Text of HI SB 2851 (2010)

THE SENATE S.B. NO. 2851 TWENTY-FIFTH LEGISLATURE, 2010 STATE OF HAWAII A BILL FOR AN ACT relating to reciprocal beneficiaries. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: SECTION 1. The legislature finds that the promotion of stable, committed relationships in which private citizens are legally obligated to look after each other's best interests and affairs serves an important public policy. The purpose of this Act is to extend to reciprocal beneficiaries eligibility for benefits under the Hawaii employer-union health benefits trust fund, authorize reciprocal beneficiaries to jointly file state income tax returns, and provide for the termination of reciprocal beneficiary relationships through the judicial system. SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows: "CHAPTER TERMINATION OF RECIPROCAL BENEFICIARY RELATIONSHIPS PART I. GENERAL PROVISIONS § -1 Jurisdiction; hearing. Exclusive original jurisdiction in matters terminating a reciprocal beneficiary relationship, subject to section 603-37 as to change of venue, and subject also to appeal according to law, is conferred upon the family court of the circuit in which the applicant has been domiciled or has been physically present for a continuous period of at least three months next preceding the application therefor. No absolute termination of a reciprocal beneficiary relationship shall be granted for any cause unless either party to the reciprocal beneficiary relationship has been domiciled or has been physically present in the State for a continuous period of at least six months next preceding the application therefor. A person who may be residing on any military or federal base, installation, or reservation within the State or who may be present in the State under military orders shall not thereby be prohibited from meeting the requirements of this section. § -2 Commencement of action; summons. An action for termination of a reciprocal beneficiary relationship shall be commenced by filing a complaint with the court, which complaint shall be signed and sworn to by the applicant and shall set forth sufficient facts to constitute a claim for relief. Upon the filing of the complaint, the clerk shall forthwith issue a summons and deliver it for service to a person authorized to serve process in civil actions. The summons shall: (1) Be signed by the clerk and be under the seal of the court; (2) Contain the name of the court and the names of the parties; (3) Be directed to the defendant; (4) State the name and address of the plaintiff's attorney, if any, otherwise the plaintiff's address, and the time within which the defendant is required to appear and defend, which shall not be less than twenty days after the service of the summons and complaint upon the defendant; and (5) Notify the defendant that in case of the defendant's failure to appear and defend, as required, further proceedings may be taken, including judgment for the relief demanded in the complaint, without further notice to the defendant. Alternative complaints for termination of a reciprocal beneficiary relationship may be set forth or combined in one complaint. § -3 Service. (a) The complaint for termination of a reciprocal beneficiary relationship and the summons shall be served by an authorized process server on the defendant personally if the defendant is within the State, unless the defendant enters an appearance in the case, and except as hereinafter otherwise provided. (b) If service by an authorized process server is not feasible or is inconvenient or if the defendant is outside of the State, the court may authorize the service to be made by any other responsible person, or the court may authorize notice of the pendency of the action and of a time and place of hearing, which shall be not less than twenty days after the giving of personal notice, to be given to the defendant personally by such person and in such manner as the court shall designate and the case may be heard and determined at or after the time specified in the notice. (c) If the defendant is outside of the circuit, the court may authorize service by registered or certified mail, with request for a return receipt and direction to deliver to addressee only. The return receipt signed by the defendant shall be prima facie evidence that the defendant accepted delivery of the complaint and summons on the date set forth on the receipt. Actual receipt by the defendant of the complaint and summons sent by registered or certified mail shall be equivalent to personal service on the defendant by an authorized process server as of the date of the receipt. (d) If it appears that the defendant has refused to accept service by mail, or is in concealment or otherwise evading service, or that the plaintiff does not know the address or residence of the defendant and has not been able to ascertain the same after reasonable and due inquiry and search for at least fifteen days either before or after the filing of the complaint, the court may authorize notice of the pendency of the action and of a time and place of hearing, which shall not be less than twenty days after the last publication of the published notice, to be given to the defendant by publication thereof at least once in each of three successive weeks in a newspaper suitable for the advertisement of notices of judicial proceedings, published in the State, and the case may be heard and determined at or after the time specified in the notice. (e) If the plaintiff, as a result of impoverishment, is unable to publish notice as required by subsection (d), the plaintiff shall file an affidavit attesting to impoverishment and to the fact that, after due and diligent search, the whereabouts of the individual sought to be served are unknown. Upon those filings, the court shall order that service be made by forwarding a certified copy of the pleadings and process to the individual at the last known address by registered or certified mail, with a return receipt requested and a directive to deliver to addressee only, sending a certified copy of the pleadings and process to the defendant's closest known relative, if any can be found, and by posting a copy of the pleadings and process at the courthouse in which the pleadings and process has been filed. Service shall be completed thirty days after mailing. The plaintiff shall attest to the fact of the mailing and the date thereof by affidavit, attaching the sender's receipt for that mail and, if available, the return receipt and envelope. § -4 Personal judgment against absent defendant. In any proceeding in the family court, the court shall have the power to render a personal judgment against a party who is outside of this State and over whom jurisdiction is acquired by service of process in the manner set forth in section -3(b) or (c), if the party was personally served with a copy of the summons or order to show cause and complaint or other pleading upon which the judgment is based and if the party was a domiciliary of this State at the time: (1) That the cause of action that is the subject of the proceeding arose; (2) Of the commencement of the proceeding; or (3) Of service. § -5 Cross-complaint. In any action for termination of a reciprocal beneficiary relationship, a cross-complaint for termination of a reciprocal beneficiary relationship may be filed and affirmative relief granted thereon as fully and effectually as on an original complaint. The cross-complaint shall be signed and sworn to by the cross-complainant and shall be served in the same manner as an original complaint. § -6 Proof. Upon the hearing of every complaint for termination of a reciprocal beneficiary relationship, the court shall require exact legal proof upon every point, notwithstanding the consent of the parties. Where the matter is uncontested and the court, in its discretion, waives the need for a hearing, then the court shall require exact legal proof upon every point by affidavit. § -7 Guardian ad litem for incompetent defendant. In any case where the court has reason to believe that the defendant in an action for termination of a reciprocal beneficiary relationship is not fully competent to conduct the defendant's defense or to comprehend the nature of the proceedings, the court may appoint a guardian ad litem to represent the interests of the defendant. The court may assess the reasonable fees and expenses of the guardian ad litem as costs of the action, payable in whole or in part by either or both parties as the circumstances may justify. § -8 Examination of parties to prevent collusion. Upon the hearing of any complaint for the termination of a reciprocal beneficiary relationship, the court may examine either or both of the parties, upon oath, in order to prevent collusion. § -9 Procedure when collusion suspected. If there is any reason to suspect collusion, or that important testimony can be procured that has not been produced, the court shall continue the cause from time to time while the reason for suspicion continues. The attorney general or other prosecuting officer and parties not of record shall be heard, to establish the fact of collusion or of the existence of testimony not produced. § -10 Temporary support, etc. After the filing of a complaint for termination of a reciprocal beneficiary relationship the court may make orders relative to the personal liberty and support of either party to a reciprocal beneficiary relationship, pending the complaint, as the court may deem fair and reasonable and may enforce the orders by summary process. The court may also compel either party to a reciprocal beneficiary relationship to advance reasonable amounts for the compensation of witnesses and other expenses of the trial, including attorney's fees, to be incurred by the other party to the reciprocal beneficiary relationship and may from time to time amend and revise the orders. § -11 Restraining orders; appointment of master. (a) When a complaint for termination of a reciprocal beneficiary relationship is filed in this State, the court, on an application by either party, supported by affidavit or a statement made under penalty of perjury, without a hearing, may enjoin and restrain each of the parties to that action from transferring, encumbering, wasting, or otherwise disposing of any of their property, whether real, personal, or mixed, over and above current income, except as necessary for the ordinary course of a business or for usual current living expenses, without the consent and concurrence of the other party to the action for termination of a reciprocal beneficiary relationship or further specific order of the court. Where restraining orders are issued against the other party to the action, the person shall be served promptly with the order and shall be entitled to a prompt hearing to show cause why the order should not be enforced. (b) In all actions for termination of a reciprocal beneficiary relationship, the court shall have the power to issue such restraining orders against a person or persons not a party to the action, as shall be reasonably required during the pendency of the action, to preserve the estates of the parties. Where restraining orders are issued against a person or persons not a party to the action, such persons shall be promptly served with the order and shall be entitled to a prompt hearing within a reasonable time to show cause why the order should not be enforced. (c) In all actions for termination of a reciprocal beneficiary relationship, the court shall have the power to appoint a master, or masters, to make preliminary findings and to report to the court on any issue. The written reports of a master shall be available to interested parties and may be received in evidence if no objection is made or, if objection is made, may be received in evidence, provided the person or persons responsible for the reports are available for cross-examination as to any matter contained therein. When a report is received in evidence, any party may introduce other evidence supplementing, supporting, modifying, or rebutting the whole or any part of the report. (d) Whenever it is made to appear to the court, after the filing of any complaint, that there are reasonable grounds to believe that a party thereto may inflict physical abuse upon, threaten by words or conduct, or harass the other party, the court may issue a restraining order to prevent such physical abuse, threats, or harassment and shall enjoy in respect thereof the powers pertaining to a court of equity. Where necessary, the order may require either or both of the parties involved to leave the shared residence during the period of the order and may also restrain the party to whom the order is directed from contacting, threatening, or physically abusing the children or other relative of the reciprocal beneficiary who may be residing with that reciprocal beneficiary at the time of the granting of the restraining order. The order may also restrain a party's agents, servants, employees, attorneys, or other persons in active concert or participation with the respective party. (e) A knowing or intentional violation of a restraining order issued pursuant to this section is a misdemeanor. A person convicted under this section shall undergo domestic violence intervention at any available domestic violence program as ordered by the court. The court additionally shall sentence a person convicted under this section as follows: (1) For a first conviction for violation of the restraining order, the person shall serve a mandatory minimum jail sentence of forty-eight hours and be fined not less than $150 nor more than $500; provided that the court shall not sentence a defendant to pay a fine unless the defendant is or will be able to pay the fine; and (2) For the second and any subsequent conviction for violation of the restraining order, the person shall serve a mandatory minimum jail sentence of thirty days and be fined not less than $250 nor more than $1,000; provided that the court shall not sentence a defendant to pay a fine unless the defendant is or will be able to pay the fine. Upon conviction and sentencing of the defendant, the court shall order that the defendant immediately be incarcerated to serve the mandatory minimum sentence imposed; provided that the defendant may be admitted to bail pending appeal pursuant to chapter 804. The court may stay the imposition of the sentence if special circumstances exist. The court may suspend any jail sentence, except for the mandatory sentences under paragraphs (1) and (2), upon condition that the defendant remain alcohol and drug-free, conviction-free or complete court-ordered assessments or intervention. Nothing in this section shall be construed as limiting the discretion of the judge to impose additional sanctions authorized in sentencing for a misdemeanor offense. All remedies for the enforcement of judgments shall apply to this section. Any law enforcement officer shall enforce a restraining order issued pursuant to this subsection, including lawfully ordering the restrained party to voluntarily leave for a three-hour cooling off period, or, with or without a warrant, when the law enforcement officer has reasonable grounds to believe that the restrained party has violated the restraining order, arresting the restrained party. (f) Any fines collected pursuant to subsection (e) shall be deposited into the spouse and child abuse special account established under section 601-3.6. § -12 Care, custody, education, and maintenance of children pendente lite. During the pendency of any action for termination of a reciprocal beneficiary relationship, the court may make such orders concerning the care, custody, education, and maintenance of the minor children of the parties to the action as law and justice may require and may enforce the orders by summary process. The court may revise and amend the orders from time to time. § -13 Sequestration of property. The court may order that all property within the State of a party to an action for termination of a reciprocal beneficiary relationship be sequestered and applied to the payment of any allowance ordered by the court for the support and maintenance of either reciprocal beneficiary or for the support, maintenance, and education of minor children, whether temporary or permanent, where service or notice has been effected by any of the methods set forth in section -3. § -14 Security and enforcement of maintenance and alimony. Whenever the court makes an order or decree requiring a reciprocal beneficiary to provide for the care, maintenance, and education of children, or for an allowance to the other reciprocal beneficiary, the court may require the person subject to the order or decree to give reasonable security for the maintenance and allowance. Upon neglect or refusal to give the security, or upon default of the person subject to the order or decree and the person's surety to provide the maintenance and allowance, the court may sequester the person's personal estate and the rents and profits of the person's real estate and may appoint a receiver thereof and cause the person's personal estate and the rents and profits of the person's real estate to be applied towards the maintenance and allowance, as the court, from time to time, deems just and reasonable. § -15 County attorneys to represent court. The county attorneys of Maui and Kauai and the corporation counsels of the city and county of Honolulu and the county of Hawaii, within their respective counties and when and to the extent authorized by their respective county governing bodies and upon request of the family court, shall represent the court in any contempt proceeding for the enforcement of any order or decree for support of a reciprocal beneficiary or child support or both, except that fees may be charged as provided for by chapter 576D. § -16 Termination decree, support order; social security number. The last four digits of the social security number of any individual who is party to a termination decree or subject to a support order issued under this chapter shall be placed in the records relating to the matter. PART II. TERMINATION § -21 Termination. The family court shall decree the termination of a reciprocal beneficiary relationship upon the application of either party when the court finds: (1) The reciprocal beneficiary relationship is irretrievably broken; or (2) The parties have lived separate and apart for a continuous period of two years or more immediately preceding the application, there is no reasonable likelihood that cohabitation will be resumed, and the court is satisfied that, in the particular circumstances of the case, it would not be harsh and oppressive to the defendant or contrary to the public interest to terminate a reciprocal beneficiary relationship on this ground on the complaint of the plaintiff. § -22 Battered party to a reciprocal beneficiary relationship; exemption from mediation in termination proceedings. (a) In contested termination proceedings where there are allegations of abuse of a reciprocal beneficiary, the court shall not require a party alleging the abuse to participate in any component of any mediation program against the wishes of that party. (b) A mediator who receives a referral or order from a court to conduct mediation shall screen for the occurrence of family violence between the parties. A mediator shall not engage in mediation when it appears to the mediator or when either party asserts that family violence has occurred unless: (1) Mediation is authorized by the victim of the alleged family violence; (2) Mediation is provided in a specialized manner that protects the safety of the victim by a mediator who is trained in family violence; and (3) The victim is permitted to have, in attendance at the mediation, a supporting person of the victim's choice including but not limited to an attorney or advocate. If the victim chooses to exercise the option, any other party to the mediation will be permitted to have in attendance at the mediation, a supporting person of the party's choice including but not limited to an attorney or advocate. (c) In a proceeding concerning the custody or visitation of a child, if a protective order is in effect, the court shall not require a party alleging family violence to participate in any component of any mediation program against the wishes of that party. (d) In a proceeding concerning the custody or visitation of a child, if there is an allegation of family violence and a protective order is not in effect, the court may order mediation or refer either party to mediation only if: (1) Mediation is authorized by the victim of the alleged family violence; (2) Mediation is provided in a specialized manner that protects the safety of the victim by a mediator who is trained in family violence; and (3) The victim is permitted to have in attendance at mediation, a supporting person of the victim's choice including but not limited to an attorney or advocate. If the victim chooses to exercise this option, any other party to the mediation will be permitted to have, in attendance at the mediation, a supporting person of the party's choice, including but not limited to an attorney or advocate. § -23 Irretrievable breakdown. (a) If both of the parties by complaint or otherwise have stated under oath or affirmation that the reciprocal beneficiary relationship is irretrievably broken, or one of the parties has so stated and the other has not denied it, the court, after hearing, shall make a finding whether the reciprocal beneficiary relationship is irretrievably broken. The court, in its discretion, may waive a hearing on an uncontested complaint for termination of a reciprocal beneficiary relationship and admit proof by affidavit. (b) If one of the parties has denied under oath or affirmation that the reciprocal beneficiary relationship is irretrievably broken, the court shall consider all relevant factors, including the circumstances that gave rise to the filing of the complaint and the prospect of reconciliation, and shall: (1) Make a finding whether the reciprocal beneficiary relationship is irretrievably broken, or (2) Continue the matter for further hearing not less than thirty or more than sixty days later, or as soon thereafter as the matter may be reached on the court's calendar, and may suggest to the parties that they seek counseling. At the adjourned hearing, the court shall make a finding whether the reciprocal beneficiary relationship is irretrievably broken. § -24 Recrimination no defense. Recrimination shall not be a defense to an application for termination of a reciprocal beneficiary relationship. § -25 Persons affected with Hansen's disease represented by attorney general. Upon application of the director of health, the attorney general or the attorney general's deputies shall represent any person affected with Hansen's disease detained at any hospital, settlement, or place for the care and treatment of persons affected with Hansen's disease in proceedings for termination of a reciprocal beneficiary relationship. § -26 Decree. If, after a full hearing, the court is of opinion that a reciprocal beneficiary relationship ought to be terminated, a decree shall be signed, filed, and entered. The court, in its discretion, may waive a hearing on an uncontested complaint for termination of a reciprocal beneficiary relationship and admit proof by affidavit. A decree dissolving the reciprocal beneficiary relationship, shall take effect from and after the time as may be fixed by the court, provided that the time so fixed shall not be more than one month from and after the date of the decree. § -27 Final judgment; nunc pro tunc entry; validation of certain reciprocal beneficiary relationships and marriages. Whenever either party to an action to terminate a reciprocal beneficiary relationship is entitled to a final decree dissolving the reciprocal beneficiary relationship, but by mistake, negligence, or inadvertence the final decree has not been entered, the court on motion of either party or upon its own motion may cause a final decree to be entered granting the termination of the reciprocal beneficiary relationship as of the date when the decree could have been entered. Upon the entry of the final decree, the parties to the action to terminate the reciprocal beneficiary relationship shall be deemed to have been restored to the status of single persons as of the date set forth in the final decree, and any reciprocal beneficiary relationship or marriage of either party after such date shall not be subject to attack on the grounds that the reciprocal beneficiary relationship or marriage was contracted at a time when the party was a partner to the terminated reciprocal beneficiary relationship. The court may cause a final decree to be entered nunc pro tunc as provided in this section even though another final decree may have been entered previously but by mistake, negligence, or inadvertence was not entered as soon as a final decree could have been entered. § -28 Support orders; division of property. (a) Upon termination of a reciprocal beneficiary relationship, or thereafter if, in addition to the powers granted in subsections (c) and (d), jurisdiction of those matters is reserved under the decree by agreement of both parties or by order of court after finding that good cause exists, the court may make any further orders as shall appear just and equitable: (1) Compelling the parties or either of them to provide for the support, maintenance, and education of the children of the parties; (2) Compelling either party to provide for the support and maintenance of the other party; (3) Finally dividing and distributing the estate of the parties, real, personal, or mixed, whether joint or separate; and (4) Allocating, as between the parties, the responsibility for the payment of the debts of the parties, whether joint or separate, and the attorney's fees, costs, and expenses incurred by each party by reason of the action to terminate the reciprocal beneficiary relationship. In making these further orders, the court shall take into consideration: the respective merits of the parties, the relative abilities of the parties, the condition in which each party will be left by the termination of the reciprocal beneficiary relationship, and all other circumstances of the burdens imposed upon either party for the benefit of the children of the parties, and all other circumstances of the case. In establishing the amounts of child support, the court shall use the guidelines established under section 576D-7. Provision may be made for the support, maintenance, and education of an adult or minor child and for the support, maintenance, and education of an incompetent adult child, whether or not the petition is made before or after the child has attained the age of majority. In those cases where child support payments are to continue due to the adult child's pursuance of education, the agency, three months prior to the adult child's nineteenth birthday, shall send notice by regular mail to the adult child and the custodial parent that prospective child support will be suspended unless proof is provided by the custodial parent or adult child to the child support enforcement agency, prior to the child's nineteenth birthday, that the child is presently enrolled as a full-time student in school or has been accepted into and plans to attend as a full-time student for the next semester a post-high school university, college, or vocational school. If the custodial parent or adult child fails to do so, prospective child support payments may be automatically suspended by the child support enforcement agency, hearings officer, or court upon the child reaching the age of nineteen years. In addition, if applicable, the agency, hearings officer, or court may issue an order terminating existing assignments against the responsible parent's income and income assignment orders. In addition to any other relevant factors considered, the court, in ordering support and maintenance for a party to a reciprocal beneficiary relationship, shall consider the following factors: (1) Financial resources of the parties; (2) Ability of the party seeking support and maintenance to meet the party's needs independently; (3) Duration of the reciprocal beneficiary relationship; (4) Standard of living established during the reciprocal beneficiary relationship; (5) Age of the parties; (6) Physical and emotional condition of the parties; (7) Usual occupation of the parties during the reciprocal beneficiary relationship; (8) Vocational skills and employability of the party seeking support and maintenance; (9) Needs of the parties; (10) Custodial and child support responsibilities; (11) Ability of the party from whom support and maintenance is sought to meet that party's own needs while meeting the needs of the party seeking support and maintenance; (12) Other factors that measure the financial condition in which the parties will be left as the result of the action under which the determination of maintenance is made; and (13) Probable duration of the need of the party seeking support and maintenance. The court may order support and maintenance to a party for an indefinite period or until further order of the court; provided that in the event the court determines that support and maintenance shall be ordered for a specific duration wholly or partly based on competent evidence as to the amount of time that will be required for the party seeking support and maintenance to secure adequate training, education, skills, or other qualifications necessary to qualify for appropriate employment, whether intended to qualify the party for a new occupation, update or expand existing qualification, or otherwise enable or enhance the employability of the party, the court shall order support and maintenance for a period sufficient to allow completion of the training, education, skills, or other activity and shall allow, in addition, sufficient time for the party to secure appropriate employment. (b) An order as to the custody, management, and division of property and as to the payment of debts and the attorney's fees, costs, and expenses incurred in the action to terminate a reciprocal beneficiary relationship shall be final and conclusive as to both parties, subject only to appeal as in civil cases. The court, at all times including during the pendency of any appeal, shall have the power to grant any and all orders that may be necessary to protect and provide for the support and maintenance of the parties and any children of the parties to secure justice, to compel either party to advance reasonable amounts for the expenses of the appeal, including attorney's fees to be incurred by the other party, and to amend and revise such orders from time to time. (c) No order entered under the authority of subsection (a) or entered thereafter revising an order that provides for the support, maintenance, and education of the children of the parties shall impair the power of the court, from time to time, to revise its orders providing for the support, maintenance, and education of the children of the parties upon a showing of a change in the circumstances of either party or any child of the parties since the entry of any prior order relating to the support, maintenance, and education. The establishment of the guidelines or the adoption of any modifications made to the guidelines set forth in section 576D-7 may constitute a change in circumstances sufficient to permit review of the support order. A material change of circumstances will be presumed if support as calculated pursuant to the guidelines is either ten per cent greater or less than the support amount in the outstanding support order. The need to provide for the child's health care needs through health insurance or other