STAND. COM. REP. NO. 3101

 

Honolulu, Hawaii

                  

 

RE:    S.C.R. No. 233

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.C.R. No. 233 entitled:

 

"SENATE CONCURRENT RESOLUTION REQUESTING THE STATE ATTORNEY GENERAL TO INVESTIGATE ACTIVITIES SURROUNDING THE STATE'S PURCHASE OF AUCTION RATE SECURITIES AND TO TAKE LEGAL ACTION AS APPROPRIATE,"

 

begs leave to report as follows:

 

     The purpose of this concurrent resolution is to request the Attorney General to investigate activities surrounding the State's purchase of auction rate securities and to take legal action, as appropriate.

 

     Your Committee finds that the State's holdings of student loan auction rate securities have declined in market value from $1,000,000,000 to approximately $750,000,000 because of a collapse in the auction rate securities market.  The State, therefore, has been unable to sell its securities at this time without incurring a $250,000,000 loss.  Your Committee further finds that it is necessary to protect the public interest by investigating the State's purchase of auction rate securities and taking legal action if necessary.

 

     Your Committee finds that concerns have been raised regarding whether the Attorney General should be the party to conduct the investigation.

 

     Accordingly, your Committee has amended this concurrent resolution by:

 

     (1)  Providing that the Legislature may contract with a private attorney to conduct the investigation if the Legislature determines that the Attorney General either has a conflict of interest or has taken positions on relevant issues that may raise questions as to the Attorney General's objectivity in conducting the investigation; and

 

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

 

     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 concurs with the intent and purpose of S.C.R. No. 233, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 233, S.D. 1.

 

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

 

		____________________________ DONNA MERCADO KIM, Chair