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House Bill 1278


House Bill 1278

ARCHIVE (2007)

Latest Information

 

DIGEST OF HB1278 (Updated April 25, 2007 10:54 am - DI 84)


Local government investment pool. Establishes the local government investment pool (investment pool) within the office of the treasurer of state. Allows local units of government to pay money into the investment pool for the purpose of deposit, investment, and reinvestment of the money by the treasurer of state on behalf of the units. Requires the treasurer of state to invest the funds in the investment pool in the same manner, in the same type of instruments, and subject to the same limitations provided for the deposit and investment of state funds. Authorizes the treasurer of state to contract with accountants, legal counsel, regulated investment advisors, money managers, and other finance and investment professionals to make investments and provide for the public accounting and legal compliance necessary to ensure and maintain the safety, liquidity, and yield of the investment pool. Requires the treasurer of state to establish and make public the policies that the treasurer of state will follow in the administration of and accounting for the investment pool. Requires the policies to provide the following: (1) There is not a minimum time for which funds must be retained by the investment pool. (2) The administrative expenses of the investment pool shall be paid from the earnings of the investment pool. (3) The earnings of the investment pool in excess of administrative expenses shall be credited to the state and each unit of government participating in the investment pool in a manner that equitably reflects the different amounts and terms of the state's investment and each unit's investment. (4) There is not a limit on the number of accounts that the state or a unit of government participating in the investment pool may establish within the investment pool. (5) The state and each unit of government participating in the investment pool shall receive certain daily and monthly reports. (6) The investment pool shall be audited annually by an independent auditing firm. (7) At least 50% of the funds available for investment must be deposited in banks qualified to hold deposits of local government entities.
Current Status:
 Law Enacted
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