Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1047 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Director of Finance to invest state moneys over the short-term in the securities of an AAA-rated money market mutual fund.

Your Committee received testimony from the Director of Finance that the types of mutual funds in which investment would be authorized include U.S. government related and money market mutual funds. Both are regulated by the U.S. Securities and Exchange Commission, and investments will be limited only to those funds that have the highest quality ratings.

Your Committee finds that this measure will allow the Director of Finance to invest in mutual funds that satisfy the cash management criteria of safety and liquidity.

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. 1047 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.