STAND. COM. REP. NO. 720

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 Finance, 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 real estate investment trusts operating in the State to notify the Department of Taxation of the real estate investment trust's presence within the State and report certain tax information annually; and

(2) Authorize a daily monetary penalty for real estate investment trusts that do not comply with the requirements.

Your Committee received testimony in support of this measure from the ILWU Local 142, Kauai Women's Caucus, Democratic Party of Hawai‘i Education Caucus, Church of the Crossroads, Imua Alliance, Our Revolution Hawaii, Faith Action for Community Equity, 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; Hawaii State Teachers Association; Hawaii Children's Action Network Speaks!; Nareit Hawaii; Park Hotels and Resorts Inc.; Tax Foundation of Hawaii; Young Progressives Demanding Action; Douglas Emmett; NAIOP Hawaii; Alexander & Baldwin; Hawai‘i Health & Harm Reduction Center; and Faith Action HousingNow!.

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 H.B. No. 286, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair