Bill Text: HI SR37 | 2012 | Regular Session | Introduced

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Bill Title: Special Fund Investment; Local Financial Institutions

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-03-16 - (S) Referred to CPN/PGM, WAM. [SR37 Detail]

Download: Hawaii-2012-SR37-Introduced.html

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THE SENATE	S.R. NO.	37
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

SENATE RESOLUTION

 

 

Requesting the review and identification of state funds or holdings that may be appropriate for opening accounts in small local financial institutions and development of a procurement process to select institutions to receive state funds for investment for a limited time.

 

 

     WHEREAS, the special funds of the State of Hawaii are often used to fund specific activities carried out by state agencies, foundations, and other entities; and

 

     WHEREAS, special funds are often meant to be self-sustaining, keeping a relatively stable balance to ensure the continuity of services or availability of cash for the service; and

 

     WHEREAS, the recent economic crisis has led to certain regulatory actions by the federal government and as a result has decreased many large financial institutions' propensity to lend money; and

 

     WHEREAS, credit unions and other small, locally based financial institutions with a dedicated membership offer affordable interest rates and access to credit for their members; and

 

     WHEREAS, the recipients of dividends of such locally based financial institutions are residents of the State and will ultimately accumulate wealth for our economy; and

 

     WHEREAS, the recipients of loans from these institutions are typically local residents seeking personal loans, auto loans, and mortgages, leading to the purchase of cars, homes, and personal items in the local economy and generating tax revenue; and

 

     WHEREAS, the addition of state funds as a capital base to any financial institution would increase the financial institution's ability to lend to consumers in small communities; and

 

     WHEREAS, this local stimulus should be given to responsible agencies with roots in our local communities; now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2012, that the Director of Finance in cooperation with the Comptroller is asked to review the inventory of special funds, revolving loan funds, revolving funds, bond holdings, and other state investments and identify stable, solvent funds that may be appropriate for opening accounts in small local financial institutions, subject to section 36-21, Hawaii Revised Statutes, and other relevant state laws; and

 

     BE IT FURTHER RESOLVED that if fund account expansion is found to be feasible to ensure the equitable distribution of funds and stability for the financial institutions, the Director of Finance and Comptroller are requested to work with the Administrator of the State Procurement Office to develop a special procurement process to assure that funds will be invested in the financial institution that hold the winning bid for no less than ten years; and

 

     BE IT FURTHER RESOLVED that the specifications for any procurement contain minimum safeguards to discourage misuse of state funds, as well as reporting requirements on fund status as necessary for the State's maintenance of the funds; and

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, Director of Finance, Comptroller, and Administrator of the State Procurement Office.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Special Fund Investment; Local Financial Institutions