STAND. COM. REP. NO. 1349_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1076
                                     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 Consumer Protection and Commerce, to which
was referred S.B. No. 1076 entitled: 


begs leave to report as follows:

     The purpose of this measure is to provide insurance
companies an incentive to invest in low-income housing projects
and thus encourage the inflow of capital into Hawaii, by
authorizing insurance companies to offset their premium taxes
with the low-income housing tax credit.

     Your Committee received testimony in support of this measure
from the Department of Taxation and the Housing and Community
Development Corporation of Hawaii (HCDCH).  HCDCH testified that
this measure would not increase the amount of tax credits to be
provided by the State.  Instead, the measure is anticipated to
result in increased demand for tax credits, resulting in a higher
price paid for these credits, and allowing low income rental
projects to be supported through the award of fewer credits.

     Your Committee has amended this measure, as suggested by
HCDCH and the Department of Taxation, to increase the accuracy of
the title of the new section, by amending "income tax credit" to
read, "insurance premium tax credit."

                                 STAND. COM. REP. NO. 1349_______
                                 Page 2

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 1076, as amended herein, and recommends that
it be referred to the Committee on Finance in the form attached
hereto as S.B. No. 1076, H.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,

                                   RON MENOR, Chair