Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Water, Land, and Agriculture and Economic Development, to which was referred S.B. No. 1435 entitled:

beg leave to report as follows:

The purpose of this measure is to authorize special purpose revenue bonds for Hawaii Gold Cacao Tree, Inc. to finance facilities for processing cacao beans and manufacturing cocoa by-products and chocolate on Kauai.

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

Your Committees find that such facilities would bring much needed jobs and revenues to the island of Kauai, which has seen the loss of sugar operations in recent years. The growth and processing of the new crop of cacao, which has proven successful on the Big Island, would utilize the extant agricultural skills and knowledge of Kauai's people, as well as provide jobs for future generations.

Your Committees also find that Hawaii Gold Cacao Tree, Inc. has proven its knowledge, experience, and ability to run a successful cacao business on the Big Island. It has been determined that cacao can be grown sustainably on Kauai by independent farmers and Hawaii Gold Cacao Tree, Inc.

As affirmed by the records of votes of the members of your Committees on Water, Land, and Agriculture and Economic Development that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1435 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.