Amends TCA Title 9, Chapter 4.

This bill revises provisions governing the local government investment pool, as follows: (1) This bill clarifies that the local governments that may participate in the pool are counties, municipalities, districts and other public or quasi-public entities; (2) This bill specifies that the pool in existence as of the effective date of this bill remains in full force and effect if and until the state funding board terminates the fund, and that the pool is subject to TCA Title 9, Chapter 4, Part 7, as amended by this bill; (3) Present law requires the members of the state funding board to serve in an advisory capacity to the state treasurer in all matters pertaining to the local government investment pool. This bill adds specific authority that the state funding board has in regard to the fund. Such authority (which is set out in detail in SECTION 3 of this bill) includes the power to establish and reestablish a local government investment pool that is subject to state law governing investment of state funds, consisting of the aggregate of all participating local government funds placed in the custody of the state treasurer, subsequent to the termination of the fund; (4) Present law requires that the local government investment pool funds be commingled with the pooled investment fund unless the state funding board decides otherwise. This bill instead provides that the state fund board will determine whether the local government investment pool funds will be commingled or maintained separately; (5) This bill also specifies (in SECTION 4 of this bill) the powers of the state treasurer with respect to the local government investment pool which include, but are not limited to, implementing and administering the local government investment pool, including effectuating the decisions of the state funding board; (6) This bill specifies the process for a local government to participate in the local government investment pool, including the requirements for the application, as set out in detail in SECTION 5 of this bill; and (7) This bill adds the following in regard to the pool: (A) All investments purchased in the fund belong jointly to the fund participants and the participants must share capital gains, income, and losses on a pro rata basis; (B) In the event that the local government investment pool experiences a negative interest rate, it may result in a loss to pool participants, and may result in the loss of principal. The state treasurer may deduct the negative earnings from each participant's local government investment pool account as a right of setoff; and (C) The reasonable charge that is deducted from each participant's account balance or balances that is deposited in the revolving account may be expended for the certain purposes, including, but not limited to, payment of certain expenses, as set out in detail in the bill in SECTION 6.