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 S.B. No. 1050 entitled:

begs leave to report as follows:

The purpose of this measure is to establish a three-year lapsing period for special purpose revenue bond authorizations by requiring the authorizations, or portions thereof, which have not been issued at the close of a fiscal year for the period for which the authorization is made, to lapse by operation of law.

Your Committee finds that there is no law to automatically lapse an authorization to issue special purpose revenue bonds that are not timely issued. According to the Department of Budget and Finance, there are currently sixteen Acts, enacted between 1983 and 1991, representing $161,730,000 in authorized but unissued special purpose revenue bonds. The Department has not received any indication from any of the parties of the status of these authorizations in at least eight years and, in some cases, in as much as seventeen years.

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

Your Committee has amended this measure by:

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 S.B. No. 1050, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1050, S.D. 1, and be placed on the calendar for Third Reading.