STAND. COM. REP. NO. 1377-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2530
                                     S.D. 1
                                     H.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 Finance, to which was referred S.B. No.
2530, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this bill is to authorize the issuance of
$10,000,000 in special purpose revenue bonds to assist Hawaii
Gold Cacao Tree, Inc. to finance the establishment of facilities
in Hawaii county to process cacao beans and manufacture and
produce cacao and chocolate products.

     Hakalau Farm and Nursery, Rural Economic Transition
Assistance Hawaii, Hawaii Small Business Development Center
Network, and Hawaii Gold Cacao Tree, Inc. submitted testimony in
support of this bill.  The County of Hawaii supported the intent
of the measure.  The Department of Budget and Finance (B&F) and
Department of Agriculture provided comments.

     Your Committee has amended this measure by:

     (1)  Removing an unnecessary requirement that B&F process
          applications for special purpose revenue bonds in
          accord with its own special purpose revenue bond
          "Formal Application for Financing of an Industrial
          Enterprise" procedure, a requirement set forth in B&F's
          administrative rules;

 
 
 
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     (2)  Removing the mandate that B&F report to the legislature
          20 days prior to the regular sessions of 2001 and 2002
          regarding progress made with respect to issuance of the
          special purpose revenue bonds under the bill; and

     (3)  Making technical, nonsubstantive amendments for style
          and clarity.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2530, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2530, S.D.
1, H.D. 1.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair