STAND. COM. REP. NO. 2727

Honolulu, Hawaii

RE:    H.B. No. 40

       H.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Energy and Environment, to which was referred H.B. No. 40, H.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this measure is to repeal Act 112, Session Laws of Hawaii 2009, which authorized the issuance of special purpose revenue bonds to assist Carbon Diversion Inc.

     No testimony was received on this measure.

     Your Committee finds that this measure's repeal of the special purpose revenue bond authorization is due to concern over a change in ownership of Carbon Diversion Inc, which was followed by a Securities and Exchange Commission investigation of the new owners and subsequent filing of a complaint in Federal District Court.

     As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 40, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

____________________________

MIKE GABBARD, Chair