HOUSE OF REPRESENTATIVES	H.B. NO.	803
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TAXATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The purpose of this Act is to address the taxation of banks and other financial corporations by:

     (1)  Repealing the requirement that tax revenues from the banking industry be deposited into the compliance resolution fund; and

     (2)  Authorizing the commissioner of financial institutions, without regard to chapter 201M, and the public notice and hearing provisions of chapter 91, Hawaii Revised Statutes, to adopt rules increasing the fees charged to banks and other financial corporations.

     SECTION 2.  Section 241-7, Hawaii Revised Statutes, is amended to read as follows:

     "§241-7  Disposition of funds.  All taxes collected under this chapter shall be state realizations[; provided that, by June 30 of each fiscal year, the sum of $2,000,000 shall be deposited with the director of finance to the credit of the compliance resolution fund as established pursuant to section 26-9(o).] that shall be deposited into the general fund."

     SECTION 3.  (a)  Between July 1, 2011, and December 31, 2011, the commissioner of financial institutions may adopt rules to impose or increase fees charged to banks and other financial corporations under chapter 412, Hawaii Revised Statutes, without regard to the public notice and public hearing requirements of chapter 91, Hawaii Revised Statutes, the small business regulatory review requirements of chapter 201M, Hawaii Revised Statutes, or the limit on fee increases under section 92-28, Hawaii Revised Statutes.

     (b)  After December 31, 2011, any subsequent amendments to the rules adopted or amended pursuant to subsection (a) shall be subject to all applicable provisions of chapter 91, chapter 201M, and section 92-28, Hawaii Revised Statutes.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2011, and shall be repealed on December 31, 2015; provided that section 241-7, Hawaii Revised Statutes, shall be reenacted in the form

in which it read on the day before the effective date of this Act.

INTRODUCED BY:

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Report Title:

Banks and Other Financial Corporations; Tax Rate Increases

Description:

Repeals requirement that $2,000,000 of tax revenues from banks and other financial corporations be deposited into the compliance resolution fund.  Authorizes the commissioner of financial institutions to expedite the imposition or increase of fees on banks and other financial corporations.  Effective 07/01/11 and sunsets on 12/31/15.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.