# Hawaii SB 2738: RELATING TO TAX HAVEN ABUSE.

Hawaii SB 2738, RELATING TO TAX HAVEN ABUSE., is a 2025–2026 Regular Session (Year 2) Senate bill sponsored by Karl Rhoads (Democratic); status failed, last action 2026-02-20 (Reported from CPN/JDC (Stand. Com. Rep. No. 2611) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.) (as of 2026-11-01).

- Canonical: https://policyrisk.com/state-bill/HI-SB2738-2026
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Hawaii SB 2738
- State: Hawaii
- Session: 2025–2026 Regular Session (Year 2)
- Title: RELATING TO TAX HAVEN ABUSE.
- Status: failed
- Chamber: Senate
- Introduced: 2026-01-23
- Last action: 2026-02-20, Reported from CPN/JDC (Stand. Com. Rep. No. 2611) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
- Sponsor: Karl Rhoads (Democratic)
- Cosponsors: 0
- Subjects: Department of Taxation, Taxation, Corporations, Combined Reporting, State-by-State Reporting, Penalties, CPN/JDC, WAM
- Touches household money: no
- Roll calls: 2 (8 yes, 0 no in all)
- Economic provisions PRIA read: 0

## Summary

Effective 1/1/2028, requires corporations to include in their income the income of all foreign subsidiaries to the State; applies the State's apportionment formula to determine the share of reported profits subject to the appropriate tax, which shall be deposited into the state general fund; and requires corporations to report all profits, losses, revenues, and inter-company transactions made and all taxes paid in other states. Establishes penalties for violations. Effective 7/1/2050. (SD1)

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Karl Rhoads (Democratic), Senate

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2026-02-17 | Senate | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENT... | pass | 4 | 0 |   |
| 2026-02-17 | Senate | The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENT... | pass | 4 | 0 |   |

## Actions (9)

- 2026-02-20: Reported from CPN/JDC (Stand. Com. Rep. No. 2611) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. (Senate)
- 2026-02-20: Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. (Senate)
- 2026-02-17: The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in JDC were as follows: 4 Aye(s): Senator(s) Rhoads, Gabbard, San Buenaventura, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Chang. (Senate)
- 2026-02-17: The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Fukunaga, Awa; Aye(s) with reservations: Senator(s) Lamosao ; 0 No(es): none; and 1 Excused: Senator(s) McKelvey. (Senate)
- 2026-02-16: The committee(s) on CPN/JDC has rescheduled its public hearing to 02-17-26 9:30AM; CR 229 & Videoconference. (Senate)
- 2026-02-13: The committee(s) on CPN/JDC has scheduled a public hearing on 02-17-26 9:45AM; Conference Room 229 & Videoconference. (Senate)
- 2026-01-30: Referred to CPN/JDC, WAM. (Senate)
- 2026-01-26: Passed First Reading. (Senate)
- 2026-01-23: Introduced. (Senate)

## Bill text

- Bill Text: [PDF](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2738_SD1_.pdf)
- Original: [HTML](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2738_.HTM), [PDF](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2738_.PDF)
- SB2738_SD1: [HTML](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2738_SD1_.HTM)

## Related bills

- SB 847: RELATING TO PSYCHOLOGISTS. (became law)
- SB 2338: RELATING TO HOUSING. (signed)
- HB 2344: RELATING TO SCHOOL FACILITIES. (signed)
- HB 2023: RELATING TO TRANSPORTATION. (signed)
- HB 2021: RELATING TO TRANSPORTATION. (signed)
- SB 2031: RELATING TO CONSUMER PROTECTION. (signed)

## Sources
- [Bill Text (PDF)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2738_SD1_.pdf)
- [Original (HTML)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2738_.HTM)
- [Original (PDF)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2738_.PDF)
- [SB2738_SD1 (HTML)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB2738_SD1_.HTM)

## Related
- [SB 847: RELATING TO PSYCHOLOGISTS.](https://policyrisk.com/state-bill/HI-SB847-2026)
- [SB 2338: RELATING TO HOUSING.](https://policyrisk.com/state-bill/HI-SB2338-2026)
- [HB 2344: RELATING TO SCHOOL FACILITIES.](https://policyrisk.com/state-bill/HI-HB2344-2026)
- [HB 2023: RELATING TO TRANSPORTATION.](https://policyrisk.com/state-bill/HI-HB2023-2026)
- [HB 2021: RELATING TO TRANSPORTATION.](https://policyrisk.com/state-bill/HI-HB2021-2026)
- [SB 2031: RELATING TO CONSUMER PROTECTION.](https://policyrisk.com/state-bill/HI-SB2031-2026)
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Source: PRIA, https://policyrisk.com/state-bill/HI-SB2738-2026 (as of 2026-11-01).