STAND. COM. REP. NO. 2554

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2530
                                        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. 2530 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
agriculture-related enterprises relating to cacao processing.

     In particular, the bonds are to assist Hawaii Gold Cacao
Tree, Inc., to finance the establishment of facilities in the
county of Hawaii to process cacao beans and to manufacture and
produce cacao and chocolate products.

     Your Committee finds that this bill will assist diversified
agriculture in the State on lands that were formerly devoted to
the growing of sugar cane, which is now available for the
commercial growing of a number of crops, including cacao
seedlings, cacao trees, and their cacao bean crop.  Your
Committee finds that the establishment of new facilities to
process cacao beans and produce cacao and chocolate products as
provided in this bill will create a number of new jobs to support
the development of cacao nursery and farming operations, as well
as the marketing and sales of cacao and chocolate locally and for
export.


 
a                                                     SB2530 SD1
 
 
                                   STAND. COM. REP. NO. 2554
                                   Page 2


     Upon further consideration, your Committee has amended this
bill by adding a new section requiring the Department of Budget
and Finance to process applications for special purpose revenue
bonds in accordance with the requirements of its "Formal
Application for Financing of an Industrial Enterprise" as it
existed on October 22, 1987.  In addition, the Department is to
report to the Legislature before the convening of the Regular
Sessions of 2001 and 2002 regarding any progress made with
respect to the issuance of special purpose revenue bonds
authorized by the 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.
2530, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 2530, 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

 
a                                                     SB2530 SD1