Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred H.B. No. 2248 entitled:

begs leave to report as follows:

The purpose of this bill, as received, is to amend a previous authorization of special purpose revenue bonds (SPRBs) made under Act 266, Session Laws of Hawaii (SLH) 2000, by:

Your Committee notes that this bill, as received, raised serious concerns regarding the legality of awarding a previous SPRB authorization to a completely different entity.

Your Committee has thus amended this measure by deleting its contents and replacing it with a new authorization for special purpose revenue bonds. More specifically, the amended bill authorizes up to $10,000,000 in SPRBs to assist Poaka, Incorporated, in planning and building a food processing plant for coffee and other agricultural products.

Your Committee recognizes that the provisions of Act 266, SLH 2000, providing for up to $10,000,000 in SPRBs for the Kauai Coffee Company, Incorporated, is still in effect. However, your Committee has received assurances that this entity will not seek to expend the funds authorized and has authorized the new SPRB funds contained in the amended draft of this bill based on this assumption.

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 H.B. No. 2248, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2248, H.D. 1, and be referred to the Committee on Finance.