STAND. COM. REP. NO. 614

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1222
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 1222, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to support the reintegration of
paroled felons into society by providing tax incentives for
employers who hire paroled felons or those in a work release
program.

     The Tax Foundation of Hawaii submitted comments on the
measure.  The Department of Taxation submitted testimony in
opposition to the measure.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 1222, H.D. 1, and recommends that
it be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair