STAND. COM. REP. NO. 155-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2487
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2487 entitled: 

     "A BILL FOR AN ACT RELATING TO FINANCING THE HAWAII
     HURRICANE RELIEF FUND,"

begs leave to report as follows:

     The purpose of this measure is to amend the Hawaii Hurricane
Relief Fund (HHRF) to make possible a post-hurricane issuance of
revenue bonds to pay claims made under HHRF policies.

     Your Committee received testimony in support of this measure
from the HHRF and the Department of Budget and Finance
(Department).

     The Department testified that in the course of working with
the HHRF to obtain a bond insurance commitment to facilitate a
post-event revenue bond issuance, certain technical impediments
were found by bond counsel, and that the measure was drafted by
bond counsel to address these impediments.  HHRF testified that
section 431P-5.5, Hawaii Revised Statutes, impedes pledging
assessments needed for post-hurricane bonds and creates
uncertainty regarding the total amount of bonds that may be
issued.  According to HHRF, housekeeping amendments are needed to
address these problems.

     Your Committee has made technical, nonsubstantive amendments
to this measure for purposes of consistency and style.


 
 
                                 STAND. COM. REP. NO. 155-00
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2487, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2487, H.D. 1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair