STAND. COM. REP. NO.  162

 

Honolulu, Hawaii

                , 2011

 

RE:   H.B. No. 1179

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Economic Revitalization & Business, to which was referred H.B. No. 1179 entitled:

 

"A BILL FOR AN ACT RELATING TO INVESTMENTS,"

 

begs leave to report as follows:

 

     The purpose of this bill is to improve the management of state funds by:

 

     (1)  Establishing an advisory committee on short-term investments (Advisory Committee);

 

     (2)  Requiring the Commissioner of Financial Institutions (Commissioner) to establish and operate, with the assistance of the Advisory Committee, a short-term investment pool of excess state funds; and

 

     (3)  Repealing existing provisions authorizing the Director of Finance to make short-term investments of excess state funds.

 

     The Department of Budget and Finance (B&F) and the Division of Financial Institutions of the Department of Commerce and Consumer Affairs opposed this bill.

 

     In light of concerns raised in testimony, your Committee has amended this measure by:

 

     (1)  Deleting references to the Commissioner and making the Director of Finance the entity responsible for operating, with the assistance of the Advisory Committee, the short-term investment pool;

 

     (2)  Specifying that the Advisory Committee be administratively attached to B&F; and

 

     (3)  Changing its effective date to July 1, 2112, to encourage further discussion.

 

     Technical, nonsubstantive amendments were also made for style, clarity, and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1179, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1179, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

 

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization & Business,

 

 

 

 

____________________________

ANGUS L.K. MCKELVEY, Chair