CONFERENCE COMMITTEE REP. NO. 134

Honolulu, Hawaii

                 , 2013

RE:    S.B. No. 1206

       S.D. 1

       H.D. 1

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1206, S.D. 1, H.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to clarify that the authority of the Director of Taxation includes the collection and general administration of all taxes.

     Your Committee on Conference finds that section 231-13, Hawaii Revised Statutes, could be clearer as to whether the Director of Taxation is authorized to collect and administer all taxes or only delinquent taxes.  Your Committee on Conference further finds that this measure sufficiently clarifies that the Department of Taxation is authorized to administer and collect all taxes, including delinquent taxes, which will facilitate greater effectiveness and efficiency in the operation of the Department.

     Upon further consideration, your Committee on Conference has amended this measure by:

     (1)  Requiring the Department of Taxation to submit reports to the Legislature regarding contracts entered into under section 231-13, Hawaii Revised Statutes, as amended by this measure, and the effect of this measure on the assessment, enforcement, and collection of taxes; and

     (2)  Changing the effective date to "upon approval" and adding a sunset date of June 30, 2017.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1206, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1206, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ SYLVIA LUKE, Chair

____________________________ DAVID Y. IGE, Chair