Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1190 entitled:

begs leave to report as follows:

The purpose of this measure is to exempt the salaries of police officers represented by collective bargaining unit 12, from the state income tax.

Your Committee finds that the recruitment and retention of police officers statewide, continues to be a critical problem for the counties. Offers of better pay and benefits from mainland municipalities continue to deplete the ranks of county police departments. Unless the State provides assistance to the counties, the four county police departments will forever be below full strength and unable to fully serve the needs of their respective communities.

The tax exemption provided by this bill will provide the incentive to encourage police officers as well as police recruits to remain at home and provide the counties with a full contingency of police officers to better serve the State.

Your Committee has amended the bill by changing the effective date to July 1, 2050 to promote continuing discussion.

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 S.B. No. 1190, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1190, S.D. 1.