HI SB1200

Creates new statute § 231-___ prohibiting unauthorized willful inspection of tax returns, return information, and taxpayer-identifying information received by the Department of Taxation.

Establishes criminal penalties of up to $1,000 per return or taxpayer inspected, imprisonment for up to one year, or both for violations.

Requires dismissal of Department of Taxation employees found by the director to have willfully inspected information without authorization.

Allows the director to prohibit contractors and their officers, directors, or employees from working on department contracts for violations, and provides grounds for terminating current contracts and barring future contracts.

Defines "unauthorized inspection" as examining returns or return information without official business purpose or when not required for assigned duties, including inspection of friends', relatives', or employees' own records.