STAND. COM. REP. NO.  934

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 750

      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. 750 entitled:

"A BILL FOR AN ACT RELATING TO THE OFFICE OF THE OMBUDSMAN,"

begs leave to report as follows:

     The purpose of this bill is to allow the Office of the Ombudsman (Ombudsman) to more effectively carry out its investigative duties by authorizing the Ombudsman or an authorized representative to access tax returns and return information in connection with the Ombudsman's official duties, including the investigation of the administrative acts of agencies.

     The Ombudsman supported this bill.  The Department of Taxation opposed this measure.  The Tax Foundation of Hawaii submitted comments.

     Your Committee has amended this measure by:

     (1)  Removing the reference to authorized representatives of the Ombudsman and, instead, specifying that employees of the Ombudsman are authorized to access tax returns and return information;

     (2)  Narrowing the scope of the Ombudsman's authority to access tax returns solely to a complainant's tax returns and return information after the complainant has provided written consent; and

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

     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. 750, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 750, H.D. 1.

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

____________________________

MARCUS R. OSHIRO, Chair