Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Health and Economic Development & Business Concerns, to which was referred S.B. No. 736, S.D. 1, entitled:

beg leave to report as follows:

The purpose of this bill is to allow the Department of Budget and Finance to assess a fee for the administration of special purpose revenue bonds (SPRBs) it issues.

The Department of Budget and Finance (DBF) testified in support of this measure.

Your Committees find that DBF is reimbursed by entities requesting SPRBs for the cost of processing the bond. This practice, however, has created difficulty as the actual cost is not known until after a bond is issued. Your Committees find that establishing a fixed fee for the issuance of SPRBs would eliminate the uncertainty and be of benefit to both requesters and DBF. The fee should apply to all entities, regardless of whether or not the SPRB is used.

As affirmed by the records of votes of the members of your Committees on Health and Economic Development & Business Concerns that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 736, S.D. 1, and recommend that it pass Second Reading and be referred to the Committees on Education and Higher Education.