S.B. 2322 Summary

• Amends Section 37D-3 of Hawaii Revised Statutes to restructure approval requirements for financing agreements, shifting from department-only approval to requiring both attorney general approval (as to form and legality) and director approval (as to fiscal responsibility).

• Reorganizes provisions governing certificates of participation into subsections (A) through (F), specifying requirements for financing agreement deposits, sale procedures, interest rates, maturity dates (limited to the lesser of weighted average economic life or 30 years), and trustee investment authority.

• Adds a new provision prohibiting the Director of Finance from issuing or approving any certificate of participation with a principal amount exceeding $10,000,000.

• Makes technical clarifications to sections addressing leases of real property, security interests in personal property, pledges of deposited amounts, and insurance requirements for financed property.

• Takes effect July 1, 2050.