HB280 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Steve ClouseRepresentative
Republican
Session: Regular Session 2012
Title: State funds, investment of, expanding types of investments eligible for state depositories; Sec. 41-14-30 am'd
Summary: HB280 would broaden how Alabama can invest state funds by expanding eligible bank products and permitting additional short- and long-term investment options for the State Treasurer.
What This Bill Does
It allows the State Treasurer to deposit state funds in bank investment products offered by qualified public depositories designated as state depositaries, with required interest payments. It authorizes investing up to 20% of total state moneys in US government bonds/notes/Treasury bills or obligations of US agencies or instrumentalities (including listed entities) or in money market funds that invest only in authorized securities. It also permits investments in repurchase agreements that are shorter-term than the security's maturity, and allows investment in high-quality commercial paper and banker's acceptances.

Who It Affects
State Treasury and state funds: gain expanded investment options and new instruments to consider for deposits and investments.
Qualified public depository banks/savings associations and money market funds: new eligibility and investment opportunities for state funds, with requirements such as interest payments and credit quality.

Key Provisions
Depositing state funds in bank investment products at qualified public depositories designated as state depositaries, with interest payments required.
Investing up to 20% of total state moneys in US government obligations and agency/instrumentality obligations, or in related money market funds investing solely in authorized securities.
Allowing repurchase agreements for shorter-term investment of US obligations or agency obligations.
Permitting investment in high-quality commercial paper and banker's acceptances.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: State Funds