HANO Public Policy Update
Measures being tracked at the Hawaii State Legislature and Honolulu City Council
Personal Liability for Nonprofit Board Members
SB 2238/HB 2045 – Proposed to repeal Act 155 (2010), which imposes possible revocation of tax exempt status and/or personal liability on board members and select staff of nonprofits when it is shown that there is willful neglect that a tax obligation or reconciliation report has not been filed. HANO supports. The bill passed out of the Ways and Means Committee with amendments. House version is probably dead for the session.
Cap on Charitable Deductions
SB 2544 - Repeals portion of Act 97 (2011) which eliminated the deduction for state taxes paid for taxpayers with income above specified thresholds. Placed temporary limitations on claims for itemized tax deductions. HANO supports this bill that will remove any disincentive to charitable giving. This bill was passed out of the WAM committee with amendments on 2/29/12. Moves to House FIN Committee.
Government Contracting
SB 777, SD 1, HD 1/SCR 28, SD 2 (2011) – Established a prompt payment task force to examine and resolve issues relating to state agencies' payments for goods and services purchased through nonprofit organizations. HANO is a named participant in the resolution. HANO supported and continues to sit on the task force. The work of this task force will be extended via SCR 40 to the end of 2012. A report will be made to the 2013 Legislature. SCR 40 was heard in EDT Committee on Feb. 29, where amendments were made to the language.
Amendments to Hawaii Nonprofit Corporations Act
SB 2758/HB 2496 – Amends the Hawaii Nonprofit Corporations Act to make technical changes that will allow nonprofit corporations to communicate more efficiently with their members and allow for changes to their articles of incorporation via regular membership meeting, not just annual or special meetings. HANO supports. The Senate bill passed out of WAM with amendments on Feb. 23. The House bill is awaiting hearing in FIN Committee.
Unemployment Insurance Trust
HB 2096, HD 1/SB 3027 – Sets the maximum weekly benefit amount at 75 percent of the average weekly wage from April 1, 2012, to Dec. 31, 2012. Sets, for calendar year 2012, the employer contribution rate at schedule F. Authorizes the Department of Labor and Industrial Relations director to accept loans from the State Director of Finance or from the federal government under Title XII of the Social Security Act. Authorizes the Department of Labor and Industrial Relations director to increase the employment and training assessment in increments of .01 percent retroactive to Jan. 1, 2012, for payment of interest on federal loans for unemployment insurance benefits. Requires the Act to apply retroactively to Jan. 1, 2012. Chamber of Commerce supports extending Schedule F through 2013 instead of just through 2012. HANO supports this position. House bill awaits decision making by Senate JDL/WAM Committees on March 1. Senate bill is being held.
Living Wages for Workers on Service Contracts
HB 2711, HD 1 – Requires contractors, including nonprofit providers with public contracts: (1) to pay their employees wages that provide an annual income equal to the poverty guidelines for Hawaii published by the federal DHHS, or a greater amount; and (2) to allow their employees to have access to and join labor organizations. HANO opposes any unfunded mandates via service contracts. The bill awaits hearing by FIN.
Mandatory Sick Leave
SB 2507 SD 1/HB 2089 – Requires employers to provide a minimum amount of paid sick and safe leave to employees to be used to care for themselves or a family member who is ill or a victim of domestic violence, sexual assault, or stalking. Effective July 1, 2050. HANO opposes these mandates. House bill is deferred indefinitely. Senate version awaits WAM hearing.
Tax Clearance Fees
SB 2868/HB 2606 – Imposes fees to obtain a tax clearance or a certified copy of a tax clearance. HANO opposes. The Senate bill passed out of WAM. The House bill awaits decision-making by the FIN committee as of Feb. 29.
Ethics and Gifts Law
HB 2457/SB 2719 – Excepts from restrictions on gifts under the ethics code invitations or tickets for a widely attended charitable event from a charitable entity, whether or not the charitable entity is the host of the charitable event. HANO is monitoring. Decision-making was deferred by the House Judiciary Committee on Feb. 9. The Senate version has not yet been heard. Both bills are dead for the session.
City Property Taxes on Nonprofits
Resolution 12-44 — Proposes a charter amendment to allow an unspecified portion of real property tax revenues to be dedicated toward Grant in Aid support to nonprofits that serve disadvantaged populations. HANO supports this resolution in concept. The resolution was passed out of the City’s Executive Matters and Legal Affairs Committee and goes to public hearing on March 21.
HANO is monitoring any bills that may come out of the Honolulu City and County that might recommend a removal, in whole or in part, of the real property tax exemption for nonprofit 501(c)3 organizations.
