HANO keeps an eye on Legislature for nonprofits
Because of the condition of the state economy and expected government revenue shortfalls, the Legislature this session has turned its attention to repealing tax exemptions and credits to increase revenue, while cutting outlays to many programs. The Hawaii Alliance of Nonprofit Organizations actively tracks and provides testimony at the Legislature on bills that affect the nonprofit sector as a whole.
For example, HANO recently succeeded in having Senate Economic Development and Technology Committee add nonprofit representatives to the groups who could make up the technical advisory group to consult with the Tax Department and Department of Business Economic Development and Tourism working group on tax exemptions and tax credits created by HB 611, HD 1, SD 1.
Listed here by bill number are measures HANO is now tracking, brief descriptions of the bills and bill status as of March 30:
- HB 1742 – Repeals general excise tax exemption for nonprofits other than religious institutions – dead in current form.
- HB 611, HD 1, SD 1 and SB 1247, SD2 – Requires the Department of Taxation to evaluate certain tax credits and tax exemptions and report to legislature. Provides automatic repeal of the tax credits and tax exemptions. Provides a penalty for excessive amounts filed for tax refunds and credits – House version passed by Senate EDT with amendments, including having nonprofit representatives on the technical advisory group; awaiting hearing by Ways and Means Committee. Senate version deferred in the House Finance Committee on March 25.
- SB 354 – Exempted fundraising revenue for charitable organizations from the general excise tax – Heard in WAM, deferred. Dead this session.
- HB 1350 – Exempted fundraising revenue for nonprofits providing services to the state from GET – Dead, was never heard in originating body.
- SB 91, SD 2, HD 1 and HB 1207, HD 1, SD 1 – Makes technical changes to Community-Based Economic Development funding mechanism, but most importantly, allows CBED to fundraise outside of state general fund – Senate version passed first referral to House; FIN will hear on April 1. House version passed first referral EDT and referred to WAM.
- SB 121, SD 1 and HB 618, SD 1 – Relating to the Uniform Prudent Management of Institutional Funds Act. Allows organizations with endowments to access funds below gift value if proven to be under prudent circumstances and with approval of donor – Senate version passed first referral in House, awaiting hearing in FIN. House version passed Senate Commerce and Consumer Protection Committee and awaits decision-making by Senate Judiciary and Government Operations Committee on April 2.
- SB 1665, SD 2 – Enhances the workforce development capacity of Hawaii’s community colleges. Names HANO as a member of an advisory committee to the community colleges for this purpose – Passed out of Senate, passed out of House Higher Education and Labor & Public Employment committees and will be heard by FIN on April 1.
- HB 1184, HD 2 and SB 21, SD 1 – Creates temporary exemptions in procurement, rulemaking, and civil service employment statutes for programs, services, and benefits using funds allocated to the State by the American Recovery and Reinvestment Act of 2009 – House bill was passed out and is awaiting hearing in first of three referrals; Senate version awaits hearing by House FIN, its only committee referral.
