STAND. COM. REP. NO. 1089-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 2863

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred S.B. No. 2863, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO FEMININE HYGIENE PRODUCTS,"

begs leave to report as follows:

The purpose of this measure is to exempt amounts received from the sale of feminine hygiene products from the general excise tax.

Your Committee received testimony in support of this measure from the Hawai‘i State Commission on the Status of Women, Hawaii State Council on Developmental Disabilities, Hawaii Food Industry Association, Ma‘i Movement Hawai‘i, Retail Merchants of Hawaii, Common Cause Hawaii, Rainbow Family 808, Hawai‘i Women Lawyers, Stonewall Caucus of the Democratic Party of Hawai‘i, and fifteen individuals. Your Committee received testimony in opposition to this measure from the Department of Taxation. Your Committee received comments on this measure from the Department of Human Services, Department of Budget and Finance, and Tax Foundation of Hawaii.

Your Committee finds that feminine hygiene products are necessary to ensure the health of women and girls around the world. Despite this, the State levies the general excise tax on all feminine hygiene products. The general excise tax is a highly regressive tax system that disproportionately affects women and girls through the taxation of feminine hygiene products. This creates an unequal tax burden on women and girls who need feminine hygiene products, which can create barriers that prevent vulnerable youth and adults from fully engaging in education or employment and inhibit healthy social interactions. Your Committee believes that the State must alleviate this tax burden and improve accessibility to female hygiene products by exempting these products from the general excise tax.

Your Committee has amended this measure by:

(1) Changing the effective date to October 18, 2050, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2863, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2863, S.D. 2, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Economic Development,

____________________________

SEAN QUINLAN, Chair