STAND. COM. REP. NO. 2223

Honolulu, Hawaii

RE: S.B. No. 937

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 937 entitled:

"A BILL FOR AN ACT RELATING TO GENERAL OBLIGATION BOND PREMIUMS,"

begs leave to report as follows:

The purpose and intent of this measure is to improve the flexibility of the Department of Budget and Finance in structuring general obligation bond sales, by authorizing the department to use premiums received from the sale of bonds to finance the capital expenditures that are to be funded by the bond proceeds.

Your Committee received testimony in support of this measure from the Department of Budget and Finance.

Your Committee finds that section 39-6, Hawaii Revised Statutes, requires that any premiums received from the sale of general obligation bonds be deposited directly into the general fund. Your Committee further finds that this measure will allow the Department of Budget and Finance to consider the amount of bond premiums available to defray the total costs of the capital project, thereby providing the department with the option to reduce the bond issue accordingly.

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. 937 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

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DONOVAN M. DELA CRUZ, Chair