STAND. COM. REP. NO. 1227

Honolulu, Hawaii

RE: H.B. No. 40

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred H.B. No. 40 entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Provide an income tax credit to every resident individual taxpayer of the State to satisfy constitutionally mandated requirements;

(2) Appropriate an unspecified amount of funds into the Emergency and Budget Reserve Fund established under section 328L-3, Hawaii Revised Statutes; and

(3) Appropriate an unspecified amount of funds into the Other Post-Employment Benefits Trust Fund established under section 87A-42, Hawaii Revised Statutes.

Your Committee received testimony in support of this measure from the Department of Budget and Finance. Your Committee received comments on this measure from the Department of Taxation, Hawaii Emergency Management Agency, and Tax Foundation of Hawaii.

Your Committee finds that when certain conditions are met, article VII, section 6, of the Hawaii State Constitution requires the Legislature to depose of excess fund revenues in a specific manner. This measure is necessary for the State to meet its obligation under the Hawaii Constitution.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 40, and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,

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SHARON MORIWAKI, Chair