REPORT TITLE:
SPRB


DESCRIPTION:
Authorizes the issuance of special purpose revenue bonds to
assist Science and Technology International, Inc.

 
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                                                        3137
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO
   ASSIST PROCESSING ENTERPRISES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that the State's
 
 2 agricultural base is transitioning from plantation agriculture to
 
 3 diversified agriculture.  Some of the limiting factors for
 
 4 significant expansion of diversified agriculture are:
 
 5      (1)  The high cost of freight from farm to market;
 
 6      (2)  The short shelf life of fresh produce;
 
 7      (3)  Seasonal demand; and
 
 8      (4)  The high cost of establishing and maintaining the
 
 9           product distribution network.
 
10      Science and Technology International, Inc., a Hawaii
 
11 company, having its headquarters on Oahu and employing persons on
 
12 Hawaii and Maui, is positioned for strong growth.  Science and
 
13 Technology International is currently negotiating with a
 
14 privately owned company that is seeking to expand distribution of
 
15 freeze-dried agricultural products to Asia while keeping
 
16 operations in the U.S.  The availability of three growing
 
17 seasons, a developing diversified agriculture industry, and the
 
18 proximity of Hawaii to Asia, makes locating a facility in the
 
19 State initially attractive.  The freeze-drying process and
 

 
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 1 distribution channel provide solutions to the obstacles to
 
 2 expansion of Hawaii's diversified agriculture industry.
 
 3      The legislature finds that in order to encourage expansion
 
 4 of diversified agriculture that it is necessary to provide
 
 5 alternative processing and facilitate access to markets for
 
 6 Hawaii agricultural produce.
 
 7      The legislature further finds and declares that the issuance
 
 8 of special purpose revenue bonds under this Act is in the public
 
 9 interest and for the public health, safety, and general welfare
 
10 of the State.
 
11      SECTION 2.  Pursuant to part IV, chapter 39A, Hawaii Revised
 
12 Statutes, the department of budget and finance, with the approval
 
13 of the governor, is authorized to issue special purpose revenue
 
14 bonds in a total amount not to exceed $10,000,000 in one series
 
15 for the purpose of assisting Science and Technology
 
16 International, Inc., in the planning and building of a processing
 
17 plant for freeze drying of agricultural products at a site to be
 
18 determined.
 
19      The legislature finds and determines that the planning and
 
20 building of a processing plant to freeze dry agricultural
 
21 products constitutes a project as defined in part IV, chapter
 
22 39A, Hawaii Revised Statutes, and the financing thereof is
 
23 assistance to a processing enterprise.
 
24      SECTION 3.  The special purpose revenue bonds issued under
 

 
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 1 this Act shall be issued pursuant to part IV, chapter 39A, Hawaii
 
 2 Revised Statutes, relating to the power to issue special purpose
 
 3 revenue bonds to assist processing enterprises.
 
 4      SECTION 4.  The department of budget and finance is
 
 5 authorized to issue from time to time, refunding special purpose
 
 6 revenue bonds authorized in such principal amounts as the
 
 7 department shall determine to be necessary to refund the special
 
 8 purpose revenue bonds authorized in section 2.
 
 9      SECTION 5.  The authorization to issue special purpose
 
10 revenue bonds under this Act shall lapse on June 30, 2003.
 
11      SECTION 6.  This Act shall take effect upon its approval.
 
12 
 
13                           INTRODUCED BY:  _______________________
 

 
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