STAND. COM. REP. NO. 2294

Honolulu, Hawaii

RE: S.B. No. 2509

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 2509 entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX,"

begs leave to report as follows:

The purpose and intent of this measure is to repeal an exemption to the general excise tax for genetically engineered agricultural products.

Your Committee received testimony in support of this measure from Hawai‘i SEED, Hawai‘i Alliance for Progressive Action, Rancho Aloha, and twenty-four individuals. Your Committee received testimony in opposition to this measure from the Hawai‘i Farm Bureau, Hawaii Crop Improvement Association, Biotechnology Innovation Organization, and Hawaii Farmers & Ranchers United. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that this measure promotes a more competitive and fair business environment in the State by repealing the exemption to the general excise tax for genetically engineered agricultural products.

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. 2509 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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MIKE GABBARD, Chair