Bill Text: HI HB1307 | 2021 | Regular Session | Introduced

Hawaii House Bill 1307 (Prior Session Legislation)

Introduced

Bill Title: Relating To Fiscal Responsibility.

Spectrum: Strong Partisan Bill (Democrat 11-1)

Status: (Introduced - Dead) 2021-02-01 - Referred to ECD, FIN, referral sheet 3 [HB1307 Detail]

Download: Hawaii-2021-HB1307-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	1307
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII

A BILL FOR AN ACT

relating to fiscal responsibility.

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

SECTION 1. The legislature finds that the 2010-2013 tax review commission concluded that a comprehensive review of Hawaii's tax structure was necessary to determine how the tax structure fared during the great recession of 2008-2010 and whether the tax structure was adequate to meet the needs of the twenty-first century.

One recommendation of the tax review commission was to establish a commission similar to the federal government's National Commission on Fiscal Responsibility and Reform, also known as the Simpson-Bowles Commission, with authority to review and make recommendations on expenditures and revenue enhancement.

The tax review commission noted that the tax burden on Hawaii's taxpayers would be severe if the approach was solely to enhance revenue. Therefore, the expenditure component must be part of a solution that promotes long-term financial stability and prosperity for the State and its residents.

The purpose of this Act is to establish a commission with the authority to review and make recommendations on expenditures, revenue enhancement, and improving tax policy.

SECTION 2. (a) There is established the state commission on fiscal responsibility within the department of taxation for administrative purposes.

(b) The state commission on fiscal responsibility shall consist of the following members:

(1) Two members to be appointed by the governor, at least one of whom is currently serving or has formerly served on the state council on revenues;

(2) Two members of the senate, to be appointed by the president of the senate, one of whom shall serve as co-chair of the commission;

(3) Two members of the house of representatives, to be appointed by the speaker of the house of representatives, one of whom shall serve as co-chair of the commission;

(4) The director of taxation or the director's designee;

(5) The director of finance or the director's designee;

(6) One representative from a nonprofit legal services provider; and

(7) One representative from a nonprofit organization whose mission including analyzing and examining tax and spending policies at the state and local government levels in Hawaii.

(1) Identify policies for the State to improve revenue enhancement in the medium term and achieve fiscal security over the long term;

(2) Research and propose recommendations related to state spending; and

(3) Identify steps needed to improve tax policy to create a more balanced and progressive tax structure.

(d) Members of the commission shall serve without compensation, but shall be reimbursed for necessary expenses, including travel expenses, incurred in the performance of their official duties.

(e) The commission shall submit a report of its findings and recommendations to the legislature no later than twenty days prior to the convening of the regular session of 2023. The report shall require the approval of at least two-thirds of the total commission members.

(f) The commission shall cease to exist on June 30, 2024.

SECTION 3. This Act shall take effect on July 1, 2021.

INTRODUCED BY:	_____________________________

Report Title:

Commission on Fiscal Responsibility; Taxation; Tax Policy

Description:

Establishes the commission on fiscal responsibility within the department of taxation to review and make recommendations on expenditures, revenue enhancements, and tax policy. Requires a report to the legislature.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.