MS HB1276

Revises the formula for allocating excess state funds among state depositories by changing requirements for demand deposit accounts and introducing tiered interest-bearing deposit options based on fund availability.

Authorizes the State Treasurer to invest excess state funds in corporate short-term obligations (rated A-2 or better) and corporate bonds (rated A or better) with maturities not exceeding five years, in addition to existing investment options.

Increases maturity limits for mortgage-backed securities to thirty years and six-year average life for collateralized mortgage obligations, while maintaining ten-year limits for Treasury and Agency securities.

Permits the State Treasurer to collect management fees for investment services, with fees paid into the State Treasury Special Fund and supporting investment operations through appropriated funds or earned income.

Makes conforming amendments to sections governing the Municipal Revolving Fund, Working Cash-Stabilization Reserve Fund, Capital Expense Fund, and investment authority for school districts and bond proceeds, effective July 1, 2013.