STAND. COM. REP. NO. 88

Honolulu, Hawaii

RE:    S.B. No. 803

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

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

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

begs leave to report as follows:

     The purpose and intent of this measure is to create an income tax credit for qualified expenses incurred by qualified taxpayers to comply with the federal Food Safety and Modernization Act.

     Your Committee received testimony in support of this measure from the Department of Agriculture; Hawai‘i Farm Bureau; Maui County Farm Bureau; Hawaii Center for Food Safety; Hawaii Cattlemen's Council, Inc.; and one individual.  Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

     Your Committee finds that the purpose of the FDA Food Safety Modernization Act is to ensure that the United States food supply is safe by shifting the focus from responding to contamination to preventing it.  Your Committee also finds that it may be difficult and costly for farmers and ranchers in the State to comply with the requirements of the FDA Food Safety Modernization Act.  Your Committee believes that this measure will support Hawaii's agricultural industry by assisting farmers and ranchers with FDA Food Safety Modernization Act compliance.

     Your Committee has amended this measure by:

     (1)  Inserting a new section to establish the Food Safety Modernization Act special fund; and

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

     As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 803, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 803, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

MIKE GABBARD, Chair