CONFERENCE COMMITTEE REP. NO. 178

Honolulu, Hawaii

                 , 2007

RE:    S.B. No. 600

       H.D. 2

       C.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 600, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO LEASEHOLD CONVERSION,"

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 measure is to exempt from taxation an unspecified percentage of capital gains realized during taxable years 2008-2009 from sale of leased fee interest in condominium units to association of apartment owners or residential cooperative corporations.

     Your Committee has amended this measure by:

     (1)  Changing the unspecified percentage to one hundred per cent;

     (2)  Changing the effective date to upon approval for taxable years beginning after December 31, 2007, and ending prior to January 1, 2013; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 600, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 600, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ MAILE SHIMABUKURO, Co-Chair	____________________________ CAROL FUKUNAGA, Chair
____________________________ ROBERT N. HERKES, Co-Chair	____________________________ BRIAN T. TANIGUCHI, Co-Chair
____________________________ KARL RHOADS, Co-Chair	____________________________ ROSALYN H. BAKER, Co-Chair