STAND. COM. REP. NO. 3174

Honolulu, Hawaii

RE: H.B. No. 2570

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 2570, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ATTORNEYS,"

begs leave to report as follows:

The purpose and intent of this measure is to require petitions or motions for a pro hac vice appearance for a court or arbitration proceeding to be supported by certain evidence to ensure that both the applicant and local counsel will pay all state income tax due for Hawaii business activities as well as any other information or documentation required by the Rules of the Hawaii Supreme Court.

Your Committee received testimony in support of this measure from the Hawaii Association of Public Accountants.

Your Committee received testimony in opposition to this measure from the Judiciary and one individual.

Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that out-of-state attorneys who practice in the State's courts pro hac vice may be unaware that they owe the State general excise taxes. Unlike the general excise tax in most states, Hawaiʻi's tax applies to both gross rental income and gross service income. This measure will help inform out-of-state attorneys practicing in the State pro hac vice of their state tax obligations by amending the process by which the attorneys are admitted to practice law in the State's courts.

Your Committee has amended this measure by inserting an effective date of April 14, 2112, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2570, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2570, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

KARL RHOADS, Chair