Bill Text: HI SB397 | 2020 | Regular Session | Introduced
Bill Title: Relating To Contracting.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2019-12-01 - Carried over to 2020 Regular Session. [SB397 Detail]
Download: Hawaii-2020-SB397-Introduced.html
THE SENATE |
S.B. NO. |
397 |
THIRTIETH LEGISLATURE, 2019 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
||
|
A BILL FOR AN ACT
relating to contracting.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§46- Private
building developments; tax clearances.
(a) No building license
shall be granted for a private development valued at greater than $ ,
unless the applicant has presented to the issuing officer tax clearances from
the director of taxation and the Internal Revenue Service on behalf of the
building contractor and any subcontractors.
The issuing officer shall verify that all contractors and subcontractors
have filed all tax returns due, and that all taxes, interest, and penalties
levied against the contractor and subcontractors or accrued under title 14 that
are administered by the department of taxation and under the Internal Revenue
Code have been paid. The director of
taxation may waive the Internal Revenue Service tax clearance requirement if
the director determines that it is in the best interest of the State.
(b) Any assignment of a contract for a private
development valued at greater than $
shall require the assignee, as a condition precedent to the assignment, to
first obtain a bulk sales certificate if required under section 237-43, and
present the certificate, or tax clearance as provided under subsection (a) if a
bulk sales certificate is not required, to the state or county contracting
officer or agent.
(c) All state and county contracting officers or
agents shall withhold final inspection of a private development valued at
greater than $ until the
receipt of the most recent tax clearances from the director of taxation and the
Internal Revenue Service on behalf of the building contractor and any
subcontractors.
(d) This section shall not apply to a contractor
or subcontractor if the department of taxation certifies that the contractor or
subcontractor is in good standing under a plan in which delinquent taxes,
interest, and penalties are being paid to the department of taxation or the
Internal Revenue Service, if applicable, in installments.
(e) Any officer or employee of any governmental
agency who intentionally or knowingly violates any provision under this section
shall be fined not more than $1,000 or imprisoned not more than one year, or
both.
(f) This section shall not apply to the extent and during the period that the validity of the taxes, penalties, or interest is being contested in an administrative or judicial appeal with the department of taxation or Internal Revenue Service."
SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 for grants-in-aid to the counties for the enforcement of section 46- , Hawaii Revised Statutes, to be allocated as follows:
(1) $ to the county of Hawaii;
(2) $ to the city and county of Honolulu;
(3) $ to the county of Kauai; and
(4) $ to the county of Maui.
The sums appropriated shall be expended by the department of budget and finance for the purposes of this Act.
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2019.
INTRODUCED BY: |
_____________________________ |
|
|
Report Title:
Contracting; Private Developments; Tax Clearance
Description:
Requires contractors and subcontractors to submit tax clearances as a condition of obtaining building permits for private developments exceeding a certain value. Requires contractors and subcontractors to submit additional tax clearances before final inspection of private developments exceeding a certain value.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.