Authorizes issuance of SPRBs to assist Kamehameha Schools with agriculture infrastructure improvements, including the Wahiawa reservoir system irrigation facilities. (HB2842 HD1)

A BILL FOR AN ACT

SECTION 1. The legislature finds that the deterioration of vital agricultural infrastructure developed by the former plantation industries on the north shore of the island of Oahu is jeopardizing the survival of emerging agricultural industries. As much as ten thousand acres of agricultural lands can be irrigated by the former sugar irrigation system.

The legislature finds and declares that the issuance of special purpose revenue bonds under this Act is in the public interest and for the public health, safety, and general welfare of the State.

SECTION 2. Pursuant to part V, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in the total amount not to exceed $           in one or more series, for the purpose of assisting Kamehameha Schools, a Hawaii nonprofit corporation, with agriculture infrastructure improvements, including the construction, repair, and improvement of the Wahiawa reservoir system irrigation facilities. The legislature finds and determines that the construction, repair, and improvement of the Wahiawa reservoir system irrigation facilities constitute a project as defined in part V, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to an industrial enterprise.

SECTION 3. The special purpose revenue bonds issued under this Act shall be issued pursuant to part V, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist an industrial enterprise.

SECTION 4. The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2011, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 2 and to refund special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 2. In making the determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

SECTION 5. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2011.

SECTION 6. This Act shall take effect upon its approval.