Re1361port Title:

Volunteer Incentives; Maintain/Repair Public School

 

Description:

Appropriates funds to create Volunteer Incentives Program in DOE; provides income tax deduction for private individuals/entities for services provided to public schools; school to receive quarterly payments based on volunteer services received.

 

THE SENATE

S.B. NO.

 

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the volunteer incentive program.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the backlog of maintenance and repair work in Hawaii's public schools has grown to $600,000,000. The State's limited resources constrain the reduction of needed maintenance and repair work, resulting in a detrimental impact on our schools. The legislature finds that public-private partnerships in volunteer projects are an effective way to provide certain needed services to our public schools, including repair and maintenance. Services provided to schools by volunteers in public-private partnerships could include not only much needed repair and maintenance, but also campus beautification, administrative assistance, and teacher and classroom aid. To encourage the development of public-private partnerships through volunteer services to be provided by private individuals and entities, tax incentives for volunteer services are needed.

It is the purpose of this Act to appropriate funds to establish a volunteer incentive program within the department of education and to create an income tax deduction for volunteer participants.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- Volunteer incentive program. (a) There is created in the department a volunteer incentive program to encourage public-private partnerships that benefit schools by encouraging individuals and entities to provide uncompensated volunteer services that include, but are not limited to, repair and maintenance projects, campus beautification projects, administrative assistance, and teacher and classroom aid.

(b) There shall be allowed for uncompensated volunteer program participants a deduction from gross income, as provided in section 235-    .

(c) Each participating school shall receive a quarterly payment from the department, based upon the number of hours of uncompensated volunteer service contributed to the school by program participants, to be paid at the rate of $1 for each volunteer service hour received. Volunteer incentive program payments to be allocated to a single school may not exceed $4,800 for each fiscal year.

(d) The department shall require each school to furnish reasonable information in order that the department may ascertain the validity of a claim by the school for a quarterly payment under the program.

(e) The department shall adopt rules pursuant to chapter 91 to establish procedures necessary to certify any claim made by a volunteer for the income tax deduction under section 235-     and to effectuate this section."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $        , or so much thereof as may be necessary for fiscal year 2001-2002, for the creation and continued development of a volunteer incentive program in Hawaii public schools.

Five per cent of the volunteer incentive program funding appropriated shall be used for program implementation and administration.

Upon receipt of reasonable information that establishes the validity of a participating school's claim, the department of education shall allocate quarterly payments from the appropriated funds to any school participating in the volunteer incentive program in the amount of $1 per hour of volunteer service provided to the school by program participants. Total payment to a participating school for volunteer services received shall not exceed $4,800 for each fiscal year.

SECTION 4. The sum appropriated in section 3 shall be expended by the department of education to establish, implement, and administer the volunteer incentive program, including the allocation of quarterly payments to be made to participating schools, based upon the number of hours of uncompensated volunteer services provided to the school by volunteer incentive program participants.

SECTION 5. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Volunteer incentive program. (a) For each resident individual or corporate taxpayer, who files an individual or corporate income tax return for a taxable year, and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for Hawaii state individual income tax purposes, there shall be allowed as a deduction from gross income an amount not to exceed $400 for uncompensated volunteer services provided by the individual or entity during the taxable year to a public school under the volunteer incentive program created in section 302A-    .

(b) For any uncompensated volunteer services, including but not limited to labor or expertise, provided by the volunteer, the amount of the deduction shall be determined based upon $1 for every hour volunteered.

(c) The department of education shall adopt rules and procedures necessary to certify a claim for deduction made by a volunteer under this section.

(d) The director may prepare forms necessary to claim a deduction under this section. The director may also require the taxpayer to furnish reasonable information to ascertain the validity of the claim for deduction made under this section and shall adopt rules pursuant to chapter 91 to effectuate this section."

SECTION 6. Section 235-7, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

"(g) In computing taxable income there shall be allowed as a deduction:

(1) Political contributions by any taxpayer not in excess of $250 in any year; provided that such contributions are made to a central or county committee of a political party whose candidates shall have qualified by law to be voted for at the immediately previous general election; or

(2) Political contributions by any individual taxpayer in an aggregate amount not to exceed $1,000 in any year; provided that such contributions are made to candidates as defined in section 11-191, who have agreed to abide by the campaign expenditure limits as set forth in section 11-209; and provided further that not more than $250 of an individual's total contribution to any single candidate shall be deductible for purposes of this section[.]; and

(3) Amounts claimed for uncompensated volunteer services provided to a public school in this State as provided for in section 235-    ."

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2001, provided that sections 5 and 6 shall apply to taxable years beginning after December 31, 2001.

INTRODUCED BY:

_____________________________