THE SENATE
                 THE TWENTIETH LEGISLATURE
                  REGULAR SESSION OF 1999

                COMMITTEE ON WAYS AND MEANS
             Senator Carol Fukunaga, Co-Chair
              Senator Andrew Levin, Co-Chair

  COMMITTEE ON TRANSPORTATION AND INTERGOVERNMENTAL AFFAIRS
                Senator Cal Kawamoto, Chair
             Senator Robert Bunda, Vice Chair


              NOTICE OF JOINT DECISION MAKING

        DATE:    Friday, March 5, 1999

        TIME:    9:00 a.m.

        PLACE:   Conference Room 211
                 State Capitol
                 415 South Beretania Street


                        A G E N D A

  DECISION MAKING ONLY ON THE FOLLOWING PREVIOUSLY HEARD BILLS

      THE FOLLOWING TWO BILLS WERE HEARD ON 03/01/99

S.B. 1301  RELATING TO VEHICLE TAXES                   TIA/WAM
        Transfers funds to the counties to compensate for the
        loss of revenues from the transient accommodations tax
        and provides revenues to the highway fund to maintain
        and operate highway systems.
        (MIZUGUCHI B.R.)

S.B. 1302  RELATING TO THE RENTAL MOTOR VEHICLE AND TOUR VEHICLE
        TIA/WAM
        SURCHARGE TAX
        Raises the monthly rental motor vehicle surcharge tax
        rate from $2 to $3.  Transfers the entire tax
        collections under the rental motor vehicle and tour
        vehicle surcharge law from the highway special fund to
        the general fund.
        (MIZUGUCHI B.R.)


             BILLS THAT WERE HEARD ON 02/03/99


 


 
S.B. 234 RELATING TO THE USE OF LEGISLATIVE ALLOWANCES   WAM
        Requires legislators to make a written disclosure of
        publications that are produced with legislative
        allowance funds.
        (KANNO/MATSUNAGA)

S.B. 542 RELATING TO BUDGETING                           WAM
        Provides limitations on the modification or reduction
        of budgetary allotments by the governor.
        (D.IGE/BUNDA/CHUMBLEY/MATSUNAGA/SLOM/TAM)

S.B. 654 RELATING TO LEGISLATIVE AGENCIES                WAM
        Provides for first deputies for the Ombudsman,
        Legislative Reference Bureau, Legislative Auditor, and
        Legislative Analyst to be subject to the advice and
        consent of the joint legislative management committee.
        (IHARA/CHUMBLEY/LEVIN/FUKUNAGA)

S.B. 1237  RELATING TO FEES                                WAM
        Requires that all departmental fees adopted through
        administrative rules be approved by the legislature.
        (KANNO)

S.B. 1241  RELATING TO PUBLIC ACCESS                       WAM
        Appropriates $20,000 for moving and equipment costs of
        the public access room.
        (IHARA)

S.B. 1242  RELATING TO THE LEGISLATURE                     WAM
        Appropriates funds for the office of the legislative
        analyst and Auditor.  Transfers responsibility for
        analyzing new special and revolving funds from Auditor
        to Legislative Analyst.
        (FUKUNAGA/LEVIN)

S.B. 1334  RELATING TO LEGISLATIVE MATERIALS               WAM
        Replaces the Lieutenant Governor with the Revisor of
        Statutes as the party responsible for the sale and
        distribution of session laws, supplements, replacement
        volumes, and legislative journals.
        (MIZUGUCHI B.R.)

S.B. 1508  RELATING TO GOVERNMENT                          WAM
        Provides for the implementation of performance-based
        budgeting for state government agencies.  Requires
        performance-based budgets to be submitted to the
        legislature for review by the legislative analyst.
        Appropriates funds for the office of the legislative
        analyst.
        (ANDERSON)

 


 
S.B. 1578  RELATING TO THE LEGISLATURE                     WAM
        Establishes the joint legislative performance-based
        budgeting system committee to develop and oversee the
        implementation of plans for transforming the
        programming, planning, and budgeting systems of the
        legislature and its service agencies to a performance-
        based budgeting system.
        (FUKUNAGA/LEVIN)


          BILLS THAT WERE WERE HEARD ON 02/04/99

S.B. 16  RELATING TO TAXATION                            WAM
        Eliminates intermediaries general excise tax
        application and substitutes resale of services at one-
        half per cent.
        (INOUYE)

S.B. 728 RELATING TO GENERAL EXCISE TAX                  WAM
        Expands the definition of wholesaler to include
        intermediary services.
        (SAKAMOTO et al.)

S.B. 1177  RELATING TO THE GENERAL EXCISE TAX.             WAM
        Expands the definition of wholesaler.
        (MIZUGUCHI B.R.)

S.B. 1202  RELATING TO TAXATION                            WAM
        Classifies sales of goods and services from business
        to business as wholesale sales.
        (SAKAMOTO et al.)

S.B. 638 RELATING TO TAXATION                            WAM
        Expands the definitions of "wholesaler" to include
        wholesale services to alleviate the pyramiding of
        general excise taxes.
        (IHARA/CHUMBLEY/CHUN)

S.B 1225 RELATING TO TAXATION                            WAM
        Address the pyramiding of the general excise tax on
        services.
        (ANDERSON/SLOM)

S.B. 44  RELATING TO TAXATION                            WAM
        Exempts exported services from GET; imposes the use
        tax on imported services.
        (MIZUGUCHI)

S.B. 60  RELATING TO GENERAL EXCISE TAX                  WAM

 
        Establishes a 3% rate of general excise tax for
        amounts received by licensed taxpayers from other
        licensed taxpayers for sales of goods not for resale
        and are supplies and equipment used in the operation
        of the business.
        (BUEN)

S.B. 196 RELATING TO TAXATION                            WAM
        Provides a deduction from gross income for GET
        purposes for certain businesses.
        (MIZUGUCHI)

S.B. 941   RELATING TO THE GENERAL EXCISE TAX              WAM
        Exempts from the general excise tax all amounts
        received for food and drug.
        (MATSUURA)

S.B. 1201  RELATING TO TAXATION                            WAM
        Modifies the calculation for allocation of partial
        lease payments for computation of the deduction for
        leasing under the general excise tax law.  Repeals
        phase-in provisions.
        (SAKAMOTO et al.)


             BILLS THAT WERE HEARD ON 02/09/99

S.B. 1335  RELATING TO THE INCOME TAX                      WAM
        Amends tax tables after December 31, 1998 for personal
        income tax.  Repeals child passenger restraint tax
        credits.
        (MIZUGUCHI B.R.)

S.B. 15  RELATING TO TAXATION                            WAM
        Amends chapter 235; repeals Chapter 235, Part IV,HRS,
        to repeal the corporate income tax law.
        (INOUYE)

S.B. 1173  RELATING TO TAXATION                            WAM
        Provides income tax rate reductions for corporations,
        regulated investment companies, and real estate trusts
        and provides franchise tax rate reductions for banks
        and financial corporations.
        (MIZUGUCHI B.R.)

S.B. 1245  RELATING TO THE INCOME TAXATION                 WAM
        Increases income tax deductions for businesses from
        50% to 100% for meals and entertainment expenses.
        Allows business entertainment deduction for club dues.
        (TAM)

 
 
 


 
S.B. 32  RELATING TO INCOME TAX                          WAM
        Conforms state income tax to federal Internal Revenue
        Code exclusion of foreign earned income with limits
        of, $72,000 in 1998, with an additional $2,000
        exclusion annually until 2002 and thereafter where
        exclusion is $80,000.  Authorizes same exclusion for
        income earned out-of-state.
        (LEVIN)

S.B. 55  RELATING TO INCOME TAXATION                     WAM
        Increases capital goods income tax credit from 4% to
        10% for taxable years beginning after 12/31/98, 8% for
        taxable years beginning after 12/31/01, and 4.5% for
        taxable years beginning after 12/31/04.
        (BUEN)

S.B. 218 RELATING TO WATER CONSERVATION                  WAM
        Establishes a credit against income tax liability for
        taxpayers who install water conservation equipment
        that results in a 10% reduction in water use.
        (INOUYE)

S.B. 495 RELATING TO TAXATION                            WAM
        Provides a job creation income tax credit for large
        and small businesses.  Caps the total amount of tax
        credit that may be claimed in any one year.
        (LEVIN/FUKUNAGA)

S.B. 977 RELATING TO INVESTMENT TAX CREDIT               WAM
        Establishes a tax credit against income tax liability
        for investments that are made in Hawaii, and stay in
        Hawaii for at least five years.
        (NAKATA/D.IGE/IHARA)

S.B. 1325  RELATING TO TAXATION                            WAM
        Provides a tax credit similar to the Hotel Remodeling
        tax credit effective for tax years, 1999-2001.
        (MIZUGUCHI B.R.)

S.B. 1576  RELATING TO INCOME TAX CREDITS                  WAM
        Establishes an income tax credit for volunteers who
        participate in community-based private-volunteer
        projects that improve Hawaii.
        (IHARA B.R.)

S.B. 1180  RELATING TO THE INCOME TAXATION OF NONRESIDENTS  WAM
        Amends method of calculation by reducing allowable
        exemptions and standard deductions for nonresidents to
        relieve nonresidents from using total adjusted gross
        income as a measure of Hawaii income tax liability.

 
        (MIZUGUCHI B.R.)


             BILLS THAT WERE HEARD ON 02/24/99

S.B. 1031  MAKING AN EMERGENCY APPROPRIATION FOR THE HAWAII
S.D. 1   HEALTH SYSTEMS CORPORATION                 HHS, WAM
        To provide an emergency appropriation to ensure the
        systems and equipment of the Hawaii Health Systems
        Corporation (HHSC) are Year  2000 compliant and to
        reduce workers' compensation costs inherited by the
        corporation by eliminating the recurring expenses by
        settling appropriate cases.
        (MIZUGUCHI B.R.)

S.B. 1033  MAKING AN EMERGENCY APPROPRIATION FOR THE CHILD AND
        ADOLESCENT MENTAL HEALTH DIVISION          HHS, WAM
        Authorizes an emergency appropriation to the
        Department of Health for services provided by the
        Child and Adolescent Mental Health Division (CAMHD).
        (MIZUGUCHI B.R.)

S.B. 1064  MAKING AN EMERGENCY APPROPRIATION FOR THE AGRIBUSINESS
       DEVELOPMENT CORPORATION                    ECD, WAM
        Authorizes an emergency appropriation of additional
        revolving funds   in fiscal year 1998-1999 for
        agribusiness development and research.
        (MIZUGUCHI B.R.)

S.B. 1066  MAKING AN APPROPRIATION FOR THE HAWAII TOURISM
        AUTHORITY
                                                      ECD, WAM
        An emergency appropriation for the tourism special
        fund.
        (MIZUGUCHI B.R.)

S.B. 1103  MAKING AN EMERGENCY APPROPRIATION FOR THE STATE
        GOVERNMENT TO IMPLEMENT YEAR 2000 COMPLIANCE EFFORTS
                                                      EDU, WAM
        To appropriate funding for continued testing,
        modification, and  support of the State's computer
        systems for Year 2000 compliance.
        (MIZUGUCHI B.R.)

S.B. 1104  RELATING TO THE RELIEF OF CERTAIN PERSONS' CLAIMS
S.D 1   AGAINST THE STATE AND PROVIDING APPROPRIATIONS
        THEREFOR
                                                      JDC, WAM
        To provide payment of claims against the State for
        refunds of taxes, for judgements and settlements, and

 
 
 
        for other miscellaneous payments as provided by
        chapters 37, 661 and 662, Hawaii Revised Statutes.
        (MIZUGUCHI B.R.)

S.B. 1105  MAKING AN EMERGENCY APPROPRIATION FOR LEGAL SERVICES
        FOR DEPARTMENT OF HAWAIIAN HOME LANDS INDIVIDUAL
        CLAIMS REVIEW
                                                      WLH, WAM
        To cover personnel costs of $97,216 for the Individual
        Claims Unit   for the four-month remaining period of
        fiscal year 1998-99.
        (MIZUGUCHI B.R.)

S.B. 1158  MAKING AN APPROPRIATION FOR COMPENSATION OF CRIME
        VICTIMS
                                                      JDC, WAM
        Appropriates funds to compensate persons and their
        service providers who will be awarded compensation
        during the period from July 1, 1999  to June 30, 2000,
        pursuant to Chapter 351, Hawaii Revised Statues.
        (MIZUGUCHI B.R.)

S.B. 1183  MAKING EMERGENCY APPROPRIATIONS FOR THE UNIVERSITY OF
        HAWAII
                                                      EDU, WAM
        Enables the University of Hawaii to meet its general
        fund fiscal obligations under HRS Chapter 304 in
        fiscal year 1998-1999, by addressing the budgetary
        shortfall resulting from the transfer of fiscal year
        1997-1998 encumbrances to fiscal year 1998-1999 which
        was necessitated by the University of Hawaii having to
        pay its faculty members on June 30, 1998 instead of on
        July 1, 1998.
        (MIZUGUCHI B.R.)

S.B. 1269  MAKING EMERGENCY APPROPRIATIONS FOR EDUCATION EDU, WAM
S.D. 1   Provides an additional 283 permanent positions and
        $11,000,000 of operating funds to the Department of
        Education for fiscal year 1998-1999.
        (MIZUGUCHI B.R.)

S.B. 1283  MAKING AN EMERGENCY APPROPRIATION FOR THE UNCLAIMED
        PROPERTY PROGRAM                                   
                 WAM
        Appropriates additional funds in fiscal year 1998-1999
        to pay judgements and claims under the Unclaimed
        Property program.
        (MIZUGUCHI B.R.)


 
 
 
 


 
S.B. 1300  MAKING AN EMERGENCY APPROPRIATION TO PAY THE SHARE OF
        HEALTH INSURANCE CARRIER REFUND AND RATE CREDIT AMOUNT
        DUE TO THE FEDERAL GOVERNMENT                   WAM
        Appropriate funds in fiscal year 1998-99 to pay the
        federal government its share of health insurance
        rebates and rate credits received by the general fund
        during fiscal year 1998-1999.
        (MIZUGUCHI B.R.)

S.B. 1639  MAKING AN EMERGENCY APPROPRIATION FOR KAPOLEI HIGH
        SCHOOL
                                                      EDU, WAM
        Making an emergency appropriation for Kapolei High
        School.
        (MIZUGUCHI B.R.)


       NO TESTIMONY WILL BE ACCEPTED FOR THESE BILLS


If you require special assistance or auxiliary aids or services
to participate in the public hearing process (i.e., sign language
interpreter, wheelchair accessibility, or parking designated for
the disabled), please contact the committee clerk 24 hours prior
to the hearing so arrangements can be made.

FOR FURTHER INFORMATION, PLEASE CALL THE COMMITTEE CLERK AT 586-
6800.



____________________________      _______________________________
Senator Carol Fukunaga            Senator Andrew Levin
Co-Chair                          Co-Chair



____________________________ 
Senator Cal Kawamoto         
Chair