2020 First Extraordinary Session ENROLLED
SENATE BILL NO. 19
BY SENATOR PEACOCK
1 AN ACT
2 To amend and reenact R.S. 39:98.2(A), R.S. 56:797(C), and 798(B)(1), relative to the
3 investments the Treasury Department is authorized to invest the monies in the
4 Millennium Trust, the Rockefeller Wildlife Refuge Trust and Protection Fund, and
5 the Russell Sage or Marsh Island Refuge Fund; to provide for an effective date; and
6 to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 39:98.2(A) is hereby amended and reenacted to read as follows:
9 §98.2. Investment of Millennium Trust
10 A. The treasurer is authorized and directed to invest monies in the
11 Millennium Trust which are available for investment in the investments permitted
12 for the Louisiana Education Quality Trust Fund, also known as the Kevin P.
13 Reilly Sr. Louisiana Education Quality Trust Fund, as set forth in R.S.
14 17:3803(B), (D), and (E). following investments:
15 (1) Time certificates of deposit of state banks organized under the laws of
16 Louisiana, national banks having their principal offices in the state of Louisiana,
17 savings accounts or shares of savings and loan associations and savings banks, as
18 defined by R.S. 6:703, or share accounts and share certificate accounts of federally
19 or state-chartered credit unions. The funds so invested shall not exceed at any time
20 the amount insured by the Federal Savings and Loan Insurance Corporation in any
21 one savings and loan association and shall not exceed at any time the amount insured
22 by the National Credit Union Administration, or other deposit insurance corporation,
23 in any one credit union, unless the uninsured portion is collateralized by the pledge
24 of securities in the manner provided by R.S. 49:321.
25 (2) Direct obligations of a United States government agency, United States
26 government instrumentality, or United States government-sponsored enterprise, the
ACT No. 21
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1 timely payment of the principal and interest of which is fully and explicitly
2 guaranteed by the full faith and credit of the government of the United States of
3 America, and contained in a list promulgated by the state treasurer.
4 (3) Direct obligations of a United States government agency, United States
5 government instrumentality, or United States government-sponsored enterprise, the
6 timely payment of principal and interest of which is fully guaranteed by issuing
7 entity, but are not explicitly guaranteed by the full faith and credit of the government
8 of the United States, and contained in a list promulgated by the state treasurer.
9 (4) Stocks of any corporation listed on the New York Stock Exchange, the
10 American Stock Exchange, the National Association of Securities Dealers
11 Automated Quotations System, or other such stock exchange domiciled in the United
12 States and registered with the United States Securities and Exchange Commission,
13 provided that the total investment in such stocks at any one time shall not exceed
14 thirty-five percent of the market value of all funds held by the treasurer in the
15 Millennium Trust. However, the portion of monies in the Millennium Trust which
16 may be invested in stock may be increased to no more than fifty percent by a specific
17 legislative instrument which receives a favorable vote of two-thirds of the elected
18 members of each house of the legislature.
19 (5)(a) Investment grade commercial paper issued in the United States, traded
20 in the United States markets, denominated in United States dollars, with a short-term
21 rating of at least A-1 by Standard & Poor's Financial Services LLC or P-1 by
22 Moody's Investor Service, Inc. or the equivalent rating by a Nationally Recognized
23 Statistical Rating Organization (NRSRO).
24 (b) Investment grade corporate notes and bonds issued in the United States,
25 traded in United States markets, denominated in United States dollars, rated Baa or
26 better by Moody's Investor Service, Inc. or BBB or better by Standard & Poor's
27 Financial Services LLC, and the trades of which are settled through The Depository
28 Trust & Clearing Corporation (DTCC), a national clearinghouse in the United States
29 for the settlement of securities trades.
30 (6) Money market funds consisting solely of securities otherwise eligible for
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1 investment by the treasurer pursuant to this Subsection.
2 (7) Open end mutual funds, closed end mutual funds, and unit investment
3 trusts consisting solely of securities otherwise eligible for investment by the state
4 treasurer.
5 (8) Tax exempt bonds, as defined in R.S. 49:342(C), and other taxable
6 governmental bonds and in taxable bonds issued by any state or a political
7 subdivision or public corporation of any state, provided that such taxable bonds are
8 rated at the time the investment is made by a nationally recognized rating agency in
9 one of the three highest rating categories of that rating agency.
10 (9) Any investment managers hired on a contract basis to advise the treasurer
11 regarding such investments shall be selected by the treasurer, subject to the approval
12 of the State Bond Commission, in accordance with a request for proposal process
13 using strict selection criteria based on sound industry principles. The contract, as
14 approved by the State Bond Commission, shall be on a fee, together with minimum
15 exchange fee, basis or on a commission basis only. The state treasurer shall adopt
16 and promulgate rules and regulations for such investments and for the selection of
17 outside investment managers.
