Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 2041 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify the definition of related entities to include indirect and direct ownership.

No testimony in support of this measure was submitted. Testimony in opposition to this measure was submitted by the Department of Taxation. Comments were submitted by the Department of the Attorney General and the Tax Foundation of Hawaii.

Your Committee has amended this measure by making a technical amendment.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2041, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2041, S.D. 1, and be referred to the Committee on Ways and Means.