STAND. COM. REP. NO.  266-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 1844

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ocean, Marine Resources, & Hawaiian Affairs, to which was referred H.B. No. 1844 entitled:

"A BILL FOR AN ACT RELATING TO KALO,"

begs leave to report as follows:

The purpose of this measure is to recognize the centrality of kalo and kalo production to Hawaii's culture and agricultural economy by:

     (1)  Exempting kalo farm cooperative marketing sites from zoning and land use restrictions;

     (2)  Making protection of kalo farming as a cultural activity an agricultural planning objective of the State;

     (3)  Establishing a limited income tax exemption for income from kalo farming, kalo products, and related activities; and

     (4)  Exempting amounts received for kalo products, kalo farming, and activities directly related to kalo from the general excise tax.

The Aha Moku Advisory Committee and several individuals submitted testimony in support of this measure.  The Department of Taxation and Department of Agriculture submitted comments.

     Your Committee has amended this measure by:

     (1)  Amending the income tax and general excise tax exemptions to clarify that they are meant to apply to kalo producers and manufacturers of kalo products;

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency; and

     (3)  Changing its effective date to July 1, 2050, to encourage further discussion.  

     As affirmed by the record of votes of the members of your Committee on Ocean, Marine Resources, & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1844, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1844, H.D. 1, and be referred to your Committee on Water & Land.

Respectfully submitted on behalf of the members of the Committee on Ocean, Marine Resources, & Hawaiian Affairs,

____________________________

KANIELA ING, Chair