Report Title:

Cocoa Production; Keaau; Special Purpose Revenue Bonds

Description:

Facilitates the processing of cacao beans from Keaau, the maintenance of fields, and construction of required facilities for the growth, harvest, and processing of cacao beans and the sale and export of cocoa products through an on-site visitor center. Issues special purpose revenue bonds for this purpose. (SD1)

THE SENATE

S.B. NO.

1211

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

 


 

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:

SECTION 1. The legislature finds that the establishment of new facilities in Hawaii for the processing of cacao beans from existing fields in Keaau; the related maintenance of the fields; and the construction of facilities to grow, harvest, and process cacao beans, and to sell and export cocoa products through an on-site visitor center will contribute to eco-tourism and to the education of the public about organic self-sustaining farming. The legislature also finds that assisting Keaau Plantation Estates, LLC, promotes agriculture and contributes to the economy of the State. The legislature finds and declares that the issuance of special revenue bonds under this Act is in the public interest and for the public 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 $5,000,000, in one or more series, for the purpose of assisting Keaau Plantation Estates, LLC, a Hawaii corporation, with the planning, design, acquisition, and construction of new facilities, and the maintenance, harvesting, and processing of cacao beans. The legislature hereby finds and determines that the development of an on-site visitor center at Keaau Plantation Estates, LLC, where all of the above will occur, constitutes 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 to refund 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.