STAND. COM. REP. NO.  1087-10

Honolulu, Hawaii

                , 2010

RE:   S.B. No. 2825

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2825, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE FUNDS,"

begs leave to report as follows:

     The purpose of this bill is to clarify that the five-year maturity limitation for short-term investments also applies to the underlying securities of those investments.

     The Department of Budget and Finance opposed this bill.

     Your Committee has amended this bill by:

     (1)  Clarifying that the five-year maturity limitation applies to authorized investments with stated maturity dates, as well as the underlying securities for those investments;

     (2)  Changing the effective date to July 1, 2020, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2825, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2825, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair