Sales and use tax; menstrual discharge collection devices; create an exemption

2025-2026 Regular Session Introduced by Karen Bennett and 5 co-sponsors

HB 499 boosts Hawaii's food supply resilience by offering tax credits to businesses, streamlining permits, and ensuring food security for residents amid disruptions.

House Second Readers

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Purpose and Intent

Bill HB 499 aims to enhance the resiliency of Hawaii's food and beverage supply chain through strategic measures that involve the Department of Business, Economic Development & Tourism (DBEDT) and the Department of Taxation (DOTAX). The bill seeks to establish a framework for improving the state's capacity to withstand and recover from disruptions in the food supply chain, thereby ensuring food security for residents.

Key Provisions

Tax Credit Incentives: The bill proposes the introduction of tax credits aimed at businesses involved in the food and beverage supply chain. These credits are intended to encourage investment in resiliency measures and infrastructure improvements.

Permit Streamlining: HB 499 includes provisions for streamlining the permitting process for businesses that wish to implement resiliency-enhancing projects. This aims to reduce bureaucratic delays and facilitate quicker responses to supply chain disruptions.

Collaboration with Agencies: The bill mandates collaboration between DBEDT and DOTAX to develop guidelines and criteria for the implementation of the proposed tax credits and permits.

Affected Parties

Businesses in the Food and Beverage Sector: The primary beneficiaries of this bill are businesses involved in the food and beverage supply chain, including producers, distributors, and retailers.

Consumers: By strengthening the supply chain, consumers in Hawaii will benefit from improved food security and potentially more stable prices.

State Agencies: DBEDT and DOTAX will have increased responsibilities in overseeing the implementation of the bill’s provisions.

Legislative Timeline

Introduced: January 17, 2025

First Reading: January 21, 2025

Committee Hearings: The bill was heard by the Agriculture Committee (AGR) on January 29, 2025, where it was recommended for passage with amendments.

Second Reading: On February 3, 2025, the bill passed its Second Reading as amended in HD 1 and was referred to the Economic Development Committee (ECD).

Voting Record: The AGR committee reported the bill with unanimous support, with no votes against it and only two representatives excused.

Related Legislation

Companion Bill: SB 369 serves as a companion to HB 499, indicating parallel legislative efforts to address similar issues related to resiliency in the food supply chain.

This summary provides an overview of HB 499, highlighting its purpose, key provisions, affected parties, and important legislative actions. The bill represents a proactive approach to enhancing the resilience of Hawaii's food supply, which is critical for the state's overall economic stability and public health.

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