Bill > A5642

Introduced Session

This bill would expand the types of securities within which a school district or a local unit of government may invest its funds. Under the bill, a school district or a local unit whose financial investment officials have completed the training programs set forth in the bill may invest their funds in:· Negotiable certificates of deposit or other evidences of deposit, with a remaining maturity of three years or less, issued by a nationally or State-chartered bank, a federal or State savings and loan association, or a State-licensed branch of a foreign bank; · Corporate debt obligations, denominated in U.S. dollars, with a remaining maturity of five years or less; · Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as bankers' acceptances, if the bankers' acceptances do not exceed 180 days' maturity and the accepting bank is rated in the top short-term category by at least two nationally recognized statistical ratings organizations; or· Commercial paper issued by business entities organized in accordance with federal or State law, with a maturity not to exceed 270 days, if the issuing business entity is rated in the top short-term category by at least two nationally recognized statistical ratings organizations. In order to purchase these types of securities, the treasurer, the chief financial officer, the school business administrator, or other person responsible for the investment of local unit or school district funds, is required to:· attend at least one independent training session, approved by the Division of Local Government Services, for the purpose of advising persons responsible for the investment of local unit or school district funds, and containing at least four hours of instruction relating to the person's responsibilities under the bill for investing local unit or school district funds; and· attend an investment training session not less than once in a two-year period, and receive not less than four hours of instruction relating to permitted investments, under the bill, from an independent source, approved by the Division of Local Government Services, to advise the person in the investment policy of the local unit or school district.

AI Summary

Committee Categories

Chris Tully (D)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 06/20/2023)

Official Document