STAND. COM. REP. NO.  494-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2395

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred H.B. No. 2395 entitled:

"A BILL FOR AN ACT RELATING TO THE DISCLOSURE OF TAX RETURN INFORMATION,"

begs leave to report as follows:

The purpose of this measure is to exempt the following from current prohibitions regarding the disclosure of tax return information:

     (1)  The restricted disclosure of tax return information to federal or state officials where such information is essential to the investigation or prosecution of a crime or to various judicial or quasi-judicial proceedings; and

     (2)  The disclosure of tax return information for a limited set of circumstances relating to the administration, management, carrying out, direction, or supervision of the execution and application of federal or state tax laws.

The Department of the Attorney General and Department of Taxation testified in support of this measure.  The Tax Foundation of Hawaii provided comments.

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2395 and recommends that it pass Second Reading and be referred to your Committee on Finance.

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

____________________________

KARL RHOADS, Chair