STAND. COM. REP. NO. 3302

Honolulu, Hawaii

RE:    H.B. No. 2594

       H.D. 2

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 2594, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT PROPOSING AN AMENDMENT TO ARTICLE VII, SECTION 12, OF THE HAWAII STATE CONSTITUTION TO ASSIST DAM AND RESERVOIR OWNERS,"

begs leave to report as follows:

     The purpose and intent of this measure is to propose an amendment to the Hawaii Constitution authorizing the State to issue special purpose revenue bonds to assist dam and reservoir owners.    

     Your Committee received written comments in support of this measure from the Department of Budget and Finance; and Alexander and Baldwin.

     Your Committee finds that additional safety requirements may be imposed as a result of investigative studies and inspections of dams and reservoirs by the Department of Land and Natural Resources.  While increasing the safety of dams and reservoirs, these requirements may also place additional, significant financial burdens on the dam and reservoir owners.  Your Committee finds that authorizing the State to issue special purpose revenue bonds for the benefit of dam and reservoir owners will assist them in meeting the costs of these additional regulatory requirements.

     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. 2594, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

DAVID Y. IGE, Chair