REPORT TITLE:
Tax Information Mgmt. Systems


DESCRIPTION:
Creates the Integrated Tax Information Management Systems Special
Fund to pay for the Integrated Tax Information Management System.
Sunsets this special fund on July 1, 2004.  (HB1198 CD1)


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1198
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            C.D. 1
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE INTEGRATED TAX INFORMATION MANAGEMENT SYSTEMS
   ACQUISITION BY THE DEPARTMENT OF TAXATION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 231, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "�231-    Integrated tax information management systems
 
 5 special fund.  (a)  There is established in the state treasury
 
 6 the integrated tax information management systems special fund
 
 7 into which shall be deposited general excise tax revenues as
 
 8 provided by section 237-31.  The director of taxation may retain
 
 9 and deposit the amounts necessary to meet the obligations of the
 
10 integrated tax information management systems performance-based
 
11 contract.  The amounts transferred by the director of taxation to
 
12 the integrated tax information management systems special fund
 
13 for a fiscal year shall be limited to the amounts appropriated by
 
14 the legislature.
 
15      (b)  Moneys in the fund shall be expended by the department
 
16 to pay for the integrated tax information management systems
 
17 performance-based contracts authorized by Act 273, Session Laws
 
18 of Hawaii 1996.
 
19      (c)  The department shall submit an annual report to the
 

 
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 1 legislature no later than twenty days prior to the convening of
 
 2 each regular session, providing an accounting of the receipts of,
 
 3 and expenditures from, the fund.  
 
 4      (d)  This section shall be repealed on July 1, 2004."
 
 5      SECTION 2.  Section 36-27, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "�36-27  Transfers from special funds for central service
 
 8 expenses.  Except as provided in this section, and
 
 9 notwithstanding any other law to the contrary, from time to time
 
10 the director of finance, for the purpose of defraying the
 
11 prorated estimate of central service expenses of government in
 
12 relation to all special funds, except the:
 
13      (1)  Special summer school and intersession fund under
 
14           section 302A-1310;
 
15      (2)  School cafeteria special funds of the department of
 
16           education;
 
17      (3)  Special funds of the University of Hawaii;
 
18      (4)  State educational facilities improvement special fund;
 
19      (5)  Convention center capital special fund under section
 
20           206X-10.5 and the convention center operations special
 
21           fund under section 206X-10.6;
 
22      (6)  Special funds established by section 206E-6;
 
23      (7)  Housing loan program revenue bond special fund;
 

 
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 1      (8)  Housing project bond special fund;
 
 2      (9)  Aloha Tower fund created by section 206J-17;
 
 3     (10)  Domestic violence prevention special fund under section
 
 4           321-1.3;
 
 5     (11)  Spouse and child abuse special account under section
 
 6           346-7.5;
 
 7     (12)  Spouse and child abuse special account under section
 
 8           601-3.6;
 
 9     (13)  Funds of the employees' retirement system created by
 
10           section 88-109;
 
11     (14)  Unemployment compensation fund established under
 
12           section 383-121;
 
13     (15)  Hawaii hurricane relief fund established under chapter
 
14           431P;
 
15     (16)  Hawaii health systems corporation special funds;
 
16     (17)  Boiler and elevator safety revolving fund established
 
17           under section 397-5.5;
 
18     (18)  Tourism special fund established under section
 
19           [201B-11]; [and]
 
20     (19)  Department of commerce and consumer affairs' special
 
21           funds; and
 

 
 
 
 
 
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 1      (20) Integrated tax information management systems special
 
 2           fund under section 231-     ;
 
 3 shall deduct five per cent of all receipts of all other special
 
 4 funds, which deduction shall be transferred to the general fund
 
 5 of the State and become general realizations of the State.  All
 
 6 officers of the State and other persons having power to allocate
 
 7 or disburse any special funds shall cooperate with the director
 
 8 in effecting these transfers.  To determine the proper revenue
 
 9 base upon which the central service assessment is to be
 
10 calculated, the director shall adopt rules pursuant to chapter 91
 
11 for the purpose of suspending or limiting the application of the
 
12 central service assessment of any fund.  No later than twenty
 
13 days prior to the convening of each regular session of the
 
14 legislature, the director shall report all central service
 
15 assessments made during the preceding fiscal year."
 
