Information-based Industries

Authorizes the issuance of special purpose revenue bonds to
assist a high technology industrial enterprise.  (HB377 CD1)

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 2
STATE OF HAWAII                                            C.D. 1

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds and determines that
 2 employment and economic opportunities have exponentially
 3 increased in communities in which the high technology industry is
 4 concentrated, and that it is in the public interest to promote
 5 Hawaii's economic growth by supporting the high technology
 6 industry in this State.  The legislature further finds and
 7 declares that facilities which support the high technology
 8 industry will promote the economic growth of the State by making
 9 the State a more attractive location for the high technology
10 industry and support the State's existing high technology
11 industry, that the high technology industry constitutes an
12 industrial enterprise within the meaning of part V, chapter 39A,
13 Hawaii Revised Statutes, and that the issuance of special purpose
14 revenue bonds, the proceeds of which will be loaned to a not-for-
15 profit corporation for the acquisition and development of such
16 facilities, is also authorized under part V, chapter 39A, Hawaii
17 Revised Statutes.  
18      The legislature further finds and declares that the issuance
19 of special purpose revenue bonds under this Part is in the public

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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
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 1 interest, and for the public health, safety, and general welfare
 2 of the State, and promotes the development of a high technology
 3 industry in the State.
 4      SECTION 2.  Pursuant to part V, chapter 39A, Hawaii Revised
 5 Statutes, the department of budget and finance, with the approval
 6 of the governor, is authorized to issue in one or more series
 7 special purpose revenue bonds in a total amount not to exceed
 8 $100,000,000, for the purpose of assisting Ohana Foundation, a
 9 Hawaii not-for-profit corporation, and/or one or more of its not-
10 for-profit affiliates in financing or refinancing costs related
11 to the acquisition and development of facilities of, or for, or
12 to assist the high technology industry, including without
13 limitation, facilities for research, development, technology
14 development, and technology support.  The legislature finds and
15 determines that the activities and facilities of Ohana
16 Foundation, or its not-for-profit affiliates, constitute a
17 project as defined in part V, chapter 39A, Hawaii Revised
18 Statutes, and the financing thereof is assistance to an
19 industrial enterprise.
20      SECTION 3.  The special purpose revenue bonds issued under
21 this part shall be issued pursuant to part V, chapter 39A, Hawaii
22 Revised Statutes, relating to the power to issue special purpose
23 revenue bonds to assist industrial enterprises.

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 1      SECTION 4.  The department of budget and finance is further
 2 authorized to issue from time to time refunding special purpose
 3 revenue bonds authorized in such principal amounts as the
 4 department shall determine to be necessary to refund the special
 5 purpose revenue bonds authorized in section 2.
 6      SECTION 5.  The authorization to issue special purpose
 7 revenue bonds under section 2 of this Act shall lapse on June 30,
 8 2003.
 9      SECTION 6.  Section 39A-151, Hawaii Revised Statutes, is
10 amended by amending the definitions of "project" and "project
11 agreement" to read as follows:
12      ""Project" means any combination of land, buildings, and
13 other improvements thereon, including without limitation parking
14 facilities, for use [as] of, or for, or to assist an industrial
15 enterprise, including, without limiting the generality of the
16 foregoing, machinery, equipment, furnishings, and apparatus which
17 shall be deemed necessary, suitable, or useful to such
18 enterprise.
19      "Project agreement" means any agreement entered into under
20 this part by the department with a project party to finance,
21 construct, operate, or maintain [an industrial plant] a project
22 from the proceeds of special purpose revenue bonds, or to lend
23 the proceeds of special purpose revenue bonds to assist an

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 1 industrial enterprise, including without limitation any loan
 2 agreement."
 3      SECTION 7.  The director of finance may petition the state
 4 supreme court for an opinion as to the validity of any special
 5 purpose revenue bonds to be issued under sections 1 to 6 of this
 6 Act to assist an industrial enterprise under article VII, section
 7 12, of the state constitution.
 8      The petition shall constitute a case for the purposes of
 9 section 602-5, Hawaii Revised Statutes, and the supreme court
10 shall have exclusive and original jurisdiction to receive and
11 determine the question presented in the petition, irrespective of
12 an actual controversy or dispute regarding the project agreement
13 or its validity.
14      SECTION 8.  Statutory material to be repealed is bracketed.
15 New statutory material is underscored.
16      SECTION 9.  This Act shall take effect upon its approval.