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HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   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
 
 
 6 the integrated tax information management systems special fund
 
 7 into which shall be deposited $5,000,000 of general excise tax
 
 8 revenues collected under section 237-31 and any state
 
 9 appropriations to the fund.  The director of taxation may
 
10 thereafter, from time to time, deposit taxes collected under
 
11 section 237-31 to the credit of the integrated tax information
 
12 management systems special fund so that there may be maintained
 
13 at all times a fund not exceeding $5,000,000.
 
14      (b)  Moneys in the fund shall be expended by the department
 
15 to pay for the integrated tax information management systems
 
16 performance-based contracts authorized by Act 273, Session Laws
 
17 of Hawaii 1996, and for the operation, monitoring, maintenance,
 
18 and improvement of the automated tax systems related thereto.
 
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      SECTION 2.  Section 36-27, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "36-27  Transfers from special funds for central service
 
 7 expenses.  Except as provided in this section, and
 
 8 notwithstanding any other law to the contrary, from time to time
 
 9 the director of finance, for the purpose of defraying the
 
10 prorated estimate of central service expenses of government in
 
11 relation to all special funds, except the:
 
12      (1)  Special summer school and intersession fund under
 
13           section 302A-1310;
 
14      (2)  School cafeteria special funds of the department of
 
15           education;
 
16      (3)  Special funds of the University of Hawaii;
 
17      (4)  State educational facilities improvement special fund;
 
18      (5)  Convention center capital special fund under section
 
19           206X-10.5 and the convention center operations special
 
20           fund under section 206X-10.6;
 
21      (6)  Special funds established by section 206E-6;
 
22      (7)  Housing loan program revenue bond special fund;
 
23      (8)  Housing project bond special fund;
 

 
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 1      (9)  Aloha Tower fund created by section 206J-17;
 
 2     (10)  Domestic violence prevention special fund under section
 
 3           321-1.3;
 
 4     (11)  Spouse and child abuse special account under section
 
 5           346-7.5;
 
 6     (12)  Spouse and child abuse special account under section
 
 7           601-3.6;
 
 8     (13)  Funds of the employees' retirement system created by
 
 9           section 88-109;
 
10     (14)  Unemployment compensation fund established under
 
11           section 383-121;
 
12     (15)  Hawaii hurricane relief fund established under chapter
 
13           431P;
 
14     (16)  Hawaii health systems corporation special funds;
 
15     (17)  Boiler and elevator safety revolving fund established
 
16           under section 397-5.5;
 
17     (18)  Tourism special fund established under section
 
18           [[]201B-11[]]; [and]
 
19     (19)  Department of commerce and consumer affairs' special
 
20           funds; and
 
21     (20)  Integrated tax information management systems special
 
22 fund under section 231- ;
 
23 shall deduct five per cent of all receipts of all other special
 

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

 
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 1      (6)  Special funds established by section 206E-6;
 
 2      (7)  Aloha Tower fund created by section 206J-17;
 
 3      (8)  Domestic violence prevention special fund under section
 
 4           321-1.3;
 
 5      (9)  Spouse and child abuse special account under section
 
 6           346-7.5;
 
 7     (10)  Spouse and child abuse special account under section
 
 8           601-3.6;
 
 9     (11)  Funds of the employees' retirement system created by
 
10           section 88-109;
 
11     (12)  Unemployment compensation fund established under
 
12           section 383-121;
 
13     (13)  Hawaii hurricane relief fund established under chapter
 
14           431P;
 
15     (14)  Convention center capital special fund established
 
16           under section 206X-10.5 and the convention center
 
17           operations special fund established under section
 
18           206X-10.6;
 
19     (15)  Hawaii health systems corporation special funds; [and]
 
20     (16)  Tourism special fund established under section
 
21           [[]201B-11[]]; and
 
22     (17)  Integrated tax information management systems special
 
23 fund;
 

 
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 1 shall be responsible for its pro rata share of the
 
 2 administrative expenses incurred by the department responsible
 
 3 for the operations supported by the special fund concerned."
 
 4      SECTION 4.  There is appropriated out of the integrated tax
 
 5 information management systems special fund the sum of
 
 6 $17,750,828, or so much there of as may be necessary, for fiscal
 
 7 year 1999-2000, and the sum of $7,480,428, or so much there of as
 
 8 may be necessary, for fiscal year 2000-2001, to carry out the
 
 9 purposes of this Act.  The sums appropriated shall be expended by
 
10 department of taxation.
 
11      SECTION 5.  Statutory material to be repealed is bracketed.
 
12 New statutory material is underscored.
 
13      SECTION 6.  This Act shall take effect upon its approval;
 
14 provided that the amendments made to section 36-27 and 36-30,
 
15 Hawaii Revised Statutes, by this Act shall not be repealed when
 
16 those sections are reenacted pursuant to section 13 of Act 216,
 
17 Session Laws of Hawaii 1997, and when section 36-27 is reenacted
 
18 pursuant to section 9 of Act 142, Session Laws of Hawaii 1998.
 
19 
 
20                           INTRODUCED BY:  _______________________
 

 
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