STAND. COM. REP. NO. 370

Honolulu, Hawaii

RE:    S.B. No. 34

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 34 entitled:

"A BILL FOR AN ACT RELATING TO TAX APPEALS,"

begs leave to report as follows:

     The purpose and intent of this measure is to clarify that discovery is prohibited and the award of costs are limited in controversies involving small claim tax appeals.

     Your Committee received comments on this measure from the Department of Taxation and the Tax Foundation of Hawaii.

     Your Committee finds that this measure will clarify that pretrial discovery is not allowed in the Small Claims Division of the Tax Appeal Court.  While pretrial discovery is permitted in the civil courts, the Small Claims Court is intended to handle claims quickly and cheaply.

     Your Committee has amended this measure by inserting an effective date of July 1, 2050, to allow for further discussion.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 34, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 34, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair