Bill Text: IN SB0191 | 2012 | Regular Session | Enrolled

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Bill Title: Local government investments.

Spectrum: Bipartisan Bill

Status: (Enrolled - Dead) 2012-03-14 - Signed by the Governor [SB0191 Detail]

Download: Indiana-2012-SB0191-Enrolled.html

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Second Regular Session 117th General Assembly (2012)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2011 Regular Session of the General Assembly.

    SENATE ENROLLED ACT No. 191

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     AN ACT to amend the Indiana Code concerning local government.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 5-13-9-5.6; (12)SE0191.1.1. -->

    SECTION 1. IC 5-13-9-5.6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 5.6. Except for investments allowed under section 2(f) or 2(g) of this chapter, investments made under this chapter must have a stated final maturity of not more than:
        (1) five (5) years after the date of purchase or entry into a repurchase agreement for a conservancy district located in a city having a population of more than four five thousand six hundred fifty (4,650) (5,000) but less than five thousand (5,000); one hundred (5,100);
        (2) five (5) years after the date of purchase or entry into a repurchase agreement for investments made from a host community agreement future fund established by ordinance of a town with a population of more than six five thousand three hundred (6,300) (5,000) but less than ten thousand (10,000) located in a county having a population of more than one hundred forty thousand (100,000) (140,000) but less than one hundred five fifty thousand (105,000); (150,000); or
        (3) two (2) years after the date of purchase or entry into a repurchase agreement for:
             (A) a fund or political subdivision not described in subdivision (1) or (2); or

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            (B) a political subdivision that:
                (i) is not described in subdivision (1) or (2); and
                (ii) does not have in effect an investment policy and ordinance under section 5.7 of this chapter.
        after the date of purchase or entry into a repurchase agreement.

SOURCE: IC 5-13-9-5.7; (12)SE0191.1.2. -->     SECTION 2. IC 5-13-9-5.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 5.7. (a) The fiscal body of a political subdivision may adopt an investment policy authorizing the investment of public funds of the political subdivision for more than two (2) years and not more than five (5) years. The policy must:
        (1) be in writing;
        (2) be adopted at a public meeting;
        (3) provide for the investment of public funds with the approval of the investing officer;
        (4) provide that the investments must be made in accordance with this article;
        (5) limit the total investments outstanding under this section to not more than twenty-five percent (25%) of the total portfolio of public funds invested by the political subdivision, including balances in transaction accounts; and
        (6) state a date on which the policy expires, which may not exceed four (4) years.
    (b) A policy adopted by a fiscal body under subsection (a) remains in effect only through the date of expiration established in the policy, which may not exceed four (4) years.
    (c) A fiscal body that has adopted a written investment policy under subsection (a) may adopt an ordinance authorizing its investing officer to make investments having a stated final maturity that is:
        (1) more than two (2) years; but
        (2) not more than five (5) years;
after the date of purchase or entry into a repurchase agreement.
    (d) An ordinance adopted by a fiscal body under subsection (c) and the power to make an investment described in subsection (c) expire on the date on which the policy expires, which may not exceed four (4) years.
    (e) After an investment of public funds of a political subdivision is made by the investing officer under this section, the total investments of the political subdivision outstanding under this section may not exceed twenty-five percent (25%) of the total portfolio of public funds invested by the political subdivision,

including balances in transaction accounts. However, an investment that complies with this section when the investment is made remains legal even if:
        (1) the investment policy has expired; or
        (2) a subsequent decrease in the total portfolio of public funds invested by the political subdivision, including balances in transaction accounts, causes the percentage of investments outstanding under this section to exceed twenty-five percent (25%) of the total portfolio of public funds invested by the political subdivision.
    (f) An investing officer may contract with a federally regulated investment advisor or other institutional money manager to make investments under this section.

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SEA 191

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