Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Tourism and Intergovernmental Affairs, to which was referred H.B. No. 2045, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize issuance of revenue bonds by a corporation established by a county as a public body corporate and politic and instrumentality and agency of the county for the purpose of owning or operating facilities for the furnishing of electricity, or any board of a county that owns or operates such facilities.

Testimony in support of this measure was received from the Mayor of Kauai. The Consumer Advocate testified in opposition.

Your Committee finds that the County of Kauai is working to establish a legal framework for the creation of a power authority, should the county decide to pursue ownership of Kauai Electric. Your Committee has heard that this option is one of the recommendations of a citizen committee established by the Mayor to review governance of Kauai Electric, and that the bonding authority would be an important component of exercising this option.

Your Committee has, however, raised concerns that this measure would apply to all counties, and that should the County decide not to pursue ownership, the legislation would be unnecessary.

Your Committee has amended this measure accordingly to make it applicable only to a county with a resident population under 100,000, and to add a sunset date of June 30, 2004.

As affirmed by the record of votes of the members of your Committee on Tourism and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2045, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2045, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.