The implementation of SB786 is expected to enhance financial transparency among REITs by requiring them to provide information that aligns with their federal reporting. This alignment is crucial for the state to gather accurate data concerning the economic contributions of REITs while helping to address potential budget shortfalls. The proposed legislation will amend existing statutes to impose stricter guidelines on how REITs document and report their financial operations within Hawaii.
Summary
Senate Bill 786 aims to establish mandatory reporting requirements for Real Estate Investment Trusts (REITs) operating in Hawaii. The bill emphasizes the importance of these entities in the state's economy and seeks to ensure that their economic activities are accurately reported to state authorities. Current gaps in data collection for REITs are addressed by mandating that they notify the state of their operations and submit annual reports of their assets and revenues.
Contention
There may be concerns regarding the administrative burden that compliance with these new reporting requirements could impose on REITs, particularly smaller operations that may not have the resources to adapt quickly. Additionally, the bill includes provisions for penalties for noncompliance, set at $50 per day, which could be seen as a financial strain on these entities. Discussions are likely to revolve around balancing the state's need for revenue and oversight with the operational realities faced by REITs in Hawaii.
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.