Bill Text: HI SB1279 | 2018 | Regular Session | Introduced

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Bill Title: Relating To Education.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [SB1279 Detail]

Download: Hawaii-2018-SB1279-Introduced.html

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THE SENATE	S.B. NO.	1279
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to education.

 

 

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

 

     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

hawaii tax credit scholarship program

     §   -1  Definitions.  For the purpose of this chapter:

     "Annual tax credit amount" means, for any state fiscal year, the sum of the amount of tax credits approved under section    -3, including tax credits to be taken under section 237-  , which are approved for a taxpayer whose taxable year begins on or after January 1 of the calendar year preceding the start of the applicable state fiscal year.

     "Complex area" shall have the same meaning as in section 302A-101.

     "Department" means the department of taxation.

     "Eligible contribution" means a monetary contribution from a taxpayer, subject to the restrictions provided in this chapter, to an eligible nonprofit scholarship-funding organization.  The taxpayer making the contribution may not designate a specific child as the beneficiary of the contribution.

     "Eligible nonprofit scholarship-funding organization" means a not-for-profit university located and chartered in the State that is accredited by the Western Association of Schools and Colleges or any affiliate of the Western Association of Schools and Colleges, or a charitable organization that:

     (1)  Is exempt from federal income tax pursuant to section 501(c)(3) of the Internal Revenue Code;

     (2)  Is a Hawaii entity formed under chapters 414 or 425 and whose principal office is located in the State; and

     (3)  Complies with sections    -4 and    -10.

     "Owner or operator" means an owner, president, officer, or director of an eligible nonprofit scholarship-funding organization or a person with equivalent decision-making authority over an eligible nonprofit scholarship-funding organization.

     "Service area" means the geographical area in which a child is required to attend school pursuant to section 302A-1143.

     "Tax credit cap amount" means the maximum annual tax credit amount that the department may approve in a fiscal year.

     §   -2  Program; scholarship eligibility.  (a)  There is established the Hawaii tax credit scholarship program to benefit students with disabilities.

     (b)  Contingent upon available funds, a student is eligible for a Hawaii tax credit scholarship under this section if the student has a current individual educational plan developed by the department of education in accordance with the rules of the board of education for the Hawaii tax credit scholarship program or a 504 accommodation plan has been issued under section 504 of the Rehabilitation Act of 1973.

     (c)  A student is not eligible for a Hawaii tax credit scholarship:

     (1)  While the student is enrolled in a school operating for the purpose of providing educational services to youth in the Hawaii youth correctional facility;

     (2)  While the student is participating in home schooling;

     (3)  While the student is participating in a virtual school, correspondence school, or distance learning program that receives state funding pursuant to the student's participation unless the participation is limited to no more than two courses per school year; or

     (4)  If the student has been issued a temporary 504 accommodation plan under section 504 of the Rehabilitation Act of 1973 which is valid for six months or less.

     §   -3  Scholarship funding tax credits; limitations.  (a)  The tax credit cap amount is $           for the 2017-2018 fiscal year.

     (b)  In the 2018-2019 fiscal year and each fiscal year thereafter, the tax credit cap amount shall be the tax credit cap amount in the prior fiscal year; provided that in any fiscal year when the annual tax credit amount for the prior fiscal year is equal to or greater than ninety per cent of the tax credit cap amount applicable to that fiscal year, the tax credit cap amount shall increase by twenty-five per cent.  The department of education and department of taxation shall publish on their websites information identifying the tax credit cap amount when it is increased pursuant to this subsection.

     (c)  A taxpayer may submit an application to the department for a tax credit or credits under this chapter; provided that:

     (1)  The taxpayer shall specify in the application the applicable taxable year for a credit and the designated eligible nonprofit scholarship-funding organization;

     (2)  The department shall approve tax credits on a first-come, first-served basis; and

     (3)  Within ten days after approving an application, the department shall provide a copy of its approval letter to the eligible nonprofit scholarship-funding organization specified by the taxpayer in the application.

     (d)  If a tax credit approved under subsection (c) is not fully used within the specified fiscal year or against taxes due for the specified taxable year because of insufficient tax liability on the part of the taxpayer, the unused amount may be carried forward for a period not to exceed five years; provided that any taxpayer that seeks to carry forward an unused amount of tax credit must submit an application to the department for approval of the carryforward tax credit in the year that the taxpayer intends to use the carryforward tax credit.

