Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 549 entitled:

begs leave to report as follows:

The purpose of this bill is to:

Your Committee agrees with the intent of this bill, and recognizes that the use tax exemption has the potential to encourage participating businesses to purchase supplies and equipment outside of Hawaii, rather than from local vendors.

The County of Kauai and the Department of Taxation testified in support of this measure. Apollo Energy Corporation and Hawaii Renewable Energy Alliance also testified in support of the bill, with an amendment to retain the use tax exemption for qualified businesses. Hawaiian Electric Company, and its subsidiary utilities, Maui Electric Company and Hawaii Electric Light Company, testified in support of the intent of this measure, and along with Hawaii Renewable Alliance, suggested an amendment to clarify that the use tax exemption apply to electricity derived from all renewable resources, and not only from wind energy.

Your Committee has amended this bill by making technical, nonsubstantive amendments for purposes of style, clarity, and consistency.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 549, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 549, H.D. 1.