North Carolina HB 1507: State Treasurer Investments.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2009 
H  2 
HOUSE BILL 1507* 
Committee Substitute Favorable 4/30/09 
 
Short Title: State Treasurer Investments. (Public)
Sponsors:                        
Referred to:       
April 15, 2009 
*H1507-v-2* 
A BILL TO BE ENTITLED 1 
AN ACT CONCERNING INVESTMENTS OF THE STATE TREASURER. 2 
The General Assembly of North Carolina enacts: 3 
SECTION 1.  G.S. 147-69.2 reads as rewritten: 4 
"§ 147-69.2.  Investments authorized for special funds held by State Treasurer. 5 
(a) This section applies to funds held by the State Treasurer to the credit of each of the 6 
following: 7 
(1) The Teachers' and State Employees' Retirement System. 8 
(2) The Consolidated Judicial Retirement System. 9 
(3)       The       Teachers
'  and  State  Employees'  Hospital  and  Medical  Insurance  Plan. 10 
The State Health Plan for Teachers and State Employees. 11 
(4) The General Assembly Medical and Hospital Care Plan. 12 
(5) The Disability Salary Continuation Plan. 13 
(6) The Firemen's and Rescue Workers' Pension Fund. 14 
(7) The Local Governmental Employees' Retirement System. 15 
(8) The Legislative Retirement System. 16 
(9) The Escheat Fund. 17 
(10) The Legislative Retirement Fund. 18 
(11) The State Education Assistance Authority. 19 
(12) The State Property Fire Insurance Fund. 20 
(13) The Stock Workers' Compensation Fund. 21 
(14) The Mutual Workers' Compensation Fund. 22 
(15) The Public School Insurance Fund. 23 
(16) The Liability Insurance Trust Fund. 24 
(16a)    The  University  of  North  Carolina  Hospitals  at  Chapel  Hill  funds,  except  25 
appropriated   funds,   deposited   with   the   State   Treasurer   pursuant   to   26 
G.S. 116-37.2. 27 
(17)      Trust   funds   of   The   University   of   North   Carolina   and   its   constituent   28 
institutions deposited with the State Treasurer pursuant to G.S. 116-36.1. 29 
(17a)    North Carolina Veterans Home Trust Fund. 30 
(17b)   North Carolina National Guard Pension Fund. 31 
(17c)    Retiree Health Premium Reserve Account. 32 
(17d)   The Election Fund. 33 
(17e)    The North Carolina State Lottery Fund. 34 
(17f)    Funds  deposited  with  the  State  Treasurer  by  public  hospitals  pursuant  to  35 
G.S. 159-39(g). 36 
(17g)   The Local Government Other Post-Employment Benefits Fund. 37 

General Assembly Of North Carolina Session 2009 
Page 2  House Bill 1507*-Second Edition 
(17h)   The  Local  Government  Law  Enforcement  Special  Separation  Allowance  1 
Fund. 2 
(17i)    The North Carolina Conservation Easement Endowment Fund. 3 
(17j)    The Conservation Grant Fund. 4 
(18) Any other special fund created by or pursuant to law for purposes other than 5 
meeting appropriations made pursuant to the Executive Budget Act. 6 
(19) The Swain County Settlement Trust Fund. 7 
(b) It shall be the duty of the State Treasurer to invest the cash of the funds enumerated 8 
in subsection (a) of this section in excess of the amount required to meet the current needs and 9 
demands on such funds, selecting from among the following: 10 
(1) Any of the investments authorized by G.S. 147-69.1(c)(1)-(7). 11 
(2) General obligations of other states of the United States. 12 
(3) General obligations of cities, counties and special districts in North Carolina. 13 
(4) Obligations of any company, other organization or legal entity incorporated 14 
or  otherwise  created  or  located  within  or  outside  the  United  States  
States, 15 
including  obligations  that  are  convertible  into  equity  securities,
  if  the  16 
obligations either (i) when acquired, bear one of the four highest ratings of at 17 
least one nationally recognized rating service and do not bear a rating below 18 
the four highest by any nationally recognized rating service which rates the 19 
particular security.security or (ii) when acquired, bear the fifth highest rating 20 
of  at  least  one  nationally  recognized  rating  service  and  do  not  bear  a  rating  21 
below  the  fifth  highest  rating  by  any  nationally  recognized  rating  service  22 
which   rates   the   particular   security,   provided   that   the   obligations   are   
23 
additional  securities  that  are  identical  to  obligations  previously  acquired  24 
pursuant to subclause (i). 25 
(5) Repealed by Session Laws 2001-444, s. 2, effective October 1, 2001. 26 
(6) Asset-backed securities (whether considered debt or equity) provided theyif 27 
the securities either (i) when acquired,
 bear ratings by nationally recognized 28 
rating  services  as  provided  in  G.S. 147-69.2(b)(4)subdivision  (4)  of  this  29 
subsection and that they do not bear a rating  below  the  four  highest  by  any  30 
nationally     recognized     rating     service     that     rates     the     particular     31 
securities.security  or  (ii)  when  acquired,  bear  the  fifth  highest  rating  of  at  32 
least one nationally recognized rating service and do not bear a rating