STAND. COM. REP. NO. 3004

Honolulu, Hawaii

RE:    H.B. No. 2681

       H.D. 2

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Water, Land, and Agriculture, to which was referred H.B. No. 2681, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS FOR WAILUKU RESERVOIR #6,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to provide financing to assist Spencer Homes, Inc., with Wailuku Reservoir No. 6.

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources.  Your Committee received comments on this measure from the Department of Budget and Finance.

     Your Committee finds that the Wailuku Reservoir No. 6 is an off-stream reservoir located in the Waikapu Gardens Subdivision in the town of Wailuku on the island of Maui.  It is owned by Spencer Homes, Inc.; completely surrounded by residential developments; and now functions as a storm water retention structure.  Due to its location, Wailuku Reservoir No. 6 is classified as a high hazard structure and, if it were to fail, would cause probable loss of human life.  Your Committee therefore finds that the issuance of special purpose revenue bonds under this measure is in the interest of public health, safety, and welfare.

     Your Committee has amended this measure by:

     (1)  Inserting a special purposes revenue bond amount of $800,000;

     (2)  Designating that the special purpose revenue bonds are to properly breach, modify, or provide improvements to Wailuku Reservoir No. 6, subsequent to all applicable permit requirements; and

     (3)  Inserting an effective date of July 1, 2016.

     As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2681, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2681, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, and Agriculture,

________________________________

MIKE GABBARD, Chair