THE SENATE

S.C.R. NO.

64

TWENTY-SEVENTH LEGISLATURE, 2013

S.D. 1

STATE OF HAWAII

 

 

 

 

 

SENATE CONCURRENT

RESOLUTION

 

 

REQUESTING THE DEPARTMENT OF BUDGET AND FINANCE AND THE DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES TO INVEST NON-GENERAL FUND HOLDINGS INTO LOCAL FINANCIAL INSTITUTIONS.

 

 


     WHEREAS, the non-general funds of the State of Hawaii are often used to fund specific activities carried out by departments, attached agencies, state foundations, and other state entities; and

 

     WHEREAS, non-general funds are required by law to provide an adequate means of financing for the program or activity and are therefore meant to be self-sustaining, to ensure the continuity of services or availability of cash for the service; and

 

     WHEREAS, the recent economic crisis has led to certain regulatory actions by the federal government, which have decreased many large financial institutions' propensity to lend money; and

 

     WHEREAS, for low- and middle-income families, access to credit is a major barrier to achieving goals such as self-sufficiency, homeownership, or increased education; and

 

     WHEREAS, credit unions and other small, locally-based financial institutions with a dedicated membership offer affordable interest rates and access to credit for their members; and

 

     WHEREAS, the recipients of dividends of such locally-based financial institutions are members of our citizenry and will ultimately accumulate wealth for our economy; and

 

     WHEREAS, the recipients of loans from these institutions are typically local persons seeking personal loans, auto loans, and mortgages, leading to the purchase of cars, homes, and personal items in the local economy and generating tax revenue; and

 

     WHEREAS, the addition of state funds as a capital base to any financial institution would increase the institution's ability to lend in small communities; and

 

     WHEREAS, this local stimulus should be given to responsible agencies with roots in our local communities; now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, the House of Representatives concurring, that the Director of Finance in cooperation with the Comptroller is asked to review the inventory of non-general funds, revolving loan funds, revolving funds, bond holdings, and other state investments and identify stable, solvent funds that may be appropriate to be invested in accounts in small, locally-based financial institutions; and

 

     BE IT FURTHER RESOLVED that if funds are identified to be appropriate for investment in small, locally-based financial institutions, to ensure the equitable distribution of funds and some stability for the institutions, the Director of Finance and Comptroller are requested to work with the Chief Procurement Officer of the State to develop a special procurement process to assure funds will be deposited in the winning institutions for no less than ten years; and

 

     BE IT FURTHER RESOLVED that the specifications for any procurement contain minimum safeguards to discourage misuse of state funds, as well as reporting requirements on fund statuses as necessary for the state's maintenance of the funds; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Finance, Comptroller, and Chief Procurement Officer of the State.

 

 

 

Report Title: 

Non-General Funds; Revolving Loan Funds; Revolving Funds; Bond Holdings; Investments