Requiring the investment advisor for the public deposit investment pool to maintain funds in a particular manner.
Impact
The legislation reflects a strategic shift in New Hampshire’s approach to managing state-held funds. By requiring that investments are local, the bill intends to keep financial resources within the state, thus allowing for more focused economic development. Furthermore, investments made through this bill may produce better returns for the state treasury by supporting local economic initiatives. The Fiscal Note accompanying the bill indicates a minimal financial impact, suggesting that implementation costs will be less than $10,000 across the upcoming fiscal years, which might indicate limited administrative burdens.
Summary
Senate Bill 553 mandates that all funds managed by the public deposit investment pool in New Hampshire be invested or deposited within the state. This bill aims to strengthen local economic investment by ensuring public funds contribute directly to the state’s financial system. Additionally, success in local investments could potentially enhance the growth of local businesses and improve the state’s funding capabilities for various public services.
Contention
While the bill is positioned positively from an economic perspective, it may face scrutiny regarding its implications on investment diversity and opportunities for competitive returns. Opponents may argue that limiting investments to within New Hampshire could restrict the pool of potential investment opportunities, which might not always yield the best financial returns for taxpayers. Debates surrounding the flexibility and effectiveness of such localized investment strategies can lead to differing opinions on the bill's long-term sustainability and effectiveness in achieving desired economic outcomes.
Requiring certain non-public schools or education service providers that accept public funds to perform background checks on all employees and volunteers.