STAND. COM. REP. NO.  43

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 803

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 803 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Repeal the requirement that $2,000,000 of revenues from        taxes collected from banks and financial institutions              under Chapter 241, Hawaii Revised Statutes, be deposited      into the Compliance Resolution Fund; and

     (2)  Temporarily authorize, from July 1, 2011, to December              31, 2011, the Commissioner of Financial Institutions to       adopt rules or impose fees charged to banks and other               financial institutions without regard to certain public        notice and regulatory review requirements.

     The Department of Commerce and Consumer Affairs, Hawaii Bankers Association, and the Hawaii Financial Services Association opposed this measure.  The Tax Foundation of Hawaii offered comments.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 803 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair