b'2021-22 Officers & DirectorsHAWAII Petroleum Marketers Association State ReportLegislative Session 2021HPMAOf the roughly 2,800 bills introduced by the HawaiiHB1296 HD1 SD2 CD1 (Hawaii To-State Legislature,265 bills were enrolled to the Governor forbacco Settlement Special Fund Re-signature. The Governor signed 236 bills, and 4 bills became lawpeal). This bill basically repeals thewithout the Governors signature. Gov. Ige vetoed a record 27existing Hawaii tobacco prevention bills, and 6 of the vetoed bills were overridden by the Legislature. and control trust fund and transfersHawaii Alohaunencumbered balances to the state As expected, Governor David Ige signed into law the followinggeneral fund on 6/30/2025another bills impacting our industry: attempted money grab! Robert Fung HB552 HD1 SD2 CD1 (Clean Ground Transportation Goals;The Legislature met to consider vetoHPMA Executive Director Fleet Procurement). Establishes clean ground transportation goalsoverrides, but they were not able to for state agencies to achieve one hundred percent of light-dutyoverride either of the above vetoed bills. However, the Leg-passenger cars to be zero-emission vehicles by December 31,islature did override 6 vetoed bills. The only significant over-2030, and one hundred per cent of light-duty non-passenger carsride was HB862 HD2 SD2 CD1 which eliminates dedicated to be zero-emission by December 31, 2035. funding (from the hotel tax) to the Hawaii Tourism Authority HB1142 HD2 SD2 CD1 (Electric Vehicle Charging Systems). Al- (HTA), and also cut the budget for the HTA. The HTA must locates three cents of the state barrel tax to fund the installationnow seek funding each year from the Legislature. of EV charging systems. The state of Hawaii assesses distributorsThe new law also eliminates the roughly $103 million annual of petroleum products a tax of $1.05 per barrel sold in HawaiiCounty share of revenue from the State hotel tax. This was (other than to a refiner and except jet fuel), which we fondly callanother pure money grab by the Stateinstead of sending the the barrel tax. The barrel tax started in 1993 as a 5-cent taxhotel tax money to the Counties (which had been the prac-on each barrel of petroleum products sold in Hawaii (with thetice for decades), the State now keeps it. The Legislature did noted exceptions) to serve as an environmental response fund, andthrow the Counties a bone, and each County is now allowed was designed to sunset in 2015. Since then, the sunset has beento impose its own 3% hotel tax on top of the states 10.25% repealed and the barrel tax has grown to $1.05 per barrel andhotel tax! Despite long opposition of the gut and replace morphed into a money grab to fund energy and food security pro- approach by the Legislature (in the 11th hour behind closed grams, as well as for the states general fund. And now the barreldoors in conference committee), the Legislature used this ap-tax will also fund EV charging systems!proach to make major changes to punish the HTA, and to grab Also, as expected, Governor Ige vetoed the following bills im- money - originally designed to fund the Countiesfor itself. pacting our industry: HPMA Fall Golf Tournament HB58 HD1 SD1 CD1 (General Excise Tax; Use Tax; Conveyance Tax). From 1/1/2022 through 12/31/2023, certain general exciseat Oahu Country Club and use tax exemptions will be suspended. The bill also increases conveyance taxes for the sale of non-commercial properties val- The next HPMA golf tournamentwill be held onued at $4,000,000 or greater.April 25, 2022, at Ko Olina Golf Club. Please plan to joinus as it helps to support the WPMA Scholarship Foundation, the EMA SBC PAC Fund, and HPMA. Register atwww.wpma.com/hawaii. Hope to see you there!SWPMA News / Autumn 202125'