CONFERENCE COMMITTEE REP. NO. 85

Honolulu, Hawaii

                 , 2017

RE:    S.B. No. 713

       S.D. 1

       H.D. 1

       C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 713, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO BUDGET DOCUMENTS,"

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 require that the state six-year program and financial plan and budget include information on tax expenditures, which are exemptions, deductions, credits, exclusions, or other deviations from the normal tax structure.

     Your Committee on Conference finds that tax expenditures, like appropriations of funds, result in the reduction of available resources for public programs.  However, information about tax expenditures, particularly their negative impact on the state treasury, is not as readily available to the public as is information about budget appropriations and expenditures.  Your Committee therefore finds that this measure promotes transparency and facilitates the provision of information necessary for the Legislature to weigh the costs of tax expenditures against the costs of public programs that are dependent on budget appropriations.

     Your Committee on Conference has amended this measure to take effect on July 1, 2018.

     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. 713, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 713, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ SYLVIA LUKE Chair

____________________________ JILL N. TOKUDA Chair