STAND. COM. REP. NO. 1513-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2925

S.D. 1

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred S.B. No. 2925, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO COCONUT TREES,"

begs leave to report as follows:

The purpose of this measure is to establish an income tax credit for qualified costs incurred by a taxpayer to implement natural management of coconut rhinoceros beetles that result in consumable coconut trees.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources; Libertarian Party of Hawaii; Coordinating Group on Alien Pest Species; Hawaiʻi Food+ Policy; The Nature Conservancy, Hawaiʻi and Palmyra; and four individuals. Your Committee received comments on this measure from the Department of Agriculture and Biosecurity and Department of Taxation.

Your Committee finds that the State imports the vast majority of its food and that coconut provides a flexible and nutritious food source that can support local food production and decrease reliance on imports. Your Committee further finds that the coconut rhinoceros beetle is an invasive pest that threatens the health of the State's coconut trees. Your Committee recognizes that in some cases, harmful pesticides have been applied to coconut trees in efforts to deter coconut rhinoceros beetles. This measure promotes the proper management of coconut trees by creating a tax credit that incentivizes natural management practices and discourages the use of harmful pesticides to limit the spread of coconut rhinoceros beetles.

Your Committee has amended this measure by:

(1) Adding an appropriation of an unspecified amount for positions within the Department of Agriculture and Biosecurity; and

(2) 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 & Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2925, S.D. 1, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as S.B. No. 2925, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair