H.B. 2314 Summary

• Amends Hawaii Revised Statutes Section 37D-3 to modify the approval process for certificates of participation, requiring approval from both the Attorney General and the Director of Finance instead of just the Attorney General.

• Restructures subsection (a) by converting narrative text into lettered subparagraphs (A through F) that detail requirements for financing agreements, including terms for deposits, sales procedures, interest rates, maturity dates, trustee investments, and crediting of earned interest.

• Adds provisions allowing agencies to grant leases of real property with specified terms, including lease duration tied to financing agreement payment dates and lessor rights to evict and sublease property upon default.

• Establishes a $10 million principal amount cap on certificates of participation issued or approved by the Director of Finance under this chapter.

• Takes effect on July 1, 2022.