Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Energy and Environmental Protection, to which was referred H.B. No. 436 entitled:

begs leave to report as follows:

The purpose of this bill is to exempt publicly-owned public utilities from the public service company tax.

The Consumer Advocate, the County of Kauai, the Tax Foundation of Hawaii, the Kauai Island Utility Cooperative (KIUC), and a concerned citizen testified in support of this bill. The Department of Taxation of Hawaii testified in opposition.

Your Committee finds that exempting a publicly-owned utility from the public service company tax is an issue which could be more effectively resolved by the subsequent committees.

As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 436 and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection and Commerce.