CONFERENCE COMMITTEE REP. NO. 173

Honolulu, Hawaii

                 , 2013

RE:    S.B. No. 403

       S.D. 2

       H.D. 2

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 403, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO BONDS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to, among other things:

     (1)  Provide that the interest on revenue bonds issued by the Board of Trustees of the Office of Hawaiian Affairs is exempt from gross income for federal income tax purposes;

     (2)  Authorize the Office of Hawaiian Affairs to issue revenue bonds to fund loan programs; 

     (3)  Clarify that the term "office project" or "project" may include projects undertaken by the Office of Hawaiian Affairs in cooperation with other governmental entities or private individuals or organizations; and

     (4)  Allow the Board of Trustees of the Office of Hawaiian Affairs to refund outstanding bonds without further authorization from the Legislature.

     Your Committee on Conference finds that by expanding the Office of Hawaiian Affairs' authority to issue revenue bonds, this measure enables the Office of Hawaiian Affairs to finance additional types of projects for its Kakaako properties, fund renovation and equipment acquisitions, and pursue new projects without significant delays caused by the need for legislative authorization.  This measure also aligns the Office of Hawaiian Affairs' revenue bond financing authority with that of other state agencies. 

     Your Committee on Conference has amended this measure by:

     (1)  Making it effective upon approval; and

     (2)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 403, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 403, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ FAYE P. HANOHANO, Co-Chair	____________________________ BRICKWOOD GALUTERIA, Chair
____________________________ TY J.K. CULLEN, Co-Chair	____________________________ GILBERT S.C. KEITH-AGARAN, Co-Chair
	____________________________ MICHELLE N. KIDANI, Co-Chair