Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 2261 entitled:

begs leave to report as follows:

The purpose of this bill is to establish a refundable tax credit of $80 per month for single health coverage and $200 per month for family health coverage for members of collective bargaining unit 12 (police officers).

The State of Hawaii Organization of Police Officers and Honolulu Police Department (HPD) testified in support of this bill. The Department of Taxation and Department of Personnel Services of the County of Maui testified in opposition to this measure.

Your Committee finds that despite approval of a new contract with the City and County of Honolulu which included a salary increase, HPD officers experienced a net financial loss due to increases in member health insurance premiums. This situation compounds the exceedingly difficult task of recruiting and retaining police officers that is experienced by all of the counties throughout the State.

As such, your Committee believes this bill would serve as another tool to assist the counties with the recruitment and retention of qualified police officers throughout the State.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2261 and recommends that it pass Second Reading and be referred to the Committee on Finance.