STAND. COM. REP. NO. 890-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2925
                                     




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 S.B. No. 2925 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to repeal the requirement in the
fuel tax law that liquid fuel distributors report the number of
gallons imported to each county per month.

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

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

     Your Committee finds that because DOTAX no longer needs the
information in these reports, the continued requirement to submit
these reports is an unnecessary burden on the petroleum industry.
Furthermore, eliminating the report requirement contributes to
the Administration's SWAT efforts by reducing needless regulatory
burdens on industry.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is

 
 
                                 STAND. COM. REP. NO. 890-00
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attached to this report, your Committee is in accord with the
intent and purpose of S.B. No. 2925 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