STAND. COM. REP. NO.  812

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1412

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1412 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF TAXATION'S BENEFITS-FUNDED REVENUE-GENERATING COMPUTER INITIATIVES,"

begs leave to report as follows:

     The purpose of this bill is to assist the Department of Taxation (DOTAX) in the collection of tax revenues for the State by, among other things:

     (1)  Allowing DOTAX to enter into performance-based contracts to enhance or acquire automated tax systems; and

     (2)  Establishing an integrated tax information management systems special fund to pay for:

          (A)  The performance-based contracts for the integrated tax information management systems; and

          (B)  The administrative and operational expenses related to revenue-generating initiatives of the new or enhanced system.

     DOTAX testified in support of this bill.  The Tax Foundation of Hawaii submitted comments.

     Your Committee has amended this bill by:

     (1)  Changing its effective date to July 1, 2020, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1412, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1412, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair