STAND. COM. REP. NO.  936

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 595

      S.D. 1

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred S.B. No. 595, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose of this measure is to include milk, poultry, eggs, poultry carcass, poultry meat, and aquaculture and aquaponics products to be consumed within the State, whether imported or processed within the State, to the agricultural commodities that are exempt from the State's general excise tax on amounts received for loading, transportation, and unloading.

Ulupono Initiative, Hawaii Food Industry Association, and Hawaii Farm Bureau Federation testified in support of this measure.  One concerned individual testified in opposition to this measure.  The Department of Agriculture, Department of Taxation, Tax Foundation of Hawaii, and Hawaii Cattlemen's Council, Inc. offered comments.

     Your Committee has amended this measure by:

     (1)  Adding beef and beef carcasses; goat meat and goat carcasses; lamb meat and lamb carcasses; and sheep meat and sheep carcasses to the definition of agricultural commodities to be exempt from the general excise tax laws; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, 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 S.B. No. 595, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 595, S.D. 1, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

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

____________________________

JESSICA WOOLEY, Chair