STAND. COM. REP. NO. 2770

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 1427
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 1427 entitled: 

     "A BILL FOR AN ACT RELATING TO AQUACULTURE,"

begs leave to report as follows:

     The purpose of this bill is to classify aquaculture
production transactions as "wholesale" transactions for general
excise tax purposes.

     Your Committee finds that the assessment of the general
excise tax for aquaculture producers appears to be determined
arbitrarily, and is often detrimental to the profitability of
aquaculture farms in Hawaii.  Additionally, aquaculture producers
face stiff foreign competition that do not have similar tax
expenses.

     This bill assists aquaculture producers by leveling the
playing field to ensure that aquaculture production transactions
are taxed at the wholesale rate of one-half of one per cent.

     Your Committee has amended the bill by changing the
effective date to July 1, 2010 to allow for further discussion on
this matter.


 
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                                   STAND. COM. REP. NO. 2770
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     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1427, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 1427, S.D. 1.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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