1999 Legislation
Print Friendly

HOUSE BILL NO. 185, As Amended – Idle moneys, state treasurer invest

HOUSE BILL NO. 185, As Amended

View Daily Data Tracking History

View Bill Text

View Amendment

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History



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

Bill Text


H0185


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

                             IN 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    the    F  f arm   C  c redit
27     S  s ystem or institutions forming a part thereof under
28    the  F  f arm  C  c redit   A
29     a ct of  1971  [U.S.C.,  tit.  12, sections  2001-2259]  and
30    all   A  a cts  of   C  c ongress
31    amendatory   thereof or supplementary thereto; in bonds or  debentures of  the
32     F  f ederal  H   h  ome    L
33      l oan  B  b ank  B  b
34    oard established under the  F  f ederal     H
35     h ome  L  l oan   B  b
36    ank     A    a  ct   [U.S.C.,  tit.  12,  sections
37    1421-1449];  in  bonds,  debentures  and  other  obligations  of  the   F
38     f  ederal    N    n  ational    M
39     m ortgage  A  a ssociation established
40    under   the    N    n  ational    H    h
41    ousing   A    a  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 treasurer  for the purpose of financing the addition to or retrofit
 5    of an underground storage tank or underground storage tank system  
 6    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  the    F
29      f  ederal    S   s avings and  L
30      l  oan    I    i  nsurance     C
31      c  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 geographical  boundries   boundaries
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.

Amendment


AH0185


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

                                       Moved 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 / Fiscal Impact


                      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