STAND. COM. REP. NO. 1247

Honolulu, Hawaii

RE:    H.B. No. 899

       H.D. 1

       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. 899, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE OFFICE OF HAWAIIAN AFFAIRS,"

begs leave to report as follows:

     The purpose of this measure is to clarify and strengthen the authority of the Office of Hawaiian Affairs to issue revenue bonds to obtain funding for its projects by amending the bond provisions of Chapter 10, Hawaii Revised Statutes, to reflect current government bond practices and provide increased autonomy for the Office of Hawaiian Affairs in issuing bonds.

     Specifically, this measure:

(1)  Allows the Board of Trustees of the Office of Hawaiian Affairs to contract, with certain restrictions, for support facilities and remarketing arrangements to market revenue bonds;

(2)  Authorizes the Office of Hawaiian Affairs to issue and authorize revenue bonds without further authorization from the Legislature;

(3)  Clarifies that the Board of Trustees of the Office of Hawaiian Affairs may acquire insurance policies to reduce the costs of borrowing;

(4)  Allows the Board of Trustees of the Office of Hawaiian Affairs to negotiate the sales price of the revenue bonds and set varying rates of the bonds;

(5)  Requires that bonds issued by the Office of Hawaiian Affairs be competitively sold in a manner consistent with all other state agencies;

(6)  Allows any person or entity regulated by law as to the character of their investment to invest in bonds issued by the Office of Hawaiian Affairs;

(7)  Requires that revenue bonds issued by the Office of Hawaiian Affairs bear a manual signature of the chairperson of the board and the administrator or, if provided by resolution, by a designated officer or registrar; and

(8)  Broadens the sources of revenue by which the Office of Hawaiian Affairs may meet the requirement that its projects be self-supporting.

     Your Committee received two written comments on this measure.  The written comments may be reviewed on the Legislature's website.

Your Committee finds that the Office of Hawaiian Affairs has the authority to issue revenue bonds under current law.  Your Committee feels that this measure will offer the Office of Hawaiian Affairs greater flexibility and autonomy when issuing revenue bonds and creates consistency with the State's bond practices.

     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. 899, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

DONNA MERCADO KIM, Chair