SB173 Alabama 2023 Session

Summary

Primary Sponsor

Sam GivhanSenator

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

SB173 would create the Alabama Local Government Investment Pool Program in the State Treasurer’s Office to let state and local public entities pool and invest funds with oversight from a new advisory board.

What This Bill Does

The bill creates one or more investment pools managed by the State Treasurer for participating public entities. It defines eligible investments, requires public disclosures and annual reporting, and allows expenses to be paid from pool earnings. It also establishes an advisory board to guide the program and authorizes contracts with professionals to run the program.

Who It Affects

• State and local public entities that may deposit funds into the investment pools and seek to earn returns while preserving principal and liquidity.
• Employees of participating entities who may serve on the Alabama Local Government Investment Advisory Board and participate in governance and oversight.

Key Provisions

• Creation of the Alabama Local Government Investment Pool Program within the Office of the State Treasurer to provide one or more investment pools for joint investment of participant funds.
• Definition of eligible investments (e.g., U.S. government direct obligations, fully insured/guaranteed securities, government-sponsored enterprises, fully collateralized repos, high-grade commercial paper, money market funds, and certain certificates of deposit).
• Monies deposited into pools remain separate from State Treasury funds and are held in trust accounts; proceeds can be invested within the pools.
• The Treasurer must publish pool information statements, policies, participant agreements, and an annual program report; administrative expenses may be paid from pool earnings; contracts with professionals may be used to administer the program.
• Establishment of the Alabama Local Government Investment Advisory Board to advise the Treasurer, with specific composition and terms, open meetings requirements, and ability to reimburse per diem/travel expenses.
• Confidential treatment of certain participant information and rules governing disclosure.
• Program promotion, education, and travel by state employees involved in supporting the program; and the act becomes effective immediately after passage.

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

Subjects

State Treasurer, government investment pool program established to allow state and local government to invest public monies