HI HB1179

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

Grants the director of finance authority to invest excess state moneys in specified low-risk vehicles including U.S. Treasury securities, federal agency bonds, money market mutual funds rated AAA or equivalent, certificates of deposit, and commercial paper with A1/P1 ratings, with maturity dates not exceeding five years.

Prohibits the state from acquiring investments or entering swap, hedge, or similar agreements that would require reciprocal payments or variable rate interest that could fluctuate market prices, with limited exceptions for certain money market mutual funds.

Allows the short-term investment pool to be operated under contract with private investment advisors approved by the director of finance and advisory committee in accordance with competitive procurement requirements.

Amends Act 79, Session Laws of Hawaii 2009 to reference the new short-term investment provisions and extends the authority to deposit investment income into the general fund until June 30, 2015; effective July 1, 2112.