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H. 4635
STATUS INFORMATION
General Bill
Sponsors: Reps. Ceips, Cotty, Simrill, Limehouse, Vaughn, Altman, Anthony, Barfield, Battle, Bowers, J. Brown, Clemmons, Herbkersman, Jennings, Littlejohn, McCraw, Owens, Sinclair and G.R. Smith
Document Path: l:\council\bills\ms\7070mm04.doc
Introduced in the House on January 28, 2004
Currently residing in the House Committee on Ways and Means
Summary: Political subdivisions and county treasurers, authorized to invest funds
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 1/28/2004 House Introduced and read first time HJ-46 1/28/2004 House Referred to Committee on Ways and Means HJ-47
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 6-5-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AUTHORIZED INVESTMENTS BY POLITICAL SUBDIVISIONS, SO AS TO ALLOW THE GOVERNING BODY OF A LOCAL GOVERNMENT UNIT OR POLITICAL SUBDIVISION AND THE COUNTY TREASURER TO INVEST FUNDS, IN ADDITION TO FUNDS OBTAINED ONLY FROM THE ISSUANCE OF DEBT, IN CERTAIN MONEY MARKET MUTUAL FUNDS AND TO CLARIFY A REFERENCE; AND TO AMEND SECTION 12-45-220, RELATING TO INVESTMENTS BY COUNTY TREASURERS, SO AS TO ALLOW A COUNTY TREASURER TO INVEST FUNDS, IN ADDITION TO FUNDS OBTAINED ONLY FROM THE ISSUANCE OF DEBT, IN CERTAIN MONEY MARKET FUNDS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 6-5-10 of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"(a) (A) The governing body of any municipality, county, school district, or other local government unit or political subdivision and a county treasurers treasurer may invest money subject to their control and jurisdiction in:
(1) Obligations obligations of the United States and its agencies thereof;
(2) General general obligations of the State of South Carolina or any of its political units;
(3) Savings savings and Loan Associations loan associations to the extent that the same their deposits are insured by an agency of the federal government;
(4) Certificates certificates of deposit where if the certificates are collaterally secured by securities of the type described in items (1) and (2) above of this subsection held by a third party as escrow agent or custodian, of a market value not less than the amount of the certificates of deposit so secured, including interest; provided, however, except, that, such the collateral shall is not be required to the extent the same certificates of deposit are insured by an agency of the federal government. ;
(5) Repurchase repurchase agreements when if they are collateralized by securities as set forth in this section obligations described in items (1) and (2) of this subsection. ;
(6) No no load open-end or closed-end management type investment companies or investment trusts registered under pursuant to the Investment Company Act of 1940, as amended, where if the investment is made by a bank or trust company or savings and loan association or other financial institution when acting as trustee or agent for a bond or other debt issue of that local government unit, political subdivision, or county treasurer and if the particular portfolio of the investment company or investment trust in which the investment is made:
(i) is limited to obligations described in items (1), (2), and (5) of this subsection, ; and
(ii) has among its objectives the attempt to maintain a constant net asset value of one dollar a share and to that end, value values its assets by the amortized cost method. ; and
(7) A political subdivision receiving Medicaid funds appropriated by the General Assembly in the annual general appropriations act may utilize appropriated funds and other monies generated by hospital operations to participate in principal protected investments in the form of notes, bonds, guaranteed investment contracts, debentures, or other contracts issued by a bank chartered in the United States or agency of a bank if chartered in the United States, financial institution, insurance company, or other entity which provides for full principal payment at the end of a contract term not to exceed twelve years if the issuer has received a rating in one of three highest general rating categories issued by no fewer than two nationally recognized credit rating organizations. , in the case of a political subdivision receiving Medicaid funds appropriated by the General Assembly in the annual general appropriations act, using appropriated funds and other monies generated by hospital operations. No more than forty percent of the appropriated funds and other monies generated by hospital operations may be invested in the manner as provided in this item. Revenue realized pursuant to these investments must be expended on health care services.
(b) (B) The provisions of this chapter shall do not impair the power of a municipality, county, school district, or other local governmental unit or political subdivision, or county treasurer to hold funds in deposit accounts with banking institutions as otherwise authorized by law.
(c) (C) Such investments shall Investments made pursuant to this section must have maturities consistent with the time or times when the invested moneys will be monies are needed in cash."
SECTION 2. Section 12-45-220(A) of the 1976 Code is amended to read:
"(A) A county treasurer may invest or reinvest any a sum of money not necessary for current expenses in:
(1) obligations of the United States and its agencies;
(2) general obligations of this State or any of its political subdivisions;
(3) savings and loan associations if their deposits are insured by an agency of the federal government;
(4) certificates of deposit where if the certificates are collaterally secured by securities of type described in items (1) and (2) of this subsection held by the third party as escrow agent or custodian, of a market value not less than the amount of the certificates of deposit so secured, including interest, but ; except, that, the collateral is not required to the extent the certificates of deposit are insured by an agency of the federal government; or
(5) repurchase agreements if they are collateralized by obligations described in items (1) and (2) of this subsection; or
(6) no load open-end or closed-end management type investment companies or investment trusts registered under pursuant to the Investment Company Act of 1940, as amended, where if the investment is made by a bank or trust company or savings and loan association or other financial institution when acting as trustee or agent for a bond or other debt issue of that county treasurer, and if the particular portfolio of the investment company or investment trust in which the investment is made:
(i) is limited to obligations described in items (1) and (2) of this subsection, ; and
(ii) have has among its objectives the attempt to maintain a constant net asset value of one dollar a share and to that end, value values its assets by the amortized cost method. The portfolio may also consist of repurchase agreements when collateralized by obligations described in items (1) and (2) of this subsection."
SECTION 3. This act takes effect upon approval by the Governor.
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