STAND. COM. REP. NO. 218-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2584
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 2584 entitled: 

     "A BILL FOR AN ACT RELATING TO THE FUEL TAX,"

begs leave to report as follows:

     The purpose of this bill is to eliminate unnecessary
government regulation by repealing fuel tax reporting
requirements regarding:

     (1)  The total number of gallons of fuel imported or sold by
          fuel distributors; and

     (2)  The total number of gallons of fuel in the fuel
          distributors' inventories.

     The Department of Taxation (DOTAX) and Tesoro Hawaii
testified in support of the measure.  The Office of the
Lieutenant Governor (Office) and Tax Foundation of Hawaii
submitted comments on the measure.

     The Office testified that this bill is part of a package of
bills being recommended for action by the Office's "Slice Waste
and Tape (SWAT) regulatory reform initiative to reduce the burden
on businesses and to improve government efficiency.


 
 
 
 
 
                                 STAND. COM. REP. NO. 218-00
                                 Page 2

 
     Your Committee finds that this bill will help simplify
DOTAX's reporting requirements and forms, as well as reduce the
filing burden for fuel distributors by repealing the submittal of
information that is no longer used by DOTAX.  

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 2584 and recommends that it pass
Second Reading and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair