STAND. COM. REP. NO.  1517-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2779

      S.D. 1

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2779, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO FINANCIAL AUDIT OF THE STATE OF HAWAII BY THE LEGISLATIVE AUDITOR,"

begs leave to report as follows:

The purpose of this measure is to authorize the Department of Taxation to release confidential tax return information to the Office of the Auditor necessary for the Auditor to conduct its annual certified financial audit of the State.

     The Department of Accounting and General Services provided testimony in support of this measure.  The Office of the Auditor, Department of Taxation, and Department of the Attorney General provided comments.

     Your Committee has amended this measure by:

     (1)  Specifying that the unlawful disclosure of certain confidential tax return information by officers or employees of the State, including the auditor or its agents, shall be punishable as a class C felony;

     (2)  Changing its effective date to July 1, 2030, to encourage further discussion; and

     (3)  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 S.B. No. 2779, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2779, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

SYLVIA LUKE, Chair