     (e)  A taxpayer may not convey, assign, or transfer an approved tax credit or a carryforward tax credit to another entity unless all of the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction; provided that a tax credit may be conveyed, transferred, or assigned between members of an affiliated group of corporations if the taxpayer notifies the department of its intent to convey, transfer, or assign a tax credit to another member within an affiliated group of corporations and the department approves the amount.

     (f)  Within any state fiscal year, a taxpayer may rescind all or part of a tax credit approved under subsection (c).  The amount rescinded shall become available for that state fiscal year to another eligible taxpayer as approved by the department if the taxpayer receives notice from the department that the rescindment has been accepted by the department.  Any amount rescinded under this subsection shall become available to an eligible taxpayer on a first-come, first-served basis based on tax credit applications received after the date the rescindment is accepted by the department.

     (g)  For purposes of calculating the underpayment of estimated corporate income taxes and tax installment payments for taxes on insurance premiums or assessments, the final amount due is the amount after credits earned for contributions to eligible nonprofit scholarship-funding organizations are deducted.

     §   -4  Obligations of eligible nonprofit scholarship-funding organizations.  An eligible nonprofit scholarship-funding organization shall:

     (1)  Comply with the antidiscrimination provisions of title 42 United States Code section 2000d;

     (2)  Require all owners and operators to, before employment or engagement to provide services, submit a full set of fingerprints for the purpose of obtaining federal and state criminal history record checks in accordance with section 846-2.7; provided that the cost of the criminal history record checks may be borne by the eligible nonprofit scholarship-funding organization or the owner or operator;

     (3)  Provide scholarships, from eligible contributions, to eligible students for:

         (A)  The cost of transportation to a Hawaii public school that is located outside the service area in which the student resides and any other fees required by the school; or

         (B)  Tuition and fees for a nonpublic special education school or program that is accredited pursuant to section 302A-443.5;

     (4)  Give first priority to eligible students who received a scholarship from an eligible nonprofit scholarship-funding organization or from the State during the previous school year and give priority to new applicants whose household income levels do not exceed one hundred eighty-five per cent of the federal poverty level or who are in foster care;

     (5)  Provide a scholarship to an eligible student on a first-come, first served basis unless the student qualifies for priority pursuant to paragraph (4);

     (6)  Not restrict or reserve scholarships for use at a particular school or provide scholarships to a child of an owner or operator;

     (7)  Allow a student in foster care to apply for a scholarship at any time;

     (8)  Be authorized to use up to three per cent of eligible contributions received during the fiscal year in which such contributions are collected for administrative expenses if the organization has operated under this section for at least three fiscal years and did not have any negative financial findings in its most recent audit under paragraph (14); provided that:

         (A)  Administrative expenses must be reasonable and necessary for the organization's management and distribution of eligible contributions under this chapter;

         (B)  No funds authorized under this paragraph shall be used for lobbying or political activity or expenses related to lobbying or political activity;

         (C)  Up to one-third of the funds authorized for administrative expenses under this paragraph may be used for expenses related to the recruitment of contributions from taxpayers; and

         (D)  If an eligible nonprofit scholarship-funding organization charges an application fee for a scholarship, the application fee must be immediately refunded to the person that paid the fee if the student is not enrolled in a participating school within twelve months;

     (9)  Expend for annual or partial-year scholarships an amount equal to or greater than seventy-five per cent of the net eligible contributions remaining after administrative expenses during the fiscal year in which such contributions are collected; provided that:

         (A)  No more than twenty-five per cent of such net eligible contributions may be carried forward to the following fiscal year;

         (B)  All amounts carried forward, for audit purposes, must be specifically identified for particular students by student name and the name of the school to which the student is admitted subject to the requirements of title 20 United States Code section 1232g, and the applicable rules and regulations issued pursuant thereto;

         (C)  Any amounts carried forward shall be expended for annual or partial-year scholarships in the following fiscal year; and

         (D)  Net eligible contributions remaining on June 30 of each year that are in excess of the twenty-five per cent that may be carried forward shall be returned to the state treasury for deposit in the general fund of the State;

