HI HB1159

Requires refundable income tax credits owed to individual and corporate taxpayers to be paid via debit card instead of cash, effective for taxable years beginning after December 31, 2010.

Debit card can only be used to purchase goods or services within Hawaii from persons licensed under chapter 237 (general excise tax), with the cash limit equal to the refund amount.

Designates an executive department to maintain taxpayer accounts in the tax reserve fund, process payments when cards are used, and may contract with third parties or charge sellers reasonable transaction fees for program administration.

Allows replacement of damaged, lost, or stolen cards with new cards containing the unused balance while protecting account security.

Automatically repeals on December 31, 2012, unless extended by the legislature.