POT TAX AND FURLOUGH TAX SURVIVE, CROSS OVER FROM SENATE TO
HOUSE

More Than A Dozen Fee Hikes Pass, But Bills To Raise The General
Excise Tax Fail To Advance

Furlough Fridays would be gone, marijuana for medical purposes would
be taxed $30 an ounce and gas-powered leaf blowers would be outlawed
in Hawaii as the Legislature moves to the halfway point.

The bill to allow the sale of medical marijuana, Senate Bill 2213,
would allow the counties to license "compassion centers" that could
grow and sell marijuana "to persons who are certified for the medical
use of marijuana and their primary caregiver."

The House and Senate exchanged bills yesterday, to meet a deadline for
bills to "cross over" to the other chamber. The Legislature is set to
adjourn April 29.

Lawmakers passed more than a dozen specific tax and fee hikes on
companies, tourists, drivers and residents as they try to add up
enough money to plug the state's projected $1.2 billion budget shortfall.

Neither the House or Senate approved measures raising the general
excise tax, but the idea could be revived later using a bill still
pending from last year's legislative session.

Representatives also backed off a proposal to take the counties' hotel
tax money for use by the state, instead passing a bill yesterday
limiting the counties' share of that cash to $94 million.

Under the marijuana bill, the drug would be given out according to
existing state medical marijuana laws, but the bill provoked a debate
on the Senate floor. It eventually passed 20-4.

"I don't think this is helping to alleviate the drug problem," said
Sen. Norman Sakamoto (D, Salt Lake- Foster Village).

Windward Oahu Republican Sen. Fed Hemmings said the Federal Drug
Administration should test marijuana before people sell it.

But Sen. Gary Hooser (D, Kauai-Niihau) defended the bill, calling the
arguments against it "offensive to many in our community whose only
relief from cancer or HIV is thorough the use of marijuana."

The bill and its special $30-an-ounce tax now goes to the House for
further consideration.

The Senate also offered to spend $86 million from the Hurricane Relief
Fund to restore the remaining public school furlough days through 2011.

But SB 2124 requires that the money be released "upon negotiations of
the parties necessary to execute the restoration of instructional days."

Senators noted that the Legislature had said in October that it was
willing to use money from the rainy day fund to restore furlough days,
but the schools, unions, governor and school board have not been able
to agree on a deal.

"The Board of Education and the teachers union have held parents and
students hostage. We are giving extortion money to unions," Hawaii Kai
Republican Sen. Sam Slom said.

But Sen. Brickwood Galuteria (D, Downtown-Waikiki) said Hawaii already
offers "the most meager education in the nation. ... This will provide
a course to remedy the problem if only temporarily.

"I am the parent of a senior at McKinley (High School). We will never
know her full potential because we are not giving her the education
that we had," he said.

The bill moved to the House with 'no' votes by GOP Sens. Slom and
Hemmings.

The Senate did find agreement in its dislike for leaf blowers and
voted unanimously in SB 2356 to ban the use of gas-powered leaf
blowers. Electric leaf blowers could be used, but not on Sundays or
state and federal holidays, although government operation of leaf
blowers would be permitted.

Senators also passed SB 2441, which would make it a Class C felony to
intentionally kill an endangered Hawaiian monk seal. That offense is
punishable by up to five years in prison. Hemmings cast the lone vote
against the measure.

In the House, lawmakers said they could raise $2 million by adding a
$20 tax whenever someone applies for licenses or permits. House Bill
2877 would require that businesses pay an extra $20 when they apply
for any permit or license with the Department of Commerce and Consumer
Affairs, including business licenses, corporate filings or registering
a trade name.

The Tax Department would charge an extra $20 for applicants for excise
tax, liquor tax or tobacco tax licensees.

"Asking struggling businesses for $20 more is irresponsible," said
Rep. Gene Ward (R, Kalama Valley-Hawaii Kai).

The bill passed to the Senate with five 'no' votes in the
House.

The Associated Press contributed to this report.