STAND. COM. REP. NO.  855-10

Honolulu, Hawaii

                , 2010

RE:   S.B. No. 2593

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 2593, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose of this bill is to promote greater accountability by:

     (1)  Requiring the Hawaii Housing Finance and Development Corporation (HHFDC) to conduct periodic reviews of housing projects certified to receive a general excise tax (GET) exemption; and

     (2)  Requiring HHFDC to adopt rules, including penalties for non-compliance, relating to the GET exemption.

     A concerned individual supported this bill.  HHFDC opposed this measure.  The Hawaii Association of REALTORS and Tax Foundation of Hawaii offered comments.

     Your Committee has amended this bill by:

     (1)  Requiring the Department of Taxation, instead of HHFDC, to conduct the periodic reviews of the housing projects certified to receive a GET exemption; and

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

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2593, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2593, 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 Housing,

____________________________

RIDA CABANILLA, Chair