STAND. COM. REP. NO. 1234

Honolulu, Hawaii

RE: H.B. No. 119

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Water and Land, to which was referred H.B. No. 119, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST KAUNALEWA,"

begs leave to report as follows:

The purpose and intent of this measure is to update Act 43, Session Laws of Hawaii 2019, which issues special purpose revenue bonds (SPRB) for the financing, acquisition, remediation, construction and development of the old Kekaha Sugar Mill in Kekaha, Kauai, by:

(1) Replacing E Ola Mau Na Leo O Kekaha with Kaunalewa as the entity to be assisted by the issuance of the SPRBs; and

(2) Amending the various industrial services to be realized by Kaunalewa through the acquisition, remediation, and development of the old Kekaha Sugar Mill.

Your Committee received testimony in support of this measure from Kaunalewa, the Mayor of Kaua‘i, four members of the Kaua‘i County Council, County of Kaua‘i Department of Planning, and one individual. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that this measure will allow for the preservation of the old Kekaha Sugar Mill, an historic cultural site, and will assist the creation and development of diverse economic drivers on the west side of Kauai, including supply chain facilities, a community marketplace, workforce development center, and hub for product creation and incubation. Your Committee notes that Kaunalewa applied for the federal Brownfield Community-Wide Assessment Grant for environmental remediation in October 2020 and expects to receive a response from the Environmental Protection Agency in July or August of this year.

Your Committee has amended this measure by making it effective upon its approval.

As affirmed by the record of votes of the members of your Committee on Water and Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 119, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 119, H.D. 1, 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 and Land,

________________________________

LORRAINE R. INOUYE, Chair