View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
S1534............................................................by FINANCE ACCOUNTS - INTEREST-NEUTRAL - Amends existing law to provide that the state treasurer shall charge the fund or account for which moneys are advanced a service fee and an amount of interest equal to what could have been earned had the advanced moneys been invested, and the amount of the service fee and interest shall constitute an appropriation from the fund or account for which the advancement was made, provided however, that the state treasurer shall not charge funds or accounts that are defined as being interest-neutral under federal-state agreements. 03/03 Senate intro - 1st rdg - to printing 03/04 Rpt prt - to Fin
S1534|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE BILL NO. 1534 BY FINANCE COMMITTEE 1 AN ACT 2 RELATING TO THE STATE TREASURER; AMENDING SECTION 67-1212, IDAHO CODE, TO PRO- 3 VIDE THAT THE STATE TREASURER SHALL CHARGE THE FUND OR ACCOUNT FOR WHICH 4 SUCH MONEYS ARE ADVANCED A SERVICE FEE AND AN AMOUNT OF INTEREST EQUAL TO 5 WHAT COULD HAVE BEEN EARNED HAD THE ADVANCED MONEYS BEEN INVESTED, AND THE 6 AMOUNT OF THE SERVICE FEE AND INTEREST SHALL CONSTITUTE AN APPROPRIATION 7 FROM THE FUND OR ACCOUNT FOR WHICH THE ADVANCEMENT WAS MADE, PROVIDED, 8 HOWEVER, THAT THE STATE TREASURER SHALL NOT CHARGE FUNDS OR ACCOUNTS THAT 9 ARE DEFINED AS BEING INTEREST-NEUTRAL UNDER FEDERAL-STATE AGREEMENTS; AND 10 DECLARING AN EMERGENCY. 11 Be It Enacted by the Legislature of the State of Idaho: 12 SECTION 1. That Section 67-1212, Idaho Code, be, and the same is hereby 13 amended to read as follows: 14 67-1212. UNPAID WARRANTS -- INTEREST -- RECORD. (1) All warrants upon 15 funds the balance in which is insufficient to pay them must be turned over to 16 the state treasurer by the state controller. All of such warrants shall be 17 registered by the state treasurer as follows: he shall date and sign such war- 18 rants on the back thereof underneath the words "Presented for payment and not 19 paid for want of moneys" and return the same to the state controller for 20 delivery to the respective payees. It is the duty of the state treasurer to 21 keep a register of all warrants not paid for want of moneys, in which register 22 such warrants shall be listed in numerical order, and when paid the treasurer 23 shall note on such register the amount of interest paid and the date of pay- 24 ment. Any such warrants, registered by the state treasurer, shall from date of 25 registration until paid bear interest at a rate to be fixed by the state trea- 26 surer. 27 (2) In lieu of registering warrants as provided in subsection (1) above, 28 the state treasurer shall have authority to: 29 (a) Pay such warrants out of any moneys available if it appears that 30 money sufficient to pay such warrants will, within thirty (30) days be 31 available in the fund, or account in the case of accounts in the agency 32 asset fund, rotary fund, or any other fund maintained on the account 33 level, upon which such warrants are drawn; the state treasurer shall 34 charge the fund or account for which such moneys are advanced a service 35 fee and an amount of interestsubstantiallyequal to what 36 could have been earned had the advanced moneys been invested, and the 37 amount of the service fee and interest shall constitute an appropriation 38 from the fund or account for which the advancement was made; pro- 39 vided however, that the state treasurer shall not charge funds or accounts 40 that are defined as being interest-neutral under federal-state agreements; 41 or 42 (b) Issue tax anticipation notes as provided by chapter 32, title 63, or 43 section 57-1112, Idaho Code. 2 1 SECTION 2. An emergency existing therefor, which emergency is hereby 2 declared to exist, this act shall be in full force and effect on and after its 3 passage and approval.
STATEMENT OF PURPOSE
RS 08133
The purpose of this legislation is to define the duties of the State Treasurer with regards to
charging interest against funds that are defined as interest-neutral under federal-state
agreements.
FISCAL NOTE
This bill has no fiscal impact on the General Fund. Although interest currently charged on these
interest-neutral federal funds is deposited in the General Fund, state agencies are not allowed
under federal law to pay these charges with federal funds. As a result, they must use General
Fund money to pay the charges, which are then deposited in the General Fund. Passage of this
bill would reduce both General Fund revenues and expenditures by approximately $85,000 in
fiscal year 1998, for a net effect of zero.
CONTACT:
Sen. Atwell J. Parry
Sen. Dean L. Cameron
Rep. Robert C. Geddes
Rep. Maxine T. Bell
Jason Hancock, Legislative Services
David Tolman, DFM
PHONE: 334-3531
S 1534