STAND. COM. REP. NO. 805

Honolulu, Hawaii

RE:    S.B. No. 1288

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1288, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS FOR HPC FOODS, LTD,"

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 HPC Foods, Ltd., as an agricultural enterprise.

     Your Committee received written comments in support of this measure from the Department of Agriculture, Hawaii Food Manufacturers Association, Hawaii Farm Bureau, and Chamber of Commerce Hawaii.

     Your Committee received written comments on this measure from the Department of Budget and Finance and the Department of the Attorney General.

     Your Committee finds that the proceeds from the sale of special purpose revenue bonds will be used by HPC Foods, Ltd., one of Hawaii's largest produce processors and distributors, for multi-purpose capital improvement programs.  Your Committee believes that it is more appropriate to issue special purpose revenue bonds to assist HPC Foods, Ltd., as a processing enterprise, rather than as an agricultural enterprise.  Your Committee 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:

(1)  Changing the category of special purpose revenue bonds to be issued under chapter 39A, Hawaii Revised Statutes, to assist HPC Foods, Inc., as a processing enterprise pursuant to part IV of the chapter rather than an agricultural enterprise pursuant to part X of the chapter; and

(2)  Adding a list of specific purposes for which the proceeds from the sale of the special purpose revenue bonds will be used, including:

(A)  Processing and packing warehouse facilities;

(B)  Equipment for processing and packing;

(C)  Refrigeration facilities; and

(D)  Agricultural production including manufacturing and value-added products.

     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. 1288, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1288, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair