Bill Text: HI HCR159 | 2011 | Regular Session | Introduced

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Bill Title: State-owned Bank

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Engrossed - Dead) 2011-04-19 - (S) Referred to CPN, WAM. [HCR159 Detail]

Download: Hawaii-2011-HCR159-Introduced.html

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HOUSE OF REPRESENTATIVES	H.C.R. NO.	159
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

Creating the task force on establishing the bank of the state of hawaii.

 

 

     WHEREAS, the Bank of North Dakota is the only state-owned and operated financial institution in the United States; and

 

     WHEREAS, under state law, the bank is set up as the State of North Dakota doing business as the Bank of North Dakota; and

 

     WHEREAS, all state funds, as well as funds administered by state and county agencies, are deposited with the Bank of North Dakota, thus creating a large deposit base; and

 

     WHEREAS, in addition to paying a competitive interest rate to the state treasurer, the Bank of North Dakota also invests its moneys in loan programs to spur economic development within the state; and

 

     WHEREAS, the Bank of North Dakota regularly turns over a portion of its profits to the state general fund; and

 

     WHEREAS, over the past decade, the Bank of North Dakota has turned over approximately one-third of $1,000,000,000 to the state general fund; and

 

     WHEREAS, despite the recent financial crisis, the Bank of North Dakota earned record profits in 2008, with net earnings of approximately $57,000,000; and

 

     WHEREAS, rather than competing with private banks, the Bank of North Dakota has created partnerships with over one hundred other North Dakota financial institutions to assist them in meeting the needs of the citizens of North Dakota; and

 

     WHEREAS, the Bank of North Dakota has promoted agriculture, education, community development, economic development, housing, and industry in the state by helping to stabilize and grow the State's economy; and

 

     WHEREAS, the Bank of North Dakota uses the resources of the people of the State within the State and leverages the state's financial capital and resources to support the common good and public benefit of the State; and

 

     WHEREAS, a state-owned bank may work in partnership with financial institutions, community-based organizations, economic development groups, guaranty agencies, and other stakeholder groups to better the State's economy; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2011, the Senate concurring, that the following are requested to convene as members of the task force on establishing the Bank of the State of Hawaii:

 

(1)    One member appointed by the Governor who shall have experience in banking and financial management;

 

(2)    One member of the Senate, appointed by the President of the Senate;

 

(3)    One member of the House of Representatives, appointed by the Speaker of the House of Representatives;

 

(4)    The Director of the Department of Budget and Finance or the Director's designee;

 

(5)    The Director of the Department of Labor or the Director's designee;

 

(6)    The Attorney General or the Attorney General's designee;

 

(7)    The Commissioner of the Department of Commerce and Consumer Affairs, Division of Financial Institutions;

(8)    A member from the Hawaii State Association of Counties;

 

(9)    A member from an organization representing banking and financial institutions; and

 

(10)  A member from a trade association representing credit unions;

 

provided that the members in paragraphs (9) and (10) shall be appointed jointly by the President of the Senate and the Speaker of the House of Representatives; and

 

     BE IT FURTHER RESOLVED that the Commissioner of the Department of Commerce and Consumer Affairs, Division of Financial Institutions is requested to serve as the chairperson of the task force; and that the members of the task force shall not be compensated; and

 

     BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to provide the research and organizational support services necessary to assist the task force in achieving its purposes; and

 

     BE IT FURTHER RESOLVED that the task force is requested to review, evaluate, and create an implementation plan for the creation of the Bank of the State of Hawaii; among other things the task force shall review and evaluate the following:

 

(1)         The Bank of North Dakota, its enabling statutes,     its governing structure, and its programs; 

 

(2)         The feasibility of Hawaii creating a state-owned     bank similar to that of the Bank of North Dakota;

 

(3)         The effectiveness and usefulness of existing    state banks, specifically the economic impact of   having a state bank;

 

(4)         The laws, statutes, rules, and regulations applicable to establishing a state-owned bank;

(5)         The capital requirements of a state-owned bank;

 

(6)         Initial capitalization options for a state-owned     bank;

 

(7)         Cash management and banking needs of the State;

 

(8)         An estimation of the short-term operating costs      and projected revenues of a Bank of the State of    Hawaii;

 

(9)         The long-term broad economic impact and long-term    job creation and State revenue impacts of having    a Bank of the State of Hawaii;

 

(10)       Any impact to existing banks and financial institutions in the State;

 

(11)       Sound underwriting practices needed for a state-     owned bank;

 

(12)       Standards to ensure that loans result in the    outcomes described in the approved loan    applications;

 

(13)       Ethics and conflict of interest requirements for     the board, offices, and employees of a state- owned bank;

 

(14)       Transparency requirements for the operations of a    state-owned bank; and

 

(15)       Necessary legislation to establish a state-owned     bank.

 

     BE IT FURTHER RESOLVED that the task force is requested to submit an interim report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2012 and that the interim report shall include a review of the Bank of North Dakota model, the feasibility of creating the Bank of the State of Hawaii, and the short and long-term economic impact of a state-owned bank, along with other initial findings; and

 

     BE IT FURTHER RESOLVED that the task force is requested to submit its final report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2013 and that the final report shall include the estimated cost to start a Bank of the State of Hawaii, the task force's findings and recommendations and necessary legislation for the creation of the Bank of the State of Hawaii; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor, the Director of the Department of Budget and Finance, the Director of the Department of Labor, the Attorney General, the Commissioner of the Department of Commerce and Consumer Affairs, Division of Financial Institutions, the Hawaii State Association of Counties, and the Legislative Reference Bureau.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

State-owned Bank