STAND. COM. REP. NO. 931________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1682
                                     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 Finance, to which was referred H.B. No.
1682 entitled: 

     "A BILL FOR AN ACT RELATING TO INCOME TAX,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Require any organization that files a Form 990 (Return
          of Organization Exempt From Income Tax) with the
          Internal Revenue Service to file a copy of that form
          with the Department of Taxation (DOTAX);

     (2)  Require DOTAX to file and track the information
          contained in the forms; and

     (3)  Appropriate an unspecified sum for DOTAX.

     DOTAX and the Tax Foundation of Hawaii commented on the
bill.

     Your Committee has amended this bill by:

     (1)  Deleting the appropriation provision;

     (2)  Requiring the Legislative Auditor to compile the
          information contained in the forms; and

     (3)  Making technical, nonsubstantive amendments for
          consistency.


 
                                 STAND. COM. REP. NO. 931________
                                 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.
1682, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 1682, H.D. 1, and
be placed on the calendar for Third Reading.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair