STAND. COM. REP. NO. 3386

Honolulu, Hawaii

RE:    H.B. No. 1667

       H.D. 3

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 1667, H.D. 3, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO VETERANS,"

begs leave to report as follows:

     The purpose and intent of this measure is to recognize the sacrifices made by members of the United States armed services by exempting qualified disabled veterans from a portion of certain motor vehicle registration fees.

Specifically, this measure:

     (1)  Exempts veterans who are rated as one hundred percent disabled due to service-related injury from paying one-half of the state motor vehicle registration fee on one of their noncommercial vehicles; and

     (2)  Requires the Office of Veterans' Services to report the number of qualifying veterans to the Legislature and Department of Taxation.

     Your Committee received written comments in support of this measure from the Department of Defense, the Office of Veterans' Services of the Department of Defense, the Hawaii Chapter of the Military Officers Association of America, and two individuals.  The Department of Customer Services of the City and County of Honolulu and the Tax Foundation of Hawaii submitted written comments on the measure.

     Your Committee finds that disabled veterans of the United States armed services should be recognized and compensated for the sacrifices they have made in defense of this nation.  Your Committee believes that the limited fee exemption this measure will provide for qualified veterans who are disabled due to military-related injuries is justified.

     Your Committee has amended this measure by:

     (1)  Clarifying that veterans discharged for bad conduct shall not be eligible for the exemption;

     (2)  Specifying that the exemption shall extend to a qualified vehicle owned, leased, or operated by a qualified veteran; and

     (3)  Changing the effective date to January 1, 2050, to facilitate further discussion on the measure.

     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 H.B. No. 1667, H.D. 3, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1667, H.D. 3, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair