STAND. COM. REP. NO. 2089

Honolulu, Hawaii

RE:    S.B. No. 2804

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Water, Land, and Agriculture, to which was referred S.B. No. 2804 entitled:

"A BILL FOR AN ACT AUTHORIZING THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST BIG ISLAND DAIRY, LLC,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to assist Big Island Dairy LLC as an agricultural enterprise.

     Your Committee received testimony in support of this measure from the Department of Agriculture; Hawaii Farm Bureau; Hawaii Foodservice Alliance LLC; Big Island Dairy LLC; Ulupono Initiative; Hawaii Cattlemen's Council, Inc.; and two individuals.  Your Committee received comments on this measure from the Department of Budget and Finance.

     Your Committee finds that the proceeds of the sale of special purpose revenue bonds will be used by Big Island Dairy LLC to finance, refinance, and reimburse costs related to the planning, design, and construction of a new milk processing facility in the State.  Your Committee further finds that the issuance of these special purpose revenue bonds is in the public interest and will benefit the public health, safety, and general welfare.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     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. 2804, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2804, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, and Agriculture,

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MIKE GABBARD, Chair