Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 999
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Judiciary and Hawaiian Affairs, to which
was referred H.B. No. 999 entitled: 


begs leave to report as follows:

     The purpose of this bill is to strengthen the penalties for
failing to report income derived from racketeering activity by:

     (1)  Making violators subject to both imprisonment and a
          monetary penalty; and

     (2)  Clarifying that a person who wilfully fails to report
          income derived, directly or indirectly, from a
          racketeering activity or through collection of an
          unlawful debt is guilty of a class B felony.

     Testimony in support of this bill was received from the
Attorney General and the Department of the Prosecuting Attorney
of the City and County of Honolulu, and the Office of the Public

     Your Committee finds that requiring that the income be
derived, directly or indirectly from a racketeering activity or
through collection of an unlawful debt, is necessary to
distinguish this offense from the general misdemeanor offense of
failure to report income for tax purposes under chapter 235,
Hawaii Revised Statutes.

                                 STAND. COM. REP. NO. 738
                                 Page 2

     Your Committee also finds that under current Hawaii law, if
the two offenses are not distinguished, the law requires that
violators be charged with the lesser misdemeanor offense.

     Your Committee has amended this bill by:

     (1)  Specifying that this Act has prospective application to
          adhere to constitutional protections against the
          enactment of ex post facto laws; and

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

     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 999, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
999, H.D. 1, and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,

                                   PAUL T. OSHIRO, Chair