STAND. COM. REP. NO. 2022

Honolulu, Hawaii

RE:    S.B. No. 2349

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Human Services and Public Housing, to which was referred S.B. No. 2349 entitled:

"A BILL FOR AN ACT RELATING TO EXEMPTION FROM GENERAL EXCISE TAX,"

begs leave to report as follows:

     The purpose of this measure is to exempt from the general excise tax amounts received for selling assistive devices.

     Testimony in support of the measure was submitted by the Disability and Communication Access Board and a private citizen.  Testimony in support of the intent of the measure were submitted by the Department of Taxation.  Comments on the measure were submitted by a private citizen. 

     Your Committee finds that the comments submitted by the Department of Taxation and a private citizen will help to clarify the group of items that will be eligible for the general excise exemption.  

     Accordingly, your Committee has amended this measure by:

     (1)  Incorporating the comments of the private citizen to add vocational rehabilitation counselors and rehabilitation service providers to the list of those from whom an individual may purchase items that are exempt from the general excise tax, and by adding a provision that the Department of Taxation shall issue guidelines in the form of written rules regarding the new provisions enacted by this measure;

     (2)  Incorporating the comments of the Department of Taxation by amending the definition of "assistive devices" to enable the Director of Taxation to require physician verification on the cost of an assistive device and provide the Director with the flexibility to include other assistive devices within the scope of the definition; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Human Services and Public Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2349, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2349, S.D. 1, and be referred to the Committee on Economic Development and Taxation.

Respectfully submitted on behalf of the members of the Committee on Human Services and Public Housing,

____________________________

SUZANNE CHUN OAKLAND, Chair