STAND. COM. REP. NO. 841-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2906

S.D. 1

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 2906, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CERTIFICATES OF GOOD STANDING,"

begs leave to report as follows:

The purpose of this bill is to reduce the filing fee for the issuance of certificates of good standing from $25 to $10.

Testimony supporting the intent of this bill and requesting amendments was submitted by the Department of Commerce and Consumer Affairs (DCCA), Chamber of Commerce of Hawaii, and Retail Merchants of Hawaii.

Your Committee notes that businesses obtain certificates of good standing from DCCA to demonstrate to third parties that they have properly registered with the State and are current in their annual filings. Both foreign and domestic entities, including corporations, nonprofit corporations, partnerships, limited liability partnerships, limited partnerships, and limited liability companies, request certificates of good standing.

Last session, the Legislature directed DCCA to align expenditures with its revenue collection and develop plans to lower fees to appropriate levels. S.B. No. 2906, as first introduced in the Senate, would have eliminated fees for certificates of good standing, altogether, and was part of DCCA's effort to reduce its surplus and bring revenues in line with expenses.

Your Committee finds that a business that has played by the rules and maintained its good standing under state law, should not have to pay for a document evidencing that good standing.

Accordingly, your Committee has amended this bill to repeal the fees charged for the issuance of certificates of good standing.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2906, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2906, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

KENNETH T. HIRAKI, Chair