HANO'S AGENDA -- MARCH 2011

President's message:

Policy update: 4 bills that
would impact nonprofits

In a wee hour -- 2:30 a.m. -- from the comfort of my home (thank you Olelo!), I watched the House Finance Committee deliberate on HB 799 and, I believe, saw it remove nonprofits from the list of entities destined to pay a graduated tax on gross revenues. Unclear is whether a tax is still proposed on gross receipts of nonprofit conference, conventions and trade exhibits, which was the focus of the original bill. Details are difficult to confirm, as committee reports, revised bills and testimonies from last Friday's late night hearing are not yet online. 

Another bill -- which HANO has taken the lead on -- SB 777, in its current form creates a task force to look at government contracts, specifically the late-payments issue. HANO is one of two community groups to be appointed to the task force. Often, creating a task force is just a way to delay difficult decisions. In this case, however, we hope bringing together all stakeholders, including those from the new administration, will unearth solutions to a longstanding problem. More community representation is needed on this task force and we will work to add it as the bill moves to the House.
 
A third bill worth mentioning, SB 778, would repeal Act 155, which is a vague and confusing tax law enacted on July 1, 2010, that makes nonprofit boards and select staff personally liable for not paying or reporting general excise taxes. HANO supports nonprofits' complying with tax obligations but, if Act 155 stands, some caught unaware will face severe and inappropriate consequences. HANO supports SB 778, which passed out of Ways and Means on March 1 with minor amendments and is headed to the House.

Finally, late yesterday, we asked for your support on SB 671, which popped up suddenly at the request of the Hawaii Institute for Public Affairs. Legislators are now unable to accept free invitations to nonprofit fundraisers and this bill would change that. Some of you told us the SD 1 amended version, while allowing Legislators to attend nonprofit events, undermines good government, creates an uneven playing field and increases chances for abuse by special interests through gift giving. The Senate Judiciary and Labor Committee heard from all sides and struck a reasonable compromise to address all concerns. We await the amended language.
 
Please enjoy this month's issue. Thanks for your vigilance on the advocacy front. See this article for more on public policy, stay tuned and let's keep it up.

Mahalo,

Lisa Maruyama
HANO president & CEO 

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