STAND. COM. REP. NO. 2553

Honolulu, Hawaii

RE: S.B. No. 2322

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Government Operations, to which was referred S.B. No. 2322 entitled:

"A BILL FOR AN ACT RELATING TO CERTIFICATES OF PARTICIPATION,"

begs leave to report as follows:

The purpose and intent of this measure is to prohibit the Department of Budget and Finance from issuing a Certificate of Participation with a principal amount exceeding $10,000,000.

Your Committee received testimony in support of this measure from Protect Our Ala Wai Watersheds and four individuals. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that the authority and capacity to obtain funds for state and city projects should be made under the public scrutiny that is available through the legislative process. According to testimony received by your Committee, a ten million-dollar limit on Certificates of Participation will allow the Department of Budget and Finance access to enough funds for unanticipated contingencies.

Your Committee has amended this measure by:

(1) Removing "the department may" and conforming language on page 1, lines 3-5; and

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

As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2322, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2322, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Government Operations,

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LAURA H. THIELEN, Chair