STAND. COM. REP. NO. 3182

Honolulu, Hawaii

RE: S.B. No. 2379

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 2379, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE SPECIAL ENFORCEMENT SECTION,"

beg leave to report as follows:

The purpose and intent of this measure is to authorize the Special Enforcement Section of the Department of Taxation to examine any sector of Hawaii's economy, initiate civil investigations, and refer certain matters to auditing branches within the Department for auditing.

Your Committees received written comments in support of this measure from the Department of Taxation.

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

Your Committees find that codifying the authorized actions of the Special Enforcement Section would assist the Department of Taxation's efforts to ensure compliance with state tax law.

Your Committees have amended this measure by:

(1) Replacing references to specific audit branches of the Department of Taxation with a reference to "appropriate auditors" within the Department, to accommodate administrative changes within the Department; and

(2) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2379, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 2379, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair