STAND. COM. REP. NO. 2037

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2415
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred S.B. No. 2415 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to provide a tax credit for
major investments in the planning, design, construction,
reconstruction, improvement, altering, or repair of supporting
infrastructure used or formerly used by a plantation system or
other large agricultural operation.

     Testimony in favor of this measure was submitted by the
Hawaii Farm Bureau; the Pineapple Growers Association of Hawaii;
Kamehameha Schools; Grove Farm Company, Incorporated; and one
individual.  The Department of Taxation submitted testimony in
opposition.  The Tax Foundation of Hawaii submitted comments.

     Your Committee finds that maintenance of abandoned
plantation infrastructure is considered to be such a large
undertaking that the assumption has been only government could be
expected to provide adequate support.  This measure would provide
an incentive for the private sector, with the twofold benefit of
improved infrastructure at a savings for taxpayers.  With more
and more infrastructure at risk with each passing year, your
Committee is supportive of this measure as one alternative means
of addressing a critical problem.


 
a                                                     SB2415
 
                                   STAND. COM. REP. NO. 2037
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2415 and recommends that it pass Second Reading and
be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
a                                                     SB2415