STAND. COM. REP. 2659

Honolulu, Hawaii

, 2004

RE: S.B. No. 2242

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2242 entitled:

"A BILL FOR AN ACT RELATING TO EMPLOYEE STOCK OWNERSHIP PLANS,"

begs leave to report as follows:

The purpose of this measure is to remove a tax barrier to employee stock ownership.

This bill creates an exemption from the general excise tax for management companies that contract to provide managerial and operational services to companies that engage in the provision of medical services in order to facilitate the creation of an employee stock ownership plan.

To accomplish this purpose, this measure amends section 237-24.7, Hawaii Revised Statutes, to specifically add this type of management company to those that are exempt from the general excise tax.

Upon further consideration, your Committee has amended this bill to make the effective date July 1, 2020, to promote further discussion. Your Committee has also made technical, nonsubstantive amendments for the purpose of clarity.

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. 2242, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2242, S.D. 1.

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

____________________________

BRIAN T. TANIGUCHI, Chair