STAND. COM. REP. NO. 2993

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2595

       H.D. 2

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Water, Land, and Housing, to which was referred H.B. No. 2595, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST DAM AND RESERVOIR OWNERS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to authorize the State to issue special purpose revenue bonds and use the proceeds from the bonds to assist dam and reservoir owners, upon ratification of an appropriate constitutional amendment.

 

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources; Department of Budget and Finance; Land Use Research Foundation of Hawaii; Monsanto Company; Dole Food Company Hawaii; Hawaii Cattlemen's Council; Hawaii Farm Bureau Federation; Alexander and Baldwin, Inc.; Kau Farm Bureau; and one individual.

 

     Your Committee finds that over eighty percent of the dams in Hawaii were constructed before 1940.  Due to the age of the facilities and deferred maintenance, many dams of those pose a safety risk to life and property.  Furthermore, new safety requirements pose a financial burden on many dam and reservoir owners.  This measure provides a financing mechanism to assist the owners in compliance with those safety standards.

 

     Your Committee has amended this measure by:

 

     (1)  Clarifying that as a condition precedent to negotiating and entering into a project agreement, the State, rather than the Department of Budget and Finance, may require a further deposit as a security for the reimbursement;

 

     (2)  Changing the effective date to upon approval; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Water, Land, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2595, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2595, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Water, Land, and Housing,

 

 

 

____________________________

DONOVAN M. DELA CRUZ, Chair