STAND. COM. REP. NO. 2040

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2530
                                        




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

Sir:

     Your Committee on Economic Development, 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 measure is to authorize the issuance of
special purpose revenue bonds not to exceed $10,000,000 to assist
Hawaii Gold Cacao Tree, Inc., to finance the establishment of
facilities on the Island of Hawaii to process cacao beans and
manufacture and produce cacao and chocolate products.

     Testimony in favor of this measure was submitted by the
Department of Agriculture; the Mayor of the County of Hawaii;
Rural Economic Transition Assistance, Hawai`i; Mauna Loa
Macadamia Nut Corp.; and Hawaii Gold Cacao Tree, Inc.  Great
Pacific Chocolate Company, Inc., submitted testimony expressing
concerns.

     Your Committee finds that Hawaii Gold Cacao Tree, Inc.,
proposes to build a 70,000 square foot facility, and initially
employ one hundred people in its high technology processing and
manufacturing activities.  In addition, your Committee has heard
that many of the skills that were vital to the sugar industry are
applicable to the cacao industry, increasing opportunities for
unemployed sugar workers in the region.

     Your Committee was also presented with concerns regarding
importation of cacao beans and seed stock, and the possibility of

 
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                                   STAND. COM. REP. NO. 2040
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disease importation as a result.  The Department of Agriculture
responded that any such importation would be subject to rigorous
testing, as is done presently with coffee.

     Your Committee believes cacao production represents another
opportunity for Hawaii's increasingly diversified farming
industry and is supportive of this measure. 

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2530 and recommends that it pass Second Reading and
be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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