STAND. COM. REP. NO.  1210

Honolulu, Hawaii

                , 2017

RE:   S.B. No. 803

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred S.B. No. 803, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO FOOD SAFETY,"

begs leave to report as follows:

The purpose of this measure is to promote food safety by:

     (1)  Establishing an income tax credit to assist farmers with expenses associated with compliance with the Federal Food Safety Modernization Act; and

     (2)  Establishing the Food Safety Modernization Act Special Fund.

The Hawaii Farm Bureau, Maui Chamber of Commerce, Hawaii Cattlemen's Council, Maui County Farm Bureau, Ulupono Initiative, and three individuals supported this measure.  The Department of Agriculture supported the intent of this measure.  The Department of Taxation and Tax Foundation of Hawaii provided comments.

     Your Committee notes that there was considerable discussion about other methods that may be used to assist farmers in meeting Food Safety Modernization Act requirements, including other tax credits or grants.

     Your Committee has amended this measure by changing the effective date of this measure to July 31, 2150, to encourage further discussion.

     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. 803, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 803, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

RICHARD P. CREAGAN, Chair