REPORT TITLE:
Taxes


DESCRIPTION:
Allows collection agencies to recover their collection fees
directly from a delinquent taxpayer when under contract with the
department of taxation for the collection of delinquent taxes.
(HB1203 SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1203
                                                        H.D. 1
HOUSE OF REPRESENTATIVES                H.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE COLLECTION OF TAXES.



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

 1      SECTION 1.  Section 231-13, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (b) to read as follows:
 
 3      "(b)  At the option of the director, any contract entered
 
 4 into under this section may provide for compensation on:
 
 5      (1)  A fixed price basis;
 
 6      (2)  An hourly rate basis with or without a fixed cap; or
 
 7      (3)  A contingent fee arrangement to be specified in the
 
 8           contract; provided that this paragraph shall not apply
 
 9           to auditors and accountants.
 
10 All compensation shall be payable out of the taxes recovered for
 
11 the State[,] or from the debtor in accordance with the terms of,
 
12 and up to the amount authorized by the contract, unless otherwise
 
13 determined by the director."
 
14      SECTION 2.  Section 231-26, Hawaii Revised Statutes, is
 
15 amended by amending subsection (f) to read as follows:
 
16      "(f)  At the option of the director, any contract entered
 
17 into under this section may provide for compensation on:
 
18      (1)  A fixed price basis;
 
19      (2)  An hourly rate basis with or without a fixed cap; or
 

 
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Page 2                                                     H.D. 1
                                     H.B. NO.           S.D. 1
                                                        
                                                        

 
 1      (3)  A contingent fee arrangement to be specified in the
 
 2           contract; provided that this paragraph shall not apply
 
 3           to auditors and accountants.
 
 4 All compensation shall be payable out of the taxes recovered for
 
 5 the State[,] or from the debtor in accordance with the terms of,
 
 6 and up to the amounts authorized by the contract, unless
 
 7 otherwise determined by the director."
 
 8      SECTION 3.  Section 443B-9, Hawaii Revised Statutes, is
 
 9 amended by amending subsection (b) to read as follows:
 
10      "(b)  This section shall not prohibit a collection agency
 
11 from collecting, or attempting to collect, from a debtor, a
 
12 commission authorized under a contract with the University of
 
13 Hawaii pursuant to section 304-93(b)[.], or a contract with the
 
14 department of taxation pursuant to sections 231-13 and 231-26."
 
15      SECTION 4.  Statutory material to be repealed is bracketed.
 
16 New statutory material is underscored.
 
17      SECTION 5.  This Act shall take effect upon its approval.