Bill Text: HI SB2026 | 2024 | Regular Session | Amended
Bill Title: Relating To Deposits Of Public Funds.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Introduced - Dead) 2024-02-13 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2026 Detail]
Download: Hawaii-2024-SB2026-Amended.html
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THE SENATE |
S.B. NO. |
2026 |
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THIRTY-SECOND LEGISLATURE, 2024 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO DEPOSITS OF PUBLIC FUNDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 38-2, Hawaii Revised Statutes, is amended to read as follows:
"§38-2 Authorized; conditions. (a)
All moneys in the state treasury may be deposited by the director to the
credit of the State in any depository [which] that the director,
with the approval of the governor, may select, pursuant to this section, and
any sums so deposited shall be deemed to be in the state treasury; provided
that the depository in which the money is deposited furnish security as [hereinafter]
provided[.] in this section.
In selecting a depository, the class of security offered shall be
considered as the basis of selection and due regard shall be given to a
depository doing business in the State.
(b)
[No] Not more than forty per cent of the aggregate amount
of moneys of the State available for deposit and on deposit in the state
treasury may be deposited in depositories without the State.
(c)
[No] Not more than sixty per cent of the aggregate amount
of moneys of the State available for deposit and on deposit in the state
treasury may be deposited in any one depository; provided that if the yield
offered by any one depository in the State is greater than the yield offered by
other depositories in the State, then, consistent with the safety and liquidity
of [such] the moneys, more than sixty per cent of the aggregate
amount of moneys available for deposit and on deposit in the [stated] state
treasury may be deposited in [such] the depository within the
State offering a higher yield.
(d)
[The] Before the selection of the depository, the director
shall consider [the]:
(1) The
beneficial effects to the State of using depositories within the State, [as
well as the] including but not limited to the amount the depository has
lent at favorable terms to create housing below market price or housing
exclusively for residents of the State who are occupants and own no other real
property; and
(2) The
safety and liquidity of the sums to be deposited in the depository and the
yield offered by the depository [prior to the selection of the depository].
(e)
In case of loan fund money for which there is no immediate need, or
expenditures from which would not be made for at least three months, the
director may place these funds on time deposit on [such] terms and at [such]
rates of interest as may be allowed by a depository to other depositors.
(f)
All deposits of money, except time deposits, shall be paid upon demand
on checks signed by the director and countersigned by the comptroller, or by
the payment of a certificate of deposit issued by the depository, which
certificate shall be endorsed by the payee named therein, as well as by the
comptroller, or by preauthorized automatic transfer of funds between
transaction accounts held within the same depository. Transaction accounts, as defined in Regulation
D of the Federal Reserve System, as authorized by [Section] section
19 (12 U.S.C. 461 et seq.) of the Federal Reserve Act, includes all checking
accounts, both demand and interest bearing.
Each depository [shall], at the end of every month,
shall render to the director a statement, in duplicate, for each of the
funds of the State, showing the daily balances on open commercial account [which]
that were held by it during the month.
The duly authorized representatives of any depository shall at all times
during office hours have access to the securities deposited by the depository
to secure the deposits of the State for the purpose of examining the same and
removing the coupons that may have matured, the examination to be made in the
presence of the director or the director's representative."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2030.
Report Title:
Banks; Loans; Housing; Director of Finance; State Treasury Depository
Description:
Requires the Director of Finance to consider, before the selection of a depository for the state treasury, the beneficial effects to the State of using depositories within the State, including but not limited to lending at favorable terms for the creation of certain affordable housing units. Takes effect 7/1/2030. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
