CONFERENCE COMMITTEE REP. NO. 159

Honolulu, Hawaii

                 , 2009

RE:    H.B. No. 1544

       H.D. 1

       S.D. 1

       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. 1544, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAX EXEMPTIONS,"

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 conform the state income tax exemption to the personal exemption phase-out provision found in Section 151 of the Internal Revenue Code.  This bill also adjusts the income level at which the phase-out begins by using the inflation-adjusted amounts as of July 1, 2008, and by further reducing those amounts by 25 percent.

     Upon further consideration, your Committee on Conference has amended this bill by:

     (1)  Changing the effective date to upon its approval; and

     (2)  Making technical, nonsubstantive amendments for purposes of consistency and clarity.

     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. 1544, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1544, H.D. 1, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ DONNA MERCADO KIM, Chair

____________________________ MARCUS R. OSHIRO, Chair