ASSEMBLY, No. 1111

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen LANCE and RUSSO

An Act concerning the investment of proceeds from the sale of an obligation by a State public issuer, and supplementing Title 49 of the Revised Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. As used in this act:

    "Obligation" means a bond, debenture, note, certificate or other evidence of indebtedness issued by a State public issuer; and

    "State public issuer" means the State of New Jersey and any department, division, board, bureau, office, commission or instrumentality of the State of New Jersey, including any independent State authority, commission, instrumentality or agency, having legal authority to issue obligations.

    2. To the extent not otherwise provided for pursuant to law heretofore enacted, all proceeds derived by a State public issuer from the sale of an obligation shall be invested, until the proceeds are applied to the purpose for which the obligation was sold, in interest bearing accounts that are selected through a competitive bidding process which shall be established by the State Treasurer.

    3. This act shall take effect immediately.

STATEMENT

    To insure that a State public issuer invests the proceeds derived from the sale of an obligation, pending their application to the purpose for which they were sold, in the most advantageous manner and without an appearance of impropriety, a competitive bidding process must be used.

    This bill directs the State Treasurer to establish a competitive bidding process that is to be used by all State public issuers of obligations when investing the proceeds from such obligations.

Directs State public issuer of obligations to use competitive bidding process when investing proceeds from such obligations.