STAND. COM. REP. NO.  1608

Honolulu, Hawaii

                , 2015

RE:   S.B. No. 1096

      S.D. 1

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1096, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ON-BILL PROGRAMS,"

begs leave to report as follows:

The purpose of this measure is to ensure that electric utilities serving as a billing and collection agent in a purely "pass-through" capacity for any on-bill financing or repayment program are exempt from various state or county taxes and state laws regulating financial institutions, escrow depositories, and collection agencies.

The Department of Business, Economic Development and Tourism, Hawaiian Electric Company, Hawaii Electric Light Company, Maui Electric Company, and Hawaii Solar Energy Association supported this measure.  The Department of Taxation, Public Utilities Commission, and Tax Foundation of Hawaii provided comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1096, S.D. 1, H.D. 2, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair