STAND. COM. REP. NO. 1130

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1179

       H.D. 3

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 1179, H.D. 3, entitled:

 

"A BILL FOR AN ACT RELATING TO INVESTMENTS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to establish an advisory committee on short-term investments to assist the Director of Finance in making short-term investments.

 

In addition, this measure clarifies the conditions regarding short-term investment of state moneys.

 

     Your Committee received testimony in support of this measure from Kalbert K. Young, Director, Department of Budget and Finance.

 

     Your Committee finds this measure will help to improve the State's money management capabilities.  Your Committee believes that the State's recent, financially disadvantageous experience with investments in student loan auction rate securities highlights the State's need for expert assistance in making future short-term investment decisions.  Your Committee notes its firm intent that the advisory committee and its consultants include local investment industry advisors and agents.

 

     Your Committee has amended this measure by:

 

     (1)  Clarifying that two members of the advisory committee, rather than being appointed by Hawaii Bankers Association, are to be appointed by the Governor to represent banks that are chartered or licensed in the State; and

 

     (2)  Making a technical, nonsubstantive amendment for the purposes of clarity and style.

 

     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 H.B. No. 1179, H.D. 3, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1179, H.D. 3, S.D. 1, and be placed on the calendar for Third Reading.

 

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

 

 

 

____________________________

DAVID Y. IGE, Chair