Public Funds and Financing

Plain English Breakdown

The official source material does not provide information on the impact on participants in the pooled investment fund, taxpayers, or road users.

State Pooled Investment Fund Earnings for Highway Funding

This bill requires the state treasurer to allocate and deposit ten percent of the investment income earned by the pooled investment fund each fiscal year into the state highway fund.

What This Bill Does

• Changes Tennessee law to require the state treasurer to set aside 10% of the earnings from the state pooled investment fund for the state highway fund every year.
• Specifies that this allocation must happen before June 30th of each fiscal year.

Who It Names or Affects

• The state treasurer, who is responsible for managing the pooled investment fund and allocating funds to the highway fund.

Terms To Know

Pooled Investment Fund

A fund managed by the state treasurer that collects money from various sources to invest on behalf of participants.

State Highway Fund

A fund used by the state government to pay for road construction and maintenance projects.

Limits and Unknowns

• The bill does not specify how much money will be in the pooled investment fund each year, so it's unclear exactly how much will go into the