Bill > S3489

Introduced Session

This bill requires the State of New Jersey to take steps to maximize its returns in short-term investments made through the State of New Jersey Cash Management Fund and the State's pension and annuity funds. The bill establishes a Bureau of Short-Term Local Government Note Investments in the Division of Investment in the Department of the Treasury. The bureau would be supervised by a chief who would work under the Director of the Division of Investment in the Department of the Treasury. The bill requires the bureau to monitor the sale of short-term local government notes and allows the bureau to submit responsible bids or offers to purchase short-term notes issued by local governments the investment would generate a rate of return of at least one percent higher to United States Treasury Obligations with a similar maturity. The bill also authorizes the bureau to purchase short-term notes issued by local units that do not otherwise meet the minimum credit rating requirements established by current State regulations, if the issuers' finances and financial systems are regulated by the State of New Jersey, or another state determined by the bureau to have a similar local finance regulatory structure that protects investors in case there is a substantive default on the payment of the notes. In addition to increasing the State's investment returns, this bill is intended to spur competition for the purchase of short-term local government debt and reduce the interest rates charged to certain underserved local governments that experience high borrowing costs even through the notes issued by those local government units have proven to be extremely safe investments.

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Declan O'Scanlon (R)*, 

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 06/24/2024)

Official Document