Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 588, S.D. 2, entitled:

begs leave to report as follows:

The purpose of this bill is to exempt professional employment organizations from certain general excise tax payments.

Office Furniture Solutions of Hawaii, McClain Auctions, Closet Systems of Hawaii, MacMurray Construction, Inc., Equipment Team Hawaii, Willows, Molly's Smokehouse, GMB Vinyl, Inc., Courier Corporation of Hawaii, ALTRES, Inc., Leeward Petroleum, Inc., Hawaiian Parcel Service, Spectrum Engineering Hawaii, Kama'aina Metals, Can Clean Hawaii, Island Pool & Spa Supply, Land-N-Sea, Scientific Consultant Services, Inc., Furukawa Custom Builders, and others submitted testimony in support of this measure.

The Department of Budget and Finance and Hawaii State AFL-CIO opposed this measure.

The Department of Taxation, ILWU Local 142, and Tax Foundation of Hawaii submitted comments.

Your Committee notes that a similar bill, H.B. No. 502, H.D. 2, passed the House earlier this session. This bill has been amended to incorporate the substance of H.B. No. 502, H.D. 2. Specifically, your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 588, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 588, S.D. 2, H.D. 1, and be placed on the calendar for Third Reading.