[First Reprint]

SENATE, No. 578

STATE OF NEW JERSEY

INTRODUCED JANUARY 29, 1996

By Senator SCHLUTER

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. ¹However, a State public issuer shall be exempt from the competitive bidding process if it invests such proceeds either in the Cash Management Fund, established pursuant to section 1 of P.L.1977, c.281 (C.52:18A-90.4), or in State and Local Government Series securities issued by the United States Treasury.¹

    3. This act shall take effect immediately.

Directs State public issuer of obligations to use competitive bidding process when investing proceeds from such obligations; provides certain exceptions therefor.