STAND. COM. REP. NO. 2567

Honolulu, Hawaii

RE:    S.B. No. 2807

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Judiciary and Government Operations, to which was referred S.B. No. 2807, S.D. 1, entitled:

"A BILL FOR AN ACT PROPOSING AN AMENDMENT TO ARTICLE VII, SECTION 6, OF THE HAWAII CONSTITUTION, RELATING TO THE TAX REBATE REQUIREMENT,"

begs leave to report as follows:

     The purpose of this measure is to propose an amendment to article VII, section 6, of the Constitution of the State of Hawaii to amend the requirement that excess general fund revenues be returned to taxpayers of the State as a tax refund and instead allow the Legislature to deposit these excess revenues into the emergency and budget reserve fund as an alternative.

     Your Committee finds that prudent state financial planning necessitates that the State accumulate excess revenue for expenditure at times of economic downturn resulting in diminished tax revenues.  Your Committee notes that this measure leaves discretionary authority with the Legislature to refund excess general fund revenues or to deposit those revenues into the emergency and budget reserve fund.

     Your Committee has amended this measure by making technical, nonsubstantive amendments.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2807, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2807, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Government Operations,

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BRIAN T. TANIGUCHI, Chair