STAND. COM. REP. NO. 2803

Honolulu, Hawaii

RE:    S.B. No. 2856

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 S.B. No. 2856 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 a constitutional amendment to authorize the State to issue special purpose revenue bonds and use the proceeds from the 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 the Department of Land and Natural Resources.

     Your Committee finds that dams and reservoirs are a critical part of the State's infrastructure, providing many public benefits as a potential resource for agriculture, water supply, recharge, flood control, hydropower, and other beneficial uses.  The implementation of Act 262, Session Laws of Hawaii 2007, requires dam and reservoir owners to meet certain safety standards.  This measure will assist dam and reservoir owners by providing an economic means to bring their facilities up to current safety standards.

     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 S.B. No. 2856 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