Bill Text: HI SB939 | 2017 | Regular Session | Amended

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Bill Title: Relating To State Funds.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2017-04-26 - Act 009, on 04/26/2017 (Gov. Msg. No. 1109). [SB939 Detail]

Download: Hawaii-2017-SB939-Amended.html

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THE SENATE	S.B. NO.	939
TWENTY-NINTH LEGISLATURE, 2017		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO STATE FUNDS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The purpose of this Act is to update and clarify pertinent sections of the statutes relating to the investment and funds management functions of the department of budget and finance.

     SECTION 2.  Section 36-21, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The director of finance may invest any moneys of the State which in the director's judgment are in excess of the amounts necessary for meeting the immediate requirements of the State and where in the director's judgment the action will not impede or hamper the necessary financial operations of the State in:

     (1)  Any bonds or interest-bearing notes or obligations:

         (A)  Of the State (including state director of finance's warrant notes issued pursuant to chapter 40);

         (B)  Of the United States;

         (C)  For which the faith and credit of the United States are pledged for the payment of principal and interest;

     (2)  Federal Farm Credit System notes and bonds;

     (3)  Federal Agricultural Mortgage Corporation notes and bonds;

     (4)  Federal Home Loan Bank notes and bonds;

     (5)  Federal Home Loan Mortgage Corporation bonds;

     (6)  Federal National Mortgage Association notes and bonds;

    [(7)  Student Loan Marketing Association notes and bonds;

     (8)] (7)  Tennessee Valley Authority notes and bonds;

    [(9)] (8)  Securities of a mutual fund whose portfolio is limited to bonds or securities issued or guaranteed by the United States or an agency thereof or repurchase agreements fully collateralized by any such bonds or securities;

   [(10)] (9)  Securities of a money market mutual fund that is rated AAA, or its equivalent, by a nationally recognized rating agency or whose portfolio consists of securities that are rated as first tier securities by a nationally recognized statistical rating organization as provided in 17 Code of Federal Regulations section 270.2a-7;

   [(11)] (10)  Federally insured savings accounts;

   [(12)] (11)  Time certificates of deposit;

   [(13)] (12)  Certificates of deposit open account;

   [(14)] (13)  Repurchase agreements with federally insured banks, savings and loan associations, and financial services loan companies;

   [(15)  Student loan resource securities including:

         (A)  Student loan auction rate securities;

         (B)  Student loan asset-backed notes;

         (C)  Student loan program revenue notes and bonds; and

         (D)  Securities issued pursuant to Rule 144A of the Securities Act of 1933, including any private placement issues;

          issued with either bond insurance or overcollateralization guaranteed by the United States Department of Education; provided all insurers maintain a triple-A rating by Standard & Poor's, Moody's, Duff & Phelps, Fitch, or any other major national securities rating agency;

    (16)] (14)  Commercial paper with an A1/P1 or equivalent rating by any national securities rating service; and

   [(17)] (15)  Bankers' acceptances with an A1/P1 or equivalent rating by any national securities rating service;

provided that for authorized investments with stated maturity dates, the investment, as well as the underlying securities of those investments, are due to mature not more than five years from the date of investment.  Income derived from those investments shall be a realization of the general fund; provided that income earned from moneys invested by the general funds, special funds, bond funds, and trust and agency funds on an investment pool basis shall be paid into and credited to the respective funds based on the contribution of moneys into the investment pool by each fund.  As used in this section, "investment pool" means the aggregate of state treasury moneys that are maintained in the custody of the director of finance for investment and reinvestment without regard to fund designation."

     SECTION 3.  Section 40-32, Hawaii Revised Statutes, is amended to read as follows:

     "§40-32  Payments by [Honolulu] public accountants.  Every public accountant collecting or receiving revenue or other moneys [in Honolulu] on behalf of the State shall pay weekly, or at such times as may be otherwise specially appointed, into the treasury all sums of money collected or received by the public accountant on account of the revenue or otherwise."

     SECTION 4.  Section 40-33, Hawaii Revised Statutes, is repealed.

     ["§40-33  By accountants out of Honolulu.  Every public accountant collecting or receiving revenue or other moneys out of Honolulu shall transmit or pay monthly, or at such times as may be otherwise specially appointed, into the treasury all sums of money collected or otherwise received by the public accountant on account of the revenue or otherwise."]

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2017.

 

 

Report Title:

Investment and Deposit of State Funds

 

Description:

Clarifies the investment and funds management functions of the Department of Budget and Finance.  (SD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.