Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred H.B. No. 2385 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds (SPRBS) in the amount of $3,000,000, to assist Wines of Kauai, LLC.

Testimony in support of this measure was received from the Hawaii Farm Bureau, Kauai County Farm Bureau, Wines of Kauai, M & K Ohana Rentals, LLC., and an individual.

The proceeds from the SPRBS will be used to plan, design, construct, and equip a winery on Kauai. Your Committee finds that this project qualifies for issuance of SPRBS, as assisting a processing enterprise under part IV of chapter 39A, Hawaii Revised Statutes.

This measure would aid Kauai to diversify its economy. Kauai's economy has been in a downturn in the past few years, aggravated by several natural disasters and the recent closure of Kekaha Sugar Company. Wines of Kauai is a company that is conducive to agricultural activities and offers great potential to prosper on Kauai.

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. 2385, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.