RELATING TO BONDS.

SB3218

THE SENATE

S.B. NO.

3218

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to bonds
.

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

����
SECTION
1
.
�
Section 47C-1, Hawaii Revised Statutes, is
amended to read as follows:

����
"
�47C-1
�

Definitions.
�
As used in
sections 47C-1 through 47C-6, the following words and terms shall have the
following meanings or inclusions:

����
"Chairperson
of the finance committee" shall mean the chairperson of the finance
committee of the council of the county, or if the council of the county does
not have a finance committee, the member of the council appointed by the
council to perform the functions required by this chapter to be performed by
the chairperson of the finance committee of the council.

����
"Corporation
counsel" shall mean the chief legal advisor or legal representative of the
county.

����
"County"
shall include each county of the State, including the city and county of
Honolulu.

����
"Director
of finance" shall mean the director of finance of the county, or if the
county does not have a director of finance, the officer of the county in whom
is vested the functions and powers of maintaining the treasury of the county
and issuing and selling, paying interest on, and redeeming bonds of the county.

����
"Fiscal
year" shall mean the fiscal year of the county as defined in section
46-41.

����
"Special
assessment bonds" shall mean bonds issued under special improvement
statutes when the only security for [
such
]
the
bonds is the
assessments or special taxes levied and assessed under those statutes or
properties subject to the assessments or special taxes.

����
As used in
sections 47C-1 through 47C-6, the words or terms "bonds",
"general obligation bonds",
"housing infrastructure growth
bonds",
"net revenue", "net user tax receipts",
"reimbursable general obligation bonds", "revenue bonds",
"special purpose revenue bonds", and "user tax" shall have
the respective meanings and inclusions given to [
such
]
those
words
and terms in section 12 of article VII of the constitution."

����
SECTION
2
.
�
Section 47C-2, Hawaii Revised Statutes, is
amended to read as follows:

����
"
�47C-2
�

Determination of funded debt.
�

Within ninety days after the first day of each fiscal year, the director
of finance of each county shall ascertain and set forth in a tabular summary
the total indebtedness of the county outstanding and unpaid as of the first day
of [
such
]
that
fiscal year.
�

The summary shall include the following:

����
(1)
�
An itemization of the total principal amount
of all general obligation bonds, reimbursable general obligation bonds, revenue
bonds, special assessment bonds, special purpose revenue bonds,
housing
infrastructure growth bonds,
and all other bonds of the county outstanding
and unpaid, including bonds [
which
]
that
may be excluded under
clauses 1, 2, 3, 4, 5, 6, 8, [
and
] 9
, and 10
of section 13 of
article VII of the constitution when determining the funded debt of the county
for the purposes of that section together with a grand total of such total
principal amounts[
.
]
;

����
(2)
�
The total principal amount of all bonds of the
State required by clause (7) of section 13 of article VII of the constitution
to be included when determining the funded debt of the county for the purposes
of that section[
.
]
;

����
(3)
�
A grand total of the total principal amounts
set forth in the summary pursuant to paragraphs (1) and (2)[
.
]
;

����
(4)
�
An itemization of the total of the principal
amount of all general obligation bonds, reimbursable general obligation bonds,
revenue bonds, special assessment bonds, [
and
] special purpose revenue
bonds
, and housing infrastructure growth bonds
of the county outstanding
and unpaid [
which
]
that
may be excluded under clauses 1, 2, 3, 4,
5, 6, 8, [
and
] 9
, and 10
of section 13
�
of article VII of the constitution when
determining the total funded debt of the county for the purposes of that
section, together with a grand total of such total principal amounts[
.
]
;
and

����
(5)
�
The difference between the grand total
principal amount set forth in the summary pursuant to paragraph (3) and the
grand total principal amount set forth in the summary pursuant to paragraph
(4).

����
The
director of finance shall also prepare and attach to the tabular summary [
such
]

the
supporting schedules as may be required to set forth in detail the
bonds included in the itemizations required by paragraphs (1) and (4).
�
[
Such
]
The
supporting schedules
shall also set forth or make reference to the relevant statutory, charter,
ordinance, or other legal provision, and the relevant figures of assessment
collections, revenues, user tax receipts, cost of operation, maintenance and
repair, net revenues, net user tax receipts, reimbursements to the general
fund, and other financial information, justifying the inclusion of [
such
]

the
bonds in the itemization required by paragraph (4).
�
The director of finance shall indicate in the
supporting schedules whether the financial findings and figures are based upon
the records of the director's office or upon audited statements and reports,
and if based upon the latter, shall identify in the schedules the audited
reports and statements."

����
SECTION
3
.
�
Section 47C-3, Hawaii Revised Statutes, is
amended to read as follows:

����
"
�47C-3
�

Supplemental determination.
�

Whenever the county proposes to issue bonds, the director of finance
shall prepare a supplemental summary of the indebtedness of the county setting
forth [
therein such
]
the
information and findings as of a date
within thirty days of the delivery of [
such
]
the
bonds as will
bring up to date and make current the most recent summary prepared in
accordance with the provisions of section 47C-2.
�
The director of finance shall also prepare
and attach to [
such
]
the
supplemental summary [
such
]
the

supporting schedules [
as
]
that
may be required to set forth in
detail the variations and changes from the summary prepared in accordance with
section 47C-2, including [
such
]
the
legal and financial findings
[
as
]
that
will justify any changes in the itemizations set forth
in [
such
]
the
previous summary pursuant to the requirements of [
paragraph
(4) of section 47C-2.
]
section 47C-2(4).

�
If all the bonds proposed to be issued may be
excluded when determining the funded debt of the county for the purposes of
section 13 of article VII of the constitution by reason of the provisions of
clauses 2 [
or
]
,
4
, or 10
of that section, the supplemental
summary and supporting schedules may be limited to [
such
]
those
bonds
and findings as are necessary to justify [
such
]
the
exclusion
under [
such
]
those
clauses.

����
In the
event proceeds of the bonds proposed to be issued are to be applied to the
retirement in the then fiscal year of outstanding bonds, including notes issued
in anticipation of the issuance of the bonds proposed to be issued, for the
purpose of applying the provisions of clause 1 of section 13 of article VII of
the constitution to the bonds to be retired, that amount of [
such
]
the

proceeds to be [
so
] applied may be considered and treated as moneys
irrevocably set aside for the payment of [
such
]
the
bonds."

����
SECTION
4.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 5.
�
This Act shall take effect upon its approval
and upon ratification of a constitutional amendment expressly providing that
the legislature may authorize the counties to issue housing infrastructure
growth bonds and excluding housing infrastructure growth bonds from
determinations of the funded debt of the counties.

INTRODUCED BY:

_____________________________

Report Title:

Housing Infrastructure Growth Bonds; Counties; County Debt
Limit Statements

Description:

Conforms
county debt limit statements law to permit counties to exclude housing
infrastructure growth bonds from the debt limit of the counties if a
constitutional amendment authorizing the use of housing infrastructure growth
bonds and excluding housing infrastructure growth bonds from determinations of
the counties' funded debt is ratified.

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