NJ S3489

Establishes a Bureau of Short-Term Local Government Note Investments within the Division of Investment in the Department of the Treasury to manage state investments in short-term local government debt obligations

Authorizes the bureau to invest State Cash Management Fund and pension/annuity fund moneys in short-term local government notes (maturing within 397 days) if returns are at least 1% higher than comparable U.S. Treasury obligations

Requires purchased obligations to meet minimum credit ratings (A3/A-/A-) from major rating agencies, but exempts certain New Jersey municipal notes including bond anticipation notes, tax anticipation notes, and temporary funding notes from these rating requirements

Directs the bureau to monitor and research local finance regulations of other states, allowing purchases of out-of-state municipal notes if those states have investor protections similar to New Jersey

Aims to increase state investment returns while spurring competition for local government debt purchases and reducing borrowing costs for underserved municipalities