STAND. COM. REP. NO. 678

Honolulu, Hawaii

RE:    S.B. No. 407

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 407 entitled:

"A BILL FOR AN ACT RELATING TO COUNTIES,"

begs leave to report as follows:

     The purpose and intent of this measure is to broaden the types of short-term investment options for the counties, including money market mutual funds.

This measure also prohibits investments that may require future payments by the county, such as swap agreements and hedge agreements, or which bear variable interest rates that may cause market price fluctuations.

     Your Committee finds that this measure will increase flexibility for the counties by allowing the same investment options afforded to the State.  On the other hand, this measure also contains restrictive language for specific investments that provide further safeguards and clarification.

     Your Committee has amended this measure by correcting the term "money market mutual fund" to "money market fund."

     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. 407, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 407, S.D. 1.

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

________________________________

JILL N. TOKUDA, Chair