Report Title:
Auditor; Access to Information; Powers
Description:
Provides explicit authority to the auditor to inspect all accounts, books, records, files, papers, and documents and all financial affairs of the department of taxation. (SD2)
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THE SENATE |
S.B. NO. |
2156 |
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TWENTY-THIRD LEGISLATURE, 2006 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the auditor.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 23-5, Hawaii Revised Statutes, is amended to read as follows:
"§23-5 Auditor; powers. (a) The auditor may examine and inspect all accounts, books, records, files, papers, and documents and all financial affairs of every department, including the department of taxation, office, agency, and political subdivision[.]; provided that the auditor's examination and inspection relates to an audit or other investigation undertaken pursuant to this chapter.
(b) The auditor may cause search to be made and extracts to be taken from any account, book, file, paper, record, or document in the custody of any public officer without paying any fee for the same; and every officer having the custody of the accounts, books, records, files, papers, and documents shall make such search and furnish such extracts as thereto requested.
(c) The auditor may issue:
(1) Subpoenas compelling at a specified time and place the appearance and sworn testimony of any person whom the auditor reasonably believes may be able to provide information relating to any audit or other investigation undertaken pursuant to this chapter; and
(2) Subpoenas duces tecum compelling the production of accounts, books, records, files, papers, documents, or other evidence, which the auditor reasonably believes may relate to an audit or other investigation being conducted under this chapter.
Upon application by the auditor, obedience to the subpoena may be enforced by the circuit court in the county in which the person subpoenaed resides or is found in the same manner as a subpoena issued by the clerk of the circuit court.
(d) In addition to powers provided to the auditor under this section, and notwithstanding section 235-116, or any other law making it unlawful for any person, officer, or employee of the State to make known information imparted by any tax return or permit any tax return to be seen or examined by any person, the department of taxation shall:
(1) Permit the auditor to inspect any tax return of any taxpayer;
(2) Furnish the auditor with an abstract of the return, if the auditor so desires; and
(3) Supply the auditor with information concerning any item contained in a tax return or disclosed by the report of any investigation of a tax return or of the subject matter of a tax return."
SECTION 2. Section 235-116, Hawaii Revised Statutes, is amended to read as follows:
"§235-116 Disclosure of returns unlawful; penalty. All tax returns and return information required to be filed under this chapter shall be confidential, including any copy of any portion of a federal return which may be attached to a state tax return, or any information reflected in the copy of such federal return. [It] Except as provided in section 23-5, it shall be unlawful for any person, or any officer or employee of the State to make known intentionally information imparted by any income tax return or estimate made under sections 235-92, 235-94, 235-95, and 235-97 or wilfully to permit any income tax return or estimate so made or copy thereof to be seen or examined by any person other than the taxpayer or the taxpayer's authorized agent, persons duly authorized by the State in connection with their official duties, the Multistate Tax Commission or the authorized representative thereof, except as provided by law, and any offense against the foregoing provisions shall be punished by a fine not exceeding $500 or by imprisonment not exceeding one year, or both."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.