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H0434......................................................by STATE AFFAIRS
STATE TREASURY MONEYS - Amends existing law to revise provisions relating
to the investment of idle moneys in the state treasury.
01/23 House intro - 1st rdg - to printing
01/24 Rpt prt - to St Aff
02/07 Rpt out - rec d/p - to 2nd rdg
02/08 2nd rdg - to 3rd rdg
02/09 3rd rdg - PASSED - 69-0-1
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Block, Boe, Bolz, Brackett, Bradford, Cannon,
Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez,
Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Black
Floor Sponsor - Stevenson
Title apvd - to Senate
02/10 Senate intro - 1st rdg - to St Aff
02/13 Rpt out - rec d/p - to 2nd rdg
02/14 2nd rdg - to 3rd rdg
02/24 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Brandt(Harper), Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Little
Title apvd - to House
02/27 To enrol
02/28 Rpt enrol - Sp signed
03/01 Pres signed
03/02 To Governor
03/08 Governor signed
Session Law Chapter 17
Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 434
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE STATE TREASURER; AMENDING SECTION 67-1210, IDAHO CODE, TO
3 REVISE PROVISIONS RELATING TO THE INVESTMENT OF IDLE MONEYS IN THE STATE
4 TREASURY AND TO MAKE TECHNICAL CORRECTIONS.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 67-1210, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 67-1210. INVESTMENT OF IDLE MONEYS. It shall be the duty of the state
9 treasurer to invest idle moneys in the state treasury, other than moneys in
10 public endowment funds, in any of the following:
11 (a) Bonds, treasury bills, interest-bearing notes, or other obligations
12 of the United States, or those for which the faith and credit of the United
13 States are pledged for the payment of principal and interest.
14 (b) General obligation or revenue bonds of this state, or those for which
15 the faith and credit of this state are pledged for the payment of principal
16 and interest.
17 (c) General obligation or revenue bonds of any county, city, metropolitan
18 water district, municipal utility district, school district or other taxing
19 district of this state.
20 (d) Notes, bonds, debentures, or other similar obligations issued by the
21 farm credit system or institutions forming a part thereof under the farm
22 credit act of 1971, [U.S.C., tit. 12, sections 2001-2259,] and all acts of
23 congress amendatory thereof or supplementary thereto; in bonds or debentures
24 of the federal home loan bank board established under the federal home loan
25 bank act, [U.S.C., tit. 12, sections 1421-1449]; in bonds, debentures and
26 other obligations of the federal national mortgage association established
27 under the national housing act, [U.S.C., tit. 12, sections 1701-1750g,) as
28 amended, and in the bonds of any federal home loan bank established under said
29 act and in other obligations issued or guaranteed by agencies or instrumental-
30 ities of the government of the state of Idaho or of the United States, includ-
31 ing the United States small business administration guaranteed portion of any
32 loan approved by an Idaho banking corporation and by the state treasurer.
33 (e) Bonds, notes or other similar obligations issued by public corpora-
34 tions of the state of Idaho including, but not limited to, the Idaho state
35 building authority, the Idaho housing authority and the Idaho water resource
36 board, but such investment shall not extend beyond seven (7) days.
37 (f) Repurchase agreements covered by any legal investment for the state
38 of Idaho.
39 (g) Tax anticipation notes and registered warrants of the state of Idaho.
40 (h) Tax anticipation bonds or notes and income and revenue anticipation
41 bonds or notes of taxing districts of the state of Idaho.
42 (i) Time deposit accounts and savings accounts in state depositories
43 including, but not limited to, accounts on which interest or dividends are
2
1 paid and upon which negotiable orders of withdrawal may be drawn, and similar
2 transaction accounts.
3 (j) Time deposit accounts and savings accounts of state or federal sav-
4 ings and loan associations located within the geographical boundaries of the
5 state in amounts not to exceed the insurance provided by the federal savings
6 and loan insurance corporation including, but not limited to, accounts on
7 which interest or dividends are paid and upon which negotiable orders of with-
8 drawal may be drawn, and similar transaction accounts.
9 (k) Revenue bonds of institutions of higher education of the state of
10 Idaho.
11 (l) Share, savings and deposit accounts of state and federal credit
12 unions located within the geographical boundaries of the state in amounts not
13 to exceed the insurance provided by the national credit union share insurance
14 fund and/or any other authorized deposit guaranty corporation, including, but
15 not limited to, accounts on which interest or dividends are paid and upon
16 which negotiable orders of withdrawal may be drawn, and similar transaction
17 accounts.
18 (m) Money market funds whose portfolios consist of any allowed investment
19 as specified in this section. The securities held in money market portfolios
20 must be dollar-denominated, meaning that all principal and interest payments
21 on such a security are payable to security holders in United States dollars.
22 The term "idle moneys" means the balance of cash and other evidences of
23 indebtedness which are accepted by banks as cash in the ordinary course of
24 business, in demand deposit accounts, after taking into consideration all
25 deposits and withdrawals, on a daily basis.
26 The interest received on all such investments, unless otherwise specifi-
27 cally required by law, shall be paid into the general account of the state of
28 Idaho. Provided, unless otherwise specifically provided by statute, any inter-
29 est earned on funds received by the state pursuant to a federal law, regula-
30 tion, or federal-state agreement which governs disposition of interest earned
31 upon such funds shall be accounted for separately to give effect to the fed-
32 eral law, regulation, or federal-state agreement.
33 If the interest is to be credited to a separate account, the state trea-
34 surer shall charge the account an investment administration fee. The amount
35 of the fee shall be determined annually by the state treasurer and submitted
36 to the board of examiners for approval as stipulated in section 67-3524, Idaho
37 Code. The fee shall be expressed as an annual percentage of the average daily
38 balance of the account, including separate investments, if any, of that
39 account. The fee shall be charged monthly in an amount approximately one-
40 twelfth (1/12) of the fee which would be payable on an annual basis. The
41 amount of the investment administration fee shall constitute an appropriation
42 from the account for which the investment administration services are ren-
43 dered.
44 The state treasurer shall charge an investment administration fee to each
45 such state fund or account, including the general account, which receives
46 investment income from investments administered by the office of state trea-
47 surer. The investment administration fee shall be determined annually by the
48 state treasurer and submitted to the board of examiners for approval, as stip-
49 ulated in section 67-3524, Idaho Code. The fee shall be expressed as an
50 annual percentage of the average daily balance of the fund or account, includ-
51 ing separate investments, if any, of that fund or account. The fee shall be
52 charged monthly in an amount approximately one-twelfth (1/12) of the fee which
53 would be payable on an annual basis. The amount of the investment administra-
54 tion fee shall constitute an appropriation from the fund or account for which
55 the investment administration services are rendered.
3
1 The term "to invest" means to use the idle moneys in the state treasury to
2 buy, sell, including selling before maturity at either a gain or a loss,
3 retain, or exchange any of the investments described in this section, consid-
4 ering the probable safety of the capital, the probable income to be derived,
5 and the liquidity of the assets.
STATEMENT OF PURPOSE
RS 15407
The purpose of this legislation is to amend Idaho Code 67-
1210(e) to remove the language prohibiting the State Treasurer
from investing idle moneys in bonds, notes, or other similar
obligations issued by public corporations of the State of Idaho
including, but not limited to, the Idaho State Building
Authority, the Idaho Housing Authority, and the Idaho Water
Resource Board for periods beyond seven (7) days.
This legislation is proposed because the State Treasurer
recently was prohibited from participating in the proposed
refinancing of the bonded indebtedness for the Board's Dworshak
Hydroelectric Facility at the Dworshak Fish Hatchery because of
the limitation on investment in Idaho Code 67-1210(e). The
State Treasurer's Office has indicated its support for removal of
the seven-day time period limitation on investments contained in
the statute.
FISCAL NOTE
Enactment of this legislation will not have a negative
impact upon the state's general fund or other state or local
funds. Enactment of the legislation would have a potentially
favorable effect on the Idaho Water Resource Board's financial
programs by reducing the costs of financing for certain water
projects and could provide the State Treasurer with attractive
investment opportunities.
CONTACT
Name: Karl Dreher
Agency: Water Resources, Dept. of
Phone: 208-287-4803
STATEMENT OF PURPOSE/FISCAL NOTE H 434