Maui County Council Budget Committee Discusses Emergency Donation Fund and Vehicle Disposal Fee Program on September 1, 2026

On September 1, 2026, the Budget, Finance, and Economic Development Committee of the Maui County Council met from 9:04 a.m. to 11:32 a.m. to discuss two agenda items: Bill 93 (2024), establishing the Maui County Kokua Fund for monetary donations during emergencies, and the Vehicle Disposal Fee Fund and program. The committee took no final votes but deferred both items for further work.

Public Comments & Testimony

• Bill 93 (2024): One testifier, James Langford, expressed support for the bill and broader oversight of county funds, urging the extension of subcontracting audits to all agencies receiving county funds.
• Vehicle Disposal Fee Program: One testifier, Ms. Nishiki, advocated for expanding the program to allow disposal of vehicles not owned by the person requesting removal (e.g., abandoned on private property) and suggested including community cleanup days. She noted that current rules require the registered owner to initiate disposal, which is a barrier.

Discussion: Bill 93 (2024) – Monetary Donations During an Emergency

• Chair Alice Lee introduced the bill, explaining its purpose: to create a special fund (Maui County Kokua Fund) to accept and directly use monetary donations during a declared state of emergency, with council oversight. She noted that after the 2023 wildfires, over $140 million in donations were directed to nonprofits like Hawaii Community Foundation, largely outside council oversight, motivating the need for a county mechanism.
• Administration representatives (Chief of Staff Lalo, Deputy Director of Finance Zelinski, Budget Director Milner) expressed concerns about establishing a special revolving fund, preferring a grant fund classification to avoid financial reporting mismatches. They stated that the county currently lacks capacity to manage large donations and recommended directing donations to community partners. They also noted that a $200,000 grant fund related to the fires still exists at the Office of Recovery.
• Council discussion: Councilmembers supported the bill’s intent but raised issues:
  • Vice Chair Batangan asked about the difference between special and grant funds; administration confirmed a grant fund would achieve the same goals with simpler reporting.
  • Councilmember Paltin suggested pre-identifying partner nonprofits (e.g., MEO, Humane Society) for specific needs and noted that the county should not be the primary recipient of donations.
  • Councilmember Johnson inquired about the $3 million donation from Japanese billionaire Mr. Yanai and the need for regular reporting. The administration indicated they could provide reports.
  • Councilmember Rawlins-Fernandez supported the intent but regretted the bill was not vetted with administration earlier. She also noted that the committee could have invited Hawaii Community Foundation to testify.
  • Councilmember U'Hodgins emphasized transparency and accountability.
  • Councilmember Sinenci questioned tax deductions for donors and the distinction between donations for social vs. government purposes.
• Corporation Counsel Wigglesworth stated that she could not sign the bill as to form until the related general budget provisions are also revised, requiring more time.
• Outcome: The committee deferred Bill 93 to the October 20, 2026 meeting. Chair Sugimura proposed forming a task force (TIG) to develop a list of pre-vetted partner organizations and best practices, with Councilmembers Sinenci, Paltin, and Johnson volunteering. The committee will also invite Hawaii Community Foundation to a future meeting.

Discussion: Vehicle Disposal Fee Fund and Program

• Chair Sugimura opened the discussion, noting that the fund, supported by a $25 fee per vehicle registration, has accumulated a balance of approximately $19 million (as of August 28, 2026), with average annual collections of $4.2 million and annual expenditures ranging from $259,000 to $1.4 million. The projected balance at the end of FY27 is $18.9 million.
• Administration (Deputy Director Peterson, Budget Director Milner, Deputy Director Zelinski) provided fund details: the current balance is $19,213,139; FY27 appropriations are $3 million. The program is operated by the Department of Environmental Management (EPNS) and covers towing and disposal of vehicles for registered owners. The department expressed a desire to keep the $25 fee in place given future needs, including potential capital projects for electric vehicle battery disposal.
• Council discussion:
  • Councilmember Paltin noted that other county departments (e.g., MEMA, Parks) also deal with abandoned vehicles and suggested using the fund for those efforts. The administration clarified that the fund is dedicated to the vehicle disposal program, but they have used it for county property cleanups (e.g., Ukumehame, Pulehu).
  • Councilmember Johnson asked about vehicles on county land on Lanai; the department confirmed they have removed about 50 vehicles from Lanai this year using the fund.
  • Councilmember Cook asked about obstacles to expanding the program; the department cited the need to amend the ordinance to allow non-owners to dispose of vehicles, as well as issues with electric vehicle batteries (shipping constraints).
  • Councilmember U'Hodgins inquired about Hawaii Island’s model for abandoned vehicle removal; the department is studying it.
  • Councilmember Sinenci advocated for more metal collection events on East Maui and Haiku, and suggested using the fund to purchase metal shredders for Molokai and Lanai. The administration noted that a feasibility study might be allowable under the fund’s purpose.
  • Councilmember Paltin raised the issue of electric vehicle battery disposal, noting that without a processing facility, batteries are stockpiled or end up in the bushes, posing fire risks. The department mentioned a 99-acre parcel near the landfill that could host a neutralization/storage facility, and that they are working on a statewide solution for shipping.
  • Councilmember Batangan asked if the fund could assist businesses with vehicle disposal; the current program is residential only.
  • Councilmember Rollins-Fernandez questioned the timeline for clearing abandoned vehicles from roadsides, citing long delays. The department explained that factors like police reports, debris, or occupancy can delay towing, but offered to provide data.
• Outcome: The committee deferred the item with no legislative action. Chair Sugimura indicated that the department will continue to explore ordinance amendments to expand eligible uses (e.g., non-owner disposals, EV battery processing) and report back. The committee discussed possibly reducing the $25 fee in the future but took no action.

Key Outcomes

• Bill 93 (2024): Deferred to October 20, 2026, pending revisions to change the fund from a special revolving fund to a grant fund and to amend general budget provisions. A task force (TIG) was formed with Councilmembers Sinenci, Paltin, and Johnson to develop a list of pre-vetted partner organizations and best practices for donation transparency.
• Vehicle Disposal Fee Program: Deferred; no legislative action taken. The committee directed the administration to explore amendments to Chapter 3.27 of the Maui County Code to expand the program’s eligibility (e.g., non-owner disposals, community cleanups) and to consider options for electric vehicle battery disposal, including potential facilities. The $25 fee remains unchanged for now.