Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2045, H.D. 1, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize county-established corporations or boards, which own or operate facilities for the furnishing of electricity, to issue revenue bonds.

This measure will be applicable only to counties with a current resident population under 100,000 people, and will be repealed on June 30, 2004.

Your Committee finds that this measure will allow the County of Kauai to issue revenue bonds for facility-related capital improvement projects if the County decides to purchase Kauai Electric.

Your Committee has concerns with counties using utility fees to subsidize programs that should be funded through taxes, and does not intend counties to use this measure to raise utility fees to fund these programs.

Your Committee has amended this measure by:

(1) Changing its effective date to July 1, 2040;

(2) Changing its repeal date to June 30, 2041; and

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. 2045, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2045, H.D. 1, S.D. 2.