STATEMENT TO

[First Reprint]

ASSEMBLY, No. 832

with Assembly Floor Amendments

(Proposed By Assemblyman ARNONE)

ADOPTED: MARCH 28, 1996

      The amendments to Assembly, No.832(1R) change the maturity date of certain federal obligations or other bonds or obligations approved by the Division of Investment from 12 months to 397 days, consistent with the federal regulation, 17 C.F.R. §270.2a-7; clarify that purchase of investment securities under a delivery versus payment method means that the securities are to be received either by the school district, local unit or a third party custodian prior to or upon release of the school district's or local unit's funds; clarify that it is the government money market fund that is registered as an investment company or investment trust under the "Investment Company Act of 1940," 15 U.S.C. §80a-1 et seq; and provide that investments in, or deposits or purchases of financial instruments made consistent with the provision of sections 1 or 3 of the act are not subject to the requirements of the "Public School Contracts Law," N.J.S.18A:18A-1 et seq. or the requirements of the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.).