means shall be a basis for petitioning for a modification of the support order. The most current guidelines shall be used to calculate the amount of the child support obligation. (d) Upon the motion of either party supported by an affidavit setting forth in particular a material change in the physical or financial circumstances of either party, or upon a showing of other good cause, the moving party, in the discretion of the court and upon adequate notice to the other party, may be granted a hearing. The fact that the moving party is in default or arrears in the performance of any act or payment of any sums theretofore ordered to be done or paid by the party shall not necessarily constitute a bar to the granting of the hearing. The court upon such hearing, for good cause shown may amend or revise any order and shall consider all proper circumstances in determining the amount of the allowance, if any, that shall thereafter be ordered. (e) The responsible parent or the custodial parent shall have a right to petition the family court or the child support enforcement agency not more than once every three years for review and adjustment of the child support order, without having to show a change in circumstances. The responsible or custodial parent shall not be precluded from petitioning the family court or the child support enforcement agency for review and adjustment more than once in any three-year period if the second or subsequent request is supported by proof of a substantial or material change of circumstances. (f) Attorney's fees and costs. The court hearing any motion for orders either revising an order for the custody, support, maintenance, and education of the children of the parties, or an order for the support and maintenance of one party by the other, or a motion for an order to enforce any such order, or any order made under subsection (a) of this section may make orders requiring either party to pay or contribute to the payment of the attorney's fees, costs, and expenses of the other party relating to the motion and hearing as appears just and equitable after consideration of the respective merits of the parties, the relative abilities of the parties, the economic condition of each party at the time of the hearing, the burdens imposed upon either party for the benefit of the children of the parties, and all other circumstances of the case. § -29 Notice to parties with children. When a party files for termination of a reciprocal beneficiary relationship and there are minor children involved, or when a party institutes a proceeding under chapter 576D or 576E, the court or the office of child support hearings shall provide notice to each party informing them of the opportunity to enter into an alternative arrangement for direct payment of child support under chapter 576D. A party may petition the court at any time, under chapter 576D or 576E, to opt out of the child support enforcement agency system, and such a petition shall be assigned priority upon the docket and be acted upon expeditiously by the court. § -30 Support of insane reciprocal beneficiary after termination of a reciprocal beneficiary relationship. In every action for termination of a reciprocal beneficiary relationship where a decree is granted to the plaintiff and the defendant is insane at the time of the decree, the court, at any time after entering the decree, may revise and alter the decree so far as the support and maintenance of the insane person is concerned and may provide for maintenance by the plaintiff out of any property or earnings acquired by the plaintiff subsequently, as well as previously, to the decree of termination. In its discretion, the court making the order for maintenance may require the plaintiff to give security to the satisfaction of the court for the faithful execution of the order. § -31 Modification of alimony on subsequent entry into reciprocal beneficiary relationship or marriage. (a) Upon the subsequent entry into a reciprocal beneficiary relationship or marriage of a party in whose favor a final decree or order for support and maintenance has been made, all rights to receive and all duties to make payments for support and maintenance shall automatically terminate for all payments due after the date of the entry into a reciprocal beneficiary relationship or marriage, unless the final decree or order, or an agreement of the parties approved by the final decree or order, provides specifically for the payments to continue after a subsequent entry into a reciprocal beneficiary relationship or marriage. (b) The party who subsequently enters into a reciprocal beneficiary relationship or marriage shall file a notice of the reciprocal beneficiary relationship or marriage with the court that made the order for support and maintenance and serve within thirty days of the reciprocal beneficiary relationship or marriage, by personal service or registered or certified mail, a copy of the notice on the former paying party. In any proceeding relating to the payment of support and maintenance to a party who subsequently enters into a reciprocal beneficiary relationship or marriage, the failure of that party to file a notice of the reciprocal beneficiary relationship or marriage shall be considered by the court in awarding attorney's fees and costs for the proceeding and in determining reimbursement to the former paying party. § -32 Reciprocal beneficiary relationship or marriage after termination. Whenever a reciprocal beneficiary relationship is terminated, either party to the reciprocal beneficiary relationship may enter into a subsequent reciprocal beneficiary relationship or marriage at any time. § -33 Property rights following termination of a reciprocal beneficiary relationship. (a) Every decree terminating a reciprocal beneficiary relationship that does not specifically recite that the final division of the property of the parties is reserved for further hearing, decision, and orders shall finally divide the property of the parties to the action. (b) Following the entry of a decree of termination of a reciprocal beneficiary relationship in which the final division of the property of the parties to the action is reserved for further hearings, decisions, and orders, notwithstanding the provisions of section 560:2-802, or any other provisions of the law to the contrary, each party to the action shall continue to have all of the rights to and interests in the property of the other party to the action as provided by chapter 560, or as otherwise provided by law to the same extent the party would have had such rights or interests if the decree terminating the reciprocal beneficiary relationship had not been entered, until the entry of a decree or order finally dividing the property of the parties to the action to terminate a reciprocal beneficiary relationship or as provided in subsection (d). (c) When a party to an action to terminate a reciprocal beneficiary relationship has entered into a subsequent reciprocal beneficiary relationship or marriage following the entry of a decree of termination of a reciprocal beneficiary relationship, in which the final division of the property of the parties is reserved for further hearings, decisions, and orders, but prior to the entry of a decree or order finally dividing the property owned by the parties to that action, notwithstanding the provisions of chapter 560, the present reciprocal beneficiary or spouse of the party to the former reciprocal beneficiary relationship shall have none of the rights or interests in the former reciprocal beneficiary's real property or personal estate as provided in chapter 560 or as otherwise provided by law, until such time as the decree or order shall be entered finally dividing the property owned by the parties or either of them as of the effective date of the entry of the decree of termination of the prior reciprocal beneficiary relationship. Upon the entry of a decree or order finally dividing the property of the parties to an action to terminate a reciprocal beneficiary relationship in which a decree of termination has been entered, the present reciprocal beneficiary or spouse of a party who has entered into a subsequent reciprocal beneficiary relationship or marriage shall have all of the rights of a reciprocal beneficiary or spouse as provided by chapter 560, or as otherwise provided by law, in and to the property of the reciprocal beneficiary or spouse as is vested in the reciprocal beneficiary or spouse by the decree or order finally dividing the property of the parties, or either of them, as of the effective date of the entry of the decree of termination of the prior reciprocal beneficiary relationship. (d) Following the entry of a decree of termination of a reciprocal beneficiary relationship, or the entry of a decree or order finally dividing the property of the parties to an action to terminate a reciprocal beneficiary relationship if the same is reserved in the decree of termination, or the elapse of one year after entry of a decree or order reserving the final division of property of the party, a reciprocal beneficiary to a terminated reciprocal beneficiary relationship shall not be entitled to dower or curtesy in the former reciprocal beneficiary's real estate, or any part thereof, nor to any share of the former reciprocal beneficiary's personal estate." SECTION 3. Section 87A-1, Hawaii Revised Statutes, is amended by amending the definitions of "dependent-beneficiary", "employee-beneficiary", and "qualified beneficiary" to read as follows: ""Dependent-beneficiary" means an employee-beneficiary's: (1) Spouse; (2) Reciprocal beneficiary; (3) Unmarried child deemed eligible by the board, including a legally adopted child, stepchild, foster child, or recognized natural child who lives with the employee-beneficiary; and [(3)] (4) [Unmarried child] Child not married or not in a reciprocal beneficiary relationship regardless of age who is incapable of self-support because of a mental or physical incapacity, [which] that existed prior to the [unmarried] child's reaching the age of nineteen years. "Employee-beneficiary" means: (1) An employee; (2) The beneficiary of an employee who is killed in the performance of the employee's duty; (3) An employee who retired prior to 1961; (4) The beneficiary of a retired member of the employees' retirement system; a county pension system; or a police, firefighters, or bandsmen pension system of the State or a county, upon the death of the retired member; (5) The surviving child of a deceased retired employee, if the child is unmarried or not in a reciprocal beneficiary relationship and under the age of nineteen; [or] (6) The surviving spouse of a deceased retired employee, if the surviving spouse does not subsequently remarry[;] or enter into a reciprocal beneficiary relationship; or (7) The surviving reciprocal beneficiary of a deceased retired employee, if the surviving reciprocal beneficiary does not subsequently marry or enter into a reciprocal beneficiary relationship; provided that the employee, the employee's beneficiary, or the beneficiary of the deceased retired employee is deemed eligible by the board to participate in a health benefits plan or long-term care benefits plan under this chapter. "Qualified-beneficiary" means, for purposes of the long-term care benefits plan, a former employee or an employee who is not eligible for benefits due to a reduction in work hours, including the spouse, divorced spouse, reciprocal beneficiary, former reciprocal beneficiary, parents, grandparents, in-law parents, [and] parents of a reciprocal beneficiary, in-law grandparents, and grandparents of a reciprocal beneficiary of an employee or retiree; provided that the beneficiary was enrolled in the plan before the employee or former employee became ineligible for benefits." SECTION 4. Section 87A-18, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows: "(a) The board may establish a long-term care benefits plan or plans for employee-beneficiaries; the spouses, reciprocal beneficiaries, parents, parents of a reciprocal beneficiary, grandparents, grandparents of a reciprocal beneficiary, in-law parents, in-law parents of a reciprocal beneficiary, [and] in-law grandparents, and in-law grandparents of a reciprocal beneficiary of employee-beneficiaries; and qualified-beneficiaries. The plan or plans shall be at no cost to employers and shall comply with article 10H of chapter 431. (b) Notwithstanding any other law to the contrary, long-term care benefits shall be available only to: (1) Employee-beneficiaries and their spouses, reciprocal beneficiaries, parents, and grandparents; (2) Employee-beneficiary in-law parents and grandparents[;], and the parents and grandparents of reciprocal beneficiaries; and (3) Qualified-beneficiaries who enroll between the ages of twenty and eighty-five, who comply with the plan's age, enrollment, medical underwriting, and contribution requirements." SECTION 5. Section 87A-23, Hawaii Revised Statutes, is amended to read as follows: "§87A-23 Health benefits plan supplemental to medicare. The board shall establish a health benefits plan, which takes into account benefits available to an employee-beneficiary and spouse or reciprocal beneficiary under medicare, subject to the following conditions: (1) There shall be no duplication of benefits payable under medicare. The plan under this section, which shall be secondary to medicare, when combined with medicare and any other plan to which the health benefits plan is subordinate under the National Association of Insurance Commissioners' coordination of benefit rules, shall provide benefits that approximate those provided to a similarly situated beneficiary not eligible for medicare; (2) The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund a contribution equal to an amount not less than the medicare part B premium, for each of the following who are enrolled in the medicare part B medical insurance plan: (A) an employee-beneficiary who is a retired employee, (B) an employee-beneficiary's spouse or reciprocal beneficiary while the employee-beneficiary is living, and (C) an employee-beneficiary's spouse[,] or reciprocal beneficiary, after the death of the employee-beneficiary, if the spouse or reciprocal beneficiary qualifies as an employee-beneficiary. For purposes of this section, a "retired employee" means retired members of the employees' retirement system; a county pension system; or a police, firefighters, or bandsmen pension system of the State or a county as set forth in chapter 88. If the amount reimbursed by the fund under this section is less than the actual cost of the medicare part B medical insurance plan due to an increase in the medicare part B medical insurance plan rate, the fund shall reimburse each employee-beneficiary and employee-beneficiary's spouse or reciprocal beneficiary for the cost increase within thirty days of the rate change. Each employee-beneficiary and employee-beneficiary's spouse or reciprocal beneficiary who becomes entitled to reimbursement from the fund for medicare part B premiums after July 1, 2006, shall designate a financial institution account into which the fund shall be authorized to deposit reimbursements. This method of payment may be waived by the fund if another method is determined to be more appropriate; (3) The benefits available under this plan, when combined with benefits available under medicare or any other coverage or plan to which this plan is subordinate under the National Association of Insurance Commissioners' coordination of benefit rules, shall approximate the benefits that would be provided to a similarly situated employee-beneficiary not eligible for medicare; (4) All employee-beneficiaries or dependent-beneficiaries who are eligible to enroll in the medicare part B medical insurance plan shall enroll in that plan as a condition of receiving contributions and participating in benefits plans under this chapter. This paragraph shall apply to retired employees, their spouses[,] or reciprocal beneficiaries, and the surviving spouses or reciprocal beneficiaries of deceased retirees and employees killed in the performance of duty; and (5) The board shall determine which of the employee-beneficiaries and dependent-beneficiaries, who are not enrolled in the medicare part B medical insurance plan, may participate in the plans offered by the fund." SECTION 6. Section 87A-32, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund a monthly contribution equal to the amount established under chapter 89C or specified in the applicable public sector collective bargaining agreements, whichever is appropriate, for each of their respective employee-beneficiaries and employee-beneficiaries with dependent-beneficiaries, which shall be used toward the payment of costs of a health benefits plan; provided that: (1) The monthly contribution shall be a specified dollar amount; (2) The monthly contribution shall not exceed the actual cost of a health benefits plan; (3) If both husband and wife or reciprocal beneficiaries are employee-beneficiaries, the total contribution by the State or the county shall not exceed the monthly contribution for a family plan; and (4) If the State or any of the counties establish cafeteria plans in accordance with Title 26, United States Code section 125, the Internal Revenue Code of 1986, as amended, and part II of chapter 78, the monthly contribution for those employee-beneficiaries who participate in a cafeteria plan shall be made through the cafeteria plan, and the payments made by the State or counties shall include their respective contributions to the fund and their employee-beneficiary's share of the cost of the employee-beneficiary's health benefits plan." SECTION 7. Section 87A-33, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows: "(b) Effective July 1, 2003, there is established a base monthly contribution for health benefit plans that the State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund, up to the following: (1) $218 for each employee-beneficiary enrolled in supplemental medicare self plans; (2) $671 for each employee-beneficiary enrolled in supplemental medicare family plans; (3) $342 for each employee-beneficiary enrolled in non-medicare self plans; and (4) $928 for each employee-beneficiary enrolled in non-medicare family plans. The monthly contribution by the State or county shall not exceed the actual cost of the health benefits plan or plans. If both husband and wife or reciprocal beneficiaries are employee-beneficiaries, the total contribution by the State or county shall not exceed the monthly contribution for a supplemental medicare family or non-medicare family plan, as appropriate. (c) Effective July 1, 2004, there is established a base monthly contribution for health benefit plans that the State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund, up to the following: (1) $254 for each employee-beneficiary enrolled in supplemental medicare self plans; (2) $787 for each employee-beneficiary enrolled in supplemental medicare family plans; (3) $412 for each employee-beneficiary enrolled in non-medicare self plans; and (4) $1,089 for each employee-beneficiary enrolled in non-medicare family plans. The monthly contribution by the State or county shall not exceed the actual cost of the health benefit plan or plans and shall not be required to cover increased benefits above those initially contracted for by the fund for plan year 2004-2005. If both husband and wife or reciprocal beneficiaries are employee-beneficiaries, the total contribution by the State or county shall not exceed the monthly contribution for a supplemental medicare family or non-medicare family plan, as appropriate." SECTION 8. Section 87A-34, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund a monthly contribution equal to one-half of the base monthly contribution set forth under section 87A-33(b) for retired employees enrolled in medicare or non-medicare health benefits plans. If both husband and wife or reciprocal beneficiaries are employee-beneficiaries, the total contribution by the State or county shall not exceed the monthly contribution for supplemental medicare family or non-medicare family plan, as appropriate." SECTION 9. Section 87A-35, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows: "(c) The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund: (1) For retired employees enrolled in medicare or non-medicare health benefit plans with ten or more years but fewer than fifteen years of service, a monthly contribution equal to one-half of the base monthly contribution set forth under section 87A-33(b); and (2) For retired employees enrolled in medicare or non-medicare health benefit plans with at least fifteen but fewer than twenty-five years of service, a monthly contribution of seventy-five per cent of the base monthly contribution set forth under section 87A-33(b). If both husband and wife or reciprocal beneficiaries are employee-beneficiaries, the total contribution by the State or county shall not exceed the monthly contribution for a supplemental medicare family or non-medicare family plan, as appropriate." SECTION 10. Section 87A-36, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows: "(c) The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund: (1) For retired employees based on the self plan with ten or more years but fewer than fifteen years of service, a monthly contribution equal to one-half of the base medicare or non-medicare monthly contribution set forth under section 87A-33(b); (2) For retired employees based on the self plan with at least fifteen but fewer than twenty-five years of service, a monthly contribution equal to seventy-five per cent of the base medicare or non-medicare monthly contribution set forth under section 87A-33(b); (3) For retired employees based on the self plan with twenty-five or more years of service, a monthly contribution equal to [one-hundred] one hundred per cent of the base medicare or non-medicare monthly contribution set forth under section 87A-33(b); and (4) One-half of the monthly contributions for the employee-beneficiary or employee-beneficiary with dependent-beneficiaries upon the death of the employee, as defined in paragraph (1)(E) of the definition of "employee" in section 87A-1. If both husband and wife or reciprocal beneficiaries are employee-beneficiaries, the total contribution by the State or county shall not exceed the monthly contribution for two supplemental medicare self or non-medicare self plans, as appropriate." SECTION 11. Section 231-57, Hawaii Revised Statutes, is amended to read as follows: "[[]§231-57[]] Apportionment of joint refunds. In the case of a setoff against a joint income tax refund, the State may make separate refunds of withheld taxes upon request by a husband or wife or reciprocal beneficiary who has filed the joint return. The refund payable to each spouse or reciprocal beneficiary shall be proportioned to the gross earnings of each shown by the information returns filed by the employer or otherwise shown to the satisfaction of the State." SECTION 12. Section 235-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows: ""Reciprocal beneficiary" means two adults who are parties to a valid reciprocal beneficiary relationship and meet the requisites for a valid reciprocal beneficiary relationship as defined in section 572C-4." SECTION 13. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Section 63 (with respect to taxable income defined) of the Internal Revenue Code shall be operative for the purposes of this chapter, subject to the following: (1) Sections 63(c)(1)(B) (relating to the additional standard deduction), 63(c)(1)(C) (relating to the real property tax deduction), 63(c)(1)(D) (relating to the disaster loss deduction), 63(c)(4) (relating to inflation adjustments), 63(c)(7) (defining the real property tax deduction), 63(c)(8) (defining the disaster loss deduction), and 63(f) (relating to additional amounts for the aged or blind) of the Internal Revenue Code shall not be operative for purposes of this chapter; (2) Section 63(c)(2) (relating to the basic standard deduction) of the Internal Revenue Code shall be operative, except that the standard deduction amounts provided therein shall instead mean: (A) $4,000 in the case of: (i) A joint return as provided by section 235-93; or (ii) A surviving spouse (as defined in Section 2(a) of the Internal Revenue Code)[;] or reciprocal beneficiary; (B) $2,920 in the case of a head of household (as defined in Section 2(b) of the Internal Revenue Code); (C) $2,000 in the case of an individual who is not married and not in a reciprocal beneficiary relationship, and who is not a surviving spouse, surviving reciprocal beneficiary, or head of household; or (D) $2,000 in the case of a married individual or reciprocal beneficiary filing a separate return; (3) Section 63(c)(5) (limiting the basic standard deduction in the case of certain dependents) of the Internal Revenue Code shall be operative, except that the limitation shall be the greater of $500 or such individual's earned income; and (4) The standard deduction amount for nonresidents shall be calculated pursuant to section 235-5." SECTION 14. Section 235-4, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows: "(b) Nonresidents. In the case of a nonresident, the tax applies to the income received or derived from property owned, personal services performed, trade, or business carried on, and any and every other source in the State. In the case of a nonresident spouse or reciprocal beneficiary filing a joint return with a resident spouse[,] or reciprocal beneficiary, the tax applies to the entire income of the nonresident spouse or reciprocal beneficiary computed without regard to source in the State. (c) Change of status. Except where a joint return is filed, when the status of a taxpayer changes during the taxable year from resident to nonresident, or from nonresident to resident, the tax imposed by this chapter applies to the entire income earned during the period of residence in the manner provided in subsection (a) [of this section] and during the period of nonresidence the tax shall apply upon the income received or derived as a nonresident in the manner provided in subsection (b) [of this section;]; provided that if it cannot be determined whether income was received or derived during the period of residence or during the period of nonresidence, there shall be attributed to the State such portion of the income as is determined by applying to such income for the whole taxable year the ratio which the period of residence in the State bears to the whole taxable year, unless the taxpayer shows to the satisfaction of the department of taxation that the result is to attribute to the state income, dependent upon residence, received or derived during the period of nonresidence, in which event the amount of income as to which such showing is made shall be excluded. The apportionment of income provided by this subsection shall not apply where one spouse or reciprocal beneficiary is a resident of this State and a joint return is filed with the nonresident spouse or reciprocal beneficiary in which event the tax shall be computed on their aggregate income in the manner provided in section 235-52 without regard to source in the State. Where, however, both spouses or reciprocal beneficiaries change their status from resident to nonresident or from nonresident to resident, their income shall be apportioned in the manner provided in this subsection." SECTION 15. Section 235-5.5, Hawaii Revised Statutes, is amended as follows: 1. By amending subsections (a) and (b) to read: "(a) There shall be allowed as a deduction from gross income the amount, not to exceed $5,000, paid in cash during the taxable year by an individual taxpayer to an individual housing account established for the individual's benefit to provide funding for the purchase of the individual's first principal residence. A deduction not to exceed $10,000 shall be allowed for a married couple or reciprocal beneficiaries filing a joint return. No deduction shall be allowed on any amounts distributed less than three hundred sixty-five days from the date on which a contribution is made to the account. Any deduction claimed for a previous taxable year for amounts distributed less than three hundred sixty-five days from the date on which a contribution was made shall be disallowed and the amount deducted shall be included in the previous taxable year's gross income and the tax reassessed. The interest paid or accrued within the taxable year on the account shall not be included in the individual's gross income. For purposes of this section, the term "first principal residence" means a residential property purchased with the payment or distribution from the individual housing account which shall be owned and occupied as the only home by an individual who did not have any interest in, individually, or whose spouse or reciprocal beneficiary did not have any interest in, if the individual is married[,] or in a reciprocal beneficiary relationship, a residential property within the last five years of opening the individual housing account. In the case of a married couple or parties in a reciprocal beneficiary relationship filing separate returns, the sum of the deductions allowable to each of them for the taxable year shall not exceed $5,000, or $10,000 for a joint return, for amounts paid in cash, excluding interest paid or accrued thereon. The amounts paid in cash allowable as a deduction under this section to an individual for all taxable years shall not exceed $25,000, excluding interest paid or accrued. In the case of married individuals or reciprocal beneficiaries having separate individual housing accounts, the sum of the separate accounts and the deduction under this section shall not exceed $25,000, excluding interest paid or accrued thereon. (b) For purposes of this section, the term "individual housing account" means a trust created or organized in Hawaii for the exclusive benefit of an individual, or, in the case of a married individual[,] or reciprocal beneficiary, for the exclusive benefit of the individual and spouse or reciprocal beneficiary jointly, but only if the written governing instrument creating the trust meets the following requirements: (1) Contributions shall not be accepted for the taxable year in excess of $5,000 (or $10,000 in the case of a joint return) or in excess of $25,000 for all taxable years, exclusive of interest paid or accrued; (2) The trustee is a bank, a savings and loan association, a credit union, or a depository financial services loan company, chartered, licensed, or supervised under federal or state law, whose accounts are insured by the Federal Deposit Insurance Corporation, the National Credit Union Administration, or any agency of this State or any federal agency established for the purpose of insuring accounts in these financial institutions. The financial institution must actively make residential real estate mortgage loans in Hawaii; (3) The assets of the trust shall be invested only in fully insured savings or time deposits. Funds held in the trust may be commingled for purposes of investment, but individual records shall be maintained by the trustee for each individual housing account holder which show all transactions in detail; (4) The entire interest of an individual [or], married couple, or reciprocal beneficiaries for whose benefit the trust is maintained shall be distributed to the individual [or], couple, or reciprocal beneficiaries not later than one hundred twenty months after the date on which the first contribution is made to the trust; (5) Except as provided in subsection (g), the trustee shall not distribute the funds in the account unless it (A) verifies that the money is to be used for the purchase of a first principal residence located in Hawaii, and provides that the instrument of payment is payable to the mortgagor, construction contractor, or other vendor of the property purchased; or (B) withholds an amount equal to ten per cent of the amount withdrawn from the account and remits this amount to the director within ten days after the date of the withdrawal. The amount so withheld shall be applied to the liability of the taxpayer under subsections (c) and (e); and (6) If any amounts are distributed before the expiration of three hundred sixty-five days from the date on which a contribution is made to the account, the trustee shall so notify in writing the taxpayer and the director. If the trustee makes the verification required in paragraph (5)(A), then the department shall disallow the deduction under subsection (a) and subsections (c), (e), and (f) shall not apply to that amount. If the trustee withholds an amount under paragraph (5)(B), then the department shall disallow the deduction under subsection (a) and subsection (e) shall apply, but subsection (c) shall not apply." 2. By amending subsections (g) and (h) to read: "(g) No tax liability shall be imposed under this section if: (1) The payment or distribution is attributable to the individual dying or becoming totally disabled; or (2) Residential property subject to subsection (f) is transferred by will or by operation of law or sold due to the death or total disability of an individual or an individual's spouse[,] or reciprocal beneficiary, subject to the following: An individual shall not be considered to be totally disabled unless proof is furnished of the total disability in the form and manner as the director may require. Upon the death of an individual for whose benefit an individual housing account has been established, the funds in the account shall be payable to the estate of the individual; provided that if the account was held jointly by the decedent and a spouse or reciprocal beneficiary of the decedent, the account shall terminate and be paid to the surviving spouse[;] or reciprocal beneficiary; or, if the surviving spouse or reciprocal beneficiary so elects, the spouse or reciprocal beneficiary may continue the account as an individual housing account. Upon the total disability of an individual for whose benefit an individual housing account has been established, the individual or the individual's authorized representative may elect to continue the account or terminate the account and be paid the assets; provided that if the account was held jointly by a totally disabled person and a spouse or reciprocal beneficiary of that person, then the spouse or reciprocal beneficiary, or an authorized representative of the spouse or reciprocal beneficiary may elect to continue the account or terminate the account and be paid the assets. (h) If the individual for whose benefit the individual housing account was established subsequently marries or enters into a reciprocal beneficiary relationship with a person who has or has had any interest in residential property, the individual's housing account shall be terminated, the funds therein shall be distributed to the individual, and the amount of the funds shall be includable in the individual's gross income for the taxable year in which [such] the marriage took place[;] or the reciprocal beneficiary relationship was entered into; provided that the tax liability defined under subsection (f) shall not be imposed." SECTION 16. Section 235-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) There shall be excluded from gross income, adjusted gross income, and taxable income: (1) Income not subject to taxation by the State under the Constitution and laws of the United States; (2) Rights, benefits, and other income exempted from taxation by section 88-91, having to do with the state retirement system, and the rights, benefits, and other income, comparable to the rights, benefits, and other income exempted by section 88-91, under any other public retirement system; (3) Any compensation received in the form of a pension for past services; (4) Compensation paid to a patient affected with Hansen's disease employed by the State or the United States in any hospital, settlement, or place for the treatment of Hansen's disease; (5) Except as otherwise expressly provided, payments made by the United States or this State, under an act of Congress or a law of this State, which by express provision or administrative regulation or interpretation are exempt from both the normal and surtaxes of the United States, even though not so exempted by the Internal Revenue Code itself; (6) Any income expressly exempted or excluded from the measure of the tax imposed by this chapter by any other law of the State, it being the intent of this chapter not to repeal or supersede any express exemption or exclusion; (7) Income received by each member of the reserve components of the Army, Navy, Air Force, Marine Corps, or Coast Guard of the United States of America, and the Hawaii national guard as compensation for performance of duty, equivalent to pay received for forty-eight drills (equivalent of twelve weekends) and fifteen days of annual duty, at an: (A) E-1 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2004; (B) E-2 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2005; (C) E-3 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2006; (D) E-4 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2007; and (E) E-5 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2008; (8) Income derived from the operation of ships or aircraft if the income is exempt under the Internal Revenue Code pursuant to the provisions of an income tax treaty or agreement entered into by and between the United States and a foreign country; provided that the tax laws of the local governments of that country reciprocally exempt from the application of all of their net income taxes, the income derived from the operation of ships or aircraft that are documented or registered under the laws of the United States; (9) The value of legal services provided by a prepaid legal service plan to a taxpayer, the taxpayer's spouse, the taxpayer's reciprocal beneficiary, and the taxpayer's dependents; (10) Amounts paid, directly or indirectly, by a prepaid legal service plan to a taxpayer as payment or reimbursement for the provision of legal services to the taxpayer, the taxpayer's spouse, the taxpayer's reciprocal beneficiary, and the taxpayer's dependents; (11) Contributions by an employer to a prepaid legal service plan for compensation (through insurance or otherwise) to the employer's employees for the costs of legal services incurred by the employer's employees, their spouses, their reciprocal beneficiaries, and their dependents; (12) Amounts received in the form of a monthly surcharge by a utility acting on behalf of an affected utility under section 269-16.3 shall not be gross income, adjusted gross income, or taxable income for the acting utility under this chapter. Any amounts retained by the acting utility for collection or other costs shall not be included in this exemption; and (13) One hundred per cent of the gain realized by a fee simple owner from the sale of a leased fee interest in units within a condominium project, cooperative project, or planned unit development to the association of owners under chapter 514A or 514B, or the residential cooperative corporation of the leasehold units. For purposes of this paragraph: "Fee simple owner" shall have the same meaning as provided under section 516-1; provided that it shall include legal and equitable owners; "Legal and equitable owner", and "leased fee interest" shall have the same meanings as provided under section 516-1; and "Condominium project" and "cooperative project" shall have the same meanings as provided under section 514C-1." SECTION 17. Section 235-7.5, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows: "(e) For purposes of this section, the parent whose taxable income shall be taken into account shall be: (1) In the case of parents who are not married (within the meaning of section 235-93), the custodial parent (within the meaning of section 152(e) (with respect to the support test in case of child of divorced parents, etc.) of the Internal Revenue Code) of the child, and (2) In the case of married individuals or reciprocal beneficiaries filing separately, the individual with the greater taxable income." SECTION 18. Section 235-51, Hawaii Revised Statutes, is amended as follows: 1. By amending subsection (a) to read: "(a) There is hereby imposed on the taxable income of (1) every taxpayer who files a joint return under section 235-93; and (2) every surviving spouse or surviving reciprocal beneficiary a tax determined in accordance with the following table: In the case of any taxable year beginning after December 31, 2001: If the taxable income is: The tax shall be: Not over $4,000 1.40% of taxable income Over $4,000 but $56.00 plus 3.20% of not over $8,000 excess over $4,000 Over $8,000 but $184.00 plus 5.50% of not over $16,000 excess over $8,000 Over $16,000 but $624.00 plus 6.40% of not over $24,000 excess over $16,000 Over $24,000 but $1,136.00 plus 6.80% of not over $32,000 excess over $24,000 Over $32,000 but $1,680.00 plus 7.20% of not over $40,000 excess over $32,000 Over $40,000 but $2,256.00 plus 7.60% of not over $60,000 excess over $40,000 Over $60,000 but $3,776.00 plus 7.90% of not over $80,000 excess over $60,000 Over $80,000 $5,356.00 plus 8.25% of excess over $80,000. In the case of any taxable year beginning after December 31, 2006: If the taxable income is: The tax shall be: Not over $4,800 1.40% of taxable income Over $4,800 but $67.00 plus 3.20% of not over $9,600 excess over $4,800 Over $9,600 but $221.00 plus 5.50% of not over $19,200 excess over $9,600 Over $19,200 but $749.00 plus 6.40% of not over $28,800 excess over $19,200 Over $28,800 but $1,363.00 plus 6.80% of not over $38,400 excess over $28,800 Over $38,400 but $2,016.00 plus 7.20% of not over $48,000 excess over $38,400 Over $48,000 but $2,707.00 plus 7.60% of not over $72,000 excess over $48,000 Over $72,000 but $4,531.00 plus 7.90% of not over $96,000 excess over $72,000 Over $96,000 $6,427.00 plus 8.25% of excess over $96,000. In the case of any taxable year beginning after December 31, 2008: If the taxable income is: The tax shall be: Not over $4,800 1.40% of taxable income Over $4,800 but $67.00 plus 3.20% of not over $9,600 excess over $4,800 Over $9,600 but $221.00 plus 5.50% of not over $19,200 excess over $9,600 Over $19,200 but $749.00 plus 6.40% of not over $28,800 excess over $19,200 Over $28,800 but $1,363.00 plus 6.80% of not over $38,400 excess over $28,800 Over $38,400 but $2,016.00 plus 7.20% of not over $48,000 excess over $38,400 Over $48,000 but $2,707.00 plus 7.60% of not over $72,000 excess over $48,000 Over $72,000 but $4,531.00 plus 7.90% of not over $96,000 excess over $72,000 Over $96,000 but $6,427.00 plus 8.25% of not over $300,000 excess over $96,000 Over $300,000 but $23,257.00 plus 9.00% of not over $350,000 excess over $300,000 Over $350,000 but $27,757.00 plus 10.00% of not over $400,000 excess over $350,000 Over $400,000 $32,757.00 plus 11.00% of excess over $400,000." 2. By amending subsection (c) to read: (c) There is hereby imposed on the taxable income of (1) every unmarried individual (other than a surviving spouse, surviving reciprocal beneficiary, or the head of a household) and (2) on the taxable income of every married individual or reciprocal beneficiary who does not make a single return jointly with the individual's spouse or reciprocal beneficiary under section 235-93 a tax determined in accordance with the following table: In the case of any taxable year beginning after December 31, 2001: If the taxable income is: The tax shall be: Not over $2,000 1.40% of taxable income Over $2,000 but $28.00 plus 3.20% of not over $4,000 excess over $2,000 Over $4,000 but $92.00 plus 5.50% of not over $8,000 excess over $4,000 Over $8,000 but $312.00 plus 6.40% of not over $12,000 excess over $8,000 Over $12,000 but $568.00 plus 6.80% of not over $16,000 excess over $12,000 Over $16,000 but $840.00 plus 7.20% of not over $20,000 excess over $16,000 Over $20,000 but $1,128.00 plus 7.60% of not over $30,000 excess over $20,000 Over $30,000 but $1,888.00 plus 7.90% of not over $40,000 excess over $30,000 Over $40,000 $2,678.00 plus 8.25% of excess over $40,000. In the case of any taxable year beginning after December 31, 2006: If the taxable income is: The tax shall be: Not over $2,400 1.40% of taxable income Over $2,400 but $34.00 plus 3.20% of not over $4,800 excess over $2,400 Over $4,800 but $110.00 plus 5.50% of not over $9,600 excess over $4,800 Over $9,600 but $374.00 plus 6.40% of not over $14,400 excess over $9,600 Over $14,400 but $682.00 plus 6.80% of not over $19,200 excess over $14,400 Over $19,200 but $1,008.00 plus 7.20% of not over $24,000 excess over $19,200 Over $24,000 but $1,354.00 plus 7.60% of not over $36,000 excess over $24,000 Over $36,000 but $2,266.00 plus 7.90% of not over $48,000 excess over $36,000 Over $48,000 $3,214.00 plus 8.25% of excess over $48,000. In the case of any taxable year beginning after December 31, 2008: If the taxable income is: The tax shall be: Not over $2,400 1.40% of taxable income Over $2,400 but $34.00 plus 3.20% of not over $4,800 excess over $2,400 Over $4,800 but $110.00 plus 5.50% of not over $9,600 excess over $4,800 Over $9,600 but $374.00 plus 6.40% of not over $14,400 excess over $9,600 Over $14,400 but $682.00 plus 6.80% of not over $19,200 excess over $14,400 Over $19,200 but $1,008.00 plus 7.20% of not over $24,000 excess over $19,200 Over $24,000 but $1,354.00 plus 7.60% of not over $36,000 excess over $24,000 Over $36,000 but $2,266.00 plus 7.90% of not over $48,000 excess over $36,000 Over $48,000 but $3,214.00 plus 8.25% of not over $150,000 excess over $48,000 Over $150,000 but $11,629.00 plus 9.00% of not over $175,000 excess over $150,000 Over $175,000 but $13,879.00 plus 10.00% of not over $200,000 excess over $175,000 Over $200,000 $16,379.00 plus 11.00% of excess over $200,000." SECTION 19. Section 235-52, Hawaii Revised Statutes, is amended to read as follows: "§235-52 Tax in case of joint return or return of surviving spouse[.] or surviving reciprocal beneficiary. In the case of a joint return of a husband and wife or reciprocal beneficiaries under section 235-93, the tax imposed, as near as may be, by this chapter shall be twice the tax which would be imposed if the taxable income were cut in half. For purposes of this section and section 235-53, a return of a surviving spouse, as defined in the Internal Revenue Code, or surviving reciprocal beneficiary shall be treated as a joint return of a husband and wife or reciprocal beneficiaries under section 235-93." SECTION 20. Section 235-54, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) In computing the taxable income of any individual, there shall be deducted, in lieu of the personal exemptions allowed by the Internal Revenue Code, personal exemptions computed as follows: Ascertain the number of exemptions which the individual can lawfully claim under the Internal Revenue Code, add an additional exemption for the taxpayer or the taxpayer's spouse or reciprocal beneficiary who is sixty-five years of age or older within the taxable year, and multiply that number by $1,144, for taxable years beginning after December 31, 1984. A nonresident shall prorate the personal exemptions on account of income from sources outside the State as provided in section 235-5. In the case of an individual with respect to whom an exemption under this section is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins, the personal exemption amount applicable to such individual under this subsection for such individual's taxable year shall be zero. SECTION 21. Section 235-55.6, Hawaii Revised Statutes, is amended as follows: 1. By amending subsection (b) to read: "(b) Definitions of qualifying individual and employment- related expenses. For purposes of this section: (1) Qualifying individual. The term "qualifying individual" means: (A) A dependent of the taxpayer who is under the age of thirteen and with respect to whom the taxpayer is entitled to a deduction under section 235-54(a), (B) A dependent of the taxpayer who is physically or mentally incapable of caring for oneself, or (C) The spouse or reciprocal beneficiary of the taxpayer, if the spouse or reciprocal beneficiary is physically or mentally incapable of caring for oneself. (2) Employment-related expenses. (A) In general. The term "employment-related expenses" means amounts paid for the following expenses, but only if such expenses are incurred to enable the taxpayer to be gainfully employed for any period for which there are one or more qualifying individuals with respect to the taxpayer: (i) Expenses for household services, and (ii) Expenses for the care of a qualifying individual. Such term shall not include any amount paid for services outside the taxpayer's household at a camp where the qualifying individual stays overnight. (B) Exception. Employment-related expenses described in subparagraph (A) which are incurred for services outside the taxpayer's household shall be taken into account only if incurred for the care of: (i) A qualifying individual described in paragraph (1)(A), or (ii) A qualifying individual (not described in paragraph (1)(A)) who regularly spends at least eight hours each day in the taxpayer's household. (C) Dependent care centers. Employment-related expenses described in subparagraph (A) which are incurred for services provided outside the taxpayer's household by a dependent care center (as defined in subparagraph (D)) shall be taken into account only if: (i) Such center complies with all applicable laws, rules, and regulations of this State, if the center is located within the jurisdiction of this State; or (ii) Such center complies with all applicable laws, rules, and regulations of the jurisdiction in which the center is located, if the center is located outside the State; and (iii) The requirements of subparagraph (B) are met. (D) Dependent care center defined. For purposes of this paragraph, the term "dependent care center" means any facility which: (i) Provides care for more than six individuals (other than individuals who reside at the facility), and (ii) Receives a fee, payment, or grant for providing services for any of the individuals (regardless of whether such facility is operated for profit)." 2. By amending subsections (d) and (e) to read: "(d) Earned income limitation. (1) In general. Except as otherwise provided in this subsection, the amount of the employment-related expenses incurred during any taxable year which may be taken into account under subsection (a) shall not exceed: (A) In the case of an individual who is not married or not in a reciprocal beneficiary relationship at the close of such year, such individual's earned income for such year, or (B) In the case of an individual who is married or in a reciprocal beneficiary relationship at the close of such year, the lesser of such individual's earned income or the earned income of the individual's spouse or reciprocal beneficiary for such year. (2) Special rule for spouse or reciprocal beneficiary who is a student or incapable of caring for oneself. In the case of a spouse or reciprocal beneficiary who is a student or a qualified individual described in subsection (b)(1)(C), for purposes of paragraph (1), [such] the spouse or reciprocal beneficiary shall be deemed for each month during which [such] the spouse or reciprocal beneficiary is a full-time student at an educational institution, or is [such] a qualifying individual, to be gainfully employed and to have earned income of not less than: (A) $200 if subsection (c)(1) applies for the taxable year, or (B) $400 if subsection (c)(2) applies for the taxable year. In the case of any husband and wife[,] or parties in a reciprocal beneficiary relationship, this paragraph shall apply with respect to only one spouse or reciprocal beneficiary for any one month. (e) Special rules. For purposes of this section: (1) Maintaining household. An individual shall be treated as maintaining a household for any period only if over half the cost of maintaining the household for the period is furnished by the individual (or, if the individual is married or in a reciprocal beneficiary relationship during the period, is furnished by the individual and the individual's spouse[).] or reciprocal beneficiary). (2) Married couples [must] and reciprocal beneficiaries shall file joint return. If the taxpayer is married or in a reciprocal beneficiary relationship at the close of the taxable year, the credit shall be allowed under subsection (a) only if the taxpayer and the taxpayer's spouse or reciprocal beneficiary file a joint return for the taxable year. (3) Marital status. An individual legally separated from the individual's spouse under a decree of divorce or of separate maintenance shall not be considered as married. (4) Certain married individuals living apart. If: (A) An individual who is married and who files a separate return: (i) Maintains as the individual's home a household that constitutes for more than one-half of the taxable year the principal place of abode of a qualifying individual, and (ii) Furnishes over half of the cost of maintaining the household during the taxable year, and (B) During the last six months of the taxable year the individual's spouse is not a member of the household, the individual shall not be considered as married. (5) Special dependency test in case of divorced parents, etc. If: (A) Paragraph (2) or (4) of section 152(e) of the Internal Revenue Code of 1986, as amended, applies to any child with respect to any calendar year, and (B) The child is under age thirteen or is physically or mentally incompetent of caring for the child's self, in the case of any taxable year beginning in the calendar year, the child shall be treated as a qualifying individual described in subsection (b)(1)(A) or (B) (whichever is appropriate) with respect to the custodial parent (within the meaning of section 152(e)(1) of the Internal Revenue Code of 1986, as amended), and shall not be treated as a qualifying individual with respect to the noncustodial parent. (6) Payments to related individuals. No credit shall be allowed under subsection (a) for any amount paid by the taxpayer to an individual: (A) With respect to whom, for the taxable year, a deduction under section 151(c) of the Internal Revenue Code of 1986, as amended (relating to deduction for personal exemptions for dependents) is allowable either to the taxpayer or the taxpayer's spouse[,] or reciprocal beneficiary; or (B) Who is a child of the taxpayer (within the meaning of section 151(c)(3) of the Internal Revenue Code of 1986, as amended) who has not attained the age of nineteen at the close of the taxable year. For purposes of this paragraph, the term "taxable year" means the taxable year of the taxpayer in which the service is performed. (7) Student. The term "student" means an individual who, during each of five calendar months during the taxable year, is a full-time student at an educational organization. (8) Educational organization. The term "educational organization" means a school operated by the department of education under chapter 302A, an educational organization described in section 170(b)(1)(A)(ii) of the Internal Revenue Code of 1986, as amended, or a university, college, or community college. (9) Identifying information required with respect to service provider. No credit shall be allowed under subsection (a) for any amount paid to any person unless: (A) The name, address, taxpayer identification number, and general excise tax license number of the person are included on the return claiming the credit, (B) If the person is located outside the State, the name, address, and taxpayer identification number, if any, of the person and a statement indicating that the service provider is located outside the State and that the general excise tax license and, if applicable, the taxpayer identification numbers are not required, or (C) If the person is an organization described in section 501(c)(3) of the Internal Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name and address of the person are included on the return claiming the credit. In the case of a failure to provide the information required under the preceding sentence, the preceding sentence shall not apply if it is shown that the taxpayer exercised due diligence in attempting to provide the information so required." SECTION 22. Section 235-55.7, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows: "(e) The tax credits shall be deductible from the taxpayer's individual net income tax for the tax year in which the credits are properly claimed; provided that a husband and wife or reciprocal beneficiaries filing separate returns for a taxable year for which a joint return could have been made by them shall claim only the tax credits to which they would have been entitled had a joint return been filed. In the event the allowed tax credits exceed the amount of the income tax payments due from the taxpayer, the excess of credits over payments due shall be refunded to the taxpayer; provided that allowed tax credits properly claimed by an individual who has no income tax liability shall be paid to the individual; and provided further that no refunds or payments on account of the tax credits allowed by this section shall be made for amounts less than $1." SECTION 23. Section 235-55.85, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) Each resident individual taxpayer may claim a refundable food/excise tax credit multiplied by the number of qualified exemptions to which the taxpayer is entitled in accordance with the table below; provided that a husband and wife or reciprocal beneficiaries filing separate tax returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed. Adjusted gross income: Credit per exemption: Under $5,000 $85 $5,000 under $10,000 75 $10,000 under $15,000 65 $15,000 under $20,000 55 $20,000 under $30,000 45 $30,000 under $40,000 35 $40,000 under $50,000 25 $50,000 and over 0." SECTION 24. Section 235-61, Hawaii Revised Statutes, is amended as follows: 1. By amending subsection (c) to read: "(c) For each withholding period (whether weekly, biweekly, monthly, or otherwise) the amount of tax to be withheld under this section shall be at a rate which, for the taxable year, will yield the tax imposed by section 235-51 upon each employee's annual wage, as estimated from the employee's current wage in any withholding period, but for the purposes of this subsection of the rates provided by section 235-51 the maximum to be taken into consideration shall be eight per cent. The tax for the taxable year shall be calculated upon the following assumptions: (1) That the employee's annual wage, as estimated from the employee's current wage in the withholding period, will be the employee's sole income for the taxable year; (2) That there will be no deductions therefrom in determining adjusted gross income; (3) That in determining taxable income there shall be a standard deduction allowance which shall be an amount equal to one exemption (or more than one exemption if so prescribed by the director) unless (A) the taxpayer is married or in a reciprocal beneficiary relationship and the taxpayer's spouse or reciprocal beneficiary is an employee receiving wages subject to withholding, or (B) the taxpayer has withholding exemption certificates in effect with respect to more than one employer. For the purposes of this section, any standard deduction allowance under this paragraph shall be treated as if it were denominated a withholding exemption; (4) That in determining taxable income there also will be deducted the amount of exemptions and withholding allowances granted to the employee in the computation of taxable income, as shown by a certificate to be filed with the employer as provided by subsection (f); and (5) If it appears from the certificate filed pursuant to subsection (f) that the employee, under section 235-93, is entitled to make a joint return, that the employee and the employee's spouse or reciprocal beneficiary will so elect." 2. By amending subsections (f) and (g) to read: "(f) On or before the date of the commencement of employment with an employer, the employee shall furnish the employer with a signed certificate relating to the number of exemptions which the employee claims, which shall in no event exceed the number to which the employee is entitled on the basis of the existing facts, and also showing whether the employee is married or in a reciprocal beneficiary relationship and is, under section 235-93, entitled to make a joint return. The certificate shall be in such form and contain such information as may be prescribed by the department. If, on any day during the calendar year, there is a change in the employee's marital or reciprocal beneficiary status and the employee no longer is entitled to make a joint return, or the number of exemptions to which the employee is entitled is less than the number of exemptions claimed by the employee on the certificate then in effect with respect to the employee, the employee shall within ten days thereafter furnish the employer with a new certificate showing the employee's present marital or reciprocal beneficiary status, or relating to the number of exemptions which the employee then claims, which shall in no event exceed the number to which the employee is entitled on the basis of the existing facts. If, on any day during the calendar year, there is a change in the employee's marital or reciprocal beneficiary status and though previously not entitled to make a joint return the employee now is so entitled, or the number of exemptions to which the employee is entitled is greater than the number of exemptions claimed, the employee may furnish the employer with a new certificate showing the employee's present marital or reciprocal beneficiary status, or relating to the number of exemptions which the employee then claims, which shall in no event exceed the number to which the employee is entitled on the basis of the existing facts. Such certificate shall take effect at the times set forth in the Internal Revenue Code. (g) In determining the deduction allowed by subsection (c)(4) an employee shall be entitled to withholding allowances or additional reductions in withholding under this subsection. In determining the number of additional withholding allowances or the amount of additional reductions in withholding under this subsection, the employee may take into account (to the extent and in the manner provided by rules) estimated itemized deductions and tax credits allowable under this chapter; and such additional deductions and other items as may be specified by the director in rules. For the purposes of this subsection a fractional number shall not be taken into account unless it amounts to one-half or more, in which case it shall be increased to the next whole number. (1) As used in this subsection, unless the context otherwise requires: (A) "Estimated itemized deductions" means the aggregate amount which the employee reasonably expects will be allowed as deductions under sections 235-2.3, 235-2.4, 235-2.45, and 235-7, other than the deductions referred to in Internal Revenue Code section 151 and those deductions required to be taken into account in determining adjusted gross income under Internal Revenue Code section 62(a) (with the exception of paragraph 10 thereof) for the estimation year. In no case shall the aggregate amount be greater than the sum of: (i) The amount of the