HOUSE OF REPRESENTATIVES

H.B. NO.

2248

TWENTY-SIXTH LEGISLATURE, 2012

H.D. 2

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS FOR HAWAII PACIFIC UNIVERSITY.

 

 

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

 


     SECTION 1.  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 health, safety, and general welfare.

     SECTION 2.  Pursuant to part VIII, 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 $120,000,000, in one or more series, for the purpose of assisting Hawaii Pacific University, a private not-for-profit university, and one or more of its not-for-profit affiliates to finance, refinance, and reimburse costs related to the planning, acquisition, and construction of its educational facilities including student housing and athletic facilities, renovation of existing educational facilities, purchase of tangible assets including land and improvements, acquisition and installation of information technology, and other capital-related projects for Hawaii Pacific University and any one or more of its not-for-profit affiliates, including, without limitation, any costs that are necessarily or advisably incurred in order to provide such assistance or that are directly or indirectly related to any of the foregoing items.  For the purposes of this Act, a limited liability company of which Hawaii Pacific University is the sole member shall be considered to be a not-for-profit affiliate of Hawaii Pacific University.  The legislature hereby finds and determines that the aforementioned activities and facilities constitute a project as defined in part VIII, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to a not-for-profit private nonsectarian university that serves the general public.

     SECTION 3.  The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part VIII, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist not-for-profit private nonsectarian and sectarian elementary schools, secondary schools, colleges, and universities that serve the general public.

     SECTION 4.  The special purpose revenue bonds issued under this Act may be issued in one or more series for a single project, multiple projects, a single-project party, or multiple-project parties pursuant to the authority of this Act or the combined authority of this Act and any one or more other separate acts of the legislature pursuant to part VIII, chapter 39A, Hawaii Revised Statutes, and the department of budget and finance may combine into a single issue of special purpose revenue bonds, in one or more series, two or more proposed issues of special purpose revenue bonds to be issued pursuant to part VIII, chapter 39A, Hawaii Revised Statutes, separately authorized, in the total amount not to exceed the aggregate of the proposed separate issues of special purpose revenue bonds.

     SECTION 5.  The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2017, 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, to the extent practicable, comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.  Interest on bonds issued under this Act may be excluded from gross income for federal income-tax purposes or included in gross income for federal income-tax purposes.

     SECTION 6.  The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2017.

     SECTION 7.  This Act shall take effect on July 1, 2012.



 

Report Title:

Special Purpose Revenue Bonds; Hawaii Pacific University

 

Description:

Authorizes the issuance of special purpose revenue bonds to assist Hawaii Pacific University.  (SD1)

 

 

 

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