Bill Text: HI SB974 | 2013 | Regular Session | Amended

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Bill Title: Special Purpose Revenue Bonds; Agricultural Enterprises

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed - Dead) 2013-03-07 - Referred to AGR, FIN, referral sheet 30 [SB974 Detail]

Download: Hawaii-2013-SB974-Amended.html

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STAND. COM. REP. NO. 821

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 974

       S.D. 2

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 974, 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 authorize the State, subject to ratification of a constitutional amendment, to issue special purpose revenue bonds to assist agricultural enterprises.

 

     Your Committee received written comments in support of this measure from Alexander and Baldwin, Inc.; the Ulupono Initiative; the Land Use Research Foundation of Hawaii; the Hawaii Farm Bureau Federation; and one individual.  The State Procurement Office submitted written comments in opposition to this measure.  The Department of Budget and Finance submitted written comments on this measure.

 

     Your Committee finds that special purpose revenue bonds provide the private sector with access to lower interest rate loans than are available in the private financial market.  Special purpose revenue bonds for agricultural enterprises will provide important financial support for Hawaii's agricultural operations, including construction and improvements to irrigation systems, roads, utilities, and processing facilities.

 

     Your Committee has amended this measure by:

 

(1)  Adding a definition for "agricultural enterprise";

 

(2)  Amending the definition of "project" to include machinery, equipment, furnishings, and apparatus of an agricultural enterprise;

 

(3)  Adding language to ensure that the interest on special purpose revenue bonds may be eligible for inclusion as gross income for tax credit and tax deferral programs;

 

(4)  Changing the effective date to July 1, 2050, to encourage further discussion on the measure; and

 

(5)  Making technical nonsubstantive amendments for clarity, consistency, and style.

 

     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. 974, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 974, S.D. 2.

 

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

 

		____________________________ DAVID Y. IGE, Chair