STAND. COM. REP. NO. 2553

Honolulu, Hawaii

RE:    S.B. No. 2702

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2702, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST SEAWATER AIR CONDITIONING PROJECTS ON OAHU,"

begs leave to report as follows:

     The purpose and intent of this measure is to extend the time period that authorizes the Department of Budget and Finance to issue special purposes revenue bonds to assist in the construction of a seawater air conditioning project on Oahu.

     Honolulu Seawater Air Conditioning LLC, and one individual submitted written comments in support of this measure.  The Department of Budget and Finance submitted written comments on this measure.

     Your Committee finds that disruptions in financial markets over the past few years have led to the postponement of the Oahu seawater air conditioning construction project.  Extending the time period that authorizes the Department of Budget and Finance to issue $77,000,000 in special purpose revenue bonds for an additional five years will provide Honolulu Seawater Air Conditioning, LLC, with the time necessary to use proceeds from the bonds to construct a seawater air conditioning district cooling system on Oahu.

     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. 2702, S.D. 1, and recommends that it pass Third Reading.

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

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DAVID Y. IGE, Chair