House and Senate lawmakers gave final approval to hundreds of bills Tuesday, including a measure to decriminalize possession of small amounts of cannabis, a proposal that some House members warned is just one more step toward legalizing it.
The cannabis bill now goes to Gov. David Ige, but it is unclear whether he will sign House Bill 1383 Opens in a new tab into law, veto it or allow it to become law without his signature. Ige said during his 2016 reelection campaign that he opposes legalization of cannabis, but this bill would merely reduce the penalty for possession in some cases.
Other bills that won final approval from lawmakers Tuesday include a measure to try to collect state corporate income taxes from real estate investment trusts, and another that imposes tougher penalties on people who are convicted of repeatedly driving drunk.
Other measures would increase the amount productions can claim each year under the state motion picture tax credit to $50 million from $35 million a year and reduce the size of the state Board of Regents that oversees the University of Hawaii system to 11 members from 15.
State Rep. Sharon Har (D, Kapolei-Makakilo) gave a lengthy speech opposing the decriminalization of cannabis on the House floor Tuesday, saying HB 1383 “reflects a major change in the fabric of Hawaii.”
Cannabis remains illegal under federal law, and “federal law trumps the 50 states’ laws, so while many people continue to ignore that fact, it is still the fact of the matter,” she said.
“Decriminalization is de facto legalization,” Har told her colleagues. She cited a Colorado Department of Transportation survey that found 69% of users admitted to driving under the influence of cannabis, as well as statistics that Har said show various crime rates have increased in states that legalized the drug.
House Judiciary Chairman Chris Lee countered that the challenge in Hawaii is “what can we do to stem the tide of people whose lives are impacted in a negative way by a criminal conviction for something which in many other states is outright legal or decriminalized.”
Most of all, the new law will allow the state to avoid the considerable cost of holding people in jail for cannabis crimes, he said.
The bill would decriminalize possession of three grams or less of cannabis, which would become punishable by a fine of $130. The vote in favor of the bill was 35-16 in the House and 22-3 in the Senate.
In other floor action
>> House and Senate lawmakers approved without discussion a bill to eliminate a tax deduction Opens in a new tab for real estate investment trusts, a measure that is expected to allow the state to collect about $9 million a year in additional corporate income taxes.
The trusts have made major investments in Hawaii, including in developments such as Ala Moana Center, the International Market Place and Ka Makana Alii Shopping Center.
Executives with REITs have warned that abolishing the state tax deduction for the dividends they pay out to shareholders will have a chilling effect on investment in Hawaii commercial, retail and other development projects.
>> Lawmakers also approved House Bill 703 Opens in a new tab, which would increase penalties for people who repeatedly drive drunk.
That measure would increase the penalties for people convicted for driving drunk three times within 10 years, making that a felony offense. Those who are convicted would be sentenced to a prison term of up to five years or be sentenced to five years’ probation with a minimum of 10 days in jail and revocation of their licenses for three to five years.
>> With little discussion lawmakers also approved a bill Opens in a new tab to make the Motion Picture, Digital Media, and Film Production Income Tax Credit more generous by increasing the amount of credits that can be claimed each year to $50 million.
This year’s session of the state Legislature is scheduled to adjourn Thursday. Ige must identify which bills he intends to veto by June 24, and has until July 9 to actually veto the measures.
