Late yesterday, Hawaii’s Governor Lingle notified legislators that she may veto HB1405. This action is required, she must give at least ten days notice. I am unsure why she had to wait until this late time to indicate her intent to veto, the bill has been sitting on her desk since May 11. This latest news just adds to the confusion for everyone. The law was supposed to take effect today. Affiliates from Hawaii have been removed from several large programs already.
In my opinion, affiliates from Hawaii should continue to work on the Governor and on Legislators as they may be able to override in the event the Governor follows through. Continue to prepare your sites; identify vulnerable merchant relationships and find replacements.
Merchants should consult their attorney to find out what it means to them. Should they collect sales tax as indicated in the law? Or does the Governor’s statement that she may veto put the law in limbo?
While this all unravels in Hawaii, I suggest that every affiliate in every state make note of all the events of the last few days. Remember what happened to NY affiliates last year. Then adjust your approach to business accordingly.