STAND. COM. REP. NO. 915

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 801
                                        H.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred H.B. No. 801, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS
     FOR PROCESSING ENTERPRISES,"

begs leave to report as follows:
     
     The purpose of this measure is to authorize the issuance of
$3,000,000 in special purpose revenue bonds for CEATECH USA, in
planning and building a processing plant for shrimp.

     Your Committee received testimony in support of this measure
from the Department of Agriculture, the County of Kauai, CEATECH
USA, the Hawaii Aquaculture Association, and BOC Gases/Gaspro.

     Your Committee finds that CEATECH USA is a Hawaii based
corporation, located in Kekaha, Kauai, with one hundred acres of
land in various stages of shrimp production, including a breeding
site, a plantation site, an accounting office, and a small
packing facility located in Hanapepe.  With the special purpose
revenue bonds authorized by this measure, CEATECH USA plans to
renovate and expand the Hanapepe packing facility into a
processing plant capable of freezing, glazing, and packaging
premium shrimp for distribution.

     Your Committee further finds that CEATECH USA's contribution
to diversified agricultural opportunities is particularly
important for the island of Kauai, which is experiencing drastic

 
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                                   STAND. COM. REP. NO. 915
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economic change due to the continuing impacts of Hurricane Iniki
and the phasing out of sugar production.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 801, H.D. 1, and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.

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



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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