STAND. COM. REP. NO. 535

Honolulu, Hawaii

RE:    S.B. No. 939

       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. 939 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to update and clarify sections of the Hawaii Revised Statutes relating to the investment and funds management functions of the Department of Budget and Finance.

     Your Committee received testimony in support of this measure from the Department of Budget and Finance.

     Your Committee finds that this measure repeals statutory language that authorizes the Director of Finance to invest state moneys in:

     (1)  Student Loan Marketing Association notes and bonds because the Student Loan Marketing Association "Sallie Mae" is no longer a government-sponsored enterprise; and

     (2)  Various student loan resource securities because the issuance of these types of securities has diminished and there no longer exists a liquid efficient market for these types of securities.

     Your Committee also finds that this measure requires every public accountant collecting or receiving revenue or other moneys on behalf of the State, regardless of whether the accountant is located in Honolulu, to pay those moneys into the state treasury either weekly or at such times as may be otherwise specially appointed.  Your Committee believes it is beneficial to the State to have all receipts deposited into the state treasury as soon as possible.

     Your Committee has amended this measure by making technical nonsubstantive changes for the purposes of style, clarity, and consistency.

     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. 939, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 939, S.D. 1, and be placed on the calendar for Third Reading.

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

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JILL N. TOKUDA, Chair