STAND.
COM. REP. NO. 469
Honolulu, Hawaii
, 2023
RE: H.B. No. 1384
H.D. 1
Honorable Scott K. Saiki
Speaker, House of Representatives
Thirty-Second State Legislature
Regular Session of 2023
State of Hawaii
Sir:
Your Committee on Economic Development, to which was referred H.B. No. 1384 entitled:
"A BILL FOR AN ACT RELATING TO MANUFACTURING,"
begs leave to report as follows:
Your Committee received testimony in support of this measure from the Department of Research and Development of the County of Hawaii, Ulupono Initiative, Hawai‘i Farm Bureau, Chamber of Commerce Hawaii, Hawaii Food Manufacturers Association, and Hawaii Food Industry Association. Your Committee received comments on this measure from the Department of Taxation, Department of Agriculture, Tax Foundation of Hawaii, and Hawai‘i Technology Development Corporation.
Your Committee finds that many industries in Hawaii, including the food manufacturing industry, have struggled with not only the effects of the COVID-19 pandemic but also high inflation, supply chain shortages, and a growing workforce shortage. Your Committee further finds that the food manufacturing industry can help the State's food security by strengthening the link between farmers and other agricultural producers and Hawaii's small business enterprises that process raw agricultural products. Your Committee believes that establishing an incentive for food manufacturers in the State to use Hawaii‑grown food ingredients will prevent food waste, help meet the goals of doubling local food production by 2030, and broaden and diversify the economy away from the State's heavy reliance on tourism.
Your Committee has amended this measure by:
(1) Amending the definition of "qualified taxpayer" to require a person or business entity engaged in the food manufacturing industry in the State to also manufacture food that has had at least fifty-one percent of its wholesale value added by manufacture, assembly, fabrication, or production within the State;
(2) Changing its effective date to June 30, 3000, to encourage further discussion; and
(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1384, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1384, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Economic Development,
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____________________________ DANIEL HOLT, Chair |