STAND. COM. REP. NO. 50-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2023
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.B.
No. 2023 entitled: 

     "A BILL FOR AN ACT RELATING TO AGRICULTURAL INFRASTRUCTURE,"

begs leave to report as follows:

     The purpose of this bill is to provide a tax credit of ten
per cent of the cost of improvements over $20,000 to encourage
private investment in the planning, design, construction,
reconstruction, improvement, altering, or repair of existing
agricultural infrastructures.

     Your Committee finds that existing agricultural
infrastructures must be preserved and reconfigured to support new
agricultural ventures.

     The Hawaii Farm Bureau Federation, Pineapple Growers
Association of Hawaii, and a concerned individual submitted
testimony in support of this measure.  The Department of Taxation
submitted testimony in opposition to this measure.

     Your Committee has amended this measure by:

     (1)  Reducing the improvement amount from $200,000 to
          $20,000; 

     (2)  Changing the effective date of the bill to apply to
          taxable years beginning after December 31, 1999; and


 
 
                                 STAND. COM. REP. NO. 50-00
                                 Page 2

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

     As affirmed by the record of votes of the members of your
Committee on Agriculture that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2023, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 2023, H.D. 1, and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Agriculture,



                                   ______________________________
                                   FELIPE P. ABINSAY, JR., Chair