Amends TCA Title 5, Chapter 8, Part 3; Title 6, Chapter 56, Part 1 and Title 7, Chapter 82.

BONDS Present law authorizes counties to invest idle county funds ("funds") into bonds of this state, if the funds are invested in bonds rated A or higher by any nationally recognized rating service. This bill requires that the bonds are rated by any nationally recognized statistical rating organization as identified by the U.S. securities and exchange commission. NONCONVERTIBLE DEBT SECURITIES Present law authorizes a county to invest funds into nonconvertible debt securities, if the securities are rated in the highest category by at least two nationally recognized rating services. This bill requires that securities are, instead, rated equal to or higher than bonds, notes, or treasury bills of the U.S. by at least two rating services that are nationally recognized statistical rating organizations as identified by the United States securities and exchange commission. INVESTMENTS BASED ON COUNTY POPULATION Present law authorizes Sullivan, Sumner, Montgomery, Williamson, Rutherford, Hamilton, Knox, Davidson, and Shelby counties to invest funds in prime commercial paper that is rated at least A1 or equivalent by at least two nationally recognized rating services. This bill requires that the prime commercial paper is rated at least A1 or equivalent by at least two nationally recognized statistical rating organizations as identified by the U.S. securities and exchange commission. Present law authorizes DeKalb, Morgan, Scott, Overton, Grainger, Hickman, Lauderdale, Macon, Hardeman, McNairy, Hardin, White, Henderson, Carroll, Marion, Giles, Obion, Claiborne, Henry, Rhea, Weakley, Marshall, Lincoln, Cocke, Dyer, Campbell, Warren, Cheatham, Fayette, Franklin, Lawrence, Monroe, Bedford, Gibson, McMinn, Roane, Dickson, Jefferson, Loudon, Carter, Hawkins, Coffee, Tipton, Cumberland, Hamblen, Greene, Robertson, Anderson, Putnam, Sevier, Madison, Maury, Bradley, Washington, Blount, and Wilson counties to invest funds in prime commercial paper, provided that the paper is rated in the highest category by at least two commercial paper rating services. This bill requires that the commercial paper must be rated in the highest category by at least two nationally recognized statistical rating organizations as identified by the U.S. securities and exchange commission. INVESTMENT BY A MUNICIPALITY Present law authorizes a municipality to invest idle funds in nonconvertible debt securities, provided that such securities are rated in the highest category by at least two nationally recognized rating services. This bill requires that the securities are rated equal to or higher than bonds, notes, or treasury bills of the United States by at least two nationally recognized statistical rating organizations as identified by the U.S. securities and exchange commission. Present law authorizes the municipalities of Murfreesboro, Clarksville, Chattanooga, Knoxville, Memphis, and Nashville to invest funds in prime commercial paper that is rated at least A1 or equivalent by at least two nationally recognized rating services. This bill requires that prime commercial paper that is rated at least A1 or equivalent by at least two nationally recognized statistical rating organizations as identified by the U.S. securities and exchange commission. Present law authorizes the municipalities of Tullahoma, East Ridge, Farragut, Shelbyville, Bristol, Morristown, Oak Ridge, Maryville, Cookeville, Lebanon, La Vergne, Mount Juliet, Germantown, Columbia, Gallatin, Brentwood, Cleveland, Spring Hill, Collierville, Smyrna, Kingsport, Bartlett, Hendersonville, Jackson, Johnson City, and Franklin to invest funds in prime commercial paper, provided that the paper is rated in the highest category by at least two commercial paper rating services. This bill requires that such paper must be rated in the highest category by at least two nationally recognized statistical rating organizations as identified by the U.S. securities and exchange commission. Present law authorizes municipalities to invest proceeds of bonds, notes, and other obligations issued by municipalities, reserves held in connection therewith and the investment income therefrom, in obligations that are rated in either of the two highest categories by a nationally recognized rating agency of such obligation. This bill requires that the obligations are rated in either of the two highest-rated categories by any nationally recognized statistical rating organization as identified by the U.S. securities and exchange commission. INVESTMENT BY UTILITY DISTRICTS Present law authorizes utility districts to invest idle funds in nonconvertible debt securities, provided that such securities are rated in the highest category by at least two nationally recognized rating services. This bill requires that the securities are rated equal to or higher than bonds, notes, or treasury bills of the United States by at least two nationally recognized statistical rating organizations as identified by the U.S. securities and exchange commission. Present law authorizes proceeds of bonds, notes and other obligations issued by utility districts, reserves held in connection with the bonds, notes or other obligations and the investment income from the bonds, notes or other obligations, to be invested in obligations that are rated in either of the two highest rated categories by a nationally recognized rating agency of such obligations. This bill requires that the obligations are rated in either of the two highest rating categories by any nationally recognized statistical rating organization as identified by the U.S. securities and exchange commission. Present law authorizes proceeds of bonds, notes and other obligations issued by utility districts, reserves held in connection with the bonds, notes or other obligations and the investment income from the bonds, notes or other obligations, to be invested in obligations that are rated in the two highest rating categories by a nationally recognized rating agency of such obligations. This bill requires that the obligations are rated in the two highest rating categories by any nationally recognized statistical rating organization as identified by the U.S. securities and exchange commission.