Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 742 entitled:

begs leave to report as follows:

The purpose of this measure is to extend the Department of Commerce and Consumer Affairs' authority to adjust fees and other nontax revenues to all fees and nontax revenues within its jurisdiction.

The Department of Commerce and Consumer Affairs (DCCA), The Chamber of Commerce of Hawaii, Hawaii Association of Realtors, Retail Merchants of Hawaii, and Building Industry Association of Hawaii testified in support of this measure.

Currently, DCCA has statutory authority to adjust some of its fees and other nontax revenues to maintain a reasonable relationship between the cost of providing services and revenues collected. Pursuant to this authority, the Department implemented savings of between twenty-five and fifty per cent in fees this year for initial business filings and on-line renewals.

This measure proposes to extend that authority to all fees and nontax revenues collected by the Department. Your Committee finds that this measure establishes a more equitable system of regulation, and will enable DCCA to expeditiously adjust fees to respond to changing economic conditions and to better align revenue collections with expenditures.

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. 742 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.