STAND

STAND. COM. REP. NO. 675-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2742

H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2742, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE GOVERNMENT,"

begs leave to report as follows:

The purpose of this bill is to repeal the Compliance Resolution Fund and redirect fees to the General Fund.

The Tax Foundation of Hawaii, Hawaii Medical Service Association, The Gas Company, and the Conference of State Bank Supervisors provided comments. The Department of Commerce and Consumer Affairs (DCCA), Insurance Division of DCCA, Department of Human Resources Development, National Federation of Independent Business, IBEW Local 1186, Hawaii Medical Association, American Council of Life Insurers, Hawaii Credit Union League, Hawaii Association of Realtors, Community Associations Institute Hawaii Chapter, Hawaii Business League, Board of Medical Examiners, Board of Examiners in Optometry, Board of Nursing, Board of Dental Examiners, Board of Electricians and Plumbers, Contractors License Board, Real Estate Commission, Pest Control Board, State Boxing Commission, Hawaii Information Consortium, Hawaii Council of Associations of Apartment Owners, General Contractors Association of Hawaii, Hawaii Bankers Association, Plumbing and Mechanical Contractors Association of Hawaii, Honolulu Board of Realtors, Hawaii Independent Insurance Agents Association, Hawaii Financial Services Association, NAIFA Hawaii, Hawaii Dental Hygienists' Association, Hawaiian Electric Company, Hawaii Electric Light Company, Maui Electric Company, Ltd., Kauai Island Utility Cooperative, American Resort Development Association of Hawaii, Investment Company Institute, State Farm Insurance Companies, and several concerned individuals opposed this measure.

Your Committee has amended this bill by:

(1) Requiring the return of excess fees if the fees collected by DCCA are 110 percent greater than the prior year;

(2) Requiring DCCA to increase fees upon a decrease of ten percent of the fees collected from the prior year; and

(3) Making technical, nonsubstantive amendments for clarity and style.

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 H.B. No. 2742, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2742,

H.D. 2, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

		____________________________ DWIGHT Y. TAKAMINE, Chair