HB 766 -- STATE TREASURER (Harlan)

This bill requires the State Treasurer to prepare a written
investment policy which is to include an assets allocation plan
limiting the total amount of state money which may be invested
in any particular investment authorized by the Missouri
Constitution. The State Treasurer is to supply copies of the
investment plan to state officials as provided in the bill.

The bill also requires every political subdivision responsible
for the management and investment of public funds to formally
adopt and comply with a written investment policy. Requirements
for such policy are provided in the bill. The State Treasurer is
to prepare a model investment policy which may be adopted by
political subdivisions to comply with the provisions of this
bill.

The bill creates the Missouri Investment Trust, which is to be
managed by a board of trustees. The State Treasurer is to convey
designated funds into the trust fund for a fixed period to be
held for the exclusive benefit of the state. Such designated
funds are to be approved by legislation and invested in long
term investments. Such long term investments may not exceed 3
years, (5 years if proposed constitutional amendment HJR 18 is
approved). At no time are the total assets of the Missouri
Investment Trust to exceed $100 million.

Appointment requirements for the board of trustees for the
Missouri Investment Trust are established, as well as their term
of office, dismissal from office, powers, duties, investment
requirements, and auditing requirements.

Requires political subdivisions which do not promulgate and
adopt the written investment policy to manage and invest public
funds according to current law.

FISCAL NOTE:  Net Effect to Missouri Investment Trust of $0 in
FY 1998, $0 in FY 1999, & Unknown in FY 2000.

HB 766, HCA 1 -- STATE TREASURER

CO-SPONSORS:  Harlan, Copeland

COMMITTEE ACTION:  Voted "do pass" by the Committee on Banks and
Financial Institutions by a vote of 24 to 1.

This bill requires the State Treasurer to prepare a written
investment policy which is to include an assets allocation plan
limiting the total amount of state money which may be invested
in any particular investment authorized by the Missouri
Constitution. The State Treasurer is to supply copies of the
investment plan to state officials as provided in the bill.

The bill also requires every political subdivision responsible
for the management and investment of public funds to formally
adopt and comply with a written investment policy. Requirements
for such policy are provided in the bill. The State Treasurer is
to prepare a model investment policy which may be adopted by
political subdivisions to comply with the provisions of this
bill.

The bill creates the Missouri Investment Trust, which is to be
managed by a board of trustees. The State Treasurer is to convey
designated funds into the trust fund for a fixed period to be
held for the exclusive benefit of the state. Such designated
funds are to be approved by legislation and invested in long
term investments. Such long term investments may not exceed 3
years, (5 years if proposed constitutional amendment HJR 18 is
approved). At no time are the total assets of the Missouri
Investment Trust to exceed $100 million.

Appointment requirements for the board of trustees for the
Missouri Investment Trust are established, as well as their term
of office, dismissal from office, powers, duties, investment
requirements, and auditing requirements.

HCA 1:  Requires political subdivisions which do not promulgate
and adopt the written investment policy to manage and invest
public funds according to current law.

FISCAL NOTE:  Net Effect to Missouri Investment Trust of $0 for
FY 1998, $0 for FY 1999, and Unknown for FY 2000.

PROPONENTS:  Supporters say that this bill expands the
investment powers of the State Treasurer's office and political
subdivisions statewide.  It is believed that by allowing these
entities to invest in low risk, high yield commercial paper and
bank acceptances that they will get a much greater return on
their investment.

Testifying for the bill were Representative Harlan; Richard
Stensrud, General Counsel, Office of the State Treasurer; Kay
Murry, Boone County Treasurer; Missouri Bankers Association;
Missouri Municipal League; and the Missouri Arts Council.

OPPONENTS:  No opposition was voiced to the committee.

Bob Dominique, Research Analyst

HB 766 -- STATE TREASURER

Co-Sponsors:  Harlan, Copeland

This bill requires the State Treasurer to prepare a written
investment policy which is to include an assets allocation plan
limiting the total amount of state money which may be invested
in any particular investment authorized by the Missouri
Constitution. The State Treasurer is to supply copies of the
investment plan to State officials as provided in the bill.

The bill also requires every political subdivision responsible
for the management and investment of public funds to formally
adopt and comply with a written investment policy. Requirements
for such policy are provided in the bill. The State Treasurer is
to prepare a model investment policy which may be adopted by
political subdivisions to comply with the provisions of this
bill.

The bill creates the Missouri Investment Trust, which is to be
managed by a board of trustees. The State Treasurer is to convey
designated funds into the trust fund for a fixed period to be
held for the exclusive benefit of the state. Such designated
funds are to be approved by legislation and invested in long
term investments. Such long term investments may not exceed 3
years, (5 years if proposed constitutional amendment HJR 18 is
approved). At no time are the total assets of the Missouri
Investment Trust to exceed $100 million.

Appointment requirements for the board of trustees for the
Missouri Investment Trust are established as well as their term
of office, dismissal from office, powers, duties, investment
requirements, and auditing requirements.