STAND. COM. REP. NO. 677

Honolulu, Hawaii

RE: S.B. No. 1271

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1271 entitled:

"A BILL FOR AN ACT RELATING TO TAX REFUND OFFSETS,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Department of Taxation, in addition to the Department of Accounting and General Services, to perform tax refund offsets.

Your Committee received testimony in support of this measure from the Department of Taxation.

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

Your Committee finds that authorizing the Department of Taxation, in addition to the Department of Accounting and General Services, to perform tax refund offsets will allow greater flexibility for the State to perform offsets, notify debtors, and provide certain information to a claimant agency for any valid debt due the claimant agency by a debtor who is otherwise entitled to a state tax refund.

Your Committee has amended this measure by:

(1) Clarifying that the Department of Accounting and General Services or the Department of Taxation shall set off any valid debt upon the request of a claimant agency;

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(3) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1271, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1271, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair