Bill Text: HI SB2948 | 2012 | Regular Session | Amended

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Bill Title: Certificates of Participation; Legislative Approval

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2012-03-08 - (H) Referred to LMG, FIN, referral sheet 41 [SB2948 Detail]

Download: Hawaii-2012-SB2948-Amended.html

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STAND. COM. REP. NO. 2528

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2948

       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 Ways and Means, to which was referred S.B. No. 2948 entitled:

 

"A BILL FOR AN ACT RELATING TO FINANCING AGREEMENTS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to clarify that certificates of participation for the State's financing agreement program do not require legislative approval.

 

     Your Committee received comments on this measure from the Director of Finance.

 

     Your Committee finds that although current law does not require legislative approval prior to the issuance of a certificate of participation, the debt service for certificates of participation issued pursuant to chapter 37, Hawaii Revised Statutes, is subject to annual appropriation by the Legislature to avoid being considered a state debt.  As written, the bill could result in the issuance of certificates of participation being considered debts under the state constitution, and thus subject to constitutional debt limits.

 

     As a result, your Committee has amended the measure to clarify that, while a certificate of participation does not require legislative approval prior to being issued, it is subject to the limitation on financing agreements pursuant to section 37D‑2(b)(1), Hawaii Revised Statutes, restricting, to available moneys, the amount payable under a financing agreement by an agency or the Department of Budget and Finance.

 

     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 S.B. No. 2948, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2948, S.D. 1, and be placed on the calendar for Third Reading.

 

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

 

		____________________________ DAVID Y. IGE, Chair