SB173 Summary

• Creates the Alabama Local Government Investment Pool Program within the Office of the State Treasurer to allow state and local public entities to jointly invest monies in one or more investment pools for enhanced earnings while maintaining safety and liquidity.

• Restricts eligible investments to direct U.S. government obligations, federally-insured securities, government-sponsored enterprise obligations, repurchase agreements, commercial paper rated A-1/P-1 or higher, money market mutual funds, high-grade certificates of deposit, and qualified public depository certificates of deposit.

• Requires the State Treasurer to establish and publicly disclose pool information statements, investment policy statements, participation agreements, and annual program reports while keeping specific participant information confidential.

• Establishes the Alabama Local Government Investment Advisory Board consisting of the State Treasurer (chair), two investment/finance professionals appointed by the Treasurer, and four participant employees appointed by legislative leaders to advise the Treasurer on program administration.

• Authorizes the Treasurer to contract with professional service providers (accountants, attorneys, investment advisors, etc.) for up to seven-year terms and allows administrative expenses to be paid from program earnings.