HI HB1179

Establishes an Advisory Committee on Short-term Investments attached to the Department of Budget and Finance, consisting of the director of finance, two bank representatives appointed by the governor, one member appointed by the House speaker, and one member appointed by the Senate president.

Grants the director of finance authority to invest excess state moneys in specified vehicles including U.S. Treasury securities, federal agency bonds, federally insured deposits, money market mutual funds, commercial paper, and bankers' acceptances, with all investments maturing within five years.

Prohibits the state from acquiring investments requiring future payments by the state (such as swap or hedge agreements) or bearing variable interest rates that cause market price fluctuations, with limited exceptions for certain money market mutual funds.

Allows operation of the short-term investment pool under contract with private investment advisors approved by the director of finance and the advisory committee, and requires periodic statements and annual independent audits.

Amends Act 79 (Session Laws of Hawaii 2009) to reference the new investment authority in section 36-B instead of section 36-21, and repeals the former section 36-21.