STAND. COM. REP. NO.  825

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1447

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1447, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE PERMITTED TRANSFERS IN TRUST ACT,"

begs leave to report as follows:

     The purpose of this bill is to make the State more competitive in the national and local marketplace by amending the Permitted Transfers in Trust Act that governs transfers of property from a transferor to a trustee using an irrevocable trust instrument.  Specifically this bill, among other things, deletes the one percent excise tax on the fair market value of all permitted transfers and increases flexibility as to the nature and extent of the assets that may be managed by Hawaii's private financial sector.

     Bank of Hawaii, First Hawaiian Bank, and the Tax Department of the Cades Schutte law firm testified in support of this bill.

     Your Committee has amended this bill by:

     (1)  Changing its effective date to July 1, 2030, to encourage further discussion; 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 Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1447, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1447, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair