More than a dozen new laws take effect on New Year’s Day, some of which aim to lower taxes, increase state rent assistance and ease requirements on motor vehicle safety inspections. One law lowers the taxable wage base for unemployment
More than a dozen new laws take effect on New Year’s Day, some of which aim to lower taxes, increase state rent assistance and ease requirements on motor vehicle safety inspections.
One law lowers the taxable wage base for unemployment insurance payments. Unemployment benefits will be increased, saving employers approximately $151 million over the next three years, while aiming to preserve the state’s unemployment trust fund.
Unemployed individuals are eligible to receive 75 percent of the state average weekly wage as part of the maximum weekly amount. The legislation reduces the unemployment insurance tax paid by employers by as much as 61 percent by lowering the contributions they make into the Unemployment Compensation Trust Fund for 2008.
There is a $562 million surplus in the unemployment insurance fund, largely because of the state’s low unemployment rate. About $150 million was generated annually in taxes and interest payments over the past two years, but only $95 million has been paid out per year.
“The commonsense approach to tax relief will benefit Hawai‘i’s unemployed, our workers, businesses and community, while maintaining the important safety that the (unemployment insurance) trust fund was established for,” Darwin Ching, Department of Labor and Industrial Relations director, said.
Act 223 relates to the state rent supplement program, authorizing the Hawai‘i Public Housing Authority to increase rent supplements paid out to qualifying families for the first time since 1988, said Linda Smith, Gov. Linda Lingle’s senior policy advisor.
This law will allow for an increase in the number of participants by including those who make up to 95 percent of the annual median income as determined by the U.S. Department of Housing and Urban Development.
HUD has the authority to give preference to tenants with incomes at or below 80 percent.
It eliminates the $160 per month cap on assistance available to people at risk of becoming homeless.
Another new law allows motor vehicle safety inspections to be done at any time of the year, replacing the requirement that inspections should be done during the month of the vehicle’s registration certificate.
In a law relating to Native Hawaiians, an advisory committee will be established to recommend creation of an ‘aha moku council. The committee is required to explore and examine practice models for the creation of the council that will provide input based on indigenous resource management practices to state and county agencies. The council will aid in the development of a set of practices for natural resource management, ensure the future sustainable use of Hawai‘i’s marine, land, cultural, agricultural and natural resources, and foster the understanding and knowledge of Native Hawaiian methodology and expertise.
The ‘aha moku council will consist of eight ‘aha kiole members, representing each island. The council will require the state Department of Land and Natural Resources to provide support services.
Other laws taking
effect Tuesday will:
• Provide equal access to immunosuppressant medication for Medicaid patients who have HIV, AIDS or Hepatitis C.
• Require all candidates to file campaign reports electronically in order to be viewed online.
• Amend the qualifications of and process for selecting jurors.
• Create a Design Claim Conciliation Panel consisting of three members that will evaluate claims against engineers, architects, surveyors and landscape architects.
• Reinstate the State Insurance Commissioner to regulate health insurance rates.
• Allow safety inspections of motor vehicles to occur at any time of the year.
• Make amendments to clarify and expedite traffic violation processing, including the collection of traffic fines from visitors.
• Create a 100 percent capital gains income tax exemption from the sale of a leased-to-fee interest in condominium units to an association of apartment owners.
• Provide a refundable food/excise tax credit for taxpayers with adjusted gross income under $50,000.
• Make the state Department of Human Services provide a written report to the court prior to a hearing in protective order case where domestic abuse allegations exist.
• The Associated Press contributed to this report.
