Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 736 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the assessment of a fixed fee for administering the issuance of special purpose revenue bonds.

Chapter 39A, Hawaii Revised Statutes, allows the Department of Budget and Finance to be reimbursed for "actual expenses incurred" by the Department for the issuance of special purpose revenue bonds. This creates an unknown cost factor to the entities assisted by the bonds, since "actual expenses incurred" cannot be determined until completion of the bond sale.

Your Committee finds that establishment of a fixed fee that is paid up front will accord all parties eligible for special purpose revenue bonds with a greater degree of certainty with respect to the expenses that will be incurred in structuring their bond issue.

Your Committee has amended the bill by making technical, nonsubstantive amendments for the purposes of clarity and style.

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. 736, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 736, S.D. 1, and be placed on the calendar for Third Reading.