STAND. COM. REP. NO. 1140-20

Honolulu, Hawaii

, 2020

RE: S.B. No. 3014

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Lower & Higher Education and Labor & Public Employment, to which was referred S.B. No. 3014, 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:

(1) Establish an income tax credit for employers who create on-site early childhood facilities; and

(2) Establish and appropriate funds for an on-site early childhood facility coordinator position to assist with licensure and accreditation requirements, work with providers, and ensure appropriate facility design of on-site early childhood facilities established by employers in the State.

Your Committees received testimony in support of this measure from the Hawaii Community Foundation. Your Committees received comments on this measure from the Department of Taxation, Department of Human Services, and Executive Office on Early Learning.

Your Committees find that the cost of child care in Hawaii is among the highest in the nation, requiring some parents to remain at home with their children because of the high cost of child care. Your Committees further find that employers who create on-site early childhood facilities see greater employee retention and performance, lower absenteeism, and a more productive and positive workplace environment. This measure will help parents address concerns of child care costs and provide more opportunities for access to early childhood learning programs by providing an income tax credit for employers who create on-site early childhood facilities.

Your Committee has amended this measure by changing the effective date to July 1, 2051.

Should your Committee on Finance decide to hear this measure, your Committees respectfully request that it consider the comments raised in the Department of Taxation's testimony regarding designating a certifying agency for the on-site early childhood facility tax credit and whether the tax credit is intended to be refundable or nonrefundable.

As affirmed by the records of votes of the members of your Committees on Lower & Higher 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. 3014, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3014, 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 Lower & Higher Education and Labor & Public Employment,

____________________________ AARON LING JOHANSON, Chair

____________________________ JUSTIN H. WOODSON, Chair