SB 1475: RELATING TO SPECIAL FACILITY REVENUE BONDS.

A BILL FOR AN ACT

RELATING TO SPECIAL FACILITY REVENUE BONDS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 266-52, Hawaii Revised Statutes, is amended to read as follows:

     "§266-52  Powers.  In addition and supplemental to the powers granted to the department by law, the department may:

     (1)  With the approval of the governor, enter into a special facility lease or an amendment or supplement thereto whereby the department agrees with another person engaged in maritime and maritime-related operations to construct, acquire, remodel, furnish, or equip a special facility solely for the use by [such] that other person to a special facility lease; provided that [such] the special facility lease may be amendatory and supplemental to an existing lease between the department and [such] the other person for the land upon which the special facility [which] that is the subject of [such] the special facility lease is to be situated;

     (2)  With the approval of the governor:

          (A)  Issue special facility revenue bonds in [such] principal amounts as may be necessary to yield the amount of the cost of any construction, acquisition, remodeling, furnishing, and equipping of any special facility; provided that the total principal amount of the special facility revenue bonds [which] that may be issued pursuant to the authorization of this subparagraph shall not exceed [$100,000,000;] $600,000,000; and

          (B)  Issue special facility revenue refunding bonds, without further authorization by the legislature, to refund outstanding special facility revenue bonds, including special facility revenue refunding bonds, or any part thereof, at or before the maturity or redemption date, issued pursuant to this part; provided that any issuance of the refunding bonds shall not reduce the amount authorized by the legislature as provided in paragraph (2)(A);

     (3)  Perform and carry out the terms and provisions of any special facility lease;

     (4)  Notwithstanding section 103-7 or any other law to the contrary, acquire, construct, remodel, furnish, or equip any special facility, or accept the assignment of any contract therefor entered into by the other person to the special facility lease;

     (5)  Construct any special facility on land owned by the State; and

     (6)  Agree with the other person to the special facility lease whereby any acquisition, construction, remodeling, furnishing, or equipping of the special facility and the expenditure of moneys therefor shall be undertaken or supervised by [such] the other person."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2050.

Report Title:

DOT; Harbor Improvements; Special Facility Revenue Bonds

Description:

Increases the total principal amount of special facility revenue bonds that may be issued by the Department of Transportation for harbor improvements.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

rELATING TO SPECIAL FACILITY REVENUE BONDS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 266-52, Hawaii Revised Statutes, is amended to read as follows:

     "§266-52  Powers.  In addition and supplemental to the powers granted to the department by law, the department may:

     (1)  With the approval of the governor, enter into a special facility lease or an amendment or supplement thereto whereby the department agrees with another person engaged in maritime and maritime-related operations to construct, acquire, remodel, furnish, or equip a special facility solely for the use by [such] that other person to a special facility lease; provided that [such] the special facility lease may be amendatory and supplemental to an existing lease between the department and [such] the other person for the land upon which the special facility which is the subject of [such] the special facility lease is to be situated;

     (2)  With the approval of the governor:

          (A)  Issue special facility revenue bonds in [such] principal amounts as may be necessary to yield the amount of the cost of any construction, acquisition, remodeling, furnishing, and equipping of any special facility; provided that the total principal amount of the special facility revenue bonds which may be issued pursuant to the authorization of this subparagraph shall not exceed [$100,000,000;] $600,000,000; and

          (B)  Issue special facility revenue refunding bonds, without further authorization by the legislature, to refund outstanding special facility revenue bonds, including special facility revenue refunding bonds, or any part thereof, at or before the maturity or redemption date, issued pursuant to this part; provided that any issuance of the refunding bonds shall not reduce the amount authorized by the legislature as provided in paragraph (2)(A);

     (3)  Perform and carry out the terms and provisions of any special facility lease;

     (4)  Notwithstanding section 103-7 or any other law to the contrary, acquire, construct, remodel, furnish, or equip any special facility, or accept the assignment of any contract therefor entered into by the other person to the special facility lease;

     (5)  Construct any special facility on land owned by the State; and

     (6)  Agree with the other person to the special facility lease whereby any acquisition, construction, remodeling, furnishing, or equipping of the special facility and the expenditure of moneys therefor shall be undertaken or supervised by [such] the other person."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

DOT; Harbor Improvements; Special Facility Revenue Bonds

Description:

Amends section 266-52, HRS, to increase the total principal amount of special facility revenue bonds that may be issued by the Department of Transportation for harbor improvements.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 249

Honolulu, Hawaii

RE:    S.B. No. 1475

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Transportation and Culture and the Arts, to which was referred S.B. No. 1475 entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL FACILITY REVENUE BONDS,"

begs leave to report as follows:

     The purpose and intent of this measure is to increase the total principal amount of special facility revenue bonds that may be issued by the Department of Transportation for harbor improvements.

     Your Committee received testimony in support of this measure from the Department of Transportation.

     Your Committee finds that special facility revenue bonds expedite certain projects at commercial harbor facilities and increase project efficiencies.  Your Committee further finds that escalating project costs due to inflation and the increasing costs of materials and labor necessitates an increase of the existing limit.  Your Committee notes that special facility revenue bonds may fund projects that include new port infrastructure to support renewable energy projects.  Accordingly, this measure increases the principal amount of special facility revenue bonds that the Department of Transportation may issue to expedite additional projects and prioritize public improvements to harbor facilities.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (2)  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 Transportation and Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1475, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1475, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Transportation and Culture and the Arts,