STAND. COM. REP. NO. 1193

Honolulu, Hawaii

RE:    H.B. No. 34

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 34 entitled:

"A BILL FOR AN ACT RELATING TO STATE BONDS,"

begs leave to report as follows:

     The purpose of this measure is to place an overall limit on the total amount of general obligation bonds that may be issued for the capital improvement projects in the executive and judiciary budget acts.

     This bill also provides a declaration of findings with respect to those authorizations as mandated by the Hawaii State Constitution.

     Testimony in support of the measure was submitted by one government agency.  The written testimony may be reviewed on the Legislature's website.

     Your Committee finds that the declaration of findings and the bond authorization in this bill are necessary to ensure that the total amount of general obligation bonds authorized or outstanding will not cause the State's constitutionally-imposed debt limit to be exceeded.

     Your Committee has amended this measure to facilitate further discussion of the measure by:

(1)  Setting a total $1 limit on the issuance of general obligation bonds;

(2)  Inserting the bill numbers for the General Appropriations Act of 2009 and the Judiciary Appropriations Act of 2009; and

(3)  Changing the effective date to July 1, 2090.

     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 H.B. No. 34, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 34, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DONNA MERCADO KIM, Chair