Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 63
                                        S.D. 1

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Labor and Environment, to which was
referred S.B. No. 63 entitled: 


begs leave to report as follows:

     The purpose of this measure is to provide a tax credit for
employers hiring recently released persons who have been
incarcerated for conviction of felonies.

     Testimony supporting the measure with amendments was
received from the Department of Public Safety.  Testimony in
opposition to this measure was received from the Department of
Taxation.  The Tax Foundation offered comments on the measure.

     Your Committee finds that meaningful employment is critical
in reducing recidivism not only for persons participating in
parole programs, but, also, to inmates who have been granted
furloughs for employment.  Employment and education are critical
factors for the offender's re-integration into the community.  

     Your Committee has amended this measure to include a tax
incentive to employers for hiring inmates who have been granted a
furlough for employment.  

     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 63, as amended herein, and recommends that it pass

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                                   STAND. COM. REP. NO. 333
                                   Page 2

Second Reading in the form attached hereto as S.B. No. 63,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and

                                   BOB NAKATA, Chair

a                                                     SB63