STAND. COM. REP. NO. 2908

Honolulu, Hawaii

RE: S.B. No. 2499

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2499, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX,"

begs leave to report as follows:

The purpose of this measure is to allow investment securities brokers and agents to pay the general excise tax on only the amount of a commission actually received, when the commission is divided among a number of persons.

Your Committee finds that this practice is already established for insurance agents and transactions between real estate brokers and salespersons. Your Committee also finds that it is fair and equitable to treat the security sales industry the same as the insurance and real estate sales industry by eliminating the pyramiding of general excise taxation of security brokers and their local agents.

Your Committee has amended this measure by:

(1) Updating the terminology used to describe "insurance agents, general agents, subagents, and solicitors" to "insurance producers" to bring the section of law being amended by the measure into conformance with nomenclature used in the Insurance Code; and

(2) Making technical nonsubstantive amendments for the purposes of style and 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. 2499, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2499, S.D. 2.

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

____________________________

BRIAN T. TANIGUCHI, Chair