CONFERENCE COMMITTEE REP. NO. 189-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 2378

S.D. 1

H.D. 2

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

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. 2378, S.D. 1, H.D. 2, entitled:

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

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 make various amendments related to the Taxation Board of Review, including:

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

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

(3) Establishing a compensation schedule for board members with compensation based on a percentage of the Director of Taxation's salary;

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

(5) Clarifying the legal and evidentiary framework the Board must use in reaching its decisions; and

(6) Appropriating funds for Board members and staff.

Your Committee on Conference finds that existing law does not require the Chairperson of the Taxation Board of Review to have litigation or public accounting experience. Your Committee on Conference further finds that these skills are necessary to ensure competent and fair tax appeals prosecution and resolution. Your Committee on Conference additionally finds that the Department of Taxation has a significant backlog of appeals. Accordingly, this measure promotes the fair and expeditious resolution of tax issues and appeals by requiring the Chairperson to be either a state-licensed attorney or Certified Public Accountant and compensating members of the Taxation Board of Review appropriately.

Your Committee on Conference has amended this measure by:

(1) Setting the salaries of the Chairperson and members of the Board;

(2) Inserting an appropriation amount of $518,542;

(3) Making it effective upon its approval; provided that section 1 shall take effect on July 1, 2023, and section 5 shall take effect on July 1, 2022; and

(4) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

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. 2378, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2378, S.D. 1, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ SEAN QUINLAN Co-Chair	____________________________ SHARON MORIWAKI Chair
____________________________ MARK M. NAKASHIMA Co-Chair	____________________________ DRU KANUHA Co-Chair
____________________________ DANIEL HOLT Co-Chair	____________________________ KARL RHOADS Co-Chair