b' 2025 State ReportHEMA Further health care legislation was passed creating the Universal continuedHawaiis 25 Legislative Session Summary Immunization Funding Program, which enables the state to leverage bulk purchasing and distribution systems for all Hawaiis 2025 Legislative Session adjourned on Friday, May 2.recommended vaccines for its residents under the age of 65. There were over 3,000 bills introduced during this session, withInsurers will be assessed a fee for this program, as established by 172 House bills and 150 Senate bills passing. Affordable housing,the states Director of Health.health care, and education continue to be amongst the top priori- Education ties for the Legislature. The Legislature passed legislation appropriating $13.2 million for As of mid-June, Hawaiis Governor has signed 202 bills into law108 public education pre-K positions with an additional $20MM and although he has yet to veto any bills, there are nineteen billsof CIP budgeted for pre-K classrooms.listed on the Governors Intent to Veto List which was pub-lished on June 6, 2025.This is in addition to $353 million in lump sum CIP funding to Hawaiis Budget the State Department of Education (DOE) for the construction of new facilities, renovation of existing classrooms and athletic Hawaiis budget bill for each FY26 and FY27 included anfacilities and maintenance activities. This is slightly less thanoperating budget of nearly $20Bn, with approximately $10.6Bnprevious years, however the DOE reported to the State Legisla-budgeted for its general fund. The CIP budget is approximatelyture that is has a backlog of $868 million in projects that have$3.4Bn and $2.3Bn for FY26 and FY27; respectively.yet to be implemented. Furthermore, the Legislature appropriated $29.5MM in its budgetFurthermore, the Legislature passed legislation approving the for grants-in-aid, which will serve approximately one hundredconditional use of motorcoaches, small buses and vans to address twenty-one of Hawaiis non-profit organizations. To offset thethe school bus shortages.loss of federal funding to many of the states non-profits impactedTransportation by the reduction in federal fundings, the Legislature passed a bill appropriating $50MM for one-time grants.The Legislature failed to pass legislation that would haveauthorized Hawaiis counties to begin imposing in 2028 a The current federal policies have led to funding uncertainty formileage-based road usage charge specifically for electricmany of Hawaiis departments and programs statewide. Ac- vehicles. The revenue generated from this tax would havecording to Hawaiis Attorney General, the state may lose oversupplemented their funding to maintain roads and bridges. $89MM from grant terminations. As a result, Hawaii is planningTourism a Special Session for the fall of 25 to review its budget and the latest regarding federal fundings reductions. The Legislature passed legislation increasing the transientHousing accommodations tax from 10.25% to 11.0%, effective January 1, 2026. The Governor signed the bill, which he referenced as the Homeowners insurance continues to be a challenge, particularlyGreen Fee intending to protect the states natural resources.for condominium facilities. As such, legislation was passed The additional tax is intended to generate $100MM annually. enabling the state to issue commercial and hurricane insuranceMaui Wildfire policies through the Hurricane Relief Fund and the HawaiiProperty Insurance Association. Furthermore, this legislationThe Legislature approved the states share of the $4.4Bn global establishes, amongst other benefits, a program providing for settlement fund, and will deposit approximately $807MM into low-cost financing or refinancing to qualifying condominium this fund over the next four years.associations in support of maintenance projects.Further legislation was passed enabling electrical companies in Hawaiis housing crisis within the past decade has seeminglythe state to utilize securitized bonds to develop and implement fu-contributed to an increase in construction defect litigation claims.ture wildfire mitigation plans. The bill would also cap the amount Accordingly, legislation was introduced to refine language withinthe utility company can securitize at $500 million.the Contractor Repair Act as well as the statute of repose toHEMAs Annual Meetingprovide a clear framework in resolving construction defect claims for homeowners and contractors. During HEMAs Annual board meeting, Roger Dang was con-Health Carefirmed as President. A longtime advocate for Hawaiis energy and transportation sectors, Roger brings a wealth of experience The Legislature passed legislation appropriating $70 million forfrom both the petroleum and commercial marine industries. As the Nursing Facility Sustainability Special Fund and $450 millionPresident, he is committed to strengthening industry collabora-for the Hospital Sustainability Special Fund, which are collec- tion, promoting smart regulatory policy, and ensuring the voice of tively intended to strengthen the health care system in Hawaii.Hawaiis marketers remains strong at the local and national level. The States budget complemented this legislation with an additional $30 million appropriated for its Healthcare EducationFurthermore, John Peyton was confirmed as HEMAs 1st Vice Loan Repayment Program, providing for loan forgiveness forPresident, moving up from 2nd Vice President. John is Par healthcare professionals practicing a minimum of two years inHawaiis Vice President of Retail Operations, which includes medically underserved areas in Hawaii.not only their Retail Operations, but also Technical Services and Safety Operations.S30 www.wpma.com / Summer 2025'