STAND. COM. REP. NO. 2843

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2347

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Public Safety, Government Operations, and Military Affairs, to which was referred H.B. No. 2347 entitled:

 

"A BILL FOR AN ACT RELATING TO GENERAL OBLIGATION BONDS FOR REVENUE-PRODUCING UNDERTAKINGS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to:

 

(1)  Authorize a county to covenant with the holders of general obligation bonds additionally secured by a pledge of revenues of the undertaking loan program, or other purpose for which the bonds were issued that the county will continue to impose and collect such revenues in amounts at least sufficient to provide for the payment of the principal and interest on such bonds to the extent authorized or permitted by law;

 

(2)  Allow a county to reserve the right to issue subsequent general obligation bonds equally and additionally secured by a pledge of such revenues of an undertaking, loan program, or other purpose; and

 

(3)  Authorize a county to issue general obligation bonds for any purpose authorized by section 47-3, Hawaii Revised Statutes, with certain security requirements that are not derived from the undertaking or loan program for which the bonds were issued, under certain conditions.

 

     Your Committee received testimony in support of this measure from the City and County of Honolulu Department of Budget And Fiscal Services.

 

     Your Committee finds that this measure allows a county to pledge, in addition to real property taxes, certain receipts, including rentals, fees, charges, taxes, and state or federal grants, to secure its general obligation bonds.  The authorization for such a pledge would provide greater security for bondholders, thereby possibly lowering borrowing costs and strengthening county bond ratings.

 

     As affirmed by the record of votes of the members of your Committee on Public Safety, Government Operations, and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2347, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Public Safety, Government Operations, and Military Affairs,

 

 

 

____________________________

WILL ESPERO, Chair