STAND. COM. REP. NO. 2433

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2088
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2088 entitled: 

     "A BILL FOR AN ACT RELATING TO SHORT-TERM INVESTMENT OF
     STATE MONEYS,"

begs leave to report as follows:

     The purpose of this bill is to expand the permissible types
of investments the Director of Finance may make using excess
state funds.

     Presently, under section 36-21, Hawaii Revised Statutes, the
Director of Finance may make short-term investments with state
funds provided that the funds are:

     (1)  In excess of any amount necessary to meet the immediate
          requirements of the State; and

     (2)  Funds whose use will not impede or hamper the financial
          obligations of the State.

     This bill provides flexibility to the Director of Finance
when making such investments by allowing the Director to invest
in Student Loan Marketing Association notes and bonds and
Tennessee Valley Authority notes and bonds.  The bill also

 
a                                                     SB2088
 
 
 
 
                                   STAND. COM. REP. NO. 2433
                                   Page 2


replaces Federal Land Bank bonds with Federal Farm Credit System
notes and bonds as a permissible short-term investment.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2088, and recommends that it pass Second Reading and be placed on
the calendar for Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     SB2088