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WAILUKU — A felony drug charge has been upheld against a woman who was a passenger in a vehicle where police reported finding drugs last month.

Kuulei Maddela-Labuanan, 27, of Kahului had other felony charges dismissed at a preliminary hearing Thursday when Wailuku District Judge Blaine Kobayashi ruled there wasn’t sufficient evidence presented to support probable cause.

The dismissed charges alleged attempted drug sales and illegal possession of a .40-caliber bullet found in an ashtray in the vehicle.

At the hearing, police Crime Reduction Unit officer Daron Sugiyama testified he was making checks for illegal activity when he drove by Safeway on Hookele Street in Kahului at 9 or 10 p.m. Sept. 23 and saw the vehicle of Nelson Boteilho III, who has been arrested for narcotics sales in the past.

In the parking lot, Sugiyama said he saw “what appeared to be a hand-to-hand transaction” of narcotics being exchanged for payment. He said he saw Boteilho leave his vehicle, approach a white sedan and hand something to someone in the sedan before he was handed something back.

The officer, who was driving on Pulehu Road, turned around to try to make contact with the occupants of Boteilho’s vehicle, which was leaving the parking lot “and appeared to be fleeing from me,” Sugiyama said.

He said he tried to catch up but lost sight of the vehicle.

Soon after, Sugiyama saw the vehicle parked on the side of Hana Highway with its hood up. Boteilho and MaddelaLabuanan were standing outside, Sugiyama said.

He activated the flashing lights of his police vehicle, pulled up behind the other vehicle and approached Boteilho.

Sugiyama said he explained the reason for the stop to Boteilho and saw MaddelaLabuanan go into the passenger side of the vehicle.

“It looked like she was trying to conceal items within with a camouflage jacket,” Sugiyama said.

He told Maddela-Labuanan to leave the vehicle and could smell marijuana coming from the vehicle, Sugiyama said.

After Boteilho refused to give consent for a search of the vehicle, a police narcotics dog was called to the scene, Sugiyama said. He said the K9 alerted to the presence of narcotics in the vehicle, which was seized and towed to the Kihei Police Station.

A search warrant for the vehicle was executed Sept. 24. Police recovered more than 1 ounce of crystal methamphetamine, over 3 ounces of marijuana vegetation and two cartridges of suspected marijuana concentrate, as well as the bullet in the center console ashtray, Sugiyama said.

He said Maddela-Labuanan’s identification was in a purse on the passenger seat.

Under cross-examination by Deputy Public Defender Ben Lowenthal, Sugiyama acknowledged he didn’t see a narcotic in the hand-to-hand transaction.

Lowenthal argued against charges alleging attempted sale of marijuana and marijuana oil concentrate, saying the exchange seen by the officer “could have been perfectly lawful conduct.”

Deputy Prosecutor Lewis Littlepage said MaddelaLabuanan was charged as an accomplice along with Boteilho.

Lowenthal disputed a charge alleging Maddela-Labuanan illegally possessed the bullet, saying it was in a vehicle registered to someone else and driven by someone else.

After finding no probable cause for charges of attempted second-degree promotion of a harmful drug, attempted firstdegree promotion of a detrimental drug and being a felon in possession of firearm ammunition, Judge Kobayashi reduced bail from $100,000 to $20,000 for Maddela-Labuanan.

She is set to be arraigned Oct. 21 in 2nd Circuit court on charges of first-degree promotion of a dangerous drug, second-degree promotion of a detrimental drug, three counts of possessing drug paraphernalia and keeping ammunition in an improper place.

Both she and Boteilho, 34, were arrested Oct. 4, police records show.

Boteilho was released after posting $100,000 bail in the case.