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 S.B. No. 1068 entitled:

begs leave to report as follows:

The purpose of this measure is to extend the authorization to issue special purpose revenue bonds to assist Honolulu Neighborhood Housing Services, Inc., until June 30, 2007.

Your Committee finds that Act 296, Session Laws of Hawaii 1999, authorized the issuance of up to $80,000,000 in special purpose revenue bonds to assist Honolulu Neighborhood Housing Services, Inc., a Hawaii not-for-profit corporation, to plan, design, and construct a senior citizen lifecare retirement community.

Your Committee finds, however, that the authority to issue bonds under Act 296 will expire on June 30 of this year. While your Committee finds that Honolulu Neighborhood Housing Services has made significant progress in the design and plans for the senior center, construction cannot begin before the June 30 deadline because of delays in locating additional financing for the project. Your Committee finds that this project is worthwhile and that the deadline for the issuance of bonds should be extended.

Upon further consideration, your Committee has amended section 3 of this measure to change the effective date from upon approval to June 29, 2003, to ensure that the lapse provision does not become operational before the bill takes effect.

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. 1068, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1068, S.D. 1.