SB1674.DOC

SECTION 1. The University of Hawaii has been in the process of addressing its capital facility needs through the construction of new projects and the renovation and major repair of existing facilities. These capital facility needs include faculty and student housing; additional classroom, laboratory, and office space; research facilities, utility facilities, and other infrastructure requirements; libraries; student support facilities; and athletic facilities. Through Act 161, Session Laws of Hawaii 2007, the University of Hawaii was granted the authority to issue $100,000,000 in revenue bonds to help address the university's capital facility needs. Since that time, the University of Hawaii has been identifying and prioritizing the capital facility needs throughout the university system. The university plans to use this authority to construct, renovate, and repair one or more of the following listed projects or other projects deemed necessary by the University of Hawaii depending on real estate opportunities that may arise, market and economic conditions, and changes in the university's priorities:

(1) Identification and acquisition of existing structures on Oahu for conversion to faculty housing;

(2) Development of new faculty housing units on Oahu;

(3) Acquisition and conversion of apartments in Hilo for student housing;

(4) Renovations to student housing at Hale Aloha;

(5) Development of the University of Hawaii - West Oahu Kapolei campus;

(6) Acquisition of the Waianae education center;

(7) Refinancing of Kauiokahaloa Nui faculty housing;

(8) Addition to the University of Hawaii at Manoa biomedical science building; and

(9) Addition to the University of Hawaii at Hilo bookstore campus center.

The university desires to extend the expiration date of the university's authority to use the initial $100,000,000 under Act 161. Moreover, the university seeks an additional $50,000,000 to complete as many of its priority capital facility construction, renovation, and repair projects as possible.

SECTION 2. Act 161, Session Laws of Hawaii 2007, is amended by amending sections 6 and 7 to read as follows:

"SECTION 6. The board of regents of the University of Hawaii, with the approval of the governor, is authorized to issue revenue bonds from time to time to finance, in whole or in part, the costs of construction or the costs of maintenance of any university project, including reserves therefor as the board of regents may direct. The total principal amount of the revenue bonds authorized by this Act shall not exceed [~~$100,000,000;~~] $150,000,000; provided that neither revenue bonds issued to refund revenue bonds heretofore issued, to the extent that such refunding revenue bonds do not exceed the principal amount of the revenue bonds being refunded, nor revenue bonds of the board outstanding at the effective date of this Act shall cause the amount of the above authorization to be decreased. The revenue bonds shall be issued pursuant to the provisions of part VI of chapter 304A, Hawaii Revised Statutes. The principal and interest on the revenue bonds, to the extent not paid from the proceeds of such bonds, shall be paid solely from and secured solely by the revenue of the university as defined in section [~~304A-A,~~] 304A-2671, Hawaii Revised Statutes.

SECTION 7. There is appropriated out of the revenue bond proceeds authorized by this Act the sum of $100,000,000 or so much thereof as may be necessary [~~for fiscal year 2007-2008 and the same sum or so much thereof as may be necessary~~] for fiscal year 2008-2009 to carry out the purposes of section 6[.] of this Act; provided that any unexpended and unencumbered balance of the appropriation shall not lapse at the end of fiscal year 2008-2009 and shall lapse instead on June 30, 2013 into the general fund.

There is also appropriated out of the revenue bond proceeds authorized by this Act, the sum of $50,000,000 or so much thereof as may be necessary for fiscal year 2009-2010 to carry out the purposes of section 6 of this Act; provided that any unexpended and unencumbered balance of the appropriation shall not lapse at the end of fiscal year 2009-2010 and shall lapse instead on June 30, 2015 into the general fund.

The sums appropriated shall be expended by the board of regents of the University of Hawaii."

SECTION 3. The University of Hawaii shall notify the legislature upon issue of the additional revenue bond authorized by section 2 of this Act.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2009.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1674
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII