Requires tax refunds in error or in excess of that which the
person is lawfully obligated to pay under the insurance code, to
be paid out of the general fund rather than insurance regulation
funds.  (SB2731 HD2)

THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                H.D. 2
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 431:7-203, Hawaii Revised Statutes, is
 2 amended by amending subsection (a) to read as follows: 
 3      "(a)  In the event any person has paid to the commissioner
 4 any tax, fee, or other charge in error or in excess of that which
 5 the person is lawfully obligated to pay under this code, the
 6 commissioner, upon written request made by the person to the
 7 commissioner within the time set forth in section 431:7-204.6,
 8 shall authorize a refund thereof out of the insurance regulation
 9 funds, except that a tax refund shall be payable out of the
10 general fund, of this State by submitting a voucher therefor to
11 the comptroller of this State subject to the following
12 limitations:
13      (1)  No recourse may be had except under section 40-35 or by
14           appeal for refunds of taxes paid pursuant to an
15           assessment by the commissioner; provided that if the
16           assessment by the commissioner shall contain clerical
17           errors, transposition of figures, typographical errors,
18           and errors in calculation or if there shall be an
19           illegal or erroneous assessment because the assessment

Page 2                                                     2731
                                     S.B. NO.           S.D. 1
                                                        H.D. 2

 1           is not in accordance with this code, the refund
 2           procedures in subsection (a) shall apply; and
 3      (2)  No refund or overpayment credit shall be made unless
 4           the original payment of the tax was due to the law
 5           having been interpreted or applied in respect to the
 6           taxpayer concerned differently than in respect of
 7           taxpayers generally.
 8      As to all tax payments for which a refund or credit is not
 9 authorized by this subsection (including, without prejudice to
10 the generality of the foregoing, cases of unconstitutionality),
11 the remedies provided by appeal or under section 40-35 are
12 exclusive."
13      SECTION 2.  New statutory material is underscored. 
14      SECTION 3.  This Act shall take effect upon its approval.