2006 Legislation
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HOUSE BILL NO. 434 – State treasury moneys, investment

HOUSE BILL NO. 434

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact


                      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