STAND. COM. REP. NO. 1080

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1649
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1649, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE CONVEYANCE TAX,"

begs leave to report as follows:

     The purpose of this bill is to exempt from the conveyance
tax, the transfer of real property executed in connection with
the conversion of:

     (1)  A general partnership or limited partnership to a
          limited liability company or corporation; or

     (2)  A limited liability company or corporation to a general
          partnership or limited partnership.

     The Outrigger Hotels and Resorts testified in support of
this measure.  The Department of Taxation and the Tax Foundation
of Hawaii commented on the measure.

     Your Committee has amended this bill by:

     (1)  Changing the effective date to 2010; and

     (2)  Making a technical, nonsubstantive amendment to correct
          a drafting error.


 
 
 
 
                                 STAND. COM. REP. NO. 1080
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1649, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 1649, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair