STAND. COM. REP. NO.49

Honolulu, Hawaii

, 2003

RE: S.B. No. 918

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred S.B. No. 918 entitled:

"A BILL FOR AN ACT RELATING TO NONPROFIT CORPORATIONS AND ORGANIZATIONS,"

begs leave to report as follows:

The purpose of this measure is to require standard motor vehicle insurance coverages to be offered as an option to persons working part-time or volunteering for nonprofit entities who use their vehicles in the course of their work for the nonprofit, and to allow an income tax deduction for those premiums.

Testimony in support of this measure was received from the Hawaii Youth Services Network. Comments were submitted by the Tax Foundation of Hawaii.

This measure is intended to address a common situation in which a nonprofit entity is required to provide transportation for clients. The nonprofit often does not own a vehicle which forces the volunteer or part-time worker to use the person's own vehicle. However, the insurance on the vehicle prohibits use of the vehicle for business purposes, which includes nonprofits. This measure would allow the owner of the vehicle to purchase optional coverages for the purpose of using the vehicle in the course of work for the nonprofit.

Your Committee has amended this measure to include full-time employees and add a definition for "full-time employee".

As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 918, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 918, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.

Respectfully submitted on behalf of the members of the Committee on Human Services,

____________________________

SUZANNE CHUN OAKLAND, Chair