STAND. COM. REP. NO. 2020

Honolulu, Hawaii

RE: S.B. No. 2029

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred S.B. No. 2029 entitled:

"A BILL FOR AN ACT RELATING TO CHILD CARE,"

begs leave to report as follows:

The purpose and intent of this measure is to provide tax relief by establishing a new child tax credit to assist child care costs for working families.

Your Committee received testimony in support of this measure from the Hawaii Appleseed Center for Law & Economic Justice, Hawaii Children's Action Network, Oahu County Committee Legislative Priorities Committee of the Democratic Party of Hawaii, and one individual. Your Committee received comments on this measure from the Department of Taxation and Department of the Attorney General.

Your Committee finds that the cost of raising a child in Hawaii is much higher than the national average due to the cost of child care in Hawaii and because, when adjusted for cost of living, wages in Hawaii are amongst the lowest in the nation. Your Committee further finds that the federal child tax credit enacted twenty years ago has been shown to be an effective tool to address poverty and assist lower income families and that a similar state tax credit would provide valuable financial relief for local families.

Your Committee has amended this measure by 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 S.B. No. 2029, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2029, S.D. 1, and be referred to your Committee on Ways and Means.

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

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JOSH GREEN, Chair