STAND. COM. REP. NO. 277

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 Intergovernmental and Military Affairs, 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 provide county governments with the flexibility to allow the director of finance of each county to invest county moneys involving commercial paper and bankers acceptances with an A1/P1 or equivalent rating by any national securities rating service.

     Testimony in support of this measure was submitted by the Finance Department of the County of Hawaii, a member of the Maui County Council, Central Pacific Bank, and First Hawaiian Bank.

     Your Committee finds that this measure will allow the counties within the State the same flexibility for its investments that are afforded the State, giving them the opportunity to maximize their investment returns while ensuring the safety of the principle invested.  Therefore, your Committee finds this measure to be in the public's interest.

     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 S.B. No. 769 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