STAND. COM. REP. NO.  773-16


Honolulu, Hawaii

                , 2016


RE:   H.B. No. 2028

      H.D. 1




Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii




     Your Committee on Finance, to which was referred H.B. No. 2028, H.D. 1, entitled:




begs leave to report as follows:


     The purpose of this measure is to:


     (1)  Exempt personal income tax income and general excise tax income in an amount up to an unspecified percentage of the costs of construction and operation of projects entered into under a public-private partnership with the Employees' Retirement System to improve water infrastructure or water supply, or to promote clean energy; and


     (2)  Authorize the Employees' Retirement System to invest in such projects.


     The United Public Workers, AFSCME, Local 646, and AFL-CIO provided testimony in opposition to the measure.  The Employees' Retirement System, Department of Taxation, Hawaii Fresh Water Initiative, Hawaii Green Growth, and Tax Foundation of Hawaii provided comments.


     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. 2028, H.D. 1, and recommends that it pass Third Reading.


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