Category Archives: Miscellaneous

HB 1958, HD-1

SUBJECT:  INCOME, Increase Credit for Household and Dependent Care Services Necessary for Gainful Employment

BILL NUMBER:  HB 1958, HD-1

INTRODUCED BY: House Committee on Human Services & Homelessness

EXECUTIVE SUMMARY:   Amends the income tax credit for expenses for household and dependent care services necessary for gainful employment by changing the taxpayer’s applicable percentage of employment‑related expenses that constitutes the tax credit and cap amount. Takes effect on 12/31/2059

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HB 2399, HD-1

SUBJECT:  MISCELLANEOUS, Management of State Funds

BILL NUMBER:  HB 2399, HD-1

INTRODUCED BY: House Committee on Labor & Employment

EXECUTIVE SUMMARY: Amends provisions relating to the short-term investment of state moneys, including the types of financial instruments in which state moneys may be invested. Requires annual report to the legislature

SYNOPSIS:  Amends section 36-21, HRS, to provide that the director of finance may invest, through a private financial services firm and in compliance with the State’s investment policy, invest any moneys of the State in excess of the amounts necessary for meeting the immediate requirements of the State; provided that the action, in the state funds investment board’s judgment, shall maximize the State’s return on investments, net of investment fees and expenses incurred, while protecting capital and not impede or hamper the necessary financial operations of the State.  Expands the list of permissible investments.

EFFECTIVE DATE:  January 1, 2050.

STAFF COMMENTS:  As explained in the bill’s recitals, the state treasury is invested in certificates of deposit and short-term treasuries or agencies having a duration (average maturity) of less than one year.  In other words, the state treasury is invested in cash or cash equivalents.  In contrast, Section 36-21, HRS, authorizes government and government-related bond investments that are due to mature not more than five years after the date of investment.  The bill also recites that the Department of Budget and Finance (B&F) has less than one full-time equivalent position assigned to invest and manage a $6 billion portfolio.

It is hard to disagree with the bill’s premises, namely that our State interagency portfolio deserves more attention and care than one dedicated worker can give to it.

For comparison, we plotted ERS’ and EUTF’s reported investment returns as reported on their financial statements as posted on B&F’s website.  To derive the State’s investment returns, we divided the “Interest and Investment Income” total from the State’s Combined Annual Financial Report (CAFR) Statement of Activities by its total “Investments” per the CAFR Statement of Net Position.  Here are the results.

Source:  B&F Reports, CAFR

Digested 2/18/2020

SB 2686, SD-1

SUBJECT:  TAXATION; Extend County Surcharge Adoption, Allow Use for Disaster Relief

BILL NUMBER:  SB 2686, SD-1

INTRODUCED BY:  Senate Committees on Public Safety, Intergovernmental, and Military Affairs and Transportation

EXECUTIVE SUMMARY:   Extends the period that a county may adopt a surcharge on state tax, under certain conditions, from March 31, 2019, to September 30, 2020. Allows a county with a population equal to or less than five hundred thousand that adopts a surcharge on state tax to use surcharge revenues for disaster relief.

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HB 1680, HD-1

SUBJECT:  MISCELLANEOUS, Enhanced 911 Surcharge on Prepaid Wireless

BILL NUMBER:  HB 1680, HD-1

INTRODUCED BY: House Committee on Intrastate Commerce

EXECUTIVE SUMMARY: Establishes a prepaid wireless E911 surcharge to be imposed on prepaid wireless telecommunications services purchased at a retail transaction. Allows sellers to deduct and retain three per cent of the surcharge for administrative expenses. Requires deposit of the surcharge balance into the enhanced 911 fund. Amends the enhanced 911 surcharge rate. Effective 7/1/2050.  Coverage of prepaid wireless is seen as a way to close a loophole in existing law.

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SB 3036; HB 2039

SUBJECT: RELATING TO RENEWABLE ENERGY TECHNOLOGIES TAX CREDITS

BILL NUMBER:  SB 3036; HB 2039

INTRODUCED BY: SB by KIDANI, WAKAI, Baker, Kanuha, Keith-Agaran, Shimabukuro, Taniguchi; HB by YAMANE

EXECUTIVE SUMMARY: Provides that notwithstanding any law to the contrary or subsequent amendments to existing state renewable energy investment tax credits, a power purchase agreement approved by the public utilities commission prior to 12/31/2019 shall receive thirty-five per cent of the actual cost or up to the applicable cap amount of $500,000 per solar energy system.

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SB 2686; HB 2648

SUBJECT:  TAXATION; Extend County Surcharge Adoption, Allow Use for Disaster Relief

BILL NUMBER:  SB 2686; HB 2648

INTRODUCED BY:  SB by KEITH-AGARAN, BAKER, ENGLISH, Inouye, K. Kahele; HB by SAIKI by request

EXECUTIVE SUMMARY:   Extends the period that a county may adopt a surcharge on state tax, under certain conditions, from March 31, 2019, to December 31, 2020. Allows a county with a population equal to or less than five hundred thousand that adopts a surcharge on state tax to use surcharge revenues for disaster relief.

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