STAND. COM. REP. NO. 911

Honolulu, Hawaii

RE:    S.B. No. 769

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 769 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 county Directors of Finance to invest county funds in commercial paper of bankers' acceptances with an A1/P1 rating.

     Your Committee received comments in support of this measure from the Maui County Council and Central Pacific Bank.

     Your Committee finds that this measure will:

     (1)  Provide the counties with more options for their short-term investment portfolios and help to maximize their investment returns;

     (2)  Require investments to possess A1/P1 ratings to ensure the financial integrity of such investments; and

     (3)  Provide the counties with the same investment flexibility afforded to the State.

     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. 769 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair