Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1496 entitled:

begs leave to report as follows:

The purpose of this measure is to extend the authorization of the Department of Budget and Finance to issue special purpose revenue bonds on behalf of Hawaii Gold Cacao Tree, Inc., by two additional years or from June 30, 2003, to June 30, 2005.

Act 188, Session Laws of Hawaii 2000, authorized the Department of Budget and Finance to issue up to $10,000,000 in special purpose revenue bonds 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 Hawaii Gold Cacao Tree, Inc., has shown continuous progress towards establishing a new facility to process cacao beans and produce cacao and chocolate products and has been proactive in developing commercial growing of these seedlings and trees to support its processing facility. Your Committee recognizes, however, that the effect of the September 11, 2001, tragedy on international trade and the shipment of equipment has led to unavoidable delays in establishing the processing facility.

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. 1496 and recommends that it pass Third Reading.