HB49 Alabama 2023 Session

Summary

Primary Sponsor

Reed IngramRepresentative

Republican

Session

Regular Session 2023

Title

Relating to the State Treasurer; to create the Alabama Local Government Investment Pool Program within the Office of the State Treasurer to allow state and local public entities to deposit monies in an investment pool administered by the treasurer; to provide parameters for investments; to authorize the treasurer to take certain actions to administer the program; to establish the Alabama Local Government Investment Advisory Board and provide for its membership and duties; and to provide further for the Office of the State Treasurer's travel expenses.

Summary

HB49 would create the Alabama Local Government Investment Pool Program under the State Treasurer to let state and local public entities pool and invest funds with defined options and an advisory board.

What This Bill Does

Creates the Alabama Local Government Investment Pool Program within the Office of the State Treasurer to host one or more investment pools for participating entities. Defines eligible investments, requires disclosure of program information to participants and the public, and allows administrative expenses to be paid from pool earnings with contracts to assist in running the program. Establishes the Alabama Local Government Investment Advisory Board to advise the treasurer, with specified membership, terms, and diversity considerations, and provides for board operations and travel provisions. Allows the treasurer to promote the program and hire staff or professionals as needed.

Who It Affects

• The State Treasurer and the Office of the Treasurer, which will administer the program, manage pools, set rules, and handle disclosures and contracts.
• Covered public entities and covered public officials (state and local governments) that may participate in the pools by depositing funds for investment.
• Financial institutions, banks, or trustees that may transact pool investments on behalf of participants when authorized.
• Participants and their staff, who will have their funds deposited into pools, receive statements and reports, and have funds kept in segregated trust accounts.
• The Alabama Local Government Investment Advisory Board members, who advise the treasurer and help shape program rules and communications.
• The general public, which will receive disclosures and annual reports about the program (with some participant information kept confidential).

Key Provisions

• Creates the Alabama Local Government Investment Pool Program within the Office of the State Treasurer to host one or more investment pools for joint investment by state and local entities.
• Defines eligible investments for pools, including U.S. government obligations, insured/guaranteed securities, federal agency securities, collateralized mortgage obligations, repurchase agreements, certain commercial paper, money market funds, negotiable CDs with high ratings, and qualified public depository CDs.
• Provides that monies deposited by participants remain separate from State Treasury funds and are held in trust accounts; allows deposits and withdrawals under set policies; and requires public and participant disclosures, including pool information statements and annual reports.
• Authorizes administrative expenses to be paid from pool earnings and allows the treasurer to contract with accountants, attorneys, money managers, and other professionals for program administration (contracts up to seven years).
• Establishes the Alabama Local Government Investment Advisory Board with a permanent treasurer member, two investment/finance experts, and four participant-employee members; outlines terms, diversity considerations, compensation, and meeting rules; board acts in an advisory capacity and works under open meetings requirements.
• Allows the treasurer to promote and market the program and to appoint additional staff to manage it; enables travel expense reimbursement for state-promoted activities.
• Makes the act effective immediately upon passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.