MS HB976

Revises the formula for allocating excess state funds among qualified state depositories, changing from equal allocation to a pro rata basis based on Mississippi-based deposits with tiered percentages (35% up to $250M, 25% for $250M-$500M, 15% above $500M).

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 authorized investments.

Expands eligible securities for state investment to include obligations of federal agencies and instrumentalities such as Federal National Mortgage Association, Federal Home Loan Banks, Federal Farm Credit Bank, and others with specified maturity limits (10 years for Treasury/agency securities, 30 years for mortgage-backed securities).

Removes requirement that at least 80% of repurchase agreements be with qualified state depositories, replacing it with a preference for state depositories when market rates are competitive.

Makes conforming amendments to sections governing Municipal Revolving Fund, Working Cash-Stabilization Reserve Fund, Capital Expense Fund, bond fund investments, and school district investments to reference updated investment provisions.