Report Title:

Special Purpose Revenue Bonds; Industrial Enterprises

 

Description:

Authorizes the issuance of special purpose revenue bonds in a total amount not to exceed $38,000,000 to assist Hui Mana Omao to establish facilities to convert potential renewable energy resources into electrical energy for public consumption. (HB2661 HD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

2661

TWENTY-FOURTH LEGISLATURE, 2008

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST INDUSTRIAL ENTERPRISES.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. The legislature finds that it is in the public interest to encourage the development of renewable energy resources.

In addition, the legislature finds that Hui Mana 'Oma'o is engaged in the development of a hybrid of renewable energy technologies integrated to produce firm power through special operating protocols and state of the art electronic monitoring and dispatch equipment.

Furthermore, the legislature finds that Hui Mana 'Oma'o may be assisted through the issuance of special purpose revenue bonds because it is an industrial enterprise as that term is understood in part V, chapter 39A, Hawaii Revised Statutes.

The legislature further finds and declares that the exercise of the powers vested in the department of budget and finance under this Act constitutes assistance to an industrial enterprise and that the issuance of special purpose revenue bonds to finance facilities of the project parties or for the project parties, or to loan the proceeds of the special purpose revenue bonds to assist project parties, is in the public interest and for the public health, safety, and general welfare of the State.

SECTION 2. Pursuant to part V, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $38,000,000, in one or more series, for the purpose of assisting Hui Mana 'Oma'o or an enterprise or commercial entity in which Hui Mana 'Oma'o is an owner, for the establishment of facilities to convert potential renewable energy resources into electrical energy for consumption by the general public. The legislature hereby finds and determines that the activity and facilities of Hui Mana 'Oma'o constitute a project as defined in part V, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to an industrial enterprise.

SECTION 3. The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part V, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist industrial enterprises.

SECTION 4. The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2013, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 2 and to refund special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the programs described in section 2. In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

SECTION 5. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2013.

SECTION 6. This Act shall take effect upon its approval.