Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1273, H.D. 2, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to appropriate $185,000,000 for fiscal year 2000-2001 out of the airport revenue fund for the defeasance of certain outstanding airports system revenue bonds.

Your Committee finds that the Airports Division of the Department of Transportation has been working on a debt restructuring program to reduce overall operating costs. As part of its restructuring, the Airports Division is proposing to utilize approximately $185,000,000 of its cash to defease certain outstanding portions of its revenue bonds.

Your Committee supports this effort to restructure the Airports Division's debt service obligations to reduce overall costs and assist in keeping landing fees stable and reasonable.

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. 1273, H.D. 2, S.D. 1, and recommends that it pass Third Reading.