STAND. COM. REP. NO. 1346

Honolulu, Hawaii

RE:    H.B. No. 1186

       H.D. 2

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 1186, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO GENERAL OBLIGATION BONDS,"

begs leave to report as follows:

     The purpose and intent of this measure is to allow premiums received from the sale of any general obligation bonds to be used for capital expenditures approved by the Legislature in addition to being deposited into the general fund.

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

     Your Committee finds that allowing premiums received from the sale of general obligation bonds to be used to finance capital expenditures would give the Department of Budget and Finance greater flexibility in structuring bond sales in the most efficient manner.  Your Committee also finds that this measure may result in a reduction of debt and related annual debt service costs.

     Your Committee has amended this measure by changing the effective date to July 1, 2015.

     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 H.B. No. 1186, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1186, H.D. 2, 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,

________________________________

JILL N. TOKUDA, Chair