HB 1588 Summary

• Prohibits issuance of general obligation bonds to finance repair and maintenance of capital assets where costs add value and prolong asset life for less than 10 years.

• Requires the director of finance to set maturity dates of no more than 10 years when issuing general obligation bonds for repair and maintenance projects that add value and extend asset life for 10 years or more.

• Amends Section 37-67, Hawaii Revised Statutes, to require the director of finance to specify in procedures and regulations that general obligation bonds cannot be issued for repairs and maintenance with a useful life of less than 10 years.

• Amends Section 39-4, Hawaii Revised Statutes, to establish restrictions on bond issuance and maturity dates for capital asset repair and maintenance projects.

• Takes effect upon approval.