Substitute Senate Bill 287 Summary

• Increases the percentage limit for interim money investments in commercial paper and bankers acceptances from 25% to 40% for treasurers and governing boards, and from 25% to 40% for boards of education.

• Extends the maturity period for commercial paper notes from 180 days to 270 days and adds a new requirement that investments in commercial paper from a single issuer not exceed 5% of available interim moneys.

• Allows political subdivisions to invest in bonds and obligations of other political subdivisions if they meet specified conditions including high credit ratings, purchase through registered brokers, and a 20% portfolio limit.

• Removes the requirement that bankers acceptances be eligible for federal reserve purchase and simplifies eligibility criteria for federal agency securities by removing the student loan marketing association.

• Allows money market mutual funds to be rated in the highest category by one nationally recognized rating service, rather than only consisting exclusively of specific obligations, and authorizes the state board of deposit to adopt implementing rules.