CONFERENCE COMMITTEE REP. NO. 32-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2945

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2945, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LIQUOR,"

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 eliminate the requirement that the applicant for a liquor license or renewal of a license, or in the case of transfer of a liquor license, both the transferor and the transferee, produce either a tax clearance certificate from the Internal Revenue Service or proof of entering into an installment plan agreement with the Internal Revenue Service.

Your Committee on Conference finds that under existing law, all liquor license applicants and those renewing their licenses are required to submit tax clearances from the Hawaii Department of Taxation and the Internal Revenue Service. Your Committee on Conference further finds that the Internal Revenue Service has faced increasing budgetary and resource challenges over the past few years, which has resulted in the decrease of Internal Revenue Service offices, personnel, and operating hours in Hawaii. Consequently, liquor licensees and applicants throughout the State have experienced increasing difficulties obtaining the necessary tax clearance from the Internal Revenue Service, with some licensees experiencing breaks in service due to the inability of the Internal Revenue Service to accommodate required face-to-face appointments with licensees. This measure therefore removes the requirement for liquor licensees and applicants and transferors or transferees to obtain a tax clearance from the Internal Revenue Service, which will eliminate the undue hardships, costs, and delays currently experienced by many liquor licensees and applicants.

Your Committee on Conference has amended this measure by changing its effective date to July 1, 2018.

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. 2945, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2945, 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

____________________________ ROY M. TAKUMI Co-Chair	____________________________ ROSALYN H. BAKER Chair
____________________________ SYLVIA LUKE Co-Chair