Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 773 entitled:

begs leave to report as follows:

The purpose of this bill is to clarify the counties' ability to enter into certain financial arrangements in connection with the issuance of bonds, including:

(2) Swaptions; and

(3) Interest rate floors or caps.

The City and County of Honolulu, UBS PaineWebber, Salomon Smith Barney, and McCorriston Miller Mukai MacKinnon LLP testified in support of this bill.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 773 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.