STAND. COM. REP. NO.  116-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 1260

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 1260, 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 expand the types of agricultural commodities exempt from the general excise tax on amounts received for loading, transporting, and unloading by amending the definition of "agricultural commodity" to include beef, beef carcasses, goat meat, goat carcasses, lamb meat, lamb carcasses, sheep meat, sheep carcasses, milk, eggs, poultry meat, and poultry carcasses, and aquaculture and aquaponic products to be consumed in the State, whether imported or processed in the State.

Hawaii Cattlemen's Council, 4 Ag Hawaii, Ulupono Initiative, Hawaii Agriculture Research Center, Hawaii Farm Bureau Federation, Hamakua County Farm Bureau, Hawaii Food Industry Association, Young Brothers, Limited and several individuals testified in support of this measure.  The Department of Taxation provided comments on this measure.

     Your Committee has amended this measure by:

     (1)  Adding cattle, goats, lambs, sheep, hogs, pork, pork carcasses, chickens and milk products to the definition of "agricultural commodity";

     (2)  Clarifying the definition of "agricultural commodity" to include products of aquaculture and aquaponics to be consumed in the State, whether processed in the State or imported; and

     (3)  Changing the effective date to July 1, 2014.

     Your Committee respectfully notes that the agricultural commodities exemption applies to intrastate shipping of agricultural commodities.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1260, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 1260, H.D. 2.

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

____________________________

ANGUS L.K. McKELVEY, Chair