Bill Text: HI SB803 | 2017 | Regular Session | Amended
Bill Title: Relating To Food Safety.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Engrossed - Dead) 2017-03-22 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Ichiyama, C. Lee, Lowen excused (3). [SB803 Detail]
Download: Hawaii-2017-SB803-Amended.html
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THE SENATE |
S.B. NO. |
803 |
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TWENTY-NINTH LEGISLATURE, 2017 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO FOOD SAFETY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The federal Food and Drug Administration has formalized stricter food safety regulations for agriculture under the recently passed Food Safety Modernization Act. The new standards include provisions, such as frequent sampling of irrigation water, that will be burdensome and expensive for many of Hawaii's farmers. The costs that farmers must incur to comply with the new food safety requirements are prohibitive to some farmers and will likely result in farm closures. These farmers require assistance with meeting the compliance costs to prevent the detrimental effect that closures will have on the diversified agricultural industry in the state.
SECTION 2. Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:
"§141- Food Safety Modernization Act special fund. There is established in the state treasury the Food Safety Modernization Act special fund to be administered by the department of agriculture and into which shall be deposited fees assessed and collected by the department of agriculture pursuant to section 235- (f). Moneys in the special fund shall be used for the purposes described in section 235- (f)."
SECTION 3. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235-A Food Safety Modernization Act tax credit. (a) There shall be allowed to each qualified taxpayer subject to the tax imposed under this chapter, an income tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.
(b) The amount of the tax credit shall be equal to the qualified expenses of the qualified taxpayer, up to a maximum of $50,000.
(c) In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for qualified expenses incurred by the entity for the taxable year. The expenses upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined pursuant to section 704(b) of the Internal Revenue Code.
(d) The total amount of tax credits allowed under this section shall not exceed $2,000,000 for all qualified taxpayers in any taxable year; provided that any taxpayer who is not eligible to claim the credit in a taxable year due to the $2,000,000 cap having been exceeded for that taxable year shall be eligible to claim the credit in the subsequent taxable year.
(e) Prior to March 31, every qualified taxpayer shall submit a written, certified statement to the chairperson of the board of agriculture stating the qualified expenses incurred by the taxpayer in the previous taxable year, and also identifying the amount of the tax credit claimed by the taxpayer pursuant to this section, if any, in the previous taxable year.
(f) The department of agriculture shall:
(1) Maintain records of the names and addresses of the qualified taxpayers claiming the credits under this section and the total amount of the qualified expenses upon which the tax credits are based;
(2) Verify the nature and amount of the qualified expenses;
(3) Total all qualified and cumulative expenses that the department certifies;
(4) Certify the amount of the tax credit for each taxpayer for each taxable year and the cumulative amount of the tax credit; and
(5) May adopt rules under chapter 91 necessary to effectuate the purposes of this subsection.
Upon each determination made under this subsection, the department of agriculture shall issue a certificate to the taxpayer verifying information submitted to the department of agriculture, including amounts of qualified expenses, the credit amount certified for the taxpayer for each taxable year, and the cumulative amount of tax credits certified. The taxpayer shall file the certificate with the taxpayer's tax return with the department of taxation.
The department of agriculture may assess and collect a fee to offset the costs of certifying tax credit claims under this section. The fees collected shall be deposited into the Food Safety Modernization Act special fund established by section 141- .
(g) The director of taxation:
(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;
(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and
(3) May adopt rules under chapter 91 necessary to effectuate the purposes of this section.
(h) If the tax credit under this section exceeds the taxpayer's net income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's net income tax liability in subsequent years until exhausted. All claims for the tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.
(i) As used in this section:
"Food Safety Modernization Act" means the federal Food Safety Modernization Act of 2011, Public Law 111-353, as amended.
"Net income tax liability" means income tax liability reduced by all other credits allowed under this chapter.
"Qualified expenses" means expenses incurred by a qualified taxpayer to comply with the requirements of the Food Safety Modernization Act.
"Qualified taxpayer" means a farmer, food processor, and produce merchant wholesaler who is subject to the Food Safety Modernization Act and whose gross income from the sale of agricultural products for the most recently reported fiscal year totals no more than $500,000."
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 31, 2150; provided that section 3 shall apply to taxable years beginning after December 31, 2150.
Report Title:
Agriculture; Food Safety Modernization Act; Income Tax Credit; Special Fund
Description:
Establishes an income tax credit to assist farmers with expenses associated with compliance with the Food Safety Modernization Act. Establishes the Food Safety Modernization Act special fund. (SB803 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
