A last-minute law passed by Hawaiʻi state lawmakers, aimed at supporting nonprofits facing potential federal budget cuts, has sparked legal concerns regarding its constitutionality.
The new legislation, Senate Bill 933, establishes a specialized committee responsible for distributing up to $50 million in additional aid to nonprofit organizations this year.
In response to this initiative, the Public First Law Center issued a warning letter outlining procedural flaws in the bill’s passage, suggesting that the law may be susceptible to legal challenges.
Brian Black, the executive director of the law firm, emphasized specific violations of the state constitution, noting that the bill’s text was incorporated into a “short-form” bill too late in the legislative session, breaching a critical deadline for bill introduction.
“The defect may render the law unconstitutional and subject to nullification, which could jeopardize any grants awarded by the committee,” stated the letter addressed to House Speaker Nadine Nakamura and Senate President Ron Kouchi.
The letter recommends convening a special session of the legislature, if necessary, to allocate funds to the nonprofits in a manner that circumvents the risk of potentially revocable public funds.
On Wednesday, Governor Josh Green signed SB 933 into law, now known as Act 310, asserting the need for urgent action to support local nonprofits.
Green argued that lawmakers could not feasibly disburse the $50 million through a special session later this year, insisting that it was imperative for the state to act promptly.
“Sometimes you just have to take action,” Green remarked before endorsing the bill. “Everyone’s going to know where these grants go, and it’s going to be to the very best-intended organizations in our state.”
Typically, the state Attorney General’s Office reviews all bills passed by the legislature to ensure constitutional compliance prior to the governor’s approval, although the specifics surrounding the legal counsel provided on SB 933 remain unclear.
Toni Schwartz, the public information officer for the attorney general, refrained from addressing the particulars of legal advice given to lawmakers regarding the bill.
The concerns surrounding SB 933 are part of a broader conversation about the bill’s structure, which allocates up to $50 million for vital social services, including childcare, subsidized housing, and support for homeless individuals.
Unlike past years when these funds would be distributed through a standard public grants-in-aid process during the legislative session, this year’s situation prompted lawmakers to create an alternative pathway due to fears of unexpected federal funding cuts.
The new law forms a four-member panel, consisting of two lawmakers from the Senate and two from the House, tasked with deciding grant allocations.
Critics quickly noted that the bill specifically exempts this panel from the state Open Meetings Law, raising alarm among various organizations, including the League of Women Voters of Hawaiʻi.
Judith Wong, president of the league, expressed support for assisting nonprofits but emphasized the need for transparency and public involvement in the process.
“It would just be best to have it be a very open and clean process,” Wong stated. “We want to see transparency going forward on this.”
Gary Hooser, a former majority leader in the Senate, and House Public Safety Committee Chair Della Au Belatti echoed concerns about the decision-making process encapsulated in the bill.
Hooser cautioned that allowing just four politicians to determine the distribution of $50 million presents significant risks for abuse, stating that lawmakers are likely to favor nonprofits in their districts or be influenced by their peers to support particular organizations.
“It’s just a recipe for abuse, intended or unintended,” Hooser warned. “It should be a thoughtful process based on clear criteria.”
Belatti raised constitutional questions regarding the panel’s authority to operate without public disclosure, indicating that this approach contradicts a provision in the state constitution mandating public meetings for legislative committees.
She emphasized that the proposal for a four-member committee emerged at the end of the session’s conference committee phase, bypassing public input.
“It’s just stunning to me that we’re going to normalize a process where a committee of four without public input can make these really important decisions,” Belatti stated.
In a sharp retort to the criticism, Governor Green dismissed detractors of the bill, categorizing their arguments as “cynical, ugly behavior.”
“I’m pretty darn tired of the haters out there — for example Mr. Hooser — who send out emails bashing the good work of senators and representatives when they’re really trying to help the people,” Green remarked, suggesting that critics are merely interested in gaining attention rather than genuinely supporting nonprofits.
House Finance Committee Chair Chris Todd acknowledged that many operational details of the new committee are not yet defined and will need to be determined collaboratively by the House, Senate, and administration, including the question of public meetings.
Todd noted that the legislature lacks the capacity to thoroughly review applications in a timely manner during a special session.
“I would encourage people to be patient as this gets worked out,” Todd advised, while recognizing the scrutiny surrounding the new process. “Everyone’s coming together to try and do a good thing, and that process hasn’t been worked out yet.”
He underlined the urgency presented by the federal budget situation, remarking, “We cannot do business as usual.”
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