HOUSE OF REPRESENTATIVES

H.B. NO.

562

TWENTY-SIXTH LEGISLATURE, 2011

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO STATE MONEYS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that the national recession has caused a multitude of financial problems for the State, including difficulty selling general obligation bonds.  These bonds are of critical importance to the State not only to fund major state capital improvement projects, but also to rejuvenate the economy and create and sustain needed local employment.

     The legislature further finds that despite the dire economic forecasts of late, the State had over $1,800,000 in cash at the end of the 2009 fiscal year.

     The purpose of this Act is to provide funding for necessary state capital improvement projects by providing alternatives to the conventional method of selling state general obligation bonds.

     SECTION 2.  Chapter 36, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§36-     Non-general fund moneys; investments.  In addition to any other provision with respect to investments by the State, the director of finance may invest non-general fund moneys, which in the director's judgment are in excess of the amounts necessary for meeting the immediate requirements of the State and wherein the director's judgment the action will not impede or hamper the necessary financial operations of the State, in any state issued general obligation bond or interest-bearing note or other obligation; provided that:

     (1)  The non-general fund moneys invested shall be returned to their respective sources within a reasonable time period; and

     (2)  A report shall be submitted to the legislature not later than thirty days after each investment is made that discloses all sources of non-general fund moneys and the amounts therefrom that were used as investments under this section."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2030.


 


 

Report Title:

State Bonds; Investments

 

Description:

Enhances the State's authority to invest in state bonds by authorizing the use of non-general fund moneys for that purpose.  Effective July 1, 2030.  (HB562 HD1)

 

 

 

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