STAND. COM. REP. NO.  1168

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 595

      S.D. 1

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 595, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this measure is to assist Hawaii's agricultural industry by including beef and beef carcasses; goat meat and goat carcasses; lamb meat and lamb carcasses; sheep meat and sheep carcasses; milk; poultry; eggs; poultry meat and poultry carcasses; 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 these commodities for interstate transport.

Hawaii Food Industry Association; Hawaii Farm Bureau Federation; Hawaii Cattlemen's Council, Inc.; Ulupono Initiative; 4 Ag Hawaii; and a few concerned individuals supported this measure.  The Department of Agriculture, Department of Taxation, and Hawaii Aquaculture and Aquaponics Association supported the intent of this measure.  The Tax Foundation of Hawaii offered comments.

     Your Committee has amended this measure by adding swine meat and swine carcasses as agricultural commodities included in the exemption from the general excise tax on amounts received for loading, transportation, and unloading these commodities for interstate transport.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 595, S.D. 1, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 595, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L.K. McKELVEY, Chair