Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1421
                                     S.D. 1
                                     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 S.B. No. 1421, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to allow probation as a
sentencing option for income tax offenses.

     Testimony in support of the bill was received from the
Department of Taxation, the Hawaii State Bar Association Tax
Section, the Hawaii Society of Certified Public Accountants, and
a member of the public.  Additional testimony was received from
the Tax Foundation of Hawaii.

     Your Committee finds that current law requires mandatory
sentencing of a fine, imprisonment, or both, but does not provide
for probation.  Your Committee believes that adding a probation
option to the sentencing of tax offenders will assist in
collection of delinquent taxes.

     Your Committee has amended this bill by making technical,
nonsubstantive amendments for 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 S.B. No. 1421, S.D. 1, as amended herein, and
recommends that it pass Second Reading in the from attached
hereto as S.B. No. 1421, S.D. 1, H.D. 1, and be referred to the
Committee on Finance.

                                 STAND. COM. REP. NO. 1292
                                 Page 2


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

                                   PAUL T. OSHIRO, Chair