STAND. COM. REP. NO. 2434

Honolulu, Hawaii

RE:    S.B. No. 2869

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2869 entitled:

"A BILL FOR AN ACT RELATING TO THE TAX REVIEW COMMISSION,"

begs leave to report as follows:

     The purpose and intent of this measure is to extend the date for the Tax Review Commission to submit its report to the Legislature and appropriate funds to the Commission.

     Your Committee received testimony in support of this measure from the Director of Taxation and the Chair of the Tax Review Commission.  The Tax Foundation of Hawaii submitted comments.

     Your Committee finds that the Tax Review Commission was not able to meet because of a lack of quorum.  This measure would provide additional time and money for the Tax Review Commission to complete an extensive review of the State tax structure.

     Your Committee notes that the measure appropriates moneys out of the current fiscal year (FY 2011-2012).  Consequently, in light of the provisions contained in Article VII, section 9 of the State Constitution, the appropriation could be considered an emergency appropriation, which requires a declaration from the Governor that the immediate passage of the appropriation is necessary.  Your Committee has asked the Department of Taxation to consult with the Governor to ascertain whether it is necessary for the appropriation to be made in fiscal year 2011-2012 and to expeditiously inform your Committee on whether this appropriation should be made in the current or succeeding fiscal year.

     Your Committee has amended this measure by:

     (1)  Changing the amount of the appropriation to an unspecified amount; and

     (2)  Making technical nonsubstantive amendments for the purpose of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2869, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2869, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair