STAND. COM. REP. NO. 349

Honolulu, Hawaii

, 2005

RE: S.B. No. 1880

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred S.B. No. 1880 entitled:

"A BILL FOR AN ACT RELATING TO DROUGHT MITIGATING FACILITIES,"

begs leave to report as follows:

The purpose of this measure is to promote the construction of drought mitigating water storage facilities.

Testimony in support of this measure was submitted by the Department of Agriculture, Department of Land and Natural Resources, Department of Taxation, County of Maui's Office of Economic Development, Big Island Farm Bureau, Hawaii Agriculture Research Center, Hawaii Cattlemen's Council, Hawaii Crop Improvement Association, Hawaii Farm Bureau, and Pineapple Growers Association of Hawaii. Comments were also submitted by the Tax Foundation of Hawaii.

Your Committee finds that farmers and ranchers suffer great losses to their crops and livestock during periods of drought. These losses often take farmers and ranchers years to recover. However, these losses can be minimized by the construction of water storage facilities to alleviate water problems during times of drought. Thus, this measure promotes the construction of water storage facilities by:

(1) Increasing the tax credit amount to twenty per cent; and

(2) Making the tax credit available until December 31, 2008.

Your Committee also noted that this measure provides a tax credit for the cost of construction or repair to "ancillary structures." However, the term "ancillary structures" is not defined. Your Committee recommends that the Committee on Ways and Means solicit testimony that clarifies this term.

Your Committee has amended this measure by extending rather than repealing the cut off date for the tax credit.

As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1880, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1880, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, and Agriculture,

____________________________

RUSSELL S. KOKUBUN, Chair