Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 638, H.D. 1, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to support Hawaii's public library system by authorizing income taxpayers to designate $2 of the individual's income tax refund to be paid to the libraries special fund.

The bill also expressly authorizes the State Librarian to receive and use privately donated money to support the operations of the library system, including payment of staff salaries, provided that the donor is advised of the authorized uses of donated moneys.

Your Committee finds that this measure will enable the State's public library system to provide services to the community. Donated funds and funds received from taxpayers will help libraries meet patrons' needs by purchasing new books and other materials, keeping up with technology, and possibly even paying staff salaries so that the libraries can remain open to serve the public. Your Committee wants to clarify that the Department of Taxation does not have to apprise donors, pursuant to Section 4 of the measure, of how the moneys may be used by the state librarian.

Upon further consideration, your Committee has amended the bill by changing the effective date to facilitate continued discussion on this measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 638, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 638, H.D. 1, S.D. 2.