STAND. COM. REP. NO. 979

Honolulu, Hawaii

RE:    H.B. No. 333

       H.D. 2

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Human Services, to which was referred H.B. No. 333, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Allow certain Hawaii residents to claim a refundable earned income tax credit equal to a certain percentage of the federal earned income tax credit;

     (2)  Limit the interest charged on any tax preparation service provided for clients who are recipients of the state earned income tax credit; and

     (3)  Appropriate monies from the Temporary Assistance for Needy Families fund and the general fund to finance the earned income tax credit and public service announcements to educate taxpayers about the tax credit.

     Testimony in support of this measure was provided by the Hawaii Alliance for Community-Based Economic Development and one individual.  Testimony in opposition to this measure was provided by the Department of Taxation, H & R Block, and Tax Foundation of Hawaii.  The Department of Human Services provided comments on this measure.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that an earned income tax credit offers needed relief to Hawaii's low and middle income families and keeps money circulating within the local economy.

     Your Committee has amended this measure by making technical, nonsubstantive changes for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 333, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 333, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Human Services,

____________________________

SUZANNE CHUN OAKLAND, Chair