STAND. COM. REP. NO. 3622

Honolulu, Hawaii

RE: H.B. No. 2339

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2339, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII REVENUE BONDS,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Board of Regents of the University of Hawaii to issue revenue bonds for the purpose of financing qualifying priority capital improvement projects.

Your Committee received written comments in support of this measure from the University of Hawaii.

Your Committee finds that it is necessary to allow the University of Hawaii to issue revenue bonds to help address the University's capital facility needs, including new project construction, facility modernization, and reduction of the University's major repair and maintenance backlog. Your Committee also finds that issuing bonds in small amounts is not cost-effective due to fixed issuance expenses. Your Committee further finds that deferring issuance until full authorization is provided would allow the consolidation of multiple projects into a single bond issuance, thereby achieving greater economies of scale, optimizing interest rate opportunities, and allowing for the potential refinancing of existing debt to achieve additional savings.

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. 2339, H.D. 1, 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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DONOVAN M. DELA CRUZ, Chair