HOUSE OF REPRESENTATIVES	H.C.R. NO.	97
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

requesting the director of finance to expressly consider the amount of loans with favorable terms that a depository has issued to developers of housing for hawaii residents when evaluating the beneficial effects to the State of using that depository, in addition to the existing requirements to consider factors such as safety, liquidity, and yield offered on deposits.

 

 

        WHEREAS, because the moneys collected by the State through taxes, fees, and other sources, are held in trust for the benefit of the public, decisions related to where and how to invest the public treasury concern matters of public policy; and

 

        WHEREAS, to that end, the Director of Finance is granted the discretion to invest the public treasury with certain depositaries -- such as federally insured national or state banks, savings and loan associations, financial service loan companies, or federal or state credit unions insured by the National Credit Union Administration authorized to do business in the State -- subject to the approval of the Governor and the requirements established under section 38-2, Hawaii Revised Statutes (HRS); and

 

        WHEREAS, under subsections 38-2(a) through (c), HRS, the Director shall give due regard to a depositary doing business in the State, shall not deposit more than forty percent of the aggregate moneys available for deposit outside of the State, and shall not deposit more than sixty percent of aggregate moneys available for deposit in any one depositary, except under certain circumstances; and

 

        WHEREAS, under subsection 38-2(d), HRS, prior to selecting a depositary, the Director shall further consider the beneficial effects to the State of using depositaries within the State, the safety and liquidity of the depository, and the yield offered by the depositary; and

 

        WHEREAS, the State is experiencing a housing crisis due, in part, to the combination of skyrocketing real property values and persistently low available housing inventory; and

 

        WHEREAS, the Legislature finds that depositaries that have issued loans with favorable terms to housing developers for the benefit of residents of Hawaii are considered to have benefitted the State and therefore warrant additional consideration by the Director of Finance when selecting a depositary; now, therefore,

 

        BE IT RESOLVED by the House of Representatives of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2023, the Senate concurring, that the Director of Finance is requested to expressly consider the amount of loans with favorable terms that a depository has issued to developers of housing for Hawaii residents when evaluating the beneficial effects to the State of using that depository, in addition to the existing requirements to consider factors such as safety, liquidity, and yield offered on deposits; and

 

        BE IT FURTHER RESOLVED that "favorable terms" to housing developers is requested to include the issuance of loans with below-market interest rates and longer maturity terms for housing projects where all dwelling units are exclusively made available to owner-occupants who own no other real property and are residents of the State; and

 

        BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor and Director of Finance.

 

 

 

	OFFERED BY:	_____________________________

Report Title:  

Director of Finance; Department of Budget and Finance; Deposits of Public Funds; Selection Considerations