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 S.B. No. 2525 entitled:

begs leave to report as follows:

The purpose of this bill is to delete the effective date for limiting transfers for central services expenses to the current year.

For purposes of the public hearing, your Committee circulated a proposed H.D. 1 version that deletes the provisions of the bill and inserts new language:

The Tax Foundation of Hawaii supported the intent of the proposed measure. The Insurance Division of DCCA, DCCA Professional and Vocational Licensing Division of DCCA, Department of Human Resources Development, National Federation of Independent Business, American Institute of Architects Hawaii State Council, Hawaii Independent Insurance Agents Association, Structural Engineers Association of Hawaii, Retail Merchants of Hawaii, Chamber of Commerce of Hawaii, Honolulu Board of Realtors, Hawaii Association of Realtors, Association of Insurance and Financial Advisors, Hawaii Financial Services Association, Building Industry Association Hawaii, Hawaii Medical Association, Hawaii Association of Mortgage Brokers, Hawaii State Chiropractic Association, Hawaii Chapter Community Associations Institute, Hawaii Society of Certified Public Accountants, Hawaii Automobile Dealers Association, Investment Company Institute, Kaiser Permanente, American Council of Life Insurers, State Farm Insurance Companies, Hawaii Business League, Hawaii Chapter of the American Resort Development Association, HSI Mechanical, Inc., BK's Barber Shop, Pahio Resorts, Inc., Hawaii Allied Memorial Council, Hawaiian Dredging Construction Co., American Council of Engineering Companies of Hawaii, National Association of Social Workers Hawaii Chapter, Hawaii Information Consortium, Board of Medical Examiners, Board of Acupuncture, Board of Examiners in Naturopathy, Pest Control Board, Board of Barbering and Cosmetology, Motor Vehicle Repair Industry Board, State Boxing Commission, Elevator Mechanics Licensing Board, Motor Vehicle Industry Licensing Board, Contractors License Board, Board of Massage Therapy, Board of Electricians and Plumbers, Board of Dental Examiners, Board of Psychology, Real Estate Commission, Board of Pharmacy, Board of Professional Engineers, Architects, Surveyors, and Landscape Architects, Board of Physical Therapy, Board of Private Detectives and Guards, Hawaii Acupuncture Association, Board of Chiropractic Examiners, Board of Veterinary Examiners, Board of Nursing, Board of Examiners In Optometry, Plumbers and Fitters Union Local 675, Hawaii Bankers Association, Natalie J. Iwasa, CPA, Inc., Hawaii Credit Union League, Bert M. Wagatsuma, CPA, and several individuals opposed the proposed measure. The Gas Company, Securities Industry Association, and Hawaii Medical Service Association offered comments.

Your Committee appreciates the comments submitted by the Director and the willingness to collaborate on developing a final proposal that meets the demands of public accountability and transparency. Although your Committee has adopted the proposed draft of this bill, your Committee is open to working with the Director in crafting legislation that addresses the major concerns enumerated in DCCA's testimony.

Your Committee has made technical, nonsubstantive changes to the proposed H.D. 1 for clarity, consistency, 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 S.B. No. 2525, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2525, H.D. 1, and be placed on the calendar for Third Reading.