Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred S.B. No. 1496 entitled:

begs leave to report as follows:

The purpose of this measure is to extend the period of authorization for issuing Special Purpose Revenue Bonds on behalf of Hawaii Gold Cacao Tree, Inc., from June 30, 2003, to June 30, 2005.

Testimony in support of this measure was submitted by Hawaii Gold Cacao Tree, Inc., a coalition of native Hawaiian farmers, and Hakalau Farm & Nursery. Testimony in support of the intent of this measure was submitted by the Board of Agriculture.

Your Committee finds that Hawaii Gold Cacao Tree's success with growing, processing, and marketing cacao beans in Hawaii gives hope to independent farmers who want to invest in this crop. Because Hawaii Gold Cacao Tree's further commitment to build a cacao processing and chocolate manufacturing facility in Hawaii gives farmers the assurance that they will have a local outlet for their product.

Hawaii Gold Cacao Tree's efforts to build this facility were hampered by the events of September 11, 2001, which caused the market to drop and the shipment of equipment to require terrorism insurance, which has been extremely difficult to acquire. Your Committee finds that the project remains on track, but needs more time to be completed.

As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1496 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.