Gov. Linda Lingle yesterday gave state lawmakers a list of bills she may veto, including proposals to restructure public hospitals, raise a tax on petroleum products to fund food and energy security programs, and tighten high-technology investment tax credits.

Under the state Constitution, the governor must notify lawmakers of her intentions to veto so they can decide whether to come back for a one-day veto override session, which would take place on July 15.

Lingle, in a statement, said she was applying increased scrutiny to bills that have financial components because of the state's estimated $730 million budget deficit through June 2011.

"This year, given the unprecedented fiscal crisis we are facing, my administration is taking an extra cautious approach, beyond our already high level of fiscal prudence, to examine bills that would erode our ability to balance the state budget or that would delay our economic recovery," she said.

State Senate President Colleen Hanabusa, D-21st (Nanakuli, Makaha), said lawmakers would likely return for an override session. House and Senate Democrats are meeting separately today in private caucus to discuss the bills on the governor's list. Overrides require two-thirds votes from both chambers.

"I think it's likely we'll come back," she said.

Hanabusa said lawmakers may be especially interested in overrides of two bills if they are vetoed: the so-called barrel tax increase to fund food and energy security programs; and restrictions to high-technology tax credits known as Act 221.

The $1 tax increase per barrel of petroleum product — from 5 cents to $1.05 — would raise an estimated $31 million to help the state advance alternative energy and promote local agriculture. It would also help finance Lingle's own clean energy initiative to have 70 percent of the state's energy produced by renewable sources by 2030.

State Rep. Hermina Morita, D-14th (Hanalei, Anahola, Kapa'a), the chairwoman of the House Energy and Environmental Protection Committee, said a veto would signal a lack of commitment by the Lingle administration to alternative energy.

"I think she has no long-term commitment to changing Hawai'i's energy future," Morita said.

Tightening Act 221, which was opposed by many investors, would save the state an estimated $120 million over two years. The restrictions would limit investors to using the credits to write off 80 percent of their tax liability instead of 100 percent. It would also limit investors to a one-to-one return rather than a multiple return.

Lingle herself had urged that Act 221 be tightened as part of her initial budget proposal in December.

Hanabusa predicted that Neighbor Island lawmakers, in particular, would want to override a veto of a bill to restructure public hospitals in the Hawai'i Health Systems Corp. The bill would allow public hospitals to partner with private interests or convert to private status to become more competitive. The bill would also weaken corporate control over the hospital system in favor of regional administrators.

State Rep. Ryan Yamane, D-37th (Waipahu, Mililani), the chairman of the House Health Committee, said the bill has the support of corporate and regional hospital administrators and could help stabilize struggling public hospitals, particularly on the Neighbor Islands.

"Judging from the support from my colleagues, I think I can muster the veto override," he said. "I do think it rises to the level of statewide importance."

Lingle also included two bills on her potential veto list that would attempt to help the state capture lost tax revenue from Internet sales. Under one bill, the state would join with other states in a project to simplify state tax laws and get retailers to collect and pay state taxes. Consumers who purchase goods from mail-order catalogs or over the Internet from Mainland retailers are already supposed to pay a 4 percent use tax, but the state does not enforce the tax.

The second bill would require Mainland retailers to pay the state's general-excise tax if they have an economic nexus in the Islands through local Web sites. Local Web sites get commissions for linking customers to Mainland retailers.

www.Amazon.com, the nation's largest Internet retailer, dropped local Web sites in its associates program yesterday because of the bill, which the company believes is unconstitutional because the company does not have a physical presence in the Islands. The company said it would restore the local Web sites to the program if the governor vetoed the bill and the veto is not overridden.

Lingle said she may veto a bill expanding the requirement for units targeted to low-to-moderate income residents in development projects. Some landowners and developers say they believe the bill would be too burdensome.

The governor may also reject a bill that would allow political candidates to accept 30 percent of their campaign money from Mainland donors, up from 20 percent. The bill would also adjust a ban against political contributions by state and county contractors to only apply to non-bid contractors.