GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 283

Short Title:  State Treasurer's Investment Authority.  	(Public)

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Sponsors: Representatives Allen; and Hunter.

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Referred to:  Ways and Means.

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March 4, 1999

A BILL TO BE ENTITLED
AN ACT TO MAKE TECHNICAL AND CONFORMING CHANGES TO THE STATE TREASURER'S INVESTMENT AUTHORITY.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 147-69.1 reads as rewritten:
"§ 147-69.1.  Investments authorized for General Fund and Highway Funds assets.
(a)	The Governor and Council of State, with the advice and assistance of the State Treasurer, shall adopt such rules and regulations as shall be necessary and appropriate to implement the provisions of this section.
(b)	This section applies to funds held by the State Treasurer to the credit of:
(1)	The General Fund;
(2)	The Highway Funds.
(c)	It shall be the duty of the State Treasurer to invest the cash of the funds enumerated in subsection (b) of this section in excess of the amount required to meet the current needs and demands on such funds, selecting from among the following:
(1)	Obligations of the United States or obligations fully guaranteed both as to principal and interest by the United States;
(2)	Obligations of the Federal Financing Bank, the Federal Farm Credit Bank, the Bank for Cooperatives, the Federal Intermediate Credit Bank, the Federal Land Banks, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Housing Administration, the Farmers Home Administration, the United States Postal Service, the Export-Import Bank, the International Bank for Reconstruction and Development, the International Finance Corporation, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, and the Student Loan Marketing Association.
(3)	Repurchase Agreements with respect to securities issued or guaranteed by the United States government or its agencies or other securities eligible for investment by this section executed by a bank or trust company or by primary or other reporting dealers to the Federal Reserve Bank of New York.
(4)	Obligations of the State of North Carolina;
(5)		Time deposits of financial institutions operating in North Carolina for the purpose of receiving commercial or retail deposits; provided that any principal amount of such deposit in excess of the amount insured by the federal government or any agency thereof, be fully secured by surety bonds, or
	be fully collateralized; provided further that
	the rate of return or investment yield may not be less than that available in the market on United States government or agency obligations of comparable maturity;
	(6)	Prime quality commercial paper bearing the highest rating of at least one nationally recognized rating service and not bearing a rating below the highest by any nationally recognized rating service which rates the particular obligation.
(7)	Bills of exchange or time drafts drawn on and accepted by a commercial bank and eligible for use as collateral by member banks in borrowing from a federal reserve bank, provided that the accepting bank or its holding company is either (i) incorporated in the State of North Carolina or (ii) has outstanding publicly held obligations bearing the highest rating of at least one nationally recognized rating service and not bearing a rating below the highest by any nationally recognized rating service which rates the particular obligations.
(8)	Asset-backed securities (whether considered debt or equity) provided they bear the highest rating of at least one nationally recognized rating service and do not bear a rating below the highest rating by any nationally recognized rating service which rates the particular securities.
(9)	Corporate bonds and notes provided they bear the highest rating of at least one nationally recognized rating service and do not bear a rating below the highest by any nationally recognized rating service which rates the particular obligation.
	(d)	Unless otherwise provided by law, the interest or income received and accruing from all deposits or investments of such cash balances shall be paid into the State's General Fund, except that all interest or income received and accruing on the monthly balance of the Highway Funds shall be paid into the State Highway Funds. The cash balances of the several funds may be combined for deposit or investment purposes; and when such combined deposits or investments are made, the interest or income received and accruing from all deposits or investments shall be prorated among the funds in conformity with applicable law and the rules and regulations adopted by the Governor and Council of State.
(e)	The State Treasurer shall cause to be prepared quarterly statements on or before the tenth day of January, April, July and October in each year, which shall show the amount of cash on hand, the amount of money on deposit, the name of each depository, and all investments for which he is in any way responsible. Each quarterly statement shall be delivered to the Governor and Council of State; and a copy shall be posted in the office of the State Treasurer for the information of the public.
(f)	Repealed by Session Laws 1989 (Regular Session, 1990), c. 813, s. 10.
(g)	If and to the extent the General Assembly shall authorize the sale of all or any part of the stock owned by the State in the North Carolina Railroad Company or the Atlantic and North Carolina Railroad Company, the proceeds of any sale shall be separately accounted for and invested as expressly directed by the General Assembly, but in the absence of any express direction as to investment, the proceeds may be invested as authorized by this section."
Section 2.  G.S. 147-69.2(a) reads as rewritten:
"(a)	This section applies to funds held by the State Treasurer to the credit of:
(1)	The Teachers' and State Employees' Retirement System,
(2)	The Consolidated Judicial Retirement System,
(3)	The Teachers' and State Employees' Hospital and Medical Insurance Plan,
(4)	The General Assembly Medical and Hospital Care Plan,
(5)	The Disability Salary Continuation Plan,
(6)	The Firemen's and Rescue Workers' Pension Fund,
(7)	The Local Governmental Employees' Retirement System,
(8)	The Legislative Retirement System,
(9)	The Escheat Fund,
(10)	The Legislative Retirement Fund,
(11)	The State Education Assistance Authority,
(12)	The State Property Fire Insurance Fund,
(13)	The Stock Workers' Compensation Fund,
(14)	The Mutual Workers' Compensation Fund,
(15)	The Public School Insurance Fund,
(16)	The Liability Insurance Trust Fund,
(17)	Trust funds of The University of North Carolina and its constituent institutions deposited with the State Treasurer pursuant to G.S. 116-36.1, 
(18)	North Carolina Veterans Home Trust Fund,
(19)	North Carolina National Guard Pension Fund,
(20)	Retiree Health Premium Reserve Account, and
(21)	Any other special fund created by or pursuant to law for purposes other than meeting appropriations made pursuant to the Executive Budget Act."
Section 3.  This act is effective when it becomes law.