HB 2547: Short-term Investment Grade Corporate Bonds; Director of Finance; State Moneys
- Session Year: 2025-2026
- House: House
- Latest Version Date: 2026-05-01
Current Status:
Passed
(2026-06-09: Act 115, on 06/08/2026 (Gov. Msg. No. 1215).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
What does this bill do?
Allows the Director of Finance to invest state funds in short‑term, investment‑grade corporate bonds. Those bonds must carry at least an AA‑ rating (or equivalent) and generally mature within five years.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Authorizes the Director of Finance to invest certain state moneys in short-term investment grade corporate bonds. (CD1)
Authorizes the Director of Finance to invest certain state moneys in short-term investment grade corporate bonds. Effective 7/1/2050. (SD1)
Authorizes the Director of Finance to invest certain state moneys in short-term investment grade corporate bonds. Effective 7/1/3000. (HD1)
Authorizes the Director of Finance to invest certain state moneys in short-term investment grade corporate bonds.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2547 |
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THIRTY-THIRD LEGISLATURE, 2026 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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C.D. 1 |
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A BILL FOR AN ACT
RELATING TO CORPORATE BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the state treasury holds all state funds, and all funds that are in excess of immediate needs are invested in securities authorized under section 36-21, Hawaii Revised Statutes. According to a national investment research company, investment grade corporate bonds have current average yields of four to six per cent. The legislature further finds that investment grade corporate bonds are considered to carry a relatively low credit risk. Providing more investment securities for the director of finance to consider and invest in will help increase investment earnings and make more resources available for state programs and to pay down obligations.
Accordingly, the purpose of this Act is to authorize the director of finance to invest certain state moneys in short-term investment grade corporate bonds.
SECTION 2. Section 36-21, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The director of finance may invest any moneys of the State which in the director's judgment are in excess of the amounts necessary for meeting the immediate requirements of the State and where in the director's judgment the action will not impede or hamper the necessary financial operations of the State in:
(1) Any bonds or interest-bearing notes or obligations:
(A) Of the State (including state director of finance's warrant notes issued pursuant to chapter 40);
(B) Of the United States;
(C) For which the faith and credit of the United States are pledged for the payment of principal and interest;
(2) Federal Farm Credit System notes and bonds;
(3) Federal Agricultural Mortgage Corporation notes and bonds;
(4) Federal Home Loan Bank notes and bonds;
(5) Federal Home Loan Mortgage Corporation bonds;
(6) Federal National Mortgage Association notes and bonds;
(7) Tennessee Valley Authority notes and bonds;
(8) Securities of a mutual fund whose portfolio is limited to bonds or securities issued or guaranteed by the United States or an agency thereof or repurchase agreements fully collateralized by any such bonds or securities;
(9) Securities of a money market mutual fund that is rated AAA, or its equivalent, by a nationally recognized rating agency or whose portfolio consists of securities that are rated as first tier securities by a nationally recognized statistical rating organization as provided in 17 Code of Federal Regulations section 270.2a-7;
(10) Federally insured savings accounts;
(11) Time certificates of deposit;
(12) Certificates of deposit open account;
(13) Repurchase agreements with federally insured banks, savings and loan associations, and financial services loan companies;
(14) Commercial paper with an A1/P1 or equivalent
rating by any national securities rating service; [and]
(15) Bankers' acceptances with an A1/P1 or equivalent rating by any national securities rating service; and
(16) Short-term investment grade corporate bonds with a minimum rating of AA- or its equivalent;
provided that for authorized investments with stated maturity dates, the investment, as well as the underlying securities of those investments, are due to mature not more than five years from the date of investment. Income derived from those investments shall be a realization of the general fund; provided that income earned from moneys invested by the general funds, special funds, bond funds, and trust and agency funds on an investment pool basis shall be paid into and credited to the respective funds based on the contribution of moneys into the investment pool by each fund. As used in this section, "investment pool" means the aggregate of state treasury moneys that are maintained in the custody of the director of finance for investment and reinvestment without regard to fund designation."
SECTION
3. Statutory material to be repealed is
bracketed and stricken. New statutory
material is underscored.
SECTION 4. This Act shall take effect upon its approval.
Report Title:
Short-term Investment Grade Corporate Bonds; Director of Finance; State Moneys
Description:
Authorizes the Director of Finance to invest certain state moneys in short-term investment grade corporate bonds. (CD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2547 |
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THIRTY-THIRD LEGISLATURE, 2026 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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A BILL FOR AN ACT
RELATING TO CORPORATE BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the state treasury holds all state funds, and all funds that are in excess of immediate needs are invested in securities authorized under section 36-21, Hawaii Revised Statutes. According to a national investment research company, investment grade corporate bonds have current average yields of four to six per cent. The legislature further finds that investment grade corporate bonds are considered to carry a relatively low credit risk. Providing more investment securities for the director of finance to consider and invest in will help increase investment earnings and make more resources available for state programs and to pay down obligations.
Accordingly, the purpose of this Act is to authorize the director of finance to invest certain state moneys in short-term investment grade corporate bonds.
SECTION 2. Section 36-21, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The director of finance may invest any moneys of the State which in the director's judgment are in excess of the amounts necessary for meeting the immediate requirements of the State and where in the director's judgment the action will not impede or hamper the necessary financial operations of the State in:
(1) Any bonds or interest-bearing notes or obligations:
(A) Of the State (including state director of finance's warrant notes issued pursuant to chapter 40);
(B) Of the United States;
(C) For which the faith and credit of the United States are pledged for the payment of principal and interest;
(2) Federal Farm Credit System notes and bonds;
(3) Federal Agricultural Mortgage Corporation notes and bonds;
(4) Federal Home Loan Bank notes and bonds;
(5) Federal Home Loan Mortgage Corporation bonds;
(6) Federal National Mortgage Association notes and bonds;
(7) Tennessee Valley Authority notes and bonds;
(8) Securities of a mutual fund whose portfolio is limited to bonds or securities issued or guaranteed by the United States or an agency thereof or repurchase agreements fully collateralized by any such bonds or securities;
(9) Securities of a money market mutual fund that is rated AAA, or its equivalent, by a nationally recognized rating agency or whose portfolio consists of securities that are rated as first tier securities by a nationally recognized statistical rating organization as provided in 17 Code of Federal Regulations section 270.2a-7;
(10) Federally insured savings accounts;
(11) Time certificates of deposit;
(12) Certificates of deposit open account;
(13) Repurchase agreements with federally insured banks, savings and loan associations, and financial services loan companies;
(14) Commercial paper with an A1/P1 or equivalent
rating by any national securities rating service; [and]
(15) Bankers' acceptances with an A1/P1 or equivalent rating by any national securities rating service; and
(16) Short-term investment grade corporate bonds;
provided that for authorized investments with stated maturity dates, the investment, as well as the underlying securities of those investments, are due to mature not more than five years from the date of investment. Income derived from those investments shall be a realization of the general fund; provided that income earned from moneys invested by the general funds, special funds, bond funds, and trust and agency funds on an investment pool basis shall be paid into and credited to the respective funds based on the contribution of moneys into the investment pool by each fund. As used in this section, "investment pool" means the aggregate of state treasury moneys that are maintained in the custody of the director of finance for investment and reinvestment without regard to fund designation."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title:
Short-term Investment Grade Corporate Bonds; Director of Finance; State Moneys
Description:
Authorizes the Director of Finance to invest certain state moneys in short-term investment grade corporate bonds. Effective 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2547 |
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THIRTY-THIRD LEGISLATURE, 2026 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CORPORATE BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the state treasury holds all state funds, and all funds that are in excess of immediate needs are invested in securities authorized under section 36-21, Hawaii Revised Statutes. According to a national investment research company, investment grade corporate bonds have current average yields of four to six per cent. The legislature further finds that investment grade corporate bonds are considered to carry a relatively low credit risk. Providing more investment securities for the director of finance to consider and invest in will help increase investment earnings and make more resources available for state programs and to pay down obligations.
Accordingly, the purpose of this Act is to authorize the director of finance to invest certain state moneys in short-term investment grade corporate bonds.
SECTION 2. Section 36-21, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The director of finance may invest any moneys of the State which in the director's judgment are in excess of the amounts necessary for meeting the immediate requirements of the State and where in the director's judgment the action will not impede or hamper the necessary financial operations of the State in:
(1) Any bonds or interest-bearing notes or obligations:
(A) Of the State (including state director of finance's warrant notes issued pursuant to chapter 40);
(B) Of the United States;
(C) For which the faith and credit of the United States are pledged for the payment of principal and interest;
(2) Federal Farm Credit System notes and bonds;
(3) Federal Agricultural Mortgage Corporation notes and bonds;
(4) Federal Home Loan Bank notes and bonds;
(5) Federal Home Loan Mortgage Corporation bonds;
(6) Federal National Mortgage Association notes and bonds;
(7) Tennessee Valley Authority notes and bonds;
(8) Securities of a mutual fund whose portfolio is limited to bonds or securities issued or guaranteed by the United States or an agency thereof or repurchase agreements fully collateralized by any such bonds or securities;
(9) Securities of a money market mutual fund that is rated AAA, or its equivalent, by a nationally recognized rating agency or whose portfolio consists of securities that are rated as first tier securities by a nationally recognized statistical rating organization as provided in 17 Code of Federal Regulations section 270.2a-7;
(10) Federally insured savings accounts;
(11) Time certificates of deposit;
(12) Certificates of deposit open account;
(13) Repurchase agreements with federally insured banks, savings and loan associations, and financial services loan companies;
(14) Commercial paper with an A1/P1 or equivalent
rating by any national securities rating service; [and]
(15) Bankers' acceptances with an A1/P1 or equivalent rating by any national securities rating service; and
(16) Short-term investment grade corporate bonds;
provided that for authorized investments with stated maturity dates, the investment, as well as the underlying securities of those investments, are due to mature not more than five years from the date of investment. Income derived from those investments shall be a realization of the general fund; provided that income earned from moneys invested by the general funds, special funds, bond funds, and trust and agency funds on an investment pool basis shall be paid into and credited to the respective funds based on the contribution of moneys into the investment pool by each fund. As used in this section, "investment pool" means the aggregate of state treasury moneys that are maintained in the custody of the director of finance for investment and reinvestment without regard to fund designation."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title:
Short-term Investment Grade Corporate Bonds; Director of Finance; State Moneys
Description:
Authorizes the Director of Finance to invest certain state moneys in short-term investment grade corporate bonds. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2547 |
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THIRTY-THIRD LEGISLATURE, 2026 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to corporate bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the state treasury holds all state funds, and all funds that are in excess of immediate needs are invested in securities authorized under section 36-21, Hawaii Revised Statutes. According to a national investment research company, investment grade corporate bonds have current average yields of four to six per cent. The legislature further finds that investment grade corporate bonds are considered to carry a relatively low credit risk. Providing more investment securities for the director of finance to consider and invest in will help increase investment earnings and make more resources available for state programs and to pay down obligations.
Accordingly, the purpose of this Act is to authorize the director of finance to invest certain state moneys in short-term investment grade corporate bonds.
