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Sponsors
No co-sponsors yet.
History
- Substituted by A7509
- Advanced to third reading
- 2nd report cal.
- 1st report cal.873
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Increases the limit on certain investments
Signed by Governor · Sponsor Herman D. Farrell
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5299
Title of bill
An act to amend the state finance law, in relation to increasing the limit on short term investment pool investments
Purpose
This bill would allow for an increase in the dollar amount the Comp- troller is permitted to hold in indebtedness of certain agencies, corpo- rations and bank or trust companies.
Summary of provisions
This bill would amend subdivisions 3-a, 18 and 19 of section 98 of the State Finance Law to increase from 250 million dollars to 500 million dollars the maximum investment that the Comptroller may hold in (i) the debt of a single federal agency which receives the highest rating of all independent rating agencies that rate its obligations; (ii) obligations of certain corporations; and (iii) investments in banker's acceptance of any one bank or trust company.
Justification
In the late 1980's, more than two decades ago, legislation was enacted that expanded the list of investments that the Comptroller may invest in for the State's Short Term Investment Pool (STIP). At that time the maximum balance in STIP was under five billion dollars and the limit for each investment was set at 250 million dollars which represented approx- imately five percent of the total pool. Since that time the STIP balance has more than tripled, at times exceeding 16 billion dollars, while the limits have remained unchanged. At current levels, the investment limits are met very quickly resulting in a large portion of STIP being invested in lower yielding Treasury bills and securities. Increasing the limits to 500 million dollars will allow STIP to enhance investment income. If over the next few years current conditions continue to prevail, with this change, STIP could potentially earn an additional 7.5 million dollars yearly due to the difference in spreads between low yielding Treasury bills and securities and those investments that currently are limited to 250 million dollars.
The Comptroller urges the passage of this legislation.
Prior legislative history
New Bill
Fiscal implications
None to the State.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.