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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
H0183|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN 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 ,andsecurities 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 ,or31securities 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
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