1999 Legislation
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HOUSE BILL NO. 183 – State Treasurer/investments allowed

HOUSE BILL NO. 183

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Daily Data Tracking History



H0183......................................................by STATE AFFAIRS
STATE TREASURER - INVESTMENTS - Amends existing law to provide that bonds,
debentures or notes of any corporation organized, controlled and operating
within the United States which have, at the time of their purchase, an "A"
rating or higher by a commonly-known rating service are allowable
investments by the State Treasurer; and to provide application to other
public agencies' ability to invest in bonds, debentures or notes of any
corporation.

02/08    House intro - 1st rdg - to printing
02/09    Rpt prt - to St Aff
02/12    Rpt out - rec d/p - to 2nd rdg
02/15    2nd rdg - to 3rd rdg
02/17    3rd rdg - PASSED - 65-0-4
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
      Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal,
      Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Hadley,
      Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones,
      Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh, Loertscher,
      Mader, Marley, McKague, Meyer, Mortensen, Moyle, Pischner, Pomeroy,
      Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Smith,
      Stevenson, Stoicheff, Stone, Taylor(Taylor), Tilman, Tippets, Trail,
      Watson, Wheeler, Williams, Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Gould, Linford, Montgomery, Wood
    Dist. 15, Seat A, Vacant
    Floor Sponsor - Tippets
    Title apvd - to Senate
02/18    Senate intro - 1st rdg - to St Aff
03/09    Rpt out - rec d/p - to 2nd rdg
03/10    2nd rdg - to 3rd rdg
03/11    3rd rdg - 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 - Sandy
    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 139
         Effective: 07/01/99

Bill Text


H0183


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 183

                                BY STATE AFFAIRS COMMITTEE

 1                                        AN ACT
 2    RELATING TO ALLOWABLE INVESTMENTS BY THE  STATE  TREASURER;  AMENDING  SECTION
 3        67-1210A,  IDAHO  CODE,  TO PROVIDE THAT BONDS, DEBENTURES OR NOTES OF ANY
 4        CORPORATION ORGANIZED, CONTROLLED AND OPERATING WITHIN THE  UNITED  STATES
 5        WHICH  HAVE  AT THE TIME OF THEIR PURCHASE AN A RATING OR HIGHER BY A COM-
 6        MONLY KNOWN RATING SERVICE ARE ALLOWABLE INVESTMENTS BY  THE  STATE  TREA-
 7        SURER  AND  TO  PROVIDE  APPLICATION  TO OTHER PUBLIC AGENCIES' ABILITY TO
 8        INVEST IN BONDS, DEBENTURES OR NOTES OF ANY CORPORATION.

 9    Be It Enacted by the Legislature of the State of Idaho:

10        SECTION 1.  That Section 67-1210A, Idaho Code, be, and the same is  hereby
11    amended to read as follows:

12        67-1210A.  ADDITIONAL  ALLOWABLE  INVESTMENTS  BY  THE STATE TREASURER. In
13    addition to investments enumerated in section 67-1210, Idaho Code,  the  state
14    treasurer is authorized and empowered to invest state funds or any other funds
15    in  his  hands  including,  but  not  limited  to,  funds of any public agency
16    invested pursuant to joint exercise of powers agreements,  in  prime  banker's
17    acceptances   and  prime  commercial  paper,  sales  and  repurchase  of  call
18    options ,   and  securities  lending  agreements  ,
19    and  bonds,  debentures  or notes of any corporation organized, controlled and
20    operating within the United States which have, at the time of their  purchase,
21    an  A rating or higher by a commonly known rating service . Such securi-
22    ties lending agreements shall require the borrower  to  provide  and  maintain
23    collateral  (cash or securities which are authorized investments for the state
24    treasurer) at least equal in value to the value of the securities loaned.  The
25    sale (writing) and repurchase of call options is permitted only when the state
26    treasurer  or the joint powers local government pooled fund own the securities
27    on which the option is written.
28        The provisions of this section shall  not  be  construed  to  enlarge  the
29    powers of other public agencies to invest in prime banker's acceptances, prime
30    commercial  paper, sales and repurchase of call options ,   or
31     securities lending agreements , or bonds, debentures or  notes  of
32    any corporation  unless such investments are made by the state treasurer
33    pursuant to a joint exercise of powers agreement.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE

                             RS08721

The purpose of this proposed legislation is to allow the Idaho
State Treasurer to invest idle monies in corporate bonds,
debentures or notes. These bonds must have an "AH or better rating
by a commonly known rating service at the time of purchase.



                           FISCAL NOTE

It is estimated that these bonds will provide additional revenue
earnings on the state's Idle monies of $1,125,000, of which
approximately 38%, or $427,500 would be deposited to the general
account and the remaining 62k, or $697,500, would be distributed to
state agencies.











        CONTACT: Liza Carberry, Investment Manager
                 Office of the State Treasurer
                 332-2997
        
                                   STATEMENT OF PURPOSE/ FISCAL NOTE  Bill No.  H 183