STAND. COM. REP. NO. 1053

Honolulu, Hawaii

RE:    H.B. No. 421

       H.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Intergovernmental and Military Affairs, to which was referred H.B. No. 421, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SHORT TERM INVESTMENT OF COUNTY MONEYS,"

begs leave to report as follows:

     The purpose of this measure is to allow the counties to invest moneys in certain short-term investment instruments such as commercial paper and bankers' acceptances.

     Your Committee received testimony in support of this measure from the Mayor of the County of Maui, Maui County Council, County of Kauai Department of Finance, County of Maui Department of Finance, County of Hawaii Department of Finance, and Central Pacific Bank.

     Your Committee finds that this measure expands the short-term investment options for county moneys to include A-1/P-1 rated commercial paper and bankers' acceptances, which will provide the counties with the option to choose the most advantageous method to invest their moneys while ensuring safety of principal.  To this end, it is the intent of your Committee to provide the counties with more flexibility regarding management of their short-term investment portfolio in order to maximize investment returns.

     As affirmed by the record of votes of the members of your Committee on Intergovernmental and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 421, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Intergovernmental and Military Affairs,

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LORRAINE R. INOUYE, Chair