STAND. COM. REP. NO. 3711

Honolulu, Hawaii

RE: H.B. No. 2570

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2570, H.D. 1, S.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 attorneys who are applying to practice in the State pro hac vice to include certain evidence in their applications, in addition to the information and evidence required by the rules of the Hawaii Supreme Court, to ensure that both the applicant and local counsel will pay all state income tax due for Hawaii business activities.

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

Your Committee received written comments in opposition to this measure from the Judiciary.

Your Committee received written comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that the additional evidence required by this measure for petitions or motions to practice in Hawaii pro hac vice will help ensure compliance with the State's income tax laws, reduce the need for certain tax audits, and inform out‑of‑state attorneys who practice in the State's courts of their Hawaii tax obligations.

Your Committee has amended this measure by clarifying that applications to practice in the State pro hac vice should include an affirmation that both the applicant and local counsel will pay all general excise tax as well as all state income tax due for Hawaii business activities, as recommended in written comments from the Hawaii Association of Public Accountants.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2570, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2570, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair