Bill > SB69

This bill modifies Hawaii's laws regarding state treasury deposits by updating the criteria for selecting depositories. The bill requires the Director of Finance to consider not just the safety and yield of potential depositories, but also their beneficial effects to the state, specifically emphasizing lending practices that support affordable housing. The legislation maintains existing restrictions that limit out-of-state deposits to 40% of total available funds and prohibit more than 60% of funds being deposited in a single institution, with some flexibility if a local depository offers a higher yield. Key changes include explicitly requiring consideration of a depository's lending practices for below-market housing and for housing exclusively available to state residents who do not own other property. The bill also makes several minor technical language updates, such as replacing archaic terms like "hereinafter" with more contemporary phrasing. The provisions will take effect on July 1, 2050, providing a long runway for implementation and potentially signaling the legislature's long-term commitment to promoting local economic development through strategic management of state treasury deposits.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=69&year=2026