Provides relative to permissible investment by the state treasurer of offshore revenues deposited into the Louisiana Education Quality Trust Fund (EN SEE FISC NOTE SD RV See Note)
Impact
The enactment of HB 832 is expected to broaden the scope of permissible investments by the state treasurer, thereby potentially increasing the liquidity and growth of the Louisiana Education Quality Trust Fund. By allowing investments in international securities, the state aims to capitalize on the diversification benefits that these investments offer. Furthermore, this legislation signals a strategic move to leverage offshore revenues in a manner that may enhance returns on the state's educational funding resources.
Summary
House Bill 832 aims to amend the investment authority of the state treasurer concerning the Louisiana Education Quality Trust Fund. Specifically, the bill allows the state treasurer to invest offshore revenues within this fund into open-end and closed-end mutual funds, exchange-traded funds, and unit investment trusts that consist solely of international securities. Such investments are subject to certain limitations, ensuring that no more than ten percent of the market value of the funds held by the treasurer can be allocated to these index funds at any given time.
Sentiment
General sentiment around HB 832 appears to lean positively, as the bill promotes a proactive approach to managing state funds. Advocates suggest that the potential for enhanced returns through diversified investments could serve the educational needs of Louisiana more effectively. Nonetheless, some caution is exhibited over the implications of investing in international securities, particularly given concerns regarding foreign companies that may be associated with activities counter to U.S. interests.
Contention
Notable points of contention surrounding HB 832 may include the debate over the appropriateness of investing state resources in international markets. Critics may highlight potential risks associated with investing in entities that have connections to nations that support terrorism, emphasizing the need for vigilance in monitoring such investments. Furthermore, the restrictions on fund allocation ensure a balanced investment strategy while addressing legislative concerns about reckless financial decisions that could jeopardize state revenues.
Provides for investment authority of the Treasurer for the Millennium Trust, the Rockefeller Wildlife Refuge Trust and Protection Fund, and the Russell Sage or Marsh Island Trust Fund. (Item #10) (7/1/20) (EN SEE FISC NOTE SD RV See Note)
Prohibits investment fund managers from investing the state's special funds monies in companies and in nations that support terrorism. (7/1/17) (REF NO IMPACT See Note)
Provides for investment authority of the Treasurer for the Millennium Trust, the Rockefeller Wildlife Refuge Trust and Protection Fund, and the Russell Sage or Marsh Island Trust Fund. (7/1/20) (OR SEE FISC NOTE SD RV)
Provides that the Louisiana Education Quality Trust Fund shall be known as the "Kevin P. Reilly, Sr. Louisiana Education Quality Trust Fund." (gov sig)