STAND. COM. REP. NO. 3377

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 737

       H.D. 2

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 737, H.D. 2, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST AGRICULTURAL ENTERPRISES,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to statutorily implement a proposed constitutional amendment that authorizes the State to issue special purpose revenue bonds and use the proceeds from the bonds to assist agricultural enterprises.

 

     Your Committee received written comments in support of this measure from the Hawaii Farm Bureau Federation, the Land Use Research Foundation of Hawaii, Alexander and Baldwin, Inc., and Hawaii Farmers Union United.  Written comments on this measure were received from the Department of Budget and Finance, the Department of Agriculture, and the Local Food Coalition.

 

     Your Committee finds that special purpose revenue bonds provide the private sector with access to the lower rates available in public finance capital markets.  Your Committee further finds that decaying plantation-era or obsolete infrastructure, high transportation costs, and regulatory compliance issues threaten the food security and sustainability of our State.  Farmers and ranchers need access to affordable capital to implement the many projects that contribute to feeding the State's residents.  If the proposed constitutional amendment authorizing the use of special purpose revenue bonds for this purpose is ratified, this measure will provide the statutory means by which agriculturalists may avail themselves of this financing mechanism.

 

     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. 737, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DAVID Y. IGE, Chair