STAND. COM. REP. NO. 864-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2529

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2529 entitled:

"A BILL FOR AN ACT RELATING TO SECURITIES FOR THE PROTECTION OF PUBLIC FUNDS,"

begs leave to report as follows:

The purpose of this bill is to improve the administration of state finances by authorizing the use of certificates of deposit (CDs) issued through the Certificate of Deposit Account Registry Service to secure public funds.

City Bank supported this bill. The Department of Budget and Finance supported the intent of the measure.

After careful consideration, your Committee has amended this bill by:

(1) Authorizing the use of CDs that use a network of financial institutions to share deposits insured by the Federal Deposit Insurance Corporation instead of using a specific product name;

(2) Amending section 36-21(a), Hawaii Revised Statutes, to allow the Director of Finance to make short-term investments of state moneys in the CDs described in paragraph (1) above; and

(3) Making technical, nonsubstantive amendments for clarity and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2529, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2529, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT Y. TAKAMINE, Chair