HB 883 -- Investments by the State Treasurer

Sponsor:  Flook

This bill changes the laws regarding the State Treasurer's asset
allocation plan which limits the total amount of state moneys
that may be invested in any particular investment authorized by
Section 15, Article IV of the Missouri Constitution.  In its main
provisions, the bill:

(1)  Requires the plan to establish diversification limits
including a restriction limiting the total amount of time
deposits of state moneys, not including linked deposits, placed
with any one single banking institution to be no greater than 10%
of all time deposits of state moneys;

(2)  Requires the rate of interest payable by all banking
institutions on time deposits, other than linked deposits, to be
at least the average rate paid during the week next preceding the
week in which the deposit was made for United States Treasury
securities maturing and becoming payable closest to the time of
termination of the deposit.  Currently, the rate of interest must
be the same as the average rate;

(3)  Allows bonds or other obligations of certain political
subdivisions to be acceptable securities for moneys deposited by
the State Treasurer in approved banks or financial institutions.
Currently, certain political subdivisions can only use bonds;

(4)  Prohibits United States Treasury securities and United
States Federal Agency debentures issued by Fannie Mae, Freddie
Mac, Federal Home Loan Bank, or Federal Farm Credit Bank valued
at market and deposited as collateral from exceeding 105% of the
aggregate amount of time deposits and demand deposits.  All other
securities, except as noted elsewhere, cannot exceed 115% of the
aggregated amount of the time deposits and demand deposits;

(5)  Allows eligible multitenant development enterprises,
alternative energy consumers, and governmental entities as
specified in Section 30.750, RSMo, to acquire a loan through the
Linked Deposit Program;

(6)  Expands the definition of "eligible job enhancement
business" to include when the applicant can demonstrate
significant costs for equipment, capital outlay, or capital
improvements associated with the physical expansion, renovation,
or modernization of a facility or equipment.  The maximum amount
of the linked deposit cannot exceed $50,000 per job created or
retained plus the initial cost of the physical expansion,
renovation, or capital outlay; and

(7)  Increases the number of employees in the definition of
"eligible small business" from less than 25 to less than 100.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am