Nexus Presumption Bill Vetoed by Governor in Hawaii

House Bill 1405, that would have enacted a nexus presumption for retailers that enter into an agreement with a resident, under which the resident, for a commission or other consideration, directly or indirectly refers potential customers to the seller, has been vetoed by Hawaii Governor Linda Lingle. In her statement of objections, the governor noted that the bill’s content violates the Hawaii State Constitution which provides that each law shall embrace but one subject, which shall be expressed in its title. In addition, the governor mentioned that this bill would be harmful to the state’s current economic situation because some of the online companies, including and, have already warned their Hawaii affiliates that they will terminate their relationships if this bill is passed. (H.B. 1405, vetoed by Hawaii Gov. Linda Lingle on July 1, 2009; News Release and Statement of Objections to House Bill No. 1405, Hawaii Gov. Linda Lingle, July 1, 2009)

Posted on July 9, 2009