STAND. COM. REP. NO. 2860
RE: S.B. No. 2257
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Ninth State Legislature
Regular Session of 2018
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 2257 entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
begs leave to report as follows:
The purpose and intent of this measure is to provide the public with access to the estimated revenue impact of legislation being considered by the Legislature.
Specifically, the measure requires that a revenue estimate that the Department of Taxation provides to the Legislature or to any executive or administrative office be accompanied by a description of the methodology used and assumptions made in providing that estimate, and that the estimate and description be open to public disclosure, inspection, and copying.
Your Committee received written comments in support of this measure from the Civil Beat Law Center for the Public Interest, Common Cause Hawaii, and Ulupono Initiative.
Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.
Your Committee finds that governmental transparency is necessary to hold public officials accountable to the general public. Although the Department of Taxation provides estimates to the Legislature regarding the revenue impact of proposed legislation, the Department does not necessarily provide accompanying descriptions of the methodologies used and assumptions made in calculating those estimates. Your Committee also notes that the Department's methodologies are not made available to the general public.
Your Committee has amended this measure by:
(1) Clarifying that the scope of the measure only applies to revenue estimates for proposed state legislation;
(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and
(3) Making technical nonsubstantive changes for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2257, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2257, S.D. 1.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DONOVAN M. DELA CRUZ, Chair