STAND. COM. REP. NO. 687

Honolulu, Hawaii

RE: S.B. No. 1206

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1206 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 authorize the use of premiums received from the sale of general obligation bonds for certain capital expenditures.

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

Your Committee finds that this measure will allow premiums received from the sale of the general obligation bonds to be used to finance the construction or improvement of various public facilities, such as elementary and secondary schools, community college and university facilities, and other purposes

approved by the Legislature. Your Committee believes that this measure will allow the State to meet funding requirements for capital improvement projects while incurring less debt and related annual debt service costs.

Your Committee has amended this measure by:

(1) Changing its effective date to July 1, 2050, to facilitate further discussion on the measure; and

(2) Making technical nonsubstantive amendments for clarity, consistency, and style.

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. 1206, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1206, S.D. 1, 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