STAND. COM. REP. NO. 2191

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2941
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred
S.B. No. 2941 entitled: 

     "A BILL FOR AN ACT PROPOSING AN AMENDMENT TO ARTICLE VII,
     SECTION 3, OF THE STATE CONSTITUTION TO PROVIDE FOR THE
     APPOINTMENT OF A TAX REVIEW COMMISSION EVERY TEN YEARS,"

begs leave to report as follows:

     The purpose of this measure is to propose a constitutional
amendment that would extend the time period between the convening
of Tax Review Commissions from every five years to every ten
years.

     Testimony in support of the measure was received from the
Department of Taxation.  The Tax Foundation provided comments on
the measure.

     Your Committee finds that Article VII, Section 3, of the
State Constitution requires that a Tax Review Commission be
convened to review the tax policy of the State.  Your Committee
also finds that in practical terms, the five-year time period
between the convening of Tax Review Commissions is too short to
effectively determine the long term fiscal ramifications of the
State's tax policy.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of

 
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                                   STAND. COM. REP. NO. 2191
                                   Page 2


S.B. No. 2941 and recommends that it pass Second Reading and be
referred to the Committee on Judiciary.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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