STAND. COM. REP. NO. 747

Honolulu, Hawaii

RE: S.B. No. 985

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 985 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST PEARL HARBOR FLOATING DRYDOCK, LLC,"

begs leave to report as follows:

The purpose and intent of this measure is to issue special purpose revenue bonds to assist Pearl Harbor Floating Drydock, LLC, in the construction of a purpose-built floating drydock to service submarines and surface ships at Pearl Harbor.

Your Committee received testimony in support of this measure from Chamber of Commerce Hawaii; Pacific Marine & Supply Company, Ltd; Ship Repair Association of Hawaii; and two individuals.

Your Committee received comments on this measure from the Department of Budget and Finance; the Department of the Attorney General; and one individual.

Your Committee finds that supporting this industrial enterprise project will enhance ship repair capacity within the State and stimulate long-term economic benefits by keeping a greater number of submarine and surface ship repair projects in Hawaii.

Your Committee has amended this measure by:

(1) Redesignating the statutory authority under which the special purpose revenue bonds may be issued, pursuant to this measure, to Part V, rather than Part III, of chapter 39A, Hawaii Revised Statutes, as the project supported by this bill is intended to service, rather than construct, submarines and surface ships;

(2) Changing all references to "manufacturing enterprise" to instead reference "industrial enterprise" in conformance with part V, chapter 39A, Hawaii Revised Statutes; and

(3) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

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. 985, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 985, 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,

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DONOVAN M. DELA CRUZ, Chair