Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2529, H.D. 1, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to improve the administration of state finances.

Specifically, this bill authorizes the use of certificates of deposit issued through the Certificate of Deposit Account Registry Service to secure public funds. The bill authorizes the use of certificates of deposit that use a network of financial institutions to share deposits insured by the Federal Deposit Insurance Corporation in an amount at least equal in their market value, but not to exceed their par value, to the amount of the deposit with the depository. The bill further allows the Director of Finance to make short-term investments of state moneys in those certificates of deposit.

Your Committee upon further consideration has amended S.B. No. 2529, H.D. 1 by deleting its contents and substituting the contents of the original senate version of S.B. No. 2529 in its place. In effect, this amendment removes section 1 of the bill, which amends section 36-21, Hawaii Revised Statutes, authorizing the Director of Finance to make short-term investments of state moneys in those certificates of deposit.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2529, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2529, H.D. 1, C.D. 1.