STAND. COM. REP. NO.  858

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 1474

      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 Finance, to which was referred H.B. No. 1474, 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 prepare the Industrial Hemp Pilot Program (Pilot Program) for full implementation.

Specifically, this measure:

     (1)  Establishes the Industrial Hemp Special Fund to support the Pilot Program;

     (2)  Clarifies, for county real property tax purposes, that industrial hemp from the Pilot Program is an agricultural product, use, and activity, and that agricultural lands used for the cultivation of industrial hemp shall qualify for the minimum dedication period and assessment at the least expensive classification; and

     (3)  Limits industrial hemp cultivation to licensed owners, lessees, or occupiers of lands situated within the state agricultural land district.

The Department of Budget and Finance, Department of Agriculture, and Tax Foundation of Hawaii provided comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1474, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair