Revision: Jan. 12, 2010, midnight
SB 314 – AS INTRODUCED
2010 SESSION
06/05
SENATE BILL 314
AN ACT relative to the investment of public funds.
SPONSORS: Sen. Houde, Dist 5; Rep. Cooney, Graf 7
COMMITTEE: Commerce, Labor and Consumer Protection
This bill permits the state and its political subdivisions to invest in certain certificates of deposit.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2756
06/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to the investment of public funds.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 State Treasurer and State Accounts; Investment of Funds.. Amend RSA 6:8 to read as follows:
6:8 Investment of Funds.
I. All funds over which the state has exclusive control, aside from such sums of money as the treasurer may deem necessary to hold or deposit for meeting current expenses, shall be invested by the treasurer, with the approval of the governor and council, in obligations of the United States government, in obligations of any county government, municipal government, or district or division thereof within the state of New Hampshire, in obligations which are legal investments for savings banks pursuant to RSA 387, in participation units in the public deposit investment pool established pursuant to RSA 383:22, or in deposits, including money market accounts, or certificates of deposit, or repurchase agreements, and all other types of interest bearing accounts, of federally insured banks chartered under the laws of New Hampshire or the federal government with a branch within the state.
II. The treasurer may also invest public funds in certificates of deposit provided that:
(a) The funds are initially invested through a federally insured bank chartered under the laws of New Hampshire or the federal government with a branch within the state, selected by the treasurer.
(b) The selected bank arranges for the deposit of the funds in certificates of deposit in one or more federally insured financial institutions located in the United States, for the account of the treasurer.
(c) The full amount of principal and any accrued interest of each such certificate of deposit is covered by federal deposit insurance.
(d) The selected bank acts as custodian with respect to such certificates of deposit issued for the account of the treasurer.
(e) At the same time that the funds are deposited and the certificates of deposit are issued, the selected bank receives an amount of deposits from customers of other federally insured financial institutions equal to or greater than the amount of the funds initially invested through the selected bank by the treasurer.
2 New Paragraph; County Treasurers and County Taxes; Duties. Amend RSA 29:1 by inserting after paragraph IV the following new paragraph:
V. The county treasurer may also invest public funds in certificates of deposit provided that:
(a) The funds are initially invested through a federally insured bank chartered under the laws of New Hampshire or the federal government with a branch within the state, selected by the treasurer.
(b) The selected bank arranges for the deposit of the funds in certificates of deposit in one or more federally insured financial institutions located in the United States, for the account of the treasurer.
(c) The full amount of principal and any accrued interest of each such certificate of deposit is covered by federal deposit insurance.
(d) The selected bank acts as custodian with respect to such certificates of deposit issued for the account of the treasurer.
(e) At the same time that the funds are deposited and the certificates of deposit are issued, the selected bank receives an amount of deposits from customers of other federally insured financial institutions equal to or greater than the amount of the funds initially invested through the selected bank by the treasurer.
3 Duties of Elected and Appointed Town Treasurers. Amend RSA 41:29, IV to read as follows:
IV.(a) Whenever the town treasurer has in custody an excess of funds which are not immediately needed for the purpose of expenditure, the town treasurer shall invest the same in accordance with the investment policy adopted by the selectmen under RSA 41:9, VII. The treasurer may invest in the public deposit investment pool established pursuant to RSA 383:22, or in deposits, including money market accounts, or certificates of deposit, or repurchase agreements, and all other types of interest bearing accounts, of federally insured banks chartered under the laws of New Hampshire or the federal government with a branch within the state, or in obligations fully guaranteed as to principal and interest by the United States government. The obligations may be held directly or in the form of securities of or other interests in any open-end or closed-end management-type investment company or investment trust registered under 15 U.S.C. section 80a-1 et seq., if the portfolio of the investment company or investment trust is limited to such obligations and repurchase agreements fully collateralized by such obligations.
(b) The town treasurer may also invest public funds in certificates of deposit provided that:
(1) The funds are initially invested through a federally insured bank chartered under the laws of New Hampshire or the federal government with a branch within the state, selected by the treasurer.
(2) The selected bank arranges for the deposit of the funds in certificates of deposit in one or more federally insured financial institutions located in the United States, for the account of the treasurer.
(3) The full amount of principal and any accrued interest of each such certificate of deposit is covered by federal deposit insurance.
(4) The selected bank acts as custodian with respect to such certificates of deposit issued for the account of the treasurer.
(5) At the same time that the funds are deposited and the certificates of deposit are issued, the selected bank receives an amount of deposits from customers of other federally insured financial institutions equal to or greater than the amount of the funds initially invested through the selected bank by the treasurer.
4 New Paragraph; City Treasurer; Duties. Amend RSA 48:16 by inserting after paragraph V the following new paragraph:
VI. The treasurer may also invest public funds in certificates of deposit provided that:
(a) The funds are initially invested through a federally insured bank chartered under the laws of New Hampshire or the federal government with a branch within the state, selected by the treasurer.
(b) The selected bank arranges for the deposit of the funds in certificates of deposit in one or more federally insured financial institutions located in the United States, for the account of the treasurer.
(c) The full amount of principal and any accrued interest of each such certificate of deposit is covered by federal deposit insurance.
(d) The selected bank acts as custodian with respect to such certificates of deposit issued for the account of the treasurer.
(e) At the same time that the funds are deposited and the certificates of deposit are issued, the selected bank receives an amount of deposits from customers of other federally insured financial institutions equal to or greater than the amount of the funds initially invested through the selected bank by the treasurer.
5 New Paragraph; School Meetings and Officers; Treasurer's Duties. Amend RSA 197:23-a by inserting after paragraph IV the following new paragraph:
V. The treasurer may also invest public funds in certificates of deposit provided that:
(a) The funds are initially invested through a federally insured bank chartered under the laws of New Hampshire or the federal government with a branch within the state, selected by the treasurer.
(b) The selected bank arranges for the deposit of the funds in certificates of deposit in one or more federally insured financial institutions located in the United States, for the account of the treasurer.
(c) The full amount of principal and any accrued interest of each such certificate of deposit is covered by federal deposit insurance.
(d) The selected bank acts as custodian with respect to such certificates of deposit issued for the account of the treasurer.
(e) At the same time that the funds are deposited and the certificates of deposit are issued, the selected bank receives an amount of deposits from customers of other federally insured financial institutions equal to or greater than the amount of the funds initially invested through the selected bank by the treasurer.
6 Effective Date. This act shall take effect 60 days after its passage.