REPORT TITLE:
SPERB; CEATECH USA
DESCRIPTION:
Authorizes the issuance of special purpose revenue bonds to
assist CEATECH USA in planning and building a processing plant
for shrimp. (HB801 HD1)
801
HOUSE OF REPRESENTATIVES H.B. NO. H.D. 1
TWENTIETH LEGISLATURE, 1999
STATE OF HAWAII
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A BILL FOR AN ACT
RELATING TO SPECIAL PURPOSE REVENUE BONDS FOR PROCESSING
ENTERPRISES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1. The legislature finds that CEATECH USA's "total
2 shrimp production systems" in operation at Kekaha on the island
3 of Kauai is experiencing very successful yields. This has been
4 attributed to a number of factors including optimal weather
5 conditions, an abundant source of clean saline water, and proven
6 shrimp farming expertise built on years of research and practical
7 application.
8 The anticipated phasing out of the sugar industry at Kekaha
9 could potentially provide as much as twelve thousand acres of
10 land suitable for a diverse number of crops including the
11 production of shrimp. CEATECH USA's shrimp operation has the
12 potential not only of producing hundreds of direct and indirect
13 jobs thus helping to fill the expected economic void within that
14 region, but also of becoming the nation's largest producer of
15 cultured marine shrimp.
16 The extraordinary flavor and texture of the fresh Kekaha
17 produced shrimp is gaining a favorable reputation that could fill
18 a recognized niche. The National Fisheries Institute reports
Page 2 801
H.B. NO. H.D. 1
1 that imports account for eighty-one per cent or six hundred
2 million pounds of these delectable high-priced morsels consumed
3 in the United States. This economic opportunity is another
4 reason for the legislature to lend its support to the shrimp
5 industry in Hawaii.
6 Including the value added from processing, marketing,
7 distribution, and service, shrimp accounts for more than
8 $10,000,000,000 in annual United States consumer spending. The
9 construction of a processing plant is absolutely essential for
10 the evolution and growth of this shrimp operation on Kauai.
11 The legislature further finds and declares that the issuance
12 of special purpose revenue bonds under this Act constitutes a
13 processing enterprise pursuant to part IV, chapter 39A, Hawaii
14 Revised Statutes, and is in the public interest.
15 SECTION 2. Pursuant to part IV, chapter 39A, Hawaii Revised
16 Statutes, the department of budget and finance, with the approval
17 of the governor, is authorized to issue special purpose revenue
18 bonds in a total amount not to exceed $3,000,000, in one or more
19 series, for the purpose of assisting CEATECH USA in planning and
20 building a processing plant for shrimp.
21 The legislature finds and declares that the issuance of
22 special purpose revenue bonds under this Act constitutes a
23 processing enterprise project as defined in part IV, chapter 39A,
24 Hawaii Revised Statutes, and is in the public interest.
Page 3 801
H.B. NO. H.D. 1
1 SECTION 3. The special purpose revenue bonds issued under
2 section 2 of this Act shall be issued pursuant to part IV,
3 chapter 39A, Hawaii Revised Statutes, relating to the power to
4 issue special purpose revenue bonds to assist processing
5 enterprises.
6 SECTION 4. The department of budget and finance is
7 authorized to issue from time to time, refunding special purpose
8 revenue bonds authorized in such principal amounts as the
9 department shall determine to be necessary to refund the special
10 purpose revenue bonds authorized in section 2.
11 SECTION 5. The authorization to issue special purpose
12 revenue bonds under this Act shall lapse on June 30, 2004.
13 SECTION 6. This Act shall take effect upon its approval.