Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 772 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize county directors of finance to purchase insurance policies and enter into such other financial arrangements as the directors of finance determine to be necessary or desirable to reduce the cost of borrowing when issuing county general obligation bonds.

Your Committee finds that this measure will enable county directors of finance to minimize the financial risks created by volatile interest rates in the municipal bond market and, consequently, lower the overall cost of county debt.

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. 772, and recommends that it pass Third Reading.