§231-26  Extraterritorial enforcement of taxlaws.  (a)  The courts of the State shall recognize and enforce theliability for taxes lawfully imposed by the laws of any state which extends alike comity, whether by statute or case law, in respect of the liability fortaxes lawfully imposed by the laws of this State.  Should a claim be made inthe state courts for taxes by a state whose highest court has not yet passedupon the question of enforcing extraterritorial revenue laws, the courts of theState shall enforce such claims until such time as the highest court of thatstate prohibits the enforcement of extraterritorial revenue laws.

(b)  Any and all authorized officials of astate entitled to enforce its tax claims within the state courts may bring actionin the courts of this State for the collection of the taxes.  The certificateof the secretary of state of such state, or of the nearest equivalent official,that such officials have the authority to collect the taxes sought to becollected by the action shall be conclusive proof of that authority.

(c)  The attorney general may bring action inthe name of the State, or authorize action to be brought in the name of theState, in the courts of any state to collect taxes legally due the State.

(d)  The term "state" as used hereinmeans any state, territory, or possession of the United States.  The term"taxes" as herein employed shall include:

(1)  Any and all tax assessments lawfully made,whether they be based upon a return or other disclosure of the taxpayer, uponthe information and belief of the taxing authority, or otherwise;

(2)  Any and all penalties lawfully imposed pursuantto a taxing statute; and

(3)  Interest charges lawfully added to the taxliability which constitutes the subject of the action.

(e)  In any case where a person owingdelinquent taxes to the State has moved from the State to another state orcountry, is situated in another state or country, resides, or maintains a placeof business in another state or country, the director, notwithstanding anyother law to the contrary, by contract, may select and retain bonded collectionagencies, licensed attorneys, accountants, and auditors or other persons topursue and collect the claims of the State.

(f)  At the option of the director, anycontract entered into under this section may provide for compensation on:

(1)  A fixed price basis;

(2)  An hourly rate basis with or without a fixed cap;or

(3)  A contingent fee arrangement to be specified inthe contract; provided that this paragraph shall not apply to auditors andaccountants.

All compensation shall be payable out of the taxesrecovered for the State or from the debtor in accordance with the terms of, andup to the amounts authorized by the contract, unless otherwise determined bythe director.

(g)  Suits brought upon judgments shall begoverned by the law relating thereto, and not by this section. [L 1949, c 311,§1(a); am L 1953, c 67, §1; RL 1955, §115-31; am L Sp 1959 2d, c 1, §16; HRS§231-26; gen ch 1985; am L 1997, c 253, §2; am L 1999, c 68, §2]