STAND. COM. REP. NO. 1017-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 2339

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 2339, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RESIDENCY REQUIREMENTS IN STATE HIRING,"

begs leave to report as follows:

The purpose of this measure is to exempt dependents of military servicemembers from the state residency requirement for employment with state or county government.

Your Committee received testimony in support of this measure from the Indo-Pacific Command, Department of Defense, Department of Human Resources Development, Hawaii Health Systems Corporation, Chamber of Commerce Hawaii, and two individuals.

Your Committee finds that based on the Department of Taxation's recent interpretations of federal law, income received by dependents of servicemembers is no longer considered Hawaii‑sourced income if the servicemember is in Hawaii on valid military orders. Pursuant to this recent interpretation, your Committee further finds that Hawaii law should be amended to clarify that dependents of servicemembers may maintain residency in a state other than Hawaii and still be considered for employment in state or county government.

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

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2339, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2339, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

____________________________

CHRIS LEE, Chair