HJR 18 -- STATE TREASURER

This proposed constitutional amendment requires the State
Treasurer to prepare an investment policy.  Such policy is to
include an assets allocation plan limiting the total amount of
state money which may be invested in each investment option
provided by the constitution.  Those investment options are
expanded with the inclusion of banker's acceptances, issued by
domestic commercial banks, and commercial paper, issued by
domestic corporations.  Both new investment options are to
mature in not more than 180 days from the date of purchase.

Constitutional powers granted the State Treasurer for investing
funds not needed for current expenses are modified to extend the
current 3 year maximum investment period to 5 years.

HJR 18 -- STATE TREASURER (Harlan)

This proposed constitutional amendment requires the State
Treasurer to prepare an investment policy. Such policy is to
include an assets allocation plan limiting the total amount of
state money which may be invested in each investment option
provided by the constitution. Those investment options are
expanded with the inclusion of banker's acceptances, issued by
domestic commercial banks, and commercial paper, issued by
domestic corporations. Both new investment options are to mature
in not more than 180 days from the date of purchase.

Constitutional powers granted the State Treasurer for investing
funds not needed for current expenses are modified to extend the
current 3 year maximum investment period to 5 years.

FISCAL NOTE:  Effect to All State Funds of Cost of $95,300 in FY
1999, & Increase of $7,000,000 to $10,000,000 in FY 2000.

HJR 18 -- STATE TREASURER

CO-SPONSORS:  Harlan, Copeland

COMMITTEE ACTION:  Voted "do pass" by the Committee on Banks and
Financial Institutions by a vote of 25 to 0.

This proposed constitutional amendment requires the State
Treasurer to prepare an investment policy. Such policy is to
include an assets allocation plan limiting the total amount of
state money which may be invested in each investment option
provided by the constitution. Those investment options are
expanded with the inclusion of banker's acceptances, issued by
domestic commercial banks, and commercial paper, issued by
domestic corporations. Both new investment options are to mature
in not more than 180 days from the date of purchase.

Constitutional powers granted the State Treasurer for investing
funds not needed for current expenses are modified to extend the
current 3 year maximum investment period to 5 years.

FISCAL NOTE:  Net Effect to State Funds of a Cost of $95,300 in
FY 1999, and an Increase of $7,000,000 to $10,000,000 in FY 2000.

PROPONENTS:  Supporters say that this constitutional amendment
is needed to allow the state treasurer and political
subdivisions the authority to invest in banker's acceptances and
commercial paper possessing the highest rating issued.

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:  There was no opposition voiced to the committee.

Bob Dominique, Research Analyst

HJR 18 -- State Treasurer

Co-Sponsors:  Harlan, Copeland

This proposed constitutional amendment requires the State
Treasurer to prepare an investment policy. Such policy is to
include an assets allocation plan limiting the total amount of
state money which may be invested in each investment option
provided by the constitution. Those investment options are
expanded with the inclusion of banker's acceptances, issued by
domestic commercial banks and commercial paper, issued by
domestic corporations. Both new investment options are to mature
in not more than 180 days from the date of purchase.

Constitutional powers granted the State Treasurer for investing
funds not needed for current expenses are modified to extend the
current 3 year maximum investment period to 5 years.