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Bill

SB 585

RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST BANA PACIFIC INC.

2026 Regular Session Introduced by Angus McKelvey and 2 co-sponsors

Hawaii issues special purpose revenue bonds to finance Bana Pacific Inc., shifting repayment risk to company operations rather than general tax revenue.

Referred to EEP, FIN, referral sheet 15
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Bill Summary · SB 585

Legislative bill overview

SB 585 authorizes Hawaii to issue special purpose revenue bonds to provide financial assistance to Bana Pacific Inc., a private company. The bonds would be repaid through revenues generated by the company's operations rather than general tax funds. This represents a public investment mechanism to support the business's development or expansion in Hawaii.

Why is this important

Special purpose revenue bonds allow states to support private enterprise without direct appropriations from the general budget, potentially creating jobs and economic activity. However, this approach places repayment responsibility on a single company's financial performance, creating public risk if the business underperforms or fails. The structure and terms significantly affect whether taxpayers benefit or bear losses.

Potential points of contention

  • Lack of public disclosure: The bill text provided contains no details about Bana Pacific Inc.'s business model, the bond amount, project scope, or expected returns—making it impossible to assess whether this represents sound public investment
  • Corporate welfare concerns: Using public bonding authority to finance private company operations raises questions about whether market-based funding should be available instead and why this company warrants special legislative treatment
  • Revenue risk: If bond repayment depends solely on company revenues, taxpayers may face obligations if the business fails, despite no direct benefit guarantee or performance guarantees specified

Compiled from official sources — confirm details with the bill’s official record.

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