Shown verbatim: the complete text as captured from the official page posted by the Hawaii State Legislature, fetched 2026-08-29. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the first conference draft. The official bill page.
HOUSE OF REPRESENTATIVES H.B. NO. 2547 THIRTY-THIRD LEGISLATURE, 2026 H.D. 1 STATE OF HAWAII S.D. 1 C.D. 1 A BILL FOR AN ACT RELATING TO CORPORATE BONDS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: SECTION 1. The legislature finds that the state treasury holds all state funds, and all funds that are in excess of immediate needs are invested in securities authorized under section 36-21, Hawaii Revised Statutes. According to a national investment research company, investment grade corporate bonds have current average yields of four to six per cent. The legislature further finds that investment grade corporate bonds are considered to carry a relatively low credit risk. Providing more investment securities for the director of finance to consider and invest in will help increase investment earnings and make more resources available for state programs and to pay down obligations. Accordingly, the purpose of this Act is to authorize the director of finance to invest certain state moneys in short-term investment grade corporate bonds. 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) Tennessee Valley Authority notes and bonds; (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; (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; (10) Federally insured savings accounts; (11) Time certificates of deposit; (12) Certificates of deposit open account; (13) Repurchase agreements with federally insured banks, savings and loan associations, and financial services loan companies; (14) Commercial paper with an A1/P1 or equivalent rating by any national securities rating service; [and] (15) Bankers' acceptances with an A1/P1 or equivalent rating by any national securities rating service; and (16) Short-term investment grade corporate bonds with a minimum rating of AA- or its equivalent; 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. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 4. This Act shall take effect upon its approval.
Every fact on this page links to its source, starting with the official bill record.