Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 439, H.D. 1, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to allow the Ombudsman to access state tax returns and tax return information to perform its duty of investigating administrative acts of agencies.

Your Committee finds that state law authorizes the Ombudsman to investigate administrative acts of agencies by conducting inquiries and gathering relevant information. The law, however, is silent with respect to the Ombudsman's authority to access state tax returns and tax return information. The state Attorney General has issued an opinion that the Ombudsman does not have the authority to access state tax returns and tax return information.

This measure would clarify state law to specifically authorize the Ombudsman to obtain state tax return information and, thus, allow the Ombudsman to fulfill the Ombudsman's duty of investigating complaints concerning the administrative acts of agencies.

Your Committee has amended the measure by:

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 H.B. No. 439, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 439, H.D. 1, S.D. 2.