SENATE STATE GOVERNMENT COMMITTEE

STATEMENT TO

SENATE, No. 578

with committee amendments

STATE OF NEW JERSEY

DATED: OCTOBER 3, 1996

      The Senate State Government Committee reports favorably and with committee amendments Senate, No. 578.

      To ensure 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. However, the bill also provides that a State public issuer shall be exempt from this 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.

COMMITTEE AMENDMENT

      The committee amended the bill to provide that a State public issuer shall be exempt from the competitive bidding process provided for by the bill 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.