulatory agency typically our role is is not there to manage as you said uh so i want to make that clear it's not in our wheelhouse too okay i just i didn't understand why the delay yeah you feel like you want to come in after it was built so no so i i want to explain so our our role coming after our buildings after 20 20 25 this is the consensus we reached to allow things to proceed not yet intelligent acv wants to be a solution and part of the solution to be part of a solution i think
023the best way is we let things go under the city zoning and rules left rp proceed and then we'll come in in july of 2045. in the meantime it doesn't mean that we can't help um as i think controllable growth said we have moas in place right now so we can assist stadium authority or dags with you know infrastructure development or whatever that needs to be done but we're not a manager per se that's something that you know once the state of his new state is built i presume that state of authority but i just wanted to make sure senator revealed that thank you for clarifying that the words mean you know something and i don't want to say we're managing i think the real estate will take 20 years over 20 years right it'll
024be over time yeah thank you senator thank you appreciate it remember there's any other questions just one quick question so you don't want the hcda district established immediately you want it to kick in so tags can continue with the process that's now going on year four i think to get issue the rfp and then when that stadium is already built that's when craig and hcda will have the district established but in the meantime craig i think in one of your testimonials you talked about it's going to take two years for you to develop the rules all right so can you be starting to develop those rules now versus having that clock start in 2025 yeah that's a that's a good question um senator we kind of talked about that this morning if the district is
025not established by enabling statute like today i don't think we would have the authority and the power to promulgate rules and and put in place something because we don't really have a district or we couldn't you know constitute a board or even maybe spend spend money for the stadium so-called stadium district but i think to your question um senator revere to your point we could still you know internally we could still start internally working on planning uh planning for for the eventual day when we're going to have planning rules internally not externally internally and we can support as needed other state agencies that's something we want to do and something we have the expertise to do so we definitely can do that members any final questions okay thank you thank you i want to touch
026on the other stakeholders involved in this bill uh randy tanaka from d.o.e or anybody here okay and then i see i think it's ellen oshima um alan do you want to um oh he was with g-bit i'm here chair uh uh and sure kidani thank you i'm i'm representing the sfa uh i'm serving as the chair of the sfa board uh ed sniffin could not make it to the hearing today and asked me to present or answer any questions we amended our testimony on that on this bill this morning there are some unintended consequences that might occur should we be transferred to the bed immediately and we pointed that out in our testimony there are there are certain things that uh the doe and sfa working together are in are obligated to do under the
027formation of the sfa one of it is to transfer land titles etc to the sfa so development can occur um the other is fees collected by the doe and the interim be transferred to the sfa again for the same purpose so we take no position on this but ask that you defer any transfer to d-bed for the time being and if you intend to move forward with the transfer to d-bed administrative transfer to d-bed we ask that they carve out certain obligations on the doe that were present in the enabling statute that set up the sfa thank you mr oshima that's all i have for people who signed up for zoom testimony is there anyone in the room that would like to testify on house bill members any questions of those who are here or
028online if not uh the two chairs have confirmed uh this morning the house passed out senate bill 3334 this is the sister bill of this measure uh we have a lot of faith in the house to do some good work ahead and would like to therefore defer any action on this particular measure with no other business for the joint committee we are larger good afternoon thank you for joining us today is friday march 18th 3 15 pm agenda in the committee on education our hearing is in room 229 this meeting including the audio and video of remote participants is being streamed live on youtube you will find links to viewing options for all senate meetings on the live and on demand video page of the legislature's website the zoo meeting and youtube live stream events
029will include the 3 15 pm agenda for the committee on on education in the unlikely event that we have to abruptly end this hearing due to major technical difficulties the committee will reconvene to discuss any outstanding business on monday march 21st 2022 at three o'clock p.m in this conference room a public notice will be posted on the legislature's website i'd like to take this time to remind our testifiers that due to time restrictions on our hearings we will be limiting testimony to one minute for testifier per bill for people participating remotely please remain muted and video disabled until shortly before it is your turn to testify when i call your name unmute yourself and your time will begin after your minute is completed staff will mute you so that we can move this hearing along
030in an orderly and efficient manner thank you first on our agenda is house bill 1562 relating to early learning board as the director of hawaii p20 partnerships for education as an ex-official non-voting member to the early learning board effective july 1st 2050 to testify keith hayashi interim superintendent or due in support are you here to testify okay thank you in support pauline momohara interim director executive office on early learning in support is colleen there okay and andrea quinn individual in support is there anyone in the room that wishes to testify on this measure not members questions next house bill 1865 relating to charter schools requires a state public charter school commission to disburse funds directly to public charter schools repeals the exemption for charter schools from requirements on the administration and use of federal funds
031allocated to the state for public education purposes to testify interim superintendent keith hayashi good afternoon chair vice chair brian hallett the ue cfo on behalf of interim superintendent tayashi the department stands on its written testimony with comments raising concerns regarding the requirement that federal funds be allocated by the department and bypassing the uh the charter school commission and going straight to the charter schools we have concerns about logistical implications of that change stand by if there's any questions thank you thank you brian to testify anne for uchi deputy attorney general and good afternoon good afternoon chair kidani vice chair can members of the committee as set forth and the department's testimony um we're proposing an amendment to the bill that would remove language that we believe is incorrect but also unnecessary i'll stand by for
