Chapter 284
2011 -- S 0858 AS AMENDED
Enacted 07/12/11
A N A C T
RELATING TO
PUBLIC FINANCE - ESTABLISHING LOCAL GOVERNMENT
INVESTMENT POOLS
Introduced By: Senator Walter S. Felag
Date Introduced: April 14, 2011
It is enacted by the General
Assembly as follows:
SECTION 1. Title 35 of the General Laws entitled
"PUBLIC FINANCE" is hereby
amended by adding thereto the following chapter:
CHAPTER
35-10.2
35-10.2-1.
Short title. -- This chapter shall be known and
may be cited as the "Rhode
35-10.2-2.
Purpose. -- The purpose of this chapter is to
enable eligible governmental
entities to participate with the state in providing maximum
opportunities for the investment of
public funds consistent with safety and protection of such
funds. It is the intention of the general
assembly in enabling the general treasurer with the approval
of the state investment commission
to establish the said investment pools, that the general
treasurer and state investment commission
consider the importance of retaining deposits with the banks
located and operating within the
state, that further consideration be given to a bank’s commitment
to the various communities
within the state, the bank’s role as an employer within the
state, as well as the bank’s
commitment to the growth of economic development within the
state.
35-10.2-3.
Definitions. -- As used in this chapter, the
following terms, unless the context
requires a different interpretation, have the following
meanings:
(1)
"Commission" means the state investment commission;
(2)
"Participation Unit" means the equal proportionate share into which
the beneficial
interest in the trust is divided and includes a fraction of a
unit as well as whole units.
35-10.2-4.
Establishing investment pools. -- Notwithstanding and general or
special law
or regulation to the contrary, the general treasurer may
establish, subject to the approval of the
commission, one or more investment pool trust funds containing
certain monies in accordance
with section 35-10.2-5.
35-10.2-5. Monies
included in investment pools. -- Each investment pool trust fund
may contain any or a combination of any of the following:
(1) Monies of the
several funds of the state according to section 35-10-2;
(2) The proceeds of
all bond issues not immediately required; or
(3) The funds under the
custody of agencies, authorities, commissions, boards,
municipalities, political subdivisions and other public units of the
state.
35-10.2-6.
Trustee of the funds. -- The general treasurer
shall serve as trustee for each
established investment pool trust fund in accordance with this
chapter.
35-10.2-7.
Investment of funds. -- The general treasurer
shall invest each investment
pool trust fund in instruments prescribed, and in amounts
approved, by the commission in
accordance with section 35-10-6.
35-10.2-8.
Participation units. -- The general treasurer
is authorized to sell to all
agencies, authorities, commissions, boards, municipalities,
political subdivisions, and other public
units of the state, participation units in any such
combined investment trust fund. Such
participation units are made legal investments for all the funds
under the custody of such
agencies, authorities, commissions, boards, municipalities,
political subdivisions, and other public
units of the state.
35-10.2-9.
Reporting. -- (a) The
general treasurer shall keep a separate account of each
participant having funds in the investment pool. Each separate
account shall record the individual
amounts deposited in the investment pool, the date of
withdrawals, and the earnings credited or
paid. The general treasurer shall report monthly the
status of the respective account to each
participant having funds in the pool during the previous month.
(b) At the end of
each fiscal year, the general treasurer shall submit to the governor and
the state auditor a summary of the activity of the
investment pool. The summary shall indicate the
quantity of funds deposited; the earnings of the pool; the
investments purchased, sold, or
exchanged; the administrative expenses of the investment pool;
and such other information as the
state treasurer deems relevant.
35-10.2-10.
Rules and regulations. -- The general
treasurer, subject to the approval of
the commission, shall by rule prescribe the time periods
for investments in the investment pool
and the procedure for withdrawal of funds from the
investment pool. The state treasurer shall
promulgate such other rules as are deemed necessary for the
efficient operation of the investment
pool.
35-10.2-11.
Severability. -- The holding of any section or
sections or parts thereof to be
void, ineffective, or unconstitutional for any cause shall
not be deemed to affect any other section
or part thereof.
SECTION 2. This act shall take effect upon passage.
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LC02007
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