SECTION 2. Section 36-21, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The director of finance may invest any moneys of the State which in the director's judgment are in excess of the amounts necessary for meeting the immediate requirements of the State and where in the director's judgment the action will not impede or hamper the necessary financial operations of the State in:
(1) Any bonds or interest-bearing notes or obligations:
(A) Of the State (including state director of finance's warrant notes issued pursuant to chapter 40);
(B) Of the United States;
(C) For which the faith and credit of the United States are pledged for the payment of principal and interest;
(2) Federal Farm Credit System notes and bonds;
(3) Federal Agricultural Mortgage Corporation notes and bonds;
(4) Federal Home Loan Bank notes and bonds;
(5) Federal Home Loan Mortgage Corporation bonds;
(6) Federal National Mortgage Association notes and bonds;
(7) Tennessee Valley Authority notes and bonds;
(8) Securities of a mutual fund whose portfolio is limited to bonds or securities issued or guaranteed by the United States or an agency thereof or repurchase agreements fully collateralized by any such bonds or securities;
(9) Securities of a money market mutual fund that is rated AAA, or its equivalent, by a nationally recognized rating agency or whose portfolio consists of securities that are rated as first tier securities by a nationally recognized statistical rating organization as provided in 17 Code of Federal Regulations section 270.2a-7;
(10) Federally insured savings accounts;
(11) Time certificates of deposit;
(12) Certificates of deposit open account;
(13) Repurchase agreements with federally insured banks, savings and loan associations, and financial services loan companies;
(14) Commercial paper with an A1/P1 or equivalent
rating by any national securities rating service; [and]
(15) Bankers' acceptances with an A1/P1 or equivalent rating by any national securities rating service; and
(16) Short-term investment grade corporate bonds;
provided that for authorized investments with stated maturity dates, the investment, as well as the underlying securities of those investments, are due to mature not more than five years from the date of investment. Income derived from those investments shall be a realization of the general fund; provided that income earned from moneys invested by the general funds, special funds, bond funds, and trust and agency funds on an investment pool basis shall be paid into and credited to the respective funds based on the contribution of moneys into the investment pool by each fund. As used in this section, "investment pool" means the aggregate of state treasury moneys that are maintained in the custody of the director of finance for investment and reinvestment without regard to fund designation."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Short-term Investment Grade Corporate Bonds; Director of Finance; State Moneys
Description:
Authorizes the Director of Finance to invest certain state moneys in short-term investment grade corporate bonds.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| Jun 9, 2026 | Act 115, on 06/08/2026 (Gov. Msg. No. 1215). |
| Jun 9, 2026 | Act 115, 06/08/2026 (Gov. Msg. No. 1215). |
| May 8, 2026 | Received notice of passage on Final Reading in House (Hse. Com. No. 888). |
| May 7, 2026 | Transmitted to Governor. |
| May 6, 2026 | Received notice of Final Reading (Sen. Com. No. 816). |
| May 6, 2026 | Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0). |
| May 6, 2026 | Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none. |
| May 1, 2026 | 48 Hrs. Notice (as amended CD 1) 05-06-26 |
| May 1, 2026 | Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 139-26). |
| May 1, 2026 | Forty-eight (48) hours notice Wednesday, 05-06-26. |
| May 1, 2026 | Reported from Conference Committee (Conf Com. Rep. No. 139-26) as amended in (CD 1). |
| May 1, 2026 | The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 2 Aye(s): Senator(s) Moriwaki, Kanuha; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. |
| May 1, 2026 | The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Takenouchi, Kitagawa, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none. |
| May 1, 2026 | Conference committee meeting to reconvene on 05-01-26 4:30 PM; Conference Room 309. |
| May 1, 2026 | Conference committee meeting to reconvene on 05-01-26 3:30 PM; Conference Room 309. |
| May 1, 2026 | Conference committee meeting to reconvene on 05-01-26 1:00 PM; Conference Room 309. |
| Apr 30, 2026 | Conference committee meeting to reconvene on 05-01-26 11:00AM; Conference Room 309. |
| Apr 29, 2026 | Conference committee meeting scheduled for 04-30-26 11:00AM; CR 309. |
| Apr 20, 2026 | Received notice of Senate conferees (Sen. Com. No. 713). |
| Apr 20, 2026 | Senate Conferees Appointed: Moriwaki Chair; Kanuha, Fevella. |
| Apr 20, 2026 | Received notice of appointment of House conferees (Hse. Com. No. 786). |
| Apr 20, 2026 | House Conferees Appointed: Takenouchi Chair; Kitagawa, Reyes Oda. |
| Apr 17, 2026 | Received notice of disagreement (Hse. Com. No. 780). |
| Apr 16, 2026 | House disagrees with Senate amendment (s). |
| Apr 14, 2026 | Returned from Senate (Sen. Com. No. 702) in amended form (SD 1). |
| Apr 14, 2026 | Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Apr 10, 2026 | 48 Hrs. Notice 04-14-26. |
| Apr 10, 2026 | Report adopted; Passed Second Reading, as amended (SD 1). |
| Apr 10, 2026 | Reported from WAM (Stand. Com. Rep. No. 3725) with recommendation of passage on Second Reading, as amended (SD 1) and placement on the calendar for Third Reading. |
| Apr 9, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Apr 8, 2026 | Public notice requirement waived pursuant to Senate Rule 21. |
| Apr 8, 2026 | The committee(s) on WAM has scheduled a public hearing on 04-09-26 10:31AM; Conference Room 211 & Videoconference. |
| Mar 12, 2026 | Referred to WAM. |
| Mar 12, 2026 | Passed First Reading. |
| Mar 12, 2026 | Received from House (Hse. Com. No. 436). |
| Mar 10, 2026 | Passed Third Reading with none voting aye with reservations; none voting no (0) and none excused (0). Transmitted to Senate. |
| Mar 6, 2026 | Passed Second Reading as amended in HD 1; placed on the calendar for Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Hashem, Perruso, Quinlan, Sayama excused (4). |
| Mar 6, 2026 | Reported from FIN (Stand. Com. Rep. No. 1015-26) as amended in HD 1, recommending passage on Second Reading and placement on the calendar for Third Reading. |
| Feb 25, 2026 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none. |
| Feb 23, 2026 | Bill scheduled to be heard by FIN on Wednesday, 02-25-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE. |
| Feb 2, 2026 | Referred to FIN, referral sheet 6 |
| Jan 28, 2026 | Introduced and Pass First Reading. |
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Date
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Description
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Location
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Votes
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| May 6, 2026 | Final Reading | House Floor |
Passed |
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| May 6, 2026 | Final Reading | Senate Floor |
Passed |
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| Apr 14, 2026 | Third Reading | Senate Floor |
Passed |
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| Apr 9, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
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| Mar 10, 2026 | Third Reading | House Floor |
Passed |
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| Feb 25, 2026 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Finance |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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| Department of Budget and Finance | *** Support | Apr 8, 2026 |
STAND. COM. REP. NO. 1015-26
Honolulu, Hawaii
, 2026
RE: H.B. No. 2547
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Madame:
Your Committee on Finance, to which was referred H.B. No. 2547 entitled:
"A BILL FOR AN ACT RELATING TO CORPORATE BONDS,"
begs leave to report as follows:
Your Committee did not receive any written testimony on this measure.
Your Committee finds that investment grade corporate bonds currently have average yields of four to six percent and are considered to carry a relatively low credit risk. By providing the Director of Finance with a relatively low-risk option for investment securities, your Committee believes that this measure presents a prudent opportunity to increase investment earnings.
Your Committee would appreciate more feedback from, and the opportunity to ask questions of, the Executive Administration so that members can make well-informed decisions on this measure going forward.
Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2547, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2547, H.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ CHRIS TODD, Chair |
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Date
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Testimony PDF
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| Apr 8, 2026 | HB2547_HD1_TESTIMONY_WAM_04-09-26_.PDF |
Discussed in Hearing
20SEC
Conference Committee
39SEC
Conference Committee
20SEC
Conference Committee
1MIN
Conference Committee
35SEC
Conference Committee
26SEC
House Standing Committee on Finance
1MIN
House Standing Committee on Finance
Bill Author
