STAND. COM. REP. NO. 3342

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2151
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 2151, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO STATE BONDS,"

begs leave to report as follows:

     The purpose of this bill is to exempt state bonds from the
perfection and other requirements of the proposed new Article 9
of the Uniform Commercial Code.

     Specifically, this bill perfects any security interest
created by the State of Hawaii or a state agency pursuant to any
authorizing statute, by the adoption of the measure from the date
on which the measure takes effect, without the need for any
physical delivery, filing, or recording in any office.

     In addition, this bill declares that the total amount of
principal and interest on authorized general obligation bonds,
estimated for all bonds authorized and unissued and calculated
for all bonds issued and outstanding, will not cause the debt
limit to be exceeded at the time of issuance.

     Your Committee has amended this bill by updating the
estimated debt limits for fiscal years 2000-2001, 2001-2002, and
2002-2003, based upon updated net general fund revenue estimates

 
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                                   STAND. COM. REP. NO. 3342
                                   Page 2


for fiscal years 1999-2000, 2000-2001, and 2001-2002, provided by
the Council on Revenues on March 10, 2000.

     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 H.B. No.
2151, H.D. 1, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 2151, H.D.
1, S.D. 1, and be placed on the calendar for Third Reading.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     HB2151 SD1