CONFERENCE COMMITTEE REPORT NO.168

                            Honolulu, Hawaii
                                            , 1999

                            RE:   H.B. No. 170
                                  H.D. 2
                                  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. 170, H.D. 2, S.D. 1, entitled:

    "A BILL FOR AN ACT RELATING TO LONG-TERM CARE TAX BENEFITS,"

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 state income tax
credit for long-term care insurance premiums.

     Your Committee on Conference has agreed to the language in
the H.D. 2 version of this bill and has amended this bill
accordingly by:

     (1) Including a legislative findings and purpose section;

     (2) Including a provision to further conform the Hawaii
         income tax law to the federal income tax law which will
         allow taxpayers to deduct the cost of unreimbursed long-

 
 
                            CONFERENCE COMMITTEE REPORT NO.168
                            Page 2



         term care services and long-term care insurance premiums
         subject to the current floor of 7.5% of adjusted gross
         income; and

     (3) Deleting the tax credit for long-term care insurance
         premiums.

     Your Committee on Conference is in accord with the intent
and purpose of H.B. No. 170, H.D. 2, S.D. 1, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as H.B. No. 170, H.D. 2, S.D. 1, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
           SENATE                              HOUSE
                                   
                                   
                                   
______________________________     ______________________________
BRIAN T. TANIGUCHI, Co-Chair       DENNIS A. ARAKAKI, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
BRIAN KANNO, Co-Chair              ALEXANDER C. SANTIAGO, Co-
                                   Chair
                                   
                                   
                                   
______________________________     ______________________________
CAROL FUKUNAGA, Co-Chair           RON MENOR, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
ANDREW LEVIN, Co-Chair             BERTHA C. KAWAKAMI, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
WHITNEY ANDERSON, Member           NATHAN SUZUKI, Member
                                   
                                   
                                   
                                   ______________________________
                                   PAUL WHALEN, Member