Welcome
State Legislative Update - March 10, 2010
Two NFCA task forces have been hard at work battling legislation to tax fraternal benefit societies in Hawaii and Washington State. The Hawaii Task Force celebrated an early victory when fraternals were amended out of all three bills targeting our tax-exempt status. The fight isn't over yet - two of the bills passed the House and were assigned to Senate committees last week.
Hawaii
- HB 2852 would impose an escalating premium tax on health-related products offered by fraternals. Fraternals were amended out of the bill which is now in Senate committee.
- HB 2877 would temporarily suspend the fraternal exemption from Hawaii's 4% general excise tax (GET) for 5 years. It would also tax death, sickness and accident benefits to its members and their dependents at the rate of ½%. 2877 will be heard in the Senate Economic Development & Technology Committee and the Commerce & Consumer Protection Committee on March 16, 2010.
- HB 2878 would temporarily suspend the fraternal exemption from Hawaii's 4% GET for 5 years. This bill was deferred and did not pass out of the House.
- The Hawaii legislature is scheduled to adjourn on May 7, 2010.
The NFCA is closely monitoring HB 2877 to ensure that language affecting fraternal benefit societies is not amended back into the bill. We will keep you informed as 2877 and 2852 continue to move through the Senate.
Washington
- SB 6841 would repeal the fraternal tax exemption along with a variety of exemptions listed in the JLARC tax preference report.
- HB 2645 is a vehicle bill which would require periodic legislative review of tax preferences. It was amended to codify JLARC review of tax preference.
- Neither bill has been scheduled for a hearing.
- The NFCA has retained Mel Sorenson to represent our interests in Olympia.
- The Washington legislature is scheduled to adjourn on March 11, 2010. Gov. Gregoire may call for a special session to pass the budget.
Early in the campaign, Washington Task Force member-societies successfully mobilized their members to send over 600 emails and letters to legislators – this was a major victory. Mel regularly reports that legislators know who we are and what we do because fraternalists reached so many legislative offices. The grassroots campaign has ceased, but Mel is working with executive and legislative contacts to ensure that we stay out of budget proposals/negotiations.
The House and Senate budgets have been released and neither documents includes references to fraternals.
The NFCA will keep you informed as all tracked bills move through the legislative process. Please contact Elizabeth Snyder if you have any questions regarding the NFCA's advocacy work.
Current Action Alerts
The NFCA is focused on cultivating legislative champions for the fraternal benefit system. The key contact link on the right is a convenient way to report your connections with legislators and help the NFCA map relationships with policymakers. Please take a moment to complete the key contact form and forward it to your colleagues. Curious about how many relationships your society has reported? Contact the NFCA to receive reports detailing your society's political connections.
Federal Alerts
There are no Action Alerts at this time.
State Alerts
There are no Action Alerts at this time.