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H0185aa....................................................by STATE AFFAIRS
STATE TREASURER - IDLE MONEYS - Amends existing law relating to the duties
of the State Treasurer regarding investment of idle public moneys to delete
financing the addition to or retrofit of an underground storage tank or
underground storage tank system as a permissible investment; to provide
that the purchase of the guaranteed portion of any United States Small
Business Administration loan, under certain conditions, is a permissible
investment; and to provide that money market funds, whose portfolios
consist of an allowed investment, is a permissible investment.
02/08 House intro - 1st rdg - to printing
02/09 Rpt prt - to St Aff
02/11 Rpt out - rec d/p - to 2nd rdg
02/12 2nd rdg - to 3rd rdg
02/15 To Gen Ord
02/19 Rpt out amen - to engros
02/22 Rpt engros - 1st rdg - to 2nd rdg as amen
02/23 2nd rdg - to 3rd rdg as amen
02/25 3rd rdg as amen - PASSED - 66-0-4
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Chase, Clark, Cuddy, Deal, Denney, Ellsworth,
Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hammond,
Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd,
Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh, Loertscher, Mader,
Marley, McKague, Meyer, Montgomery, Mortensen, Moyle, Pischner,
Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman,
Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor(Taylor), Tilman,
Tippets, Trail, Watson, Wheeler, Williams, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Campbell, Crow, Linford, Wood
Floor Sponsor - Deal
Title apvd - to Senate
02/26 Senate intro - 1st rdg as amen - to St Aff
03/09 Rpt out - rec d/p - to 2nd rdg as amen
03/10 2nd rdg - to 3rd rdg as amen
03/11 3rd rdg as amen - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Parry
Floor Sponsor - Geddes
Title apvd - to House
03/12 To enrol
03/15 Rpt enrol - Sp signed
03/16 Pres signed - to Governor
03/22 Governor signed
Session Law Chapter 140
Effective: 07/01/99
H0185|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 185, As Amended BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO INVESTMENT OF IDLE MONEYS BY THE STATE TREASURER; AMENDING SECTION 3 67-1210, IDAHO CODE, TO DELETE FINANCING THE ADDITION TO OR RETROFIT OF AN 4 UNDERGROUND STORAGE TANK OR UNDERGROUND STORAGE TANK SYSTEM AS A PERMISSI- 5 BLE INVESTMENT, TO PROVIDE THAT THE PURCHASE OF THE GUARANTEED PORTION OF 6 ANY UNITED STATES SMALL BUSINESS ADMINISTRATION LOAN UNDER CERTAIN CONDI- 7 TIONS IS A PERMISSIBLE INVESTMENT, AND TO PROVIDE THAT MONEY MARKET FUNDS 8 WHOSE PORTFOLIOS CONSIST OF AN ALLOWED INVESTMENT IS A PERMISSIBLE INVEST- 9 MENT AND TO MAKE TECHNICAL CORRECTIONS. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Section 67-1210, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 67-1210. INVESTMENT OF IDLE MONEYS. It shall be the duty of the state 14 treasurer to invest idle moneys in the state treasury, other than moneys in 15 public endowment funds, in any of the following: 16 (a) Bonds, treasury bills, interest-bearing notes, or other obligations 17 of the United States, or those for which the faith and credit of the United 18 States are pledged for the payment of principal and interest. 19 (b) General obligation or revenue bonds of this state, or those for which 20 the faith and credit of this state are pledged for the payment of principal 21 and interest. 22 (c) General obligation or revenue bonds of any county, city, metropolitan 23 water district, municipal utility district, school district or other taxing 24 district of this state. 25 (d) Notes, bonds, debentures, or other similar obligations issued 26 by theFf armCc redit 27Ss ystem or institutions forming a part thereof under 28 theFf armCc reditA29a ct of 1971 [U.S.C., tit. 12, sections 2001-2259] and 30 allAa cts ofCc ongress 31 amendatory thereof or supplementary thereto; in bonds or debentures of the 32Ff ederalHh omeL33l oanBb ankBb 34 oard established under theFf ederalH35h omeLl oanBb 36 ankAa ct [U.S.C., tit. 12, sections 37 1421-1449]; in bonds, debentures and other obligations of theF38f ederalNn ationalM39m ortgageAa ssociation established 40 under theNn ationalHh 41 ousingAa ct [U.S.C., tit. 12, sections 42 1701-1750g] as amended, and in the bonds of any federal home loan bank estab- 43 lished under said act and in other obligations issued or guaranteed by agen- 2 1 cies or instrumentalities of the government of the state of Idaho or of the 2 United States, including the United States small business administration guar- 3 anteed portion of any loan approved by an Idaho banking corporation and by the 4 state treasurerfor the purpose of financing the addition to or retrofit5of an underground storage tank or underground storage tank system6 provided, that the purchase of the guaranteed portion of any United States 7 small business administration loan is subject to the following conditions: 8 (i) The interest rate charged on the loan must be below the prime inter- 9 est rate and the interest on the loan must be chargeable at a variable 10 rate; 11 (ii) The interest rate of the loan is reset every three (3) years; 12 (iii) The maximum maturity period for the loan is ten (10) years . 13 (e) Bonds, notes or other similar obligations issued by public corpora- 14 tions of the state of Idaho including, but not limited to, the Idaho state 15 building authority, the Idaho housing authority and the Idaho water resource 16 board, but such investment shall not extend beyond seven (7) days. 17 (f) Repurchase agreements covered by any legal investment for the state 18 of Idaho. 19 (g) Tax anticipation notes and registered warrants of the state of Idaho. 20 (h) Tax anticipation bonds or notes and income and revenue anticipation 21 bonds or notes of taxing districts of the state of Idaho. 22 (i) Time deposit accounts and savings accounts in state depositories 23 including, but not limited to, accounts on which interest or dividends are 24 paid and upon which negotiable orders of withdrawal may be drawn, and similar 25 transaction accounts. 26 (j) Time deposit accounts and savings accounts of state or federal sav- 27 ings and loan associations located within the geographical boundaries of the 28 state in amounts not to exceed the insurance provided by theF29f ederalSs avings andL30l oanIi nsuranceC31c orporation including, but not limited to, accounts on 32 which interest or dividends are paid and upon which negotiable orders of with- 33 drawal may be drawn, and similar transaction accounts. 34 (k) Revenue bonds of institutions of higher education of the state of 35 Idaho. 36 (l) Share, savings and deposit accounts of state and federal credit 37 unions located within the geographicalboundriesboundaries 38 of the state in amounts not to exceed the insurance provided by the 39 national credit union share insurance fund and/or any other authorized deposit 40 guaranty corporation, including, but not limited to, accounts on which inter- 41 est or dividends are paid and upon which negotiable orders of withdrawal may 42 be drawn, and similar transaction accounts. 43 (m) Money market funds whose portfolios consist of any allowed 44 investment as specified in this section. 45 The term "idle moneys" means the balance of cash and other evidences of 46 indebtedness which are accepted by banks as cash in the ordinary course of 47 business, in demand deposit accounts, after taking into consideration all 48 deposits and withdrawals, on a daily basis. 49 The interest received on all such investments, unless otherwise specifi- 50 cally required by law, shall be paid into the general account of the state of 51 Idaho. Provided, unless otherwise specifically provided by statute, any inter- 52 est earned on funds received by the state pursuant to a federal law, regula- 53 tion, or federal-state agreement which governs disposition of interest earned 54 upon such funds shall be accounted for separately to give effect to the fed- 55 eral law, regulation, or federal-state agreement. 3 1 If the interest is to be credited to a separate account, the state trea- 2 surer shall charge the account an investment administration fee. The amount 3 of the fee shall be determined annually by the state treasurer and submitted 4 to the board of examiners for approval as stipulated in section 67-3524, Idaho 5 Code. The fee shall be expressed as an annual percentage of the average daily 6 balance of the account, including separate investments, if any, of that 7 account. The fee shall be charged monthly in an amount approximately one 8 - twelfth (1/12) of the fee which would be payable on an annual basis. 9 The amount of the investment administration fee shall constitute an appropria- 10 tion from the account for which the investment administration services are 11 rendered. 12 The state treasurer shall charge an investment administration fee to each 13 such state fund or account, including the general account, which receives 14 investment income from investments administered by the office of state trea- 15 surer. The investment administration fee shall be determined annually by the 16 state treasurer and submitted to the board of examiners for approval, as stip- 17 ulated in section 67-3524, Idaho Code. The fee shall be expressed as an 18 annual percentage of the average daily balance of the fund or account, includ- 19 ing separate investments, if any, of that fund or account. The fee shall be 20 charged monthly in an amount approximately one-twelfth (1/12) of the fee which 21 would be payable on an annual basis. The amount of the investment administra- 22 tion fee shall constitute an appropriation from the fund or account for which 23 the investment administration services are rendered. 24 The term "to invest" means to use the idle moneys in the state treasury to 25 buy, sell, including selling before maturity at either a gain or a loss, 26 retain, or exchange any of the investments described in this section, consid- 27 ering the probable safety of the capital, the probable income to be derived, 28 and the liquidity of the assets.
AH0185|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999Moved by Deal Seconded by Tippets IN THE HOUSE OF REPRESENTATIVES HOUSE AMENDMENT TO H.B. NO. 185 1 AMENDMENT TO SECTION 1 2 On page 2 of the printed bill, in line 33 delete: " or any other sim- 3 ilar funds ". 4 CORRECTION TO TITLE 5 On page 1, in line 8, delete "OR ANY OTHER SIMILAR FUNDS".
STATEMENT OF PURPOSE
RS08719C1
The purpose of this proposed legislation is to allow the Idaho
State Treasurer to continue to purchase the guaranteed portion
of Small Business Administration (SBA) loans as a portion of
the state's investment portfolio. Currently, the State
Treasurer does this with the Underground Storage Tank program.
The UST/SBA program will sunset on February 22, 1999. This
legislation will permit the State of Idaho to continue
participation in the SBA low document loan program for all
small businesses in the state, not just businesses with
underground storage tanks. The state does not make the loans
but would continue to purchase the guaranteed portion of the
loans from the SBA.
FISCAL NOTE
There will be no additional costs to the Treasurer's Office
for the administration of this program as it is already in
place with the current Underground Storage Tank program. The
State of Idaho will realize an increase in interest income of
approximately S83,000.00 the first year, over what would
normally be earned in investments such as Treasury Notes. This
amount will increase per year until at the end of 10 years,
the added interest income will amount to about $1 million per
year for the state.
CONTACT: Ron G. Crane, Idaho State Treasurer
Office of the State Treasurer
334-3200
Liza Carberry, Investment Manager
Office of the State Treasurer
332-2997
STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. H 185