HI SB2808

Establishes a Defeasement Trust Fund within the Department of Budget and Finance to pay off tax-exempt bonds, enabling private activities at state facilities originally financed with those bonds

IRS rules prohibit private use of facilities financed with tax-exempt bonds; this fund provides a mechanism to defease (pay off) those bonds and remove the restriction

Requires the Department of Budget and Finance to consult with bond counsel before any defeasement to assess impacts, evaluate relevant bonds, and determine costs

Appropriates an unspecified amount from general revenues into the trust fund for fiscal year 2026-2027, with corresponding expenditure authority for bond defeasement

Trust fund terminates upon full payment of all outstanding bond obligations, with remaining moneys reverting to the general fund