STAND. COM. REP. NO. 2547

Honolulu, Hawaii

RE: S.B. No. 2180

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Housing, to which was referred S.B. No. 2180 entitled:

"A BILL FOR AN ACT RELATING TO DEPOSITS OF PUBLIC FUNDS,"

beg leave to report as follows:

The purpose and intent of this measure is to require the Director of Finance to consider, before selecting a depository for the state treasury, the beneficial effects to the State of using depositories within the State that make credit available at favorable terms for certain housing developments.

Your Committees received comments on this measure from the Department of Budget and Finance and Hawaii Bankers Association.

Your Committees find that the Director of Finance is granted the discretion to invest the public treasury with certain depositaries, subject to the approval of the Governor and certain statutory requirements. Your Committees further find that the State is experiencing a housing shortage. This measure would enable the Director of Finance to use the scale of the state treasury's financial assets to incentivize depositaries to support certain housing investment in the State.

Your Committees have amended this measure by:

(1) Inserting an effective date of January 1, 2050, to encourage further discussion; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2180, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2180, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ JARRETT KEOHOKALOLE, Chair