    (10)  Document each scholarship student's eligibility for that academic year before granting a scholarship;

    (11)  Be prohibited from granting multiyear scholarships in one approval process;

    (12)  Maintain separate accounts for scholarship funds and operating funds;

    (13)  Be authorized, with prior approval from the department of education, to transfer funds to another eligible nonprofit scholarship-funding organization if additional funds are required to meet scholarship demand at the receiving nonprofit scholarship-funding organization; provided that:

         (A)  A transfer is limited to the greater of $500,000 or twenty per cent of the total contributions received by the nonprofit scholarship-funding origination making the transfer;

         (B)  All transferred funds must be deposited by the receiving nonprofit scholarship-funding organization into its scholarship accounts; and

         (C)  All transferred amounts received by a nonprofit scholarship-funding organization must be separately disclosed in the annual financial and compliance audit;

    (14)  Provide to the auditor and department of education a report on the results of an annual financial audit of its accounts and records conducted by an independent certified public accountant in accordance with auditing standards generally accepted in the United States, government auditing standards, and rules promulgated by the auditor; provided that:

         (A)  Audit reports must be provided to the auditor and department of education within one hundred eighty days after completion of the eligible nonprofit scholarship-funding organization's fiscal year;

         (B)  The auditor shall review all audit reports submitted pursuant to this chapter and request any significant items the auditor feels were omitted;

         (C)  The items requested by the auditor must be provided within forty-five days after the date of the request; and

         (D)  The auditor shall notify the legislature if the scholarship-funding organization does not comply with the auditor's request;

    (15)  Maintain the surety bond or letter of credit required by section    -10; provided that:

         (A)  The amount of the surety bond or letter of credit may be adjusted quarterly to equal the actual amount of undisbursed funds based upon submission by the organization of a statement from a certified public accountant verifying the amount of undisbursed funds;

         (B)  The requirements of this paragraph shall be waived if the cost of acquiring a surety bond or letter of credit exceeds the average ten-year cost of acquiring a surety bond or letter of credit by two hundred per cent; and

         (C)  The requirements of this paragraph shall be waived for a not-for-profit university located and chartered in the State that is accredited by the Western Association of Schools and Colleges or any affiliate of the Western Association of Schools and Colleges; and

    (16)  Provide to the auditor any information or documentation requested in connection with an operational audit; provided that information and documentation provided to the department of education and the auditor relating to the identity of a taxpayer that provides an eligible contribution under this chapter shall remain confidential at all times in accordance with section 231-1.5.

     §   -5  Parent and student responsibilities for program participation.  (a)  The parent or guardian of a student selected for participation in the program shall select a school for the student to attend that is either:

     (1)  A public school outside of the service area in which the student resides; or

     (2)  A nonpublic special education school or program that is accredited pursuant to section 302A-443.5.

     (b)  The parent or guardian shall inform the complex area supervisor of the child's service area when the parent or guardian withdraws the student to attend another public school or a nonpublic special education school or program that is accredited pursuant to section 302A-443.5.

     (c)  Any student participating in the scholarship program must remain in attendance throughout the school year unless excused by the school for illness or other good cause.

     (d)  The parent or guardian shall authorize the nonprofit scholarship-funding organization to access information needed for eligibility determination and verification.

     §   -6  Department of education obligations.  The department of education shall:

     (1)  Annually submit to the department, by March 15, a list of eligible nonprofit scholarship-funding organizations that meet the requirements of section    -1;

     (2)  Annually verify the eligibility of nonprofit scholarship-funding organizations that meet the requirements of section    -1;

     (3)  Annually verify the eligibility of expenditures as provided in section    -4 using the audit required by section    -4(14);

     (4)  Establish a toll-free hotline or website that provides parents with information on participation in the scholarship program;

     (5)  Establish a process by which individuals may notify the department of education of any violation by a parent, public school, complex area, or nonpublic special education school or program that is accredited pursuant to section 302A-443.5, of state laws relating to program participation;

     (6)  Notify eligible nonprofit scholarship-funding organizations of any of the organization's identified students who are receiving tax credit scholarships from other eligible nonprofit scholarship-funding organizations; and

     (7)  Annually report to the legislature the department of education's actions with respect to implementing accountability in the scholarship program and any substantiated allegations or violations of law or rule.

