STAND. COM. REP. NO. 227-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1719

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Water & Land, to which was referred H.B. No. 1719 entitled:

"A BILL FOR AN ACT RELATING TO THE ALA WAI BOAT HARBOR,"

begs leave to report as follows:

The purpose of this measure is to authorize the Board of Land and Natural Resources to issue revenue bonds for the purpose of financing repairs of the Ala Wai boat harbor.

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

Your Committee notes that the Department of Land and Natural Resources testified that its Division of Boating and Ocean Recreation (DOBOR), which manages state small boat harbors, was authorized by the Legislature to issue revenue bonds in previous years. However, the large amount of funding required for each project would have led to unfavorable bond terms because creditworthiness would have been based on DOBOR's income and not the State's general fund. As a result, DOBOR prefers to use general obligation bonds through the capital improvement project process.

Therefore, your Committee has amended this measure by:

(1) Removing the authorization of the Department of Land and Natural Resources to issue revenue bonds to finance repairs for the Ala Wai Boat Harbor;

(2) Exempting capital improvement projects for Ala Wai Boat Harbor from mandatory prior authorization by the Legislature and Governor;

(3) Changing its effective date to July 1, 2050, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1719, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1719, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

DAVID A. TARNAS, Chair