Bill No.: HB0304                  Drafter:  JHR

LSO No.:  07LSO-0678              Effective Date:  7/1/2007

Enrolled Act No.:  HEA0063

Chapter No.:       92

Prime Sponsor:     Representative Lockhart

Catch Title:       Investment of state funds.

Subject:  Amends limitations on investments of state funds by the State Treasurer.

Summary/Major Elements:

· Under current law, the State Treasurer is limited on legislatively designated investments that may be made to promote economic development in that industrial development revenue bonds purchased must bear interest at a rate indexed to the prime rate pursuant to W.S. 39-14-108(c)(iv), adjusted annually.

· This act allows the purchase of those bonds at a fixed or adjustable rate indexed to the prime or 10 year treasury bill rate and eliminates the requirement that the rate must be indexed pursuant to W.S. 39-14-108(c)(iv).

NOTE:  W.S. 39-14-108(c)(iv) requires that the State Treasurer shall annually determine the prime rate for the previous fiscal year using a specified formula and add 4% to that rate to determine the interest rate that shall be required for delinquent severance taxes.