STAND. COM. REP. NO. 1412-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2905

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Education and Labor & Public Employment, to which was referred S.B. No. 2905, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ON-SITE EARLY CHILDHOOD FACILITIES,"

beg leave to report as follows:

The purpose of this measure is to increase access to early childhood programs in the State by:

(1) Establishing a refundable income tax credit for employers who create on-site early childhood facilities, subject to the facility receiving certification from the Department of Human Services, and accreditation within two years of operation; and

(2) Establishing and appropriating funds for one full-time On-site Early Childhood Facility Coordinator position in the Executive Office on Early Learning.

The Oahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i and an individual supported this measure. The Executive Office on Early Learning, Department of Human Services, Department of Taxation, and Tax Foundation of Hawaii provided comments on this measure.

Your Committees have amended this measure by:

(1) Clarifying provisions regarding the aggregate cap on the income tax credit to include a process of certification and enforcement;

(2) Clarifying that an on-site early childhood facility must be completed and certified before a taxpayer can claim the income tax credit; and

(3) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the records of votes of the members of your Committees on Education and Labor & Public Employment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2905, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2905, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Education and Labor & Public Employment,

____________________________ AARON LING JOHANSON, Chair

____________________________ JUSTIN H. WOODSON, Chair