STAND. COM. REP. NO. 3187

Honolulu, Hawaii

RE: S.B. No. 3014

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3014, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to expand child care options for parents and increase the number of high-quality early childhood programs.

More specifically, this measure:

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

(2) Establishes and appropriates funds for an on-site early childhood facility coordinator position.

Your Committee received written comments in support of this measure from Early Childhood Action Strategy, Hawaii Community Foundation, and Hawaiian Electric Company, Inc.

Your Committee received comments on this measure from the Department of Taxation, Department of Human Services, and Executive Office on Early Learning.

Your Committee finds that the cost of child care in Hawaii is among the highest in the nation. Your Committee also finds 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. Your Committee further finds that having access to on-site early childhood facilities at workplaces may help parents to address concerns of child care costs and provide more opportunities for access to early childhood learning programs.

Your Committee has amended this measure by:

(1) Clarifying that the aggregate cap of the tax credit established by this measure shall be administered on a basis of taxable years, rather than fiscal years;

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

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

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3014, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3014, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair