CONFERENCE COMMITTEE REP. NO. 164

Honolulu, Hawaii

                 , 2009

RE:    H.B. No. 1405

       H.D. 2

       S.D. 2

       C.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1405, H.D. 2, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX,"

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 conform the State's tax laws to the multi-state Streamlined Sales and Use Tax Agreement.

     Your Committee has amended this measure by:

     (1)  Deleting the contents of the measure and replacing it with the contents of H.B. No. 1405, H.D. 2.;

     (2)  Adding a provision to create a nexus standard for taxing out-of-state businesses on their business activities in Hawaii; and

     (3)  Adding a severability provision.

     Your Committee on Conference notes that Part II of the measure adds a new section to chapter 231, Hawaii Revised Statutes, and further notes that this measure's title relates to general excise taxes.  Your Committee on Conference finds that chapter 231, Hawaii Revised Statutes, relates to the administration of taxes, including general excise taxes.  Therefore, your Committee on Conference finds that Part II of the bill falls within the measure's title and relates to the entire subject matter of the measure.

     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 H.B. No. 1405, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1405, H.D. 2, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ CAROL FUKUNAGA, Chair	____________________________ MARCUS R. OSHIRO, Chair
____________________________ SHAN S. TSUTSUI, Co-Chair