STAND

STAND. COM. REP. NO. 669-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2573

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 H.B. No. 2573 entitled:

"A BILL FOR AN ACT RELATING TO MANAGEMENT OF STATE FUNDS,"

begs leave to report as follows:

The purpose of this bill is to stimulate economic and community development by allowing the Director of Finance to invest up to 10 percent of State short-term investment moneys in linked investments, which are certificates of deposit placed with eligible lending institutions within the State. Specifically, each loan is:

(1) Limited to a certain amount; and

(2) May be used for the financing of:

(A) Plant construction or expansion;

(B) Purchase of equipment and materials; or

The Department of Budget and Finance submitted testimony in opposition to this measure.

Your Committee has amended this bill by:

(1) Changing the effective date to July 1, 2010, to facilitate further discussion; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, 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 H.B. No. 2573, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2573, 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