18 * * *
19 Section 2. R.S. 56:797(C) and 798(B)(1) are hereby amended and reenacted to read
20 as follows:
21 §797. Rockefeller Foundation Wildlife Refuge and Game Preserve; revenues;
22 allocation
23 * * *
24 C. The state treasurer shall invest the principal and the undistributed return
25 on the principal deposited in the said Rockefeller Wildlife Refuge Trust and
26 Protection Fund for the purpose of achieving perpetual financing of said the fund.
27 Such investments may include, among others authorized by law, the following:
28 investments permitted for the Louisiana Education Quality Trust Fund, also
29 known as the Kevin P. Reilly Sr. Louisiana Education Quality Trust Fund, as
30 set forth in R.S. 17:3803(B), (D), and (E).
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1 (1) Equity investments in stocks, common and preferred, or corporations
2 listed on the New York Stock Exchange, the American Stock Exchange, or quoted
3 on the National Association of Securities Dealers Automated Quotations System,
4 provided that the total investment in such securities at any one time shall not exceed
5 thirty-five percent of the market value of all funds held by the fund. The treasurer
6 may hire, on a contract basis, investment managers or consultants as deemed
7 appropriate to provide for the equity investments of the fund. Such contracts shall
8 be on a fee, together with minimum exchange fee, basis or on a commission basis
9 only, with payment for such fees being appropriated from the fund.
10 (2) Direct general obligations of, or obligations on which the timely payment
11 of the principal and interest is unconditionally guaranteed by the United States of
12 America.
13 (3) Bonds, debentures, notes, or other evidences of indebtedness issued by
14 any of the following agencies of the United States government: Government
15 National Mortgage Association; Rural Development Administration; Export-Import
16 Bank of the United States; Federal National Mortgage Association; Federal Home
17 Loan Mortgage Corporation; Federal Home Loan Bank; and Student Loan Marketing
18 Association.
19 (4) Bonds, debentures, notes, or other evidences of indebtedness issued by
20 any of the following agencies of the United States government, or any other like
21 governmental or government-sponsored agencies which are hereafter created,
22 including the Bank of Cooperatives, Federal Financing Bank, Small Business
23 Administration, and Bank for Reconstruction and Development.
24 * * *
25 §798. Russell Sage or Marsh Island Refuge
26 A. * * *
27 * * *
28 B. (1) The state treasurer shall invest the principal and the undistributed
29 return on the principal deposited in said the Russell Sage or Marsh Island Refuge
30 Fund for the purpose of achieving perpetual financing of said the trust fund for the
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1 purposes for which said the trust fund was created, the income from investments to
2 be added to said the trust fund and to become a part thereof for all purposes, except
3 as provided in Paragraph A(2). Such investments may include, among others
4 authorized by law, investments permitted for the Louisiana Education Quality
5 Trust Fund, also known as the Kevin P. Reilly Sr. Louisiana Education Quality
6 Trust Fund, as set forth in R.S. 17:3803(B), (D), and (E). the following:
7 (a) Equity investments in stocks, common and preferred, of corporations
8 listed on the New York Stock Exchange, the American Stock Exchange, or quoted
9 on the National Association of Securities Dealers Automated Quotations System,
10 provided that the total investment in such securities at any one time shall not exceed
11 thirty-five percent of the market value of all funds held by the fund. The treasurer
12 may hire, on a contract basis, investment managers or consultants as deemed
13 appropriate to provide for the equity investments of the fund. Such contracts shall
14 be on a fee, together with minimum exchange fee, basis or on a commission basis
15 only, with payment for such fees being appropriated from the fund.
16 (b) Direct general obligations of or obligations on which the timely payment
17 of the principal and interest is unconditionally guaranteed by the United States of
18 America.
19 (c) Bonds, debentures, notes, or other evidences of indebtedness issued by
20 any of the following agencies of the United States government: Government
21 National Mortgage Association; Rural Development Administration; Export-Import
22 Bank of the United States; Federal National Mortgage Association; Federal Home
23 Loan Mortgage Corporation; Federal Home Loan Bank; and Student Loan Marketing
24 Association.
25 (d) Bonds, debentures, notes, or other evidences of indebtedness issued by
26 any of the following agencies of the United States government, or any other like
27 governmental or government-sponsored agencies which are hereafter created,
28 including the Bank of Cooperatives, Federal Financing Bank, Small Business
29 Administration, and Bank for Reconstruction and Development.
30 * * *
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1 Section 3. This Act shall become effective on July 1, 2020. If vetoed by the governor
2 and subsequently approved by the legislature, this Act shall become effective on
3 July 1, 2020.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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