STAND. COM. REP. NO. 337

Honolulu, Hawaii

, 2021

RE: H.B. No. 58

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Water & Land and Housing, to which was referred H.B. No. 58 entitled:

"A BILL FOR AN ACT RELATING TO STATE FUNDS,"

beg leave to report as follows:

The purpose of this measure is to help the State address its current budgetary shortfall, caused by the COVID-19 pandemic, by:

(1) Temporarily reallocating conveyance tax revenues to pay the principal and interest of general obligation bonds; and

(2) Authorizing the issuance of general obligation bonds to be appropriated into and out of the Land Conservation Fund and Rental Housing Revolving Fund.

Your Committees received testimony in support of this measure from the Hawaii Housing and Finance Development Corporation. Your Committees received comments on this measure from the Department of Budget and Finance, Department of Land and Natural Resources, and Tax Foundation of Hawaii.

Your Committees find that this measure is a necessary tool to help the State address its temporary fiscal difficulties while continuing to meet the needs of Hawaii's people.

Your Committees note the suggestions by the Department of Land and Natural Resources, and asks your Committee on Finance to consider the Department's amendments should it hear this measure.

Your Committees have amended this measure by changing its effective date to January 1, 2050, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Water & Land and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 58, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 58, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Water & Land and Housing,

____________________________ NADINE K. NAKAMURA, Chair

____________________________ DAVID A. TARNAS, Chair