16      SECTION 3.  Section 36-30, Hawaii Revised Statutes, is
 
17 amended by amending subsection (a) to read as follows:
 
18      "(a) Each special fund, except the:
 
19      (1)  Transportation use special fund established by section
 
20           261D-1;
 
21      (2)  Special summer school and intersession fund under
 
22           section 302A-1310;
 
23      (3)  School cafeteria special funds of the department of
 

 
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 1           education;
 
 2      (4)  Special funds of the University of Hawaii;
 
 3      (5)  State educational facilities improvement special fund;
 
 4      (6)  Special funds established by section 206E-6;
 
 5      (7)  Aloha Tower fund created by section 206J-17;
 
 6      (8)  Domestic violence prevention special fund under section
 
 7           321-1.3;
 
 8      (9)  Spouse and child abuse special account under section
 
 9           346-7.5;
 
10     (10)  Spouse and child abuse special account under section
 
11           601-3.6;
 
12     (11)  Funds of the employees' retirement system created by
 
13           section 88-109;
 
14     (12)  Unemployment compensation fund established under
 
15           section 383-121;
 
16     (13)  Hawaii hurricane relief fund established under chapter
 
17           431P;
 
18     (14)  Convention center capital special fund established
 
19           under section 206X-10.5 and the convention center
 
20           operations special fund established under section 206X-
 
21           10.6;
 
22     (15)  Hawaii health systems corporation special funds; [and]
 
23     (16)  Tourism special fund established under section
 

 
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 1           [201B-11]; and
 
 2      (17) Integrated tax information management systems special
 
 3           fund;
 
 4 shall be responsible for its pro rata share of the administrative
 
 5 expenses incurred by the department responsible for the
 
 6 operations supported by the special fund concerned."
 
 7      SECTION 4.  Section 237-31, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "�237-31  Remittances.  All remittances of taxes imposed by
 
10 this chapter shall be made by money, bank draft, check, cashier's
 
11 check, money order, or certificate of deposit to the office of
 
12 the department of taxation to which the return was transmitted.
 
13 The department shall issue its receipts therefor to the taxpayer
 
14 and shall pay the moneys into the state treasury as a state
 
15 realization, to be kept and accounted for as provided by law;
 
16 provided that [the]:
 
17      (1)  The sum from all general excise tax revenues realized
 
18           by the State that represents the difference between
 
19           $90,000,000 and the proceeds from the sale of any
 
20           general obligation bonds authorized for that fiscal
 
21           year for the purposes of the state educational
 
22           facilities improvement special fund shall be deposited
 
23           in the state treasury in each fiscal year to the credit
 

 
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 1           of the state educational facilities improvement special
 
 2           fund; [provided further that a]
 
 3      (2)  A sum, not to exceed $5,000,000, from all general
 
 4           excise tax revenues realized by the State shall be
 
 5           deposited in the state treasury in each fiscal year to
 
 6           the credit of the compound interest bond reserve
 
 7           fund[.]; and
 
 8      (3)  A sum, not to exceed the amount necessary to meet the
 
 9           obligations of the integrated tax information
 
10           management systems performance-based contract may be
 
11           retained and deposited in the state treasury to the
 
12           credit of the integrated tax information management
 
13           systems special fund.  The sum retained by the director
 
14           of taxation for deposit to the integrated tax
 
15           information managements systems special fund for each
 
16           fiscal year shall be limited to amounts appropriated by
 
17           the legislature.  This paragraph shall be repealed on
 
18           July 1, 2004."
 
19      SECTION 5.  There is appropriated out of the integrated tax
 
20 information management systems special fund the sum of
 
21 $17,750,828, or so much thereof as may be necessary, for fiscal
 
22 year 1999-2000, and the sum of $7,480,428, or so much thereof as
 
23 may be necessary, for fiscal year 2000-2001, to carry out the
 

 
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 1 purposes of this Act.  The sums appropriated shall be expended by
 
 2 the department of taxation.
 
 3      SECTION 6.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 7.  This Act shall take effect on July 1, 1999;
 
 6 provided that:
 
 7      (1)  The amendments made to sections 36-27 and 36-30, Hawaii
 
 8           Revised Statutes, by this Act shall not be repealed
 
 9           when those sections are reenacted on July 1, 2000,
 
10           pursuant to section 13 of Act 216, Session Laws of
 
11           Hawaii 1997; and
 
12      (2)  The amendments made to section 36-27, Hawaii Revised
 
13           Statutes, by this Act shall not be repealed when that
 
14           section is reenacted on July 31, 2003, pursuant to
 
15           section 9 of Act 142, Session Laws of Hawaii 1998.