STAND. COM. REP. NO. 3030

Honolulu, Hawaii

RE:    H.B. No. 2831

       H.D. 2

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 2831, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE NATURAL ENERGY LABORATORY OF HAWAII AUTHORITY,"

begs leave to report as follows:

     The purpose of this measure is to authorize the Natural Energy Laboratory Authority of Hawaii to acquire, hold, and sell qualified securities subject to certain conditions and to accept monetary donations, property, and services from government agencies, corporations, or individuals.

     Additionally, this measure defines the term "qualified security" and requires the Natural Energy Laboratory Authority of Hawaii to include information relating to qualified securities and the acceptance of monetary donations in the Authority's annual report.

     The written comments may be reviewed on the Legislature's website.

     Your Committee finds that the Natural Energy Laboratory Authority of Hawaii has been offered equity securities from tenants and investors in exchange for leases of property under the control of the Authority.  However, the Attorney General has informed the Authority that it does not have the statutory authority to accept or hold any equity securities and could be subject to lawsuit.  This measure will expand the ability of the Natural Energy Laboratory Authority of Hawaii to conduct business with tenants, potential investors, and donors by authorizing the Authority to accept and use qualified securities, donations, or other monetary awards.

     Your Committee has amended the measure by changing the effective date to July 1, 2050, to facilitate further discussion.

     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. 2831, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2831, H.D. 2, S.D. 2.

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

____________________________

DONNA MERCADO KIM, Chair