STAND. COM. REP. NO. 2029

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2608
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Health and Human Services, to which was
referred S.B. No. 2608 entitled: 

     "A BILL FOR AN ACT RELATING TO CHILD CARE,"

begs leave to report as follows:

     The purpose of this measure is to establish an employer-
provided child care program income tax credit equal to a
percentage of the taxpayer's qualified child care program
expenses.

     Your Committee received testimony in support of this measure
from the Good Beginnings Alliance.  Testimony in opposition was
received from the Department of Taxation.

     It is the intent of your Committee to promote child care
programs on the premises of employers to assist employees in
caring for their children.  This measure provides a financial
incentive for employers by providing an income tax credit for
employers in an amount equal to a percentage of the taxpayer's
qualified child care program.

     Unlike other work site child care proposals, this measure is
not limited to actual child care at or near a workplace.  Rather,
this measure allows the credit for time-off policies, alternative
work schedules, and other assistance plans.  Your Committee
believes that it is important to provide an array of childcare
options that can be tailored to the individual family.  The focus
is on the child, rather than on the place or method of delivery

 
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                                   STAND. COM. REP. NO. 2029
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of services.  Employers are given the discretion to structure a
child care program to meet their employees' needs while
accounting for the employers' operational efficiencies.

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2608 and recommends that it pass Second Reading and
be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health and Human
                                   Services,



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
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