STAND. COM. REP. NO. 501

Honolulu, Hawaii

, 2021

RE: H.B. No. 286

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 286, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO REAL ESTATE INVESTMENT TRUSTS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Authorize the Department of Taxation to require a real estate investment trust operating in the State to notify the Department of the trust's presence within the State and report certain tax information; and

(2) Authorize a daily monetary penalty for the real estate investment trust's noncompliance with these requirements.

Your Committee received testimony in support of this measure from the Young Progressives Demanding Action, Imua Alliance, Free Access Coalition, ILWU Local 142, Hawaii State Teachers Association, Planned Parenthood Votes Northwest and Hawaii, Faith Action for Community Equity, Pono Hawai‘i Initiative, Hawai‘i Children's Action Network Speaks!, Hawai‘i Health & Harm Reduction Center, Church of the Crossroads, and numerous individuals. Your Committee received testimony in opposition to this measure from the Securities Industry Association of Hawaii. Your Committee received comments on this measure from the Department of Taxation, Douglas Emmett, Tax Foundation of Hawaii, Nareit Hawaii, Park Hotels & Resorts Inc., Alexander & Baldwin, and NAIOP Hawaii.

Your Committee finds that real estate investment trusts have a significant presence in the State. Your Committee further finds that the State would benefit from the accurate collection of data about these trusts' economic activities. This measure allows the State to require real estate investment trusts to disclose certain important information.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 286, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

AARON LING JOHANSON, Chair