Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 3019 entitled:

begs leave to report as follows:

The purpose of this measure is to provide a tax credit for health care benefits to members of bargaining unit (12).

Testimony in support of this measure was submitted by the Honolulu Police Department and the State of Hawaii Organization of Police Officers.

Testimony in opposition to this measure was submitted by the Department of Taxation.

Your Committee finds that a shortage of police officers and viable candidates for becoming police officers exists within the State and that efforts must be made to equitably compensate, retain, and recruit qualified individuals to fill these positions. However, your Committee further finds that during these difficult financial times, innovative methods for attracting and retaining qualified candidates must be explored. Your Committee determines that with the escalating costs of health insurance, alternatives for controlling or offsetting those costs provide an attractive incentive for our dedicated police officers.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3019 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.