STAND. COM. REP. NO. 2735

                                   Honolulu, Hawaii
                                                     , 2000

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




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2411 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 a cooperative formed by coffee growers of
Hawaii in planning and building a processing plant for freeze
dried coffee, at a site to be determined.

     Your Committee finds that in order to develop additional
markets for Hawaii-grown coffee, the industry must add new
products such as freeze dried coffee.  Prospective buyers for
freeze dried coffee include the United States military, overseas
markets, and niche markets such as eco-tourism that rely on
portable and durable food products.

     Your Committee has amended this bill by:

     (1)  Designating Kauai Coffee Company, Incorporated as the
          recipient of these special purpose revenue bond funds;
          and


 
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     (2)  Requiring the Department of Budget and Finance to:

          (A)  Evaluate Kauai Coffee Company's application for
               financing of the processing plant using the
               information submitted on Form P-501, entitled
               "Formal Application for Financing of an Processing
               Enterprise", dated June 1, 1999; and

          (B)  Report its findings and recommendation to the
               Legislature not less than twenty days before the
               convening of the Regular Session of 2001;

     before issuing special purpose revenue bonds under this
     bill.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2411, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 2411, S.D. 1.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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