CONFERENCE COMMITTEE REPORT NO.185

                            Honolulu, Hawaii
                                            , 1999

                            RE:   H.B. No. 1198
                                  H.D. 1
                                  S.D. 1
                                  C.D. 1




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

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 1198, H.D. 1, S.D. 1, entitled:

    "A BILL FOR AN ACT RELATING TO THE INTEGRATED TAX INFORMATION
    MANAGEMENT SYSTEMS ACQUISITION BY THE DEPARTMENT OF
    TAXATION,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this bill is to create a mechanism to fund
the Integrated Tax Information Management System by creating a
special fund with revenues from the general excise tax.

     Your Committee on Conference has amended the bill by:

     (1) Exempting the special fund from central services
         expenses;

     (2) Making the special fund responsible for its pro rata
         share of administrative expenses incurred by the
         Department of Taxation;

     (3) Inserting the appropriation amounts; and

     (4) Making technical, nonsubstantive revisions for style and
         clarity.

     Your Committee on Conference is in accord with the intent
and purpose of H.B. No. 1198, H.D. 1, S.D. 1, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as H.B. No. 1198, H.D. 1, S.D. 1, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
           SENATE                              HOUSE
                                   
                                   
                                   
______________________________     ______________________________
DAVID Y. IGE, Co-Chair             DWIGHT Y. TAKAMINE, Chair
                                   
                                   
                                   
______________________________     ______________________________
CAROL FUKUNAGA, Co-Chair           BERTHA C. KAWAKAMI, Member
                                   
                                   
                                   
______________________________     ______________________________
ANDREW LEVIN, Co-Chair             BOB NAKASONE, Member
                                   
                                   
                                   
______________________________     ______________________________
NORMAN SAKAMOTO, Member            MARK MOSES, Member



______________________________
WHITNEY ANDERSON, Member