URGING THE DIRECTOR OF FINANCE TO ADOPT ADMINISTRATIVE RULES TO DEFINE "BENEFICIAL EFFECTS TO THE STATE" IN SECTION 38-2, HAWAII REVISED STATUTES, TO INCLUDE THE FINANCING OF HOUSING.

This Senate Concurrent Resolution urges the Director of Finance to update administrative rules to clarify that banks and financial institutions providing loans for housing development have a "beneficial effect to the state." The bill aims to address Hawaii's housing shortage by encouraging the state treasury to prioritize investing in financial institutions that offer favorable loan terms to housing developers. By explicitly including housing financing in the definition of beneficial effects, the resolution seeks to incentivize banks to lower development costs and expand affordable housing options for residents. The measure is a recommendation rather than a law, meaning it relies on the Director of Finance to adopt the suggested changes to existing investment guidelines.