STAND. COM. REP. NO.167

Honolulu, Hawaii

, 2001

RE: H.B. No. 548

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 548 entitled:

"A BILL FOR AN ACT RELATING TO THE FINANCIAL SERVICES ASSISTANCE PROGRAM,"

begs leave to report as follows:

The purpose of this bill is to remove obsolete laws from the Hawaii Revised Statutes (HRS) with regard to the establishment of a stock exchange in Hawaii and related general excise tax (GET) exemptions for Hawaii stock exchange-related transactions, by repealing:

(1) The Financial Services Assistance Program (Program) under chapter 201C, HRS; and

(2) GET exemptions for transaction fees, membership dues, service fees, and other specified fees charged to exchange members and paid to a stock exchange in Hawaii under section 237-24.5, HRS.

Your Committee finds that the Program was enacted in 1990 to assist in establishing a stock exchange in Hawaii to take advantage of the time zone differences between the United States and the Asian markets. However, a Hawaii stock exchange was never established. Furthermore, with extended trading hours and after-hour trading on the Internet, it is no longer practical nor viable.

The Department of Business, Economic Development, and Tourism and the Office of the Lieutenant Governor testified in support of the measure.

As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 548 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 Economic Development and Business Concerns,

____________________________

LEI AHU ISA, Chair