Hawaii's Governor Linda Lingle vetoed HB 1405, a law that would have required out-of-state Internet retailers and marketplaces to collect Hawaii sales tax if they had relationships with affiliate advertisers. As a result of Lingle's veto, Overstock.com has reinstated its Hawaii-based affiliate advertisers. Earlier this week, Overstock.com reinstated California affiliates after Governor Schwarzenegger's committed to vetoing similar legislation in California.
Overstock said its cancellation of affiliates is still in effect in North Carolina where a bill is under consideration and in Rhode Island where a bill became law on Wednesday.
Related article: "Overstock, Amazon Drop More Affiliates, eBay Appears Unaffected," AuctionBytes Newsflash, July 2, 2009 (Link)