Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Water and Land Use, to which was referred H.B. No. 554, entitled:

begs leave to report as follows:

The purpose of this bill is to authorize the issuance of special facility revenue bonds for eligible projects, including an Ocean Science Center (Center), in the Kakaako community development district.

The Hawaii Community Development Authority (HCDA) and the Office of the Governor submitted testimony supporting this measure.

Your Committee finds that the Center envisioned by this bill will be an anchor to Kakaako Makai, a center for cultural, recreational, commercial, educational, and research activities. To build a facility of this nature, a mix of financing will be required, including general obligation bonds, private donations, and special facility revenue bonds.

This bill will enable HCDA to issue special facility revenue bonds for this purpose. According to the testimony from the Office of the Governor, a nonprofit corporation will oversee the plans and development of the Center and be responsible for any debt service related to the revenue bonds.

Based on the recommendations of the Office of the Attorney General, your Committee has amended this bill by:

1. Specifying that HCDA, with the Governor's approval, is authorized to issue special facility revenue bonds not exceeding $20,000,000 for fiscal biennium 2001-2003 for constructing, furnishing, and equipping the Center in Kakaako;
2. Authorizing HCDA to issue refunding special facility revenue bonds for the Center; and
3. Making technical, nonsubstantive amendments for purposes of clarity, style, and consistency.

As affirmed by the record of votes of the members of your Committee on Water and Land Use that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 554, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 554, H.D. 1, and be referred to the Committee on Finance.