STAND. COM. REP. NO.  1143-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2155

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Public Safety & Military Affairs, to which was referred S.B. No. 2155, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to clarify that amounts received by TriWest as reimbursements of costs or advances made pursuant to a contract for the administration of the federal TRICARE program are exempt from the Hawaii general excise tax.

     TriWest and the Hawaii Medical Service Association supported this bill.  The Department of Taxation submitted comments.

     Your Committee has amended this bill by:

(1)  Changing its effective date to July 1, 2020, to encourage further discussion; and

(2)  Making technical, nonsubstantive changes for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Public Safety & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2155, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2155, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Public Safety & Military Affairs,

____________________________

CINDY EVANS, Chair