Report Title:

Special Purpose Revenue Bonds (SPRB); Hawaii Gold Cacao Tree, Inc.

Description:

Authorizes $10,000,000 in SPRBs to assist Hawaii Gold Cacao Tree, Inc. in financing the establishment of facilities to process cacao beans and manufacture cocoa by-products and chocolate on the island of Kauai.

THE SENATE

S.B. NO.

1435

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to special purpose revenue bonds.

 

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

SECTION 1. The legislature finds that the cessation of sugar operations in Hawaii has resulted in the loss of jobs and revenues to the State, the counties, and the citizens of Hawaii. The land formerly devoted to the growing of sugar cane is now available for commercial growing of a diverse number of crops, including cacao seedlings, cacao trees, and their cacao bean crop. The establishment of new facilities in the State to process cacao beans and produce chocolate products, as well as cocoa by-products such as cocoa butter and cocoa liquor would support local development of cacao nursery and farming operations and support global economy marketing and sales of these items. Such facilities are forecast to create over one hundred new, significant, generational, world-competitive jobs directly in the processing and production operations, as well as five hundred or more additional jobs in related nursery, farming, global economy marketing, sales, and electronic commerce operations.

Other chocolate ingredients such as sugar, vanilla, milk, and products that can be enrobed in chocolate such as macadamia nuts, pineapple, mango, coffee, and papaya are also grown in Hawaii. All of these products will offer additional job opportunities as chocolate embellishment adds value to Hawaii-grown products while also increasing overall shelf life of agricultural products grown in Hawaii.

This unique potential of a full continuum of work from seed to sale will also attract job growth among a wide range of suppliers, professional organizations, and financial institutions as well as alerting Hawaii educational institutions of the new job opportunities that will require a wide range of new instruction and skills for generations to come.

Due to the economic conditions in the State, and the loss of many agricultural jobs, the creation of new jobs is imperative at this time. It is in the public interest to encourage and promote the development of new agriculture-related enterprises where and when those opportunities present themselves. The establishment of new high technology processing and manufacturing facilities for Hawaii Gold Cacao Tree, Inc., is the type of generational enterprise that will provide such an opportunity for our State. The cacao processing and cacao and chocolate production facilities proposed by Hawaii Gold Cacao Tree Inc., in the county of Kauai are an excellent example of the type of enterprise that the legislature finds to be in the public interest. The legislature finds and declares that the issuance of special purpose revenue bonds under this Act is in the public interest and for the public's health, safety, and general welfare.

SECTION 2. Pursuant to part IV, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $10,000,000, in one or more series, for the purpose of assisting Hawaii Gold Cacao Tree, Inc., a Hawaii corporation, for the establishment of facilities in the county of Kauai to process cacao beans and to manufacture and produce cocoa by-products and chocolate products. The legislature hereby finds and determines that the cacao bean processing facilities constitute a project as defined in part IV, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to a processing enterprise.

SECTION 3. The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part IV, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist processing enterprises.

SECTION 4. The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2006, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 2 and any refunding of special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 2. In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

SECTION 5. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2006.

SECTION 6. This Act shall take effect upon its approval.

 

INTRODUCED BY:

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