REPORT TITLE:
SPERB; CEATECH USA


DESCRIPTION:
Authorizes special purpose revenue bonds to assist the CEATECH
USA by building a processing plant and for expanding shrimp farm
facilities.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                             
THE SENATE                              S.B. NO.           508
TWENTIETH LEGISLATURE, 1999                                     
STATE OF HAWAII                                                 
                                                             
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                     A  BILL  FOR  AN  ACT

RELATING TO SPECIAL PURPOSE REVENUE BONDS FOR PROCESSING
   ENTERPRISES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that CEATECH USA's "total
 
 2 shrimp production systems" in operation at Kekaha on the island
 
 3 of Kauai is experiencing very successful yields.  This has been
 
 4 attributed to a number of factors including optimal weather
 
 5 conditions, an abundant source of clean saline water, and proven
 
 6 shrimp farming expertise built on years of research and practical
 
 7 application.
 
 8      The anticipated phasing out of the sugar industry at Kekaha
 
 9 could potentially provide as much as twelve thousand acres of
 
10 land suitable for a diverse number of crops including the
 
11 production of shrimp.  CEATECH USA's shrimp operation has the
 
12 potential not only of producing hundreds of direct and indirect
 
13 jobs thus helping to fill the expected economic void within that
 
14 region, but also of becoming the nation's largest producer of
 
15 cultured marine shrimp.
 
16      The extraordinary flavor and texture of the fresh Kekaha
 
17 produced shrimp is gaining a favorable reputation that could fill
 
18 a recognized niche.  The National Fisheries Institute reports
 
19 that imports account for eighty-one per cent or 600 million
 

 
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                                     S.B. NO.           508
                                                        
                                                        

 
 1 pounds of these delectable high-priced morsels consumed in the
 
 2 United States.  This economic opportunity is another reason for
 
 3 the state legislature to lend its support to the shrimp industry
 
 4 in Hawaii. 
 
 5      Including the value added from processing, marketing,
 
 6 distribution, and service, shrimp accounts for more than $10
 
 7 billion in United States consumer spending annually.  The
 
 8 construction of a processing plant and expansion of shrimp
 
 9 farming facilities is absolutely essential for the evolution and
 
10 growth of this shrimp operation on Kauai.  
 
11      The legislature finds and declares that the issuance of
 
12 special purpose revenue bonds under this Act constitutes a
 
13 processing enterprise pursuant to part IV, chapter 39A, Hawaii
 
14 Revised Statutes, and also constitutes an industrial enterprise
 
15 pursuant to part V, chapter 39A, Hawaii Revised Statutes, and is
 
16 in the public interest.
 
17      SECTION 2.  Pursuant to part IV, chapter 39A, Hawaii Revised
 
18 Statutes, the department of budget and finance, with the approval
 
19 of the governor, is authorized to issue special purpose revenue
 
20 bonds in a total amount not to exceed $5,000,000, in one or more
 
21 series for the purpose of assisting CEATECH USA in planning and
 
22 building a processing plant for shrimp.  The legislature finds
 
23 and declares that the issuance of special purpose revenue bonds
 

 
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                                     S.B. NO.           508
                                                        
                                                        

 
 1 under this Act constitutes a processing enterprise project as
 
 2 defined in part IV, chapter 39A, Hawaii Revised Statutes, and is
 
 3 in the public interest.
 
 4      SECTION 3.  The special purpose revenue bonds issued under
 
 5 section 2 of this Act shall be issued pursuant to part IV,
 
 6 chapter 39A, Hawaii Revised Statutes, relating to the power to
 
 7 issue special purpose revenue bonds to assist processing
 
 8 enterprises.
 
 9      SECTION 4.  The department of budget and finance is further
 
10 authorized to issue from time to time refunding special purpose
 
11 revenue bonds authorized in such principal amounts as the
 
12 department shall determine to be necessary to refund the special
 
13 purpose revenue bonds authorized in section 2.
 
14      SECTION 5.  Pursuant to part V, chapter 39A, Hawaii Revised
 
15 Statutes, the department of budget and finance, with the approval
 
16 of the governor, is authorized to issue special purpose revenue
 
17 bonds in a total amount not to exceed $        , in one or more
 
18 series for the purpose of assisting CEATECH USA in expanding its
 
19 shrimp farm facilities.  The legislature finds and declares that
 
20 the issuance of special purpose revenue bonds under this Act
 
21 constitutes an industrial enterprise project as defined in part
 
22 V, chapter 39A, Hawaii Revised Statutes, and is in the public
 
23 interest.
 

 
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                                     S.B. NO.           508
                                                        
                                                        

 
 1      SECTION 6.  The special purpose revenue bonds issued under
 
 2 section 5 of this Act shall be issued pursuant to part V, chapter
 
 3 39A, Hawaii Revised Statutes, relating to the power to issue
 
 4 special purpose revenue bonds to assist industrial enterprises.
 
 5      SECTION 7.  The department of budget and finance is further
 
 6 authorized to issue from time to time refunding special purpose
 
 7 revenue bonds authorized in such principal amounts as the
 
 8 department shall determine to be necessary to refund the special
 
 9 purpose revenue bonds authorized in section 5.
 
10      SECTION 8.  The authorization to issue special purpose
 
11 revenue bonds under this Act shall lapse on June 30, 2004.
 
12      SECTION 9.  This Act shall take effect upon its approval.
 
13 
 
14                           INTRODUCED BY: ________________________