STAND. COM. REP. NO. 991-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1828

H.D. 3

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1828, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE TAXATION BOARD OF REVIEW,"

begs leave to report as follows:

The purpose of this measure is to make various amendments related to the Taxation Board of Review, including:

(1) Reducing the membership from ten members to three, with at least two required for quorum;

(2) Clarifying that the Vice Chair of the Board shall serve as the Chairperson during the Chairperson's temporary inability to act due to recusal;

(3) Establishing that the members are full-time employees, with compensation based on a percentage of the salary of the Director of Taxation;

(4) Authorizing members to validate the Board's actions with a concurrence of the majority;

(5) Clarifying that Board meetings are contested case hearings and specifying notice requirements; and

(6) Appropriating funds for the Department of Taxation to establish three full-time equivalent Taxation Board of Review members and two full-time equivalent staff positions.

Your Committee received testimony in support of this measure from the Department of Taxation. Your Committee received comments on this measure from the Department of Budget and Finance and Tax Foundation of Hawaii.

Your Committee has amended this measure by:

(1) Changing the following to unspecified amounts:

(A) The amount of Taxation Board of Review members and staff positions established under this measure; and

(B) The appropriation amount;

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

(3) Making a technical, nonsubstantive amendment for the purposes of 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 H.B. No. 1828, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1828, H.D. 3.

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

____________________________

SYLVIA LUKE, Chair