STAND. COM. REP. NO.  1109

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1414

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1414 entitled:

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR DEPARTMENT OF TAXATION COUNTY SURCHARGE IMPLEMENTATION COSTS,"

begs leave to report as follows:

     The purpose of this bill is to appropriate emergency funding to the Department of Taxation to address unbudgeted expenses to implement the administration of the county surcharge on state general excise tax.

     Pursuant to the requirements set forth in Article VII, Section 9, of the Constitution of the State of Hawaii, the Governor, in her Governor's Message No. 240 to the Legislature, requested immediate consideration and passage of this bill by the Legislature citing an existing critical funding shortage.

     This bill appropriates general funds for fiscal year 2006-2007:

(1)  Assure that the City and County of Honolulu's (C&C) county surcharge on state general excise tax is not adversely impacted; and

(2)  Ensure the ability to obtain federal funding of C&C's mass transit project.

     The Department of Taxation and Department of Budget and Fiscal Services of the City and County of Honolulu supported this bill.

     Your Committee has amended this bill by:

     (1)  Increasing the appropriation amount to $5,000,000;

     (2)  Adding a new section which provides the reasons why and the amount and rate by which the appropriation contained in this bill exceeds the state spending limit to comply with statutory and constitutional requirements; and

     (3)  Making technical, nonsubstantive changes 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 H.B. No. 1414, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1414, H.D. 1.

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

____________________________

MARCUS R. OSHIRO, Chair