STAND. COM. REP. NO. 2826

Honolulu, Hawaii

RE: S.B. No. 2485

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2485, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS,"

begs leave to report as follows:

The purpose of this measure is to authorize special purpose revenue bonds for certain agricultural enterprises that construct or renovate irrigation systems or infrastructure that directly benefit and serve important agricultural lands.

Your Committee finds that Hawaii's agriculture industry has the ability to be globally competitive in developing high-value products that take advantage of Hawaii's brand identity. Your Committee further finds that encouraging agricultural development will pay not only financial dividends to the State, but environmental and social dividends as well. This measure helps agriculture with that beneficial development.

Your Committee has amended this measure by:

(1) Adding provisions regarding the powers of the Department of Budget and Finance with regard to special purpose revenue bonds that are consistent with similar provisions of Chapter 39A, Hawaii Revised Statutes, regarding other types of special purpose revenue bonds;

(2) Exempting the State from having to pay interest on a deposit paid as security for reimbursement of the State's cost of entering into negotiations for a project agreement, consistent with similar provisions of Chapter 39A, Hawaii Revised Statutes, regarding other types of special purpose revenue bonds;

(3) Adding language regarding present and future liens of any mortgage of the project party securing the project party's bonds, consistent with similar provisions of Chapter 39A, Hawaii Revised Statutes, regarding other types of special purpose revenue bonds; and

(4) Making technical nonsubstantive changes for clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2485, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2485, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair