STAND. COM. REP. NO. 934-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2411
                                     S.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred S.B.
No. 2411, S.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 bill is to authorize the issuance of
special purpose revenue bonds and refunding special purpose
revenue bonds to assist Kauai Coffee Company, Incorporated in
planning and building a processing plant for freeze dried coffee.

     Your Committee finds that there are nearly seven thousand
acres of coffee being grown in Hawaii: Hamakua, Kau, and Kona on
the island of Hawaii; Kaanapali on Maui; Hoolehua on Molokai;
Waialua on Oahu; and Kalaheo on Kauai.  With these thousands of
acres of coffee, the industry must develop new products and
markets for its Hawaii-grown coffee such as freeze dried coffee.
Buyers for freeze dried coffee include the United States military
with its "meals-ready-to-eat" (MRE) program, overseas markets,
and niche markets.

     The Kauai Coffee Company submitted testimony in support of
this bill.  The Department of Budget and Finance commented on
this measure.

     As affirmed by the record of votes of the members of your
Committee on Agriculture that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.

 
 
                                 STAND. COM. REP. NO. 934-00
                                 Page 2

 
2411, S.D. 1, and recommends that it pass Second Reading and be
referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Agriculture,



                                   ______________________________
                                   FELIPE P. ABINSAY, JR., Chair