     §   -7  Complex area obligations; parental options.  (a)  Upon the request of any eligible nonprofit scholarship-funding organization, a complex area shall inform all households within the complex area that may be eligible to apply for a tax credit scholarship of the student's possible eligibility to apply for a tax credit scholarship; provided that the form of such notice shall be provided by the eligible nonprofit scholarship-funding organization and the complex area shall include the provided form in any normal correspondence with eligible households.

     (b)  By April 1 of each year and within ten days after an individual education plan meeting or a 504 accommodation plan is issued under section 504 of the Rehabilitation Act of 1973, a complex area shall notify the parent or guardian of the student of all options available pursuant to this chapter and of the availability of the telephone hotline and website for additional information.

     (c)  If the parent or guardian does enroll the student in a public school that is not in the service area in which the student resides through the scholarship program the student may continue attending that public school chosen by the parent until the student graduates from high school regardless of whether the student continues in the scholarship program.

     (d)  The parent or guardian of a student may choose to enroll the student in and transport the student to a complex area that is outside of the student's service area; provided that the complex area has available space and a program with the services agreed to in the student's existing individual education plan or 504 accommodation plan.  The complex area shall accept the student and the student shall count towards the school's per-pupil funding.

     (e)  For students who attend a nonpublic special education school or program that is accredited pursuant to section 302A‑443.5 and whose parent requests that the student take the statewide assessments, the complex area in which the student attends the nonpublic special education school or program shall provide locations and times to take all statewide assessments.

     §   -8  Scholarship amount and payment.  (a)  The amount of scholarship provided to any student for any single school year by an eligible nonprofit scholarship funding organization from eligible contributions shall be for total costs authorized under section    -4, not to exceed annual limits.

     (b)  Payment of the scholarship by the eligible nonprofit scholarship-funding organization shall be by individual warrant made payable to the student's parent for costs specified in section    -4(3).  If the parent or guardian chooses that the student attend a nonpublic special education school or program that is accredited pursuant to section 302A-443.5, the warrant must be delivered by the eligible nonprofit scholarship-funding organization to the school or program and the parent or guardian shall restrictively endorse the warrant to the school or program.  An eligible nonprofit scholarship-funding organization shall ensure that the parent or guardian to whom the warrant is made restrictively endorsed the warrant to the nonpublic special education school or program for deposit into the account of the school or program.

     (c)  An eligible nonprofit scholarship-funding organization shall obtain verification from each school attended by scholarship recipients of the students' continued attendance at the school for each period covered by a scholarship payment.

     (d)  Payment of the scholarship shall be made by the eligible nonprofit scholarship-funding organization no less frequently than on a quarterly basis.

     §   -9  Administration; rules.  (a)  The department and the department of education shall develop a cooperative agreement to assist in the administration of this chapter.

     (b)  The department shall adopt rules necessary to administer the tax credit scholarship program, including rules establishing application forms, procedures governing the approval of tax credits and carryforward tax credits, and procedures to be followed by taxpayers when claiming approved tax credits on the taxpayer's returns.

     (c)  The board of education shall adopt rules to administer the responsibilities of the department of education under this chapter.

     §   -10  Nonprofit scholarship-funding organizations; application.  (a)  In order to participate in the scholarship program created under this chapter, a charitable organization that seeks to be a nonprofit scholarship-funding organization must submit an application for initial approval or renewal to the department of education no later than September 1 of each year before the school year for which the organization intends to offer scholarships.

     (b)  An application for initial approval shall include:

     (1)  A copy of the organization's incorporation documents and registration;

     (2)  A copy of the organization's Internal Revenue Service determination letter as a section 501(c)(3) not-for-profit organization;

     (3)  A description of the organization's financial plan that demonstrates sufficient funds to operate throughout the school year;

     (4)  The organization's organizational chart;

     (5)  A description of the criteria and methodology that the organization will use to evaluate scholarship eligibility;

     (6)  A description of the application process, including deadlines and any associated fees;

     (7)  A description of the deadlines for attendance verification and scholarship payments;

     (8)  A copy of the organization's policies on conflict of interest and whistleblowers; and

     (9)  A copy of a surety bond or letter of credit in an amount equal to twenty-five per cent of the scholarship funds anticipated for each school year or $100,000, whichever is greater, specifying that any claim against the bond or letter of credit may be made only by an eligible nonprofit scholarship-funding organization to provide scholarships to and on behalf of students who would have had scholarships funded but for the diversion of funds giving rise to the claim against the bond or letter of credit.

