STAND. COM. REP. NO. 2225

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2940
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2940 entitled: 

     "A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to establish reasonable and
consistent fees for financial institutions for conducting
research and for reproducing records in response to investigative
subpoenas issued by the Department of Taxation.

     Testimony in support of this measure was received from the
Department of Taxation.  Testimony in opposition to this measure
was received from the Hawaii League of Savings Institutions, and
the Hawaii Bankers Association.  Comments on this measure were
received from the Tax Foundation of Hawaii.

     Your Committee finds that currently financial institutions
can charge without limit for costs related to the reproduction of
records in response to a subpoena issued by the Department of
Taxation.  This measure establishes fees at $15 per hour for
research time, and 50 cents per page for reproduction of
documents.

     Your Committee has amended the measure to allow the
Department of Taxation to determine the appropriate fee amounts
after December 31, 2001, by rule.


 
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                                   STAND. COM. REP. NO. 2225
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B.
No. 2940, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as S.B. No. 2940, S.D. 1, and
be placed on the calendar for Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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