Honolulu, Hawaii



RE:    S.B. No. 2489

       S.D. 2




Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii




     Your Committee on Ways and Means, to which was referred S.B. No. 2489, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to establish incentives for National Guard members and their employers and to expand the scope of state uses of the National Guard.


     Specifically, the measure:


     (1)  Establishes an employer income tax credit for taxpayers who maintain employee insurance coverage for National Guard members for the duration of the National Guard members' active duty;


     (2)  Expands the powers of the Governor and Governor's designee in calling the National Guard into active duty;


     (3)  Allows the Adjutant General to order the National Guard into active service for nonemergency purposes that are necessary and attendant to the mission of the Department of Defense; and


     (4)  Expands the rights granted to National Guard members to incorporate rights granted under the Servicemembers Civil Relief Act and the Uniformed Services Employment and Reemployment Rights Act.


     Written comments in support of this measure were submitted by the Hawaii Bankers Association and the Hawaii Financial Services Association.  Written comments on this measure were submitted by the Department of Taxation.


     Your Committee finds that this measure will assist members of the National Guard who are called into active service by, providing an incentive for employers to maintain employee insurance coverage for their employees who are National Guard members while they are deployed on active duty.  Your Committee also finds that it is in the best interest of the State to provide the Governor and Adjutant General with greater authority to utilize the National Guard for assistance in various circumstances, including events of natural or man-made disaster.


     Your Committee has amended this measure by:


     (1)  Adding provisions to facilitate the claiming and administration of the tax credit established by this measure that are similar to provisions governing comparable tax credits;


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


     (3)  Making technical nonsubstantive amendments for the purposes of consistency, clarity, 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. 2489, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2489, S.D. 2.


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