STAND. COM. REP. NO. 2913

Honolulu, Hawaii

RE:    H.B. No. 1893

       H.D. 1

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Human Services, to which was referred H.B. No. 1893, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to support the American Red Cross by establishing the American Red Cross Hawaii State Chapter special fund and authorizing income tax return designations to the American Red Cross, Hawaii State Chapter.

     Your Committee received testimony in support of this measure from the Hawaii State Civil Defense and American Red Cross, Hawaii State Chapter.  Your Committee received testimony in opposition to this measure from the Department of Taxation.  Your Committee received comments on this measure from the Department of Budget and Finance and Tax Foundation of Hawaii.

     Your Committee finds that the American Red Cross, Hawaii State Chapter, responds to a disaster on average every four days and performs a public service for the people of Hawaii by providing disaster response and emergency preparedness services.  The American Red Cross recruits, trains, and coordinates volunteers to be on call to provide immediate relief to disaster victims.  Your Committee further finds that this measure provides funding to the American Red Cross, Hawaii State Chapter, so that it can better provide in-state disaster response services and help mitigate the loss of life and property when disasters occur.  Your Committee received testimony expressing concern that establishing an income tax check-off box for a non-government entity will open the door to many other private entities requesting the same.

     Your Committee has amended this measure by:

     (1)  Replacing the American Red Cross Hawaii State Chapter special fund with the disaster response special fund, from which funds will be transferred annually to organizations that respond to disasters and train volunteers to provide shelter and other mass care activities during major disasters;

     (2)  Inserting an effective date of January 1, 2015; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     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. 1893, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1893, H.D. 1, 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