STAND. COM. REP. NO.  956-10

Honolulu, Hawaii

                , 2010

RE:   H.C.R. No. 200

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Legislative Management, to which was referred H.C.R. No. 200 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE LEGISLATIVE REFERENCE BUREAU TO STUDY THE FEASIBILITY OF ESTABLISHING A STATE-OWNED BANK,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to consider innovative strategies to strengthen Hawaii's economy.  This measure requests the Legislative Reference Bureau (LRB) to study the feasibility of establishing a state-owned bank in Hawaii.

     The Department of Commerce and Consumer Affairs, Hawaii Alliance for Community-Based Economic Development, and a concerned individual testified in support of this measure.  LRB offered comments.

     Your Committee finds that the Bank of North Dakota (Bank) is the only state-owned and operated financial institution in the nation.  State funds deposited with the Bank are invested in loan programs to spur economic development in that state.  Bank profits are deposited into the state's general fund.  Your Committee further finds that the idea of a State-owned bank deserves further investigation, especially to determine whether the concept is compatible with Hawaii's existing financial institution infrastructure.

     As affirmed by the record of votes of the members of your Committee on Legislative Management that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 200 and recommends that it be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Legislative Management,

____________________________

JAMES KUNANE TOKIOKA, Chair