     (c)  In addition to the information required by subsection (b), an application for renewal shall include:

     (1)  A surety bond or letter of credit equal to the amount of undisbursed donations held by the organization based on the annual report submitted pursuant to section    -4.  The amount of the surety bond or letter of credit must be at least $100,000, but not more than $25,000,000, specifying that any claim against the bond or letter of credit may be made only by an eligible nonprofit scholarship-funding organization to provide scholarships to and on behalf of students who would have had scholarships funded but for the diversion of funds giving rise to the claim against the bond or letter of credit;

     (2)  The organization's completed Internal Revenue Service Form 990 submitted no later than November 30 of the year before the school year that the organization intends to offer the scholarships, notwithstanding the September 1 application deadline;

     (3)  A copy of the required audit pursuant to section    ‑4(14) to the department of education and auditor; and

     (4)  An annual report that includes:

         (A)  The number of students who completed applications, by county and grade;

         (B)  The number of students who were approved for scholarships, by county and grade;

         (C)  The amount of funds received, the amount of funds distributed in scholarships, and an accounting of remaining funds and the obligation of those funds; and

         (D)  A detailed accounting of how the organization spent the administrative funds allowable under section    -4.

     (d)  The department of education shall review the application and notify the organization in writing of any deficiencies within thirty days after receipt of the application and allow the organization thirty days to correct any deficiencies.

     (e)  Within thirty days after receipt of the finalized application, the department of education shall recommend approval or disapproval of the application to the board of education.  The board of education shall consider the application and recommendation at the next scheduled meeting, adhering to appropriate meeting notice requirements.  If the board of education disapproves the organization's application, it shall provide the organization with a written explanation of that determination.

     (f)  If the board of education disapproves the renewal of a nonprofit scholarship-funding organization, the organization must notify the affected eligible students and parents of the decision within fifteen days after disapproval.  An eligible student affected by the disapproval of an organization's participation remains eligible under this chapter until the end of the school year in which the organization was disapproved.  The student may apply and be accepted by another eligible nonprofit scholarship-funding organization for the upcoming school year.

     (g)  All remaining funds held by a nonprofit scholarship-funding organization that is disapproved for participation must revert to the department of education for redistribution to other eligible nonprofit scholarship-funding organizations.

     (h)  A nonprofit scholarship-funding organization is a renewing organization if it maintains continuous approval and participation in the program.  An organization that chooses not to participate for one year or more or that is disapproved to participate for one year or more must submit an application for initial approval in order to participate in the program again.

     (i)  The board of education shall adopt rules providing guidelines for receiving, reviewing, and approving applications for new and renewing nonprofit scholarship-funding organizations.

     (j)  A not-for-profit university located and chartered in the State that is accredited by the Western Association of Schools and Colleges or any affiliate of the Western Association of Schools and Colleges shall be exempt from the initial or renewal application process but must file a registration notice with the department of education to be an eligible nonprofit scholarship-funding organization."

     SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§237-    Credit for contributions to eligible nonprofit scholarship-funding organizations.  (a)  There is allowed a credit of one hundred per cent of an eligible contribution made to an eligible nonprofit scholarship-funding organization under chapter       against any tax due for a taxable year under this chapter after the application of any other allowable credits by the taxpayer.  The credit granted by this section shall be reduced by the difference between the amount of federal corporate income tax taking into account the credit granted by this section and the amount of federal corporate income tax without application of the credit granted by this section.

     (b)  A taxpayer who files a Hawaii consolidated return pursuant to section 237-35 may be allowed the credit on a consolidated return basis; provided that the total credit taken by the taxpayer is subject to the limitation established under subsection (a).

     (c)  The provisions of chapter       apply to the credit authorized by this section."

     SECTION 3.  Section 846-2.7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Criminal history record checks may be conducted by:

     (1)  The department of health or its designee on operators of adult foster homes for individuals with developmental disabilities or developmental disabilities domiciliary homes and their employees, as provided by section 321-15.2;

     (2)  The department of health or its designee on prospective employees, persons seeking to serve as providers, or subcontractors in positions that place them in direct contact with clients when providing non-witnessed direct mental health or health care services as provided by section 321-171.5;

     (3)  The department of health or its designee on all applicants for licensure or certification for, operators for, prospective employees, adult volunteers, and all adults, except adults in care, at healthcare facilities as defined in section 321-15.2;

     (4)  The department of education on employees, prospective employees, and teacher trainees in any public school in positions that necessitate close proximity to children as provided by section 302A-601.5;

     (5)  The counties on employees and prospective employees who may be in positions that place them in close proximity to children in recreation or child care programs and services;

     (6)  The county liquor commissions on applicants for liquor licenses as provided by section 281-53.5;

     (7)  The county liquor commissions on employees and prospective employees involved in liquor administration, law enforcement, and liquor control investigations;

     (8)  The department of human services on operators and employees of child caring institutions, child placing organizations, and foster boarding homes as provided by section 346-17;

     (9)  The department of human services on prospective adoptive parents as established under section 346‑19.7;

    (10)  The department of human services or its designee on applicants to operate child care facilities, household members of the applicant, prospective employees of the applicant, and new employees and household members of the provider after registration or licensure as provided by section 346-154, and persons subject to section 346-152.5;

    (11)  The department of human services on persons exempt pursuant to section 346-152 to be eligible to provide child care and receive child care subsidies as provided by section 346-152.5;

    (12)  The department of health on operators and employees of home and community-based case management agencies and operators and other adults, except for adults in care, residing in community care foster family homes as provided by section 321-15.2;

    (13)  The department of human services on staff members of the Hawaii youth correctional facility as provided by section 352-5.5;

    (14)  The department of human services on employees, prospective employees, and volunteers of contracted providers and subcontractors in positions that place them in close proximity to youth when providing services on behalf of the office or the Hawaii youth correctional facility as provided by section 352D-4.3;

    (15)  The judiciary on employees and applicants at detention and shelter facilities as provided by section 571-34;

    (16)  The department of public safety on employees and prospective employees who are directly involved with the treatment and care of persons committed to a correctional facility or who possess police powers including the power of arrest as provided by section 353C-5;

    (17)  The board of private detectives and guards on applicants for private detective or private guard licensure as provided by section 463-9;

    (18)  Private schools and designated organizations on employees and prospective employees who may be in positions that necessitate close proximity to children; provided that private schools and designated organizations receive only indications of the states from which the national criminal history record information was provided pursuant to section 302C-1;

    (19)  The public library system on employees and prospective employees whose positions place them in close proximity to children as provided by section 302A‑601.5;

    (20)  The State or any of its branches, political subdivisions, or agencies on applicants and employees holding a position that has the same type of contact with children, vulnerable adults, or persons committed to a correctional facility as other public employees who hold positions that are authorized by law to require criminal history record checks as a condition of employment as provided by section 78-2.7;

    (21)  The department of health on licensed adult day care center operators, employees, new employees, subcontracted service providers and their employees, and adult volunteers as provided by section 321-15.2;

    (22)  The department of human services on purchase of service contracted and subcontracted service providers and their employees serving clients of the adult protective and community services branch, as provided by section 346-97;

    (23)  The department of human services on foster grandparent program, senior companion program, and respite companion program participants as provided by section 346-97;

    (24)  The department of human services on contracted and subcontracted service providers and their current and prospective employees that provide home and community-based services under section 1915(c) of the Social Security Act, title 42 United States Code section 1396n(c), or under any other applicable section or sections of the Social Security Act for the purposes of providing home and community-based services, as provided by section 346-97;

    (25)  The department of commerce and consumer affairs on proposed directors and executive officers of a bank, savings bank, savings and loan association, trust company, and depository financial services loan company as provided by section 412:3-201;

    (26)  The department of commerce and consumer affairs on proposed directors and executive officers of a nondepository financial services loan company as provided by section 412:3-301;

    (27)  The department of commerce and consumer affairs on the original chartering applicants and proposed executive officers of a credit union as provided by section 412:10-103;

    (28)  The department of commerce and consumer affairs on:

         (A)  Each principal of every non-corporate applicant for a money transmitter license;

         (B)  The executive officers, key shareholders, and managers in charge of a money transmitter's activities of every corporate applicant for a money transmitter license; and

         (C)  The persons who are to assume control of a money transmitter licensee in connection with an application requesting approval of a proposed change in control of licensee,

          as provided by sections 489D-9 and 489D‑15;

    (29)  The department of commerce and consumer affairs on applicants for licensure and persons licensed under title 24;

    (30)  The Hawaii health systems corporation on:

         (A)  Employees;

         (B)  Applicants seeking employment;

         (C)  Current or prospective members of the corporation board or regional system board; or

         (D)  Current or prospective volunteers, providers, or contractors,

          in any of the corporation's health facilities as provided by section 323F-5.5;

    (31)  The department of commerce and consumer affairs on:

         (A)  An applicant for a mortgage loan originator license; and

         (B)  Each control person, executive officer, director, general partner, and manager of an applicant for a mortgage loan originator company license,

          as provided by chapter 454F;

    (32)  The state public charter school commission or public charter schools on employees, teacher trainees, prospective employees, and prospective teacher trainees in any public charter school for any position that places them in close proximity to children, as provided in section 302D-33;

    (33)  The counties on prospective employees who work with children, vulnerable adults, or senior citizens in community-based programs;

    (34)  The counties on prospective employees for fire department positions which involve contact with children or vulnerable adults;

    (35)  The counties on prospective employees for emergency medical services positions which involve contact with children or vulnerable adults;

    (36)  The counties on prospective employees for emergency management positions and community volunteers whose responsibilities involve planning and executing homeland security measures including viewing, handling, and engaging in law enforcement or classified meetings and assisting vulnerable citizens during emergencies or crises;

    (37)  The State and counties on employees, prospective employees, volunteers, and contractors whose position responsibilities require unescorted access to secured areas and equipment related to a traffic management center;

    (38)  The State and counties on employees and prospective employees whose positions involve the handling or use of firearms for other than law enforcement purposes;

    (39)  The State and counties on current and prospective systems analysts and others involved in an agency's information technology operation whose position responsibilities provide them with access to proprietary, confidential, or sensitive information;

    (40)  The department of commerce and consumer affairs on applicants for real estate appraiser licensure or certification as provided by chapter 466K;

    (41)  The department of health or its designee on all license applicants, licensees, employees, contractors, and prospective employees of medical marijuana dispensaries, and individuals permitted to enter and remain in medical marijuana dispensary facilities as provided under sections 329D-15(a)(4) and 329D‑16(a)(3);

    (42)  The department of commerce and consumer affairs on applicants for nurse licensure or license renewal, reactivation, or restoration as provided by sections 457-7, 457-8, 457-8.5, and 457-9;

[[](43)[]]The county police departments on applicants for permits to acquire firearms pursuant to section 134-2 and on individuals registering their firearms pursuant to section 134-3;

[[](44)[]]The department of commerce and consumer affairs on:

         (A)  Each of the controlling persons of the applicant for licensure as an escrow depository, and each of the officers, directors, and principals who will be in charge of the escrow depository's activities upon licensure; and

         (B)  Each of the controlling persons of an applicant for proposed change in control of an escrow depository licensee, and each of the officers, directors, and principals who will be in charge of the licensee's activities upon approval of such application,

          as provided by chapter 449; [and]

    (45)  The department of education on the owner or operator of an eligible nonprofit scholarship-funding organization as defined in section    -1; and

[[(45)]]  (46)  Any other organization, entity, or the State, its branches, political subdivisions, or agencies as may be authorized by state law."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2017.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Hawaii Tax Credit Scholarship Program; Students with Disabilities; Nonpublic Special Education School or Program

 

 

Description:

Establishes the Hawaii tax credit scholarship program to benefit students with disabilities by providing scholarships to cover transportation costs and any other educational fees associated with a student attending a public school that is not in the service area where the student resides or a nonpublic special education school or program.  Establishes eligibility criteria for students to apply for the scholarship program, responsibilities of the department of taxation and department of education, and eligibility criteria for nonprofit scholarship-funding organizations.  Applies to tax years beginning after 12/31/17.

 

 

 

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