H.B. 507

128th General Assembly

(As Introduced)

Reps.     Slesnick, Domenick, Mandel, Garland, Harris, Gardner, Grossman, Driehaus, Weddington, Yuko, Heard, Sykes

BILL SUMMARY

· Alters the Treasurer of State's authority to invest interim funds of the state in single-issuer debt.

CONTENT AND OPERATION

Under current law, the Treasurer of State may invest or execute transactions for interim funds of the state in a variety of obligations, including U.S. treasury bills, bonds, certificates of deposit, various qualified forms of commercial paper issued by corporations that are incorporated under Untied States or state law, and qualified debt interests other than the commercial paper described above.  Regarding investment in qualified debt interests, current law places limitations on the aggregate amount the Treasurer may invest.  The total investment must not exceed 25% of the state's total average portfolio (as determined by the Treasurer).  Also, the investments in those debt interests issued by foreign nations must not exceed one percent of the state's total average portfolio and the interests must be backed by the full faith and credit of that nation.  Finally, the investments in debt interests of a single issuer must not exceed one-half of one percent of the state's total average portfolio.

The bill provides that in the case of an investment in debt interests of a single issuer that is a foreign nation, the aggregate amount of investment must not exceed, in the aggregate, one percent of the state's total average portfolio instead of one-half of one percent.

HISTORY

ACTION	DATE
Introduced	5-11-10

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