Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Transportation and Government Operations, to which was referred S.B. No. 2308 entitled:

begs leave to report as follows:

The purpose of this measure is to establish a private facilities retrofit tax credit for qualified private facilities for construction or renovation to meet civil defense specifications.

Your Committee received testimony in support of this measure from the State Civil Defense Agency and Department of Taxation. Comments were received from the Tax Foundation of Hawaii.

Qualified private facilities under this measure include adult residential care homes, healthcare facilities, hotels, and places of public accommodations. This measure encourages owners of institutional entities where many people may be gathered at any one time, to retrofit their buildings. This would allow them to shelter their population, many of whom are vulnerable to disaster, and otherwise would be helpless but for the security of the building in the event of disaster.

Your Committee finds that taxpayers should be allowed a tax credit for the meaningful investment in the modification of a facility that results in reinforcing the integrity of the structure. This measure encourages taxpayers to retrofit outdated structures or building designs to make those structures safer.

As affirmed by the record of votes of the members of your Committee on Transportation and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2308 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.