Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Public Safety & Military Affairs, to which was referred H.B. No. 3226 entitled:

begs leave to report as follows:

The purpose of this bill is to establish a tax credit for improvement and renovation costs to make high rise buildings more resistant to natural disasters.

The Hawaii Council of Associations of Apartment Owners testified in support of the intent of this measure. The state Department of Defense supported the intent of this measure, but deferred to the Department of Taxation. The Department of Taxation opposed the measure, while the Tax Foundation of Hawaii submitted comments.

Your Committee finds that this measure will assist apartment owners to incorporate important safety measures into high rise buildings to protect themselves against hurricanes, earthquakes, tsunamis, or floods.

As affirmed by the record of votes of the members of your Committee on Public Safety & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 3226 and recommends that it pass Second Reading and be referred to the Committee on Finance.