032questions thank you anne next to testify rand pannua castro not present share testifying in support for kanuka aina ncpca is there anyone else wishing to testify on this issue members questions if not moving on to item three scr 34 sr 30 requesting the early learning board to evaluate and report to the legislature regarding the board's composition and charter and to develop a strategic plan to testify robert peters chair early learning board robert thank you senator kadami and senator kim members of the committee the early learning board supports the intent of this resolution as it aligns with one of our top priorities for this particular year and offers some comments i'm available for any questions if anyone has any thank you bob um also had testimony in support from pauline momohara for early learning board and
033also a vivian ito for early childhood action strategy is there anyone else wishing to testify number of questions of um mr peters if not thank you moving on scr 63 sr 58 requesting the department of education to name the new kihei high school in honor of united states congresswoman patsy team mink to testify michael volu jr [Music] not president chair thank you his testimony was in support also in support is jennifer azuma true catholic mike williams irene popper renee rev moving on scr 16 sr 10 requesting the department of education to conduct a comparison study and reimburse certain teacher expenditures for classroom supplies to testify teeth ayashi interim superintendent good afternoon chair and vice chair brian hall at doecfo on behalf of interim superintendent kitayashi department stands on its testimony in opposition to this measure
034and that we're thinking is that it's unnecessary as there are already opportunities for accessing classroom supplies through vendor price lists and through school procedures so as our position and i would like to add that if there are instances in which your offices are made aware of instances in which classroom supplies are not being provided by a school i would offer to be available to assist in in helping to track down the basis or the origin for that concern thank you for the opportunity for my testimony thank you i have a question members any questions brian my question is you and i both know that oftentimes there are supplies needed asap what happens in those instances will the teachers be reimbursed or do they need approval from the principal if it's not really readily available so
035so under ideal conditions teachers have supplies ordered through the schools they can be done in bulk in those instances where teachers are required to or find it necessary to go and purchase supplies our process is to seek prior approval from the principal and then with prior approval to go make the purchase to come back and seek reimbursement with the proper receipts so there is a mechanism to to respond fairly quickly in in those situations thank you very much thank you moving on scr 13 sr-7 requesting the legislative reference bureau to conduct a study on the feasibility of the state establishing a universal no-cost pre-kindergarten program testimony from robert peters for the early learning board thank you tim kadani um the early learning board appreciates this opportunity to offer comments about this resolution and and questions
036its value at this particular point um i'd be happy to answer any questions that members might have thank you robert there's also pretty comments from colleen momohara charlotte carter yamauchi from lrb vivian ito early childhood action strategy and uh one testimony and support from andrea lynn members any questions not moving on final one on this uh agenda scr 14 and sr8 requesting the legislative reference bureau to conduct a study examining the effectiveness of the state's single statewide public school system and the feasibility of conversion to an alternate system we have no testimony uh we have comments from charlotte charlotte carter yamaguchi lrb and ryden iwamoto an individual in support is there anyone wishing to testify on this measure all right members see any questions on any other resolutions um [Music] machines thank you members um
037let's take the votes on since we have um forums on these images [Music] okay on house bill six i'm sorry house bill one five six two hd one re-learning relating to the early learning board we are going to defer decision making until monday march 21 at 3 p.m in this room that's the first one house bill 1562. um the same for house bill 1865 hd1 so the first two we are going to refer to next monday for senate concurrent resolution 34 and senate resolution 30. requesting early learning board to evaluate and report to the legislature regarding the board's composition and charter and to develop a strategic plan recommendation of the chair is going to be to pass with technical amen i'm sorry to pass with amendments that are technical and non-substantive amendments questions members not
038for scr 34 and sr 30 chair votes i triple time scr 34 sr 30 was passed with amendments sheriff's side vice chair votes i senator de la cruz is excused senator hi senator fabello excuse with three members president voting on your recommendations adopted thank you scr 63 and sr 58 requesting the department of education to name the new pa high school in honor of the united states congresswoman passi t ming recommendation is to pass with amendments which are again technical and non-substantive amendments shareholder sure votes eye on the concurrent resolution 63 and 58 okay okay chairman's high vice chair both sides senator de la cruz is excused senator kanella senator fabella is excused 45 recommendations adopted thank you for scr 16 and sr 10 correct this is requesting department of education to conduct a comparison
039study and reimburse certain teacher expenditures for classroom supplies recess thank you reconvening the committee on education um we are on scr 16 and sr-10 the recommendation is to defer this measure moving on to s c r 13 and s r 7 requesting the legislative reference bureau to conduct a study on the feasibility of the state establishing a universal no-cost pre-kindergarten program recommendation of the chair is going to be to pass this result as is members questions if not careful with the three members president anyone voting with reservations anyone voting opposition is not three members voting right recommendations thank you final measure on this agenda is scr 14 and sr8 requesting the legislative reference bureau to conduct a study examining the effectiveness of the state single statewide public school system and the feasibility of conversion to
040an alternate system recommendation of the chair is to defer this measure members i'd like to go back and vote on the issue let's see the house bill 1570 hd1 which we heard earlier uh in a joint committee meeting with the health and this is relating to the youth vaping epidemic um okay so members on house bill 1570 hd1 recommendations of the chair is to redefect the date to july 1st 2050 to replace the contents with senate bill 3118 sd2 and also to exempt the pmta products questions members if not for house bill 1570 hd one recommendation is to pass with amendments chair bullseye any member president voting with reservations any member voting in opposition hearing none through members prison or voting high recommendations adopted thank you members i'm sorry and two members excuse me okay
041thank you that concludes that concludes the meeting you