STAND. COM. REP. NO. 1051

Honolulu, Hawaii

RE:    H.B. No. 149

       H.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Intergovernmental and Military Affairs, to which was referred H.B. No. 149, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO DISASTER RELIEF,"

begs leave to report as follows:

     The purpose of this measure is to provide relief to victims of the October 15, 2006, earthquake by establishing a one-time, non-refundable earthquake tax credit.

     Your Committee received testimony in support of this measure from the Director of Civil Defense, State Department of Defense.  Your Committee received comments regarding this measure from the Department of Taxation and the Tax Foundation of Hawaii.

     Your Committee finds that many of the victims of the October 15, 2006, earthquake did not have earthquake insurance and the earthquake assistance provided to victims by the Federal Emergency Management Agency was not a sufficient amount to offset the repair and replacement costs of damaged property, causing many victims to pay for repair and replacement costs out of their own pockets.  Therefore, it is the intent of your Committee to provide a one-time, non-refundable tax credit to victims who have unreimbursed losses as a result of the October 15, 2006, earthquake.

     As affirmed by the record of votes of the members of your Committee on Intergovernmental and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 149, H.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Economic Development and Taxation.

Respectfully submitted on behalf of the members of the Committee on Intergovernmental and Military Affairs,

____________________________

LORRAINE R. INOUYE, Chair