deductions reflected in the employee's net income tax return for the taxable year preceding the estimation year of (if a return has not been filed for the preceding taxable year at the time the withholding exemption certificate is furnished the employer) the second taxable year preceding the estimation year; or (ii) The amount of estimated itemized deductions and tax credits allowable under this chapter and any additional deductions to which entitled; and (iii) The amount of the employee's determinable additional deductions for the estimation year. (B) "Estimated wages" means the aggregate amount which the employee reasonably expects will constitute wages for the estimation year[;]. (C) "Determinable additional deductions" means those estimated itemized deductions which: (i) Are in excess of the deductions referred to in subparagraph (A) reflected on the employee's net income tax return for the taxable year preceding the estimation year; and (ii) Are demonstrably attributable to an identifiable event during the estimation year or the preceding taxable year which can reasonably be expected to cause an increase in the amount of such deductions on the net income tax return for the estimation year. (D) "Estimation year", in the case of an employee who files the employee's return on the basis of a calendar year, means the calendar year in which the wages are paid; provided that in the case of an employee who files the employee's return on a basis other than the calendar year, the employee's estimation year, and the amounts deducted and withheld to be governed by the estimation year, shall be determined under rules prescribed by the director of taxation. (2) Under this subsection, the following special rules shall apply: (A) Married individuals[.] or reciprocal beneficiaries. The number of withholding allowances to which a husband and wife or reciprocal beneficiaries are entitled under this subsection shall be determined on the basis of their combined wages and deductions. This subparagraph shall not apply to a husband and wife or reciprocal beneficiaries who filed separate returns for the taxable year preceding the estimation year and who reasonably expect to file separate returns for the estimation year; (B) Limitation. In the case of employees whose estimated wages are at levels at which the amounts deducted and withheld under this chapter generally are insufficient (taking into account a reasonable allowance for deductions and exceptions) to offset the liability for tax under this chapter with respect to the wages from which the amounts are deducted and withheld, the director may by rule reduce the withholding allowances to which those employees would, but for this subparagraph, be entitled under this subsection; (C) Treatment of allowances. For purposes of this chapter, any withholding allowance under this subsection shall be treated as if it were denominated a withholding exemption. (3) The director may prescribe tables by rule under chapter 91 pursuant to which employees shall determine the number of withholding allowances to which they are entitled under this subsection." SECTION 25. Section 235-93, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows: "(a) A husband and wife, having that status for purposes of the Internal Revenue Code and entitled to make a joint federal return for the taxable year, and reciprocal beneficiaries who entered into the reciprocal beneficiary relationship during or prior to the taxable year may make a single return jointly of taxes under this chapter for the taxable year. In that case the tax shall be computed on their aggregate income as provided in section 235-52, and the liability with respect to the tax shall be joint and several. For purposes of this chapter "aggregate income" means the income of both spouses or reciprocal beneficiaries without regard to source in the State. (b) If an individual has filed a separate return for a taxable year for which a joint return could have been made by the taxpayer and the taxpayer's spouse[,] or reciprocal beneficiary, an election thereafter to make a joint return for the taxable year shall be made only upon compliance with rules of the department of taxation, which may limit the election and prescribe the terms and provisions applicable in such cases as nearly as may be in conformity with the Internal Revenue Code." SECTION 26. Section 235-102.5, Hawaii Revised Statutes, is amended to read as follows: "§235-102.5 Income check-off authorized. (a) Any individual whose state income tax liability for any taxable year is $3 or more may designate $3 of the liability to be paid over to the Hawaii election campaign fund, any other law to the contrary notwithstanding, when submitting a state income tax return to the department. In the case of a joint return of a husband and wife or reciprocal beneficiaries having a state income tax liability of $6 or more, each spouse or reciprocal beneficiary may designate that $3 be paid to the fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. An explanation shall be included which clearly states that the check-off does not constitute an additional tax liability. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made whether by an original or amended return may not be revoked. (b) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $2 or more may designate $2 of the refund to be deposited into the school-level minor repairs and maintenance special fund established by section 302A-1504.5, when submitting a state income tax return to the department. In the case of a joint return of a husband and wife or reciprocal beneficiaries having a state income tax refund of $4 or more, each spouse or reciprocal beneficiary may designate that $2 be deposited into the special fund. The director of taxation shall revise the individual state income tax return form to allow the designation of contributions to the special fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked. (c) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $2 or more may designate $2 of the refund to be paid over to the libraries special fund established by section 312-3.6, when submitting a state income tax return to the department. In the case of a joint return of a husband and wife or reciprocal beneficiaries having a state income tax refund of $4 or more, each spouse or reciprocal beneficiary may designate that $2 be deposited into the special fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked. (d) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $5 or more may designate $5 of the refund to be paid over as follows: (1) One-third to the Hawaii children's trust fund under section 350B-2; and (2) Two-thirds to be divided equally among: (A) The domestic violence and sexual assault special fund under the department of health in section 321-1.3; (B) The spouse and child abuse special account under the department of human services in section 346‑7.5; and (C) The spouse and child abuse special account under the judiciary in section 601-3.6. When designated by a taxpayer submitting a state income tax return to the department, the department of budget and finance shall allocate the moneys among the several funds as provided in this subsection. In the case of a joint return of a husband and wife or reciprocal beneficiaries having a state income tax refund of $10 or more, each spouse or reciprocal beneficiary may designate that $5 be paid over as provided in this subsection. The director of taxation shall revise the individual state income tax form to allow the designation of contributions pursuant to this subsection on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked." SECTION 27. Section 235-110.6, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows: "(c) The tax credit claimed under this section by the principal operator shall be deductible from the principal operator's individual or corporate income tax liability, if any, for the tax year in which the credit is properly claimed; provided that a husband and wife or reciprocal beneficiaries filing separate returns for a taxable year for which a joint return could have been made by them shall claim only the tax credit to which they would have been entitled had a joint return been filed. If the tax credit claimed by the principal operator under this section exceeds the amount of the income tax payments due from the principal operator, the excess of credit over payments due shall be refunded to the principal operator; provided that the tax credit properly claimed by a principal operator who has no income tax liability shall be paid to the principal operator; and provided further no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1." SECTION 28. Section 576D-1, Hawaii Revised Statutes, is amended by: 1. Adding a new definition to be appropriately inserted and to read as follows: ""Reciprocal beneficiary support" means a legally enforceable obligation assessed against an individual for the support of a reciprocal beneficiary or a former reciprocal beneficiary who is living with a child or children for whom the individual also owes support." 2. Amending the definitions of "child support" and "order of support" to read as follows: ""Child support" means payment for the necessary support and maintenance of a child as required by law that includes but is not limited to spousal support or reciprocal beneficiary support when being enforced in conjunction with child support or medical support when a court or administrative order requires the debtor parent to pay an amount in lieu of providing medical insurance coverage or to reimburse for maternity and delivery expenses incurred when the debtor parent's child was born. "Order of support" means a judgment, decree, or order, whether temporary, final, or subject to modification, issued by a court or an administrative agency of competent jurisdiction, for the support and maintenance of a child, including a child who has attained the age of majority under the law of the issuing state, or a child and the parent with whom the child is living, which provides for monetary support, health care, arrearages, or reimbursement, and which may include related costs and fees, interest and penalties, income withholding, attorney's fees, and other relief. An order of support may include spousal or reciprocal beneficiary support when ordered to be paid in conjunction with the support and maintenance of a child; provided that the spousal or reciprocal beneficiary support provision in an order of support shall only be enforced by the agency when the support and maintenance of a child is being enforced. An order of support may also include medical support when the debtor parent is ordered to pay an amount in lieu of providing medical insurance coverage or to reimburse for maternity and delivery expenses incurred when the debtor parent's child was born." SECTION 29. Section 576D-10.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Whenever any obligor through judicial or administrative process in this State or any other state has been ordered to pay an allowance for the support, maintenance, or education of a child, or for the support and maintenance of a spouse [or], former spouse, reciprocal beneficiary, or former reciprocal beneficiary in conjunction with child support, and the obligor becomes delinquent in those payments, a lien shall arise on the obligor's real and personal property and the obligor's real and personal property shall be subject to foreclosure, distraint, seizure, and sale, or notice to withhold and deliver, which shall be executed in accordance with this section or applicable state law. No judicial notice or hearing shall be necessary prior to creation of such a lien." SECTION 30. Section 576E-1, Hawaii Revised Statutes, is amended by: 1. Adding a new definition to be appropriately inserted and to read as follows: ""Reciprocal beneficiary support" means a legally enforceable obligation assessed against an individual for the support of a reciprocal beneficiary or a former reciprocal beneficiary who is living with a child or children for whom the individual also owes support." 2. By amending the definitions of "child support" and "order of support" to read as follows: ""Child support" means payment for the necessary support and maintenance of a child as required by law that includes but is not limited to spousal or reciprocal beneficiary support when being enforced in conjunction with child support or medical support when a court or administrative order requires the debtor parent to pay an amount in lieu of providing medical insurance coverage or to reimburse for maternity and delivery expenses incurred when the debtor parent's child was born. "Order of support" means a judgment, decree, or order, whether temporary, final, or subject to modification, issued by a court or an administrative agency of competent jurisdiction, for the support and maintenance of a child, including a child who has attained the age of majority under the law of the issuing state, or a child and the parent with whom the child is living, which provides for monetary support, health care, arrearages, or reimbursement, and which may include related costs and fees, interest and penalties, income withholding, attorney's fees, and other relief. An order of support may include spousal or reciprocal beneficiary support when ordered to be paid in conjunction with the support and maintenance of a child; provided that the spousal or reciprocal beneficiary support provision in an order of support shall only be enforced by the agency when the support and maintenance of a child is being enforced. An order of support may also include medical support when the debtor parent is ordered to pay an amount in lieu of providing medical insurance coverage or to reimburse for maternity and delivery expenses incurred when the debtor parent's child was born." SECTION 31. Section 576E-2, Hawaii Revised Statutes, is amended to read as follows: "§576E-2 Attorney general; powers. Notwithstanding any other law to the contrary, the attorney general, through the agency and the office, shall have concurrent jurisdiction with the court in all proceedings in which a support obligation is established, modified, or enforced, including but not limited to proceedings under chapters 571, 580, 584, and 576B. The attorney general, through the agency and the office, may establish, modify, suspend, terminate, and enforce child support obligations and collect or enforce spousal or reciprocal beneficiary support using the administrative process provided in this chapter on all cases for which the department has a responsibility under Title IV-D of the Social Security Act, including but not limited to welfare and nonwelfare cases in which the responsible parent is subject to the department's jurisdiction, regardless of the residence of the children for whom support is sought. These powers shall include but not be limited to the power to: (1) Conduct investigations into the ability of parties to pay support and into nonpayment of support; (2) Administer oaths, issue subpoenas, and require production of books, accounts, documents, and evidence; (3) Establish, modify, suspend, terminate, or enforce a child support order and to collect or enforce a spousal or reciprocal beneficiary support order in conjunction with a child support order; (4) Determine that a party has not complied with a court or administrative order of support and make recommendations to the court or other agency with respect to contempt or other appropriate proceedings; (5) Establish arrearage; (6) Establish an order for child support for periods which public assistance was provided to the child or children by the department of human services; (7) Order and enforce assignment of future income under section 576E-16, chapter 571, and section 576D-14; (8) Exercise the powers and authority described in this section, notwithstanding the existence of a prior court or administrative order of support issued by another state or foreign jurisdiction, except as modified or limited by this chapter; (9) Determine that an obligor owes past-due support with respect to a child receiving assistance under a state program funded under Title IV-A of the Social Security Act, including Aid to Families with Dependent Children and Temporary Assistance to Needy Families and petition the court to issue an order that requires the obligor to pay such support in accordance with a plan approved by the court or, if the obligor is subject to such a plan and is not incapacitated, participate in work activities, as defined in 42 U.S.C. §607(d), as the court deems appropriate; (10) Order genetic testing pursuant to chapter 584 for the purpose of establishing paternity, with payment of costs to be made by the agency, subject to recoupment by the State from the father or the mother, if appropriate, if paternity is established, and to also order additional testing in any case if an original test result is contested, upon request and advance payment by the contestant; (11) Exercise the powers and authority described in this section, notwithstanding the existence of a prior court or administrative order of support issued by another state or foreign jurisdiction, except as modified or limited by this chapter and chapter 576B; and (12) Delegate the powers and authority described in this section to hearings officers and employees of the agency." SECTION 32. Section 576E-5, Hawaii Revised Statutes, is amended to read as follows: "§576E-5 Commencement of administrative proceedings; notice. The agency shall serve a notice of administrative proceedings and notice of financial responsibility upon the parties prior to the issuance of an order under this chapter. Where applicable, notice shall contain the following: (1) A copy or statement of the order proposed to be entered; (2) A statement that the parties are entitled to an administrative hearing before an impartial hearings officer to contest the entry of the order together with an explanation of the procedure for requesting a hearing; (3) A statement of rights at the hearing together with an explanation of defenses or objections which may be considered by the hearings officer; (4) A statement of the legal authority under which the hearing is to be held; (5) A statement that the property of the parties may be seized or that the income of the parties may be withheld for payment of support; (6) A statement that information relating to the parties' nonpayment of support may be made available to credit-reporting agencies; (7) A statement that child and spousal or reciprocal beneficiary support shall be payable by an order for immediate income withholding which shall be entered concurrently with the administrative order pursuant to section 576E-16; (8) A statement that parties have the right to request judicial review of a final order of a hearings officer pursuant to section 576E-13; (9) A statement that an administrative determination of a support obligation creates a judgment by operation of law upon filing of the order at the family court and as such is entitled to full faith and credit in any other state or jurisdiction." SECTION 33. Section 576E-10, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows: "(c) In exercising the powers conferred upon the attorney general in section 576E-2, the hearings officers shall have the authority to conduct hearings and enter the following orders: (1) Child support orders which have the effect of modifying, suspending, terminating, or enforcing the child support provisions of orders of the family courts; (2) Child support orders establishing, modifying, suspending, terminating, or enforcing child support obligations; (3) Orders enforcing the collection of spousal or reciprocal beneficiary support when child support is being established, modified, or enforced; (4) Income withholding orders pursuant to section 576E-16; (5) Automatic income assignment orders pursuant to sections 571-52.2 and 576D-14; (6) Interstate income withholding orders pursuant to chapter 576B; (7) State income tax refund setoff orders pursuant to section 231-54; (8) Orders determining whether Aid to Families with Dependent Children pass through payments were properly distributed; (9) Orders determining whether a party should be required to post bond in order to secure payment of past due support pursuant to section 576D-6; (10) Medical insurance coverage orders; (11) Orders suspending or denying the granting, the renewal, the reinstatement, or the restoration of licenses or applications of an obligor or individual for noncompliance with an order of support or failure to comply with a subpoena or warrant relating to a paternity or child support proceeding, and authorizations allowing the reinstatement of suspended licenses or consideration of license applications pursuant to section 576D-13; (12) Orders concerning whether a responsible parent's child support obligation should be reported to consumer credit reporting agencies pursuant to chapter 576D; and (13) Orders in other child support areas as authorized by the attorney general." SECTION 34. Section 576E-16, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Whenever an administrative order is entered establishing, modifying, or enforcing support, or establishing an arrearage that has accrued under a previous judicial or administrative order of support, there shall concurrently be issued an order that shall operate as an assignment to the agency for the benefit of the child or in the case of spousal or reciprocal beneficiary support, for the benefit of a spouse [or], former spouse, reciprocal beneficiary, or former reciprocal beneficiary of such amounts at such times as may be specified in the order, from the responsible parent's income due or to become due in the future from the responsible parent's employer, or successor employers, except when alternative arrangements are ordered pursuant to section 576D-10. The income withholding order shall be in the standard format prescribed by Title IV-D of the Social Security Act, as amended by the child support enforcement agency. A copy of the income withholding order shall be filed in the office of the clerk of the circuit court in the circuit where the order was issued along with the copy of the support order as provided in section 576E-12." SECTION 35. Section 580-47, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Upon granting a divorce, or thereafter if, in addition to the powers granted in subsections (c) and (d), jurisdiction of those matters is reserved under the decree by agreement of both parties or by order of court after finding that good cause exists, the court may make any further orders as shall appear just and equitable (1) compelling the parties or either of them to provide for the support, maintenance, and education of the children of the parties; (2) compelling either party to provide for the support and maintenance of the other party; (3) finally dividing and distributing the estate of the parties, real, personal, or mixed, whether community, joint, or separate; and (4) allocating, as between the parties, the responsibility for the payment of the debts of the parties whether community, joint, or separate, and the attorney's fees, costs, and expenses incurred by each party by reason of the divorce. In making these further orders, the court shall take into consideration: the respective merits of the parties, the relative abilities of the parties, the condition in which each party will be left by the divorce, the burdens imposed upon either party for the benefit of the children of the parties, and all other circumstances of the case. In establishing the amounts of child support, the court shall use the guidelines established under section 576D-7. Provision may be made for the support, maintenance, and education of an adult or minor child and for the support, maintenance, and education of an incompetent adult child whether or not the petition is made before or after the child has attained the age of majority. In those cases where child support payments are to continue due to the adult child's pursuance of education, the agency, three months prior to the adult child's nineteenth birthday, shall send notice by regular mail to the adult child and the custodial parent that prospective child support will be suspended unless proof is provided by the custodial parent or adult child to the child support enforcement agency, prior to the child's nineteenth birthday, that the child is presently enrolled as a full-time student in school or has been accepted into and plans to attend as a full-time student for the next semester a post-high school university, college, or vocational school. If the custodial parent or adult child fails to do so, prospective child support payments may be automatically suspended by the child support enforcement agency, hearings officer, or court upon the child reaching the age of nineteen years. In addition, if applicable, the agency, hearings officer, or court may issue an order terminating existing assignments against the responsible parent's income and income assignment orders. In addition to any other relevant factors considered, the court, in ordering spousal or reciprocal beneficiary support and maintenance, shall consider the following factors: (1) Financial resources of the parties; (2) Ability of the party seeking support and maintenance to meet his or her needs independently; (3) Duration of the marriage[;] or reciprocal beneficiary relationship; (4) Standard of living established during the marriage[;] or reciprocal beneficiary relationship; (5) Age of the parties; (6) Physical and emotional condition of the parties; (7) Usual occupation of the parties during the marriage[;] or reciprocal beneficiary relationship; (8) Vocational skills and employability of the party seeking support and maintenance; (9) Needs of the parties; (10) Custodial and child support responsibilities; (11) Ability of the party from whom support and maintenance is sought to meet his or her own needs while meeting the needs of the party seeking support and maintenance; (12) Other factors which measure the financial condition in which the parties will be left as the result of the action under which the determination of maintenance is made; and (13) Probable duration of the need of the party seeking support and maintenance. The court may order support and maintenance to a party for an indefinite period or until further order of the court; provided that in the event the court determines that support and maintenance shall be ordered for a specific duration wholly or partly based on competent evidence as to the amount of time which will be required for the party seeking support and maintenance to secure adequate training, education, skills, or other qualifications necessary to qualify for appropriate employment, whether intended to qualify the party for a new occupation, update or expand existing qualification, or otherwise enable or enhance the employability of the party, the court shall order support and maintenance for a period sufficient to allow completion of the training, education, skills, or other activity, and shall allow, in addition, sufficient time for the party to secure appropriate employment." SECTION 36. Section 580-51, Hawaii Revised Statutes, is amended to read as follows: "§580-51 Modification of alimony on [remarriage.] entry into new marriage or reciprocal beneficiary relationship. (a) Upon [the remarriage] the entry into a new marriage or reciprocal beneficiary relationship of a party in whose favor a final decree or order for support and maintenance has been made, all rights to receive and all duties to make payments for support and maintenance shall automatically terminate for all payments due after the date of the [remarriage,] the new marriage or reciprocal beneficiary relationship unless the final decree or order, or an agreement of the parties approved by the final decree or order, provides specifically for the payments to continue after such [remarriage.] new marriage or reciprocal beneficiary relationship. (b) The [remarried] party that enters into the new marriage or reciprocal beneficiary relationship shall file a notice of the [remarriage] new marriage or reciprocal beneficiary relationship with the court which made the order for support and maintenance and serve within thirty days of such marriage[,] or reciprocal beneficiary relationship, by personal service or registered or certified mail, a copy of the notice on the former paying party. In any proceeding relating to the payment of support and maintenance to a [remarried] party[,] who has entered into a new marriage or reciprocal beneficiary relationship the failure of that party to file a notice of [remarriage] the new marriage or reciprocal beneficiary relationship shall be considered by the court in awarding attorney's fees and costs for the proceeding and in determining reimbursement to the former paying party." SECTION 37. Section 601-3.6, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows: "(c) The account shall consist of fees remitted pursuant to sections 338-14.5 and 572-5, income tax remittances allocated under section 235-102.5, fines collected pursuant to sections [[586-4(e)],] -11, 580-10, [and], 586-4(e), and 586-11, interest and investment earnings, grants, donations, and contributions from private or public sources. All realizations of the account shall be subject to the conditions specified in subsection (b)." SECTION 38. Section 572C-7, Hawaii Revised Statutes, is repealed. ["[§572C-7] Termination of reciprocal beneficiary relationship; filing fees and records; termination upon marriage. (a) Either party to a reciprocal beneficiary relationship may terminate the relationship by filing a signed notarized declaration of termination of reciprocal beneficiary relationship by either of the reciprocal beneficiaries with the director. For the filing of the declaration, the director shall collect a fee of $8, which shall be remitted to the director of finance for deposit into the general fund. (b) Upon the payment of the fee, the director shall file the declaration and issue a certificate of termination of reciprocal beneficiary relationship to each party of the former relationship. The director shall maintain a record of each declaration and certificate of termination of reciprocal beneficiary relationship filed with or issued by the director. (c) Any marriage license subsequently issued by the department to any individual registered as a reciprocal beneficiary shall automatically terminate the individual's existing reciprocal beneficiary relationship. (d) If either party to a reciprocal beneficiary relationship enters into a legal marriage, the parties shall no longer have a reciprocal beneficiary relationship and shall no longer be entitled to the rights and benefits of reciprocal beneficiaries."] SECTION 39. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable. SECTION 40. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 41. This Act shall take effect upon its approval, provided that: (1) The amendments made to section 235-7, Hawaii Revised Statutes, by section 16 of this Act shall not be repealed when section 235-7, Hawaii Revised Statutes, is reenacted on January 1, 2013, pursuant to section 3 of Act 166, Session Laws of Hawaii 2007; and (2) Sections 12 through 27 of this Act shall apply to taxable years beginning after December 31, 2009. INTRODUCED BY: _____________________________ Report Title: Reciprocal Beneficiaries Description: Extends benefits under the Hawaii Employer-Union Benefit Trust Fund to reciprocal beneficiaries, allows reciprocal beneficiaries to jointly file state income tax returns, and provides for termination of reciprocal beneficiary relationships through judicial system. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.