Louisiana Senate Bill SB248

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15
• Report Pass: 5/4/15
• Engrossed: 5/7/15
• Refer: 5/11/15
• Report Pass: 5/26/15
• Enrolled: 6/10/15
• Chaptered: 7/1/15
• Passed: 7/1/15

Caption

Provides relative to authority to invest monies in certain investment grade commercial paper. (8/1/15) (EN SEE FISC NOTE GF RV See Note)

Impact

The amendments brought about by SB 248 would affect multiple statutes governing investment practices within the state. By allowing the state treasurer and political subdivisions to invest in specific types of commercial paper and corporate securities, including those rated at least A-1 by Standard & Poor's or P-1 by Moody's, the bill seeks to facilitate more effective management of public investment portfolios. This change could lead to better financial outcomes for state funds, promoting responsible stewardship of taxpayer money.

Summary

Senate Bill 248, introduced by Senator Murray, focuses on expanding the investment authority of the state treasurer and certain political subdivisions in Louisiana. It amends existing laws to explicitly permit the investment of public funds in investment grade commercial paper and corporate bonds, enhancing the options available for managing state and local revenues. The bill is designed to encourage the prudent investment of public funds by allowing access to a broader range of financial instruments, thereby potentially increasing returns on these investments.

Sentiment

The sentiment around SB 248 appears to be positive, particularly among financial experts and lawmakers who advocate for modernizing investment strategies. Supporters argue that this bill will provide the necessary flexibility for state investment portfolios, thereby improving their performance. However, there are concerns regarding the potential risks associated with a more diversified investment portfolio, including the accountability measures in place to protect public funds from unfavorable financial decisions.

Contention

Notable points of contention relate to the adequacy of oversight on the expanded investment powers granted under SB 248. Critics raise concerns that enhancing investment authority may lead to higher risks if not managed prudently. There is also debate about whether municipalities and other political subdivisions have the requisite expertise to handle these new investment opportunities effectively. Furthermore, the bill encapsulates a broader tension between the desire for financial innovation and the need for robust regulatory frameworks to ensure public funds are safeguarded.