STAND. COM. REP. NO.  1368


Honolulu, Hawaii

                , 2017


RE:   S.B. No. 686

      S.D. 2





Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii




     Your Committee on Judiciary, to which was referred S.B. No. 686, S.D. 2, entitled:




begs leave to report as follows:


     The purpose of this measure is to increase funding for public education by establishing a surcharge on residential investment property and visitor accommodations to supplement the budget for education and provide a quality education to all of Hawaii's children.  The proceeds of the surcharge would be deposited into the Education Special Fund.


     The Hawaii Teacher Standards Board, Hawaii State Teachers Association, IMUAlliance, Hui for Excellence in Education, Parents for Public Schools of Hawaii, Democratic Party of Hawaii, and numerous individuals testified in support of this measure.  The County of Hawaii Office of the Mayor, County of Hawaii Department of Finance–Real Property Tax, County of Maui Office of the Mayor, Chair of the Maui County Council, Hawaii Lodging & Tourism Association, Maui Hotel & Lodging Association, Hawaii Association of REALTORS, Maui Chamber of Commerce, Coalition for Equal Taxation, Condominium Rentals Hawaii, and many individuals testified in opposition to this measure.  The Department of Education, Department of Budget and Finance, City and County of Honolulu Department of Budget and Fiscal Services, Tax Foundation of Hawaii, Hawaii Children's Action Network, Committee for Education Funding, Grassroot Institute of Hawaii, and Autism Society of Hawaii provided comments.


     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 S.B. No. 686, S.D. 2, and recommends that it be referred to your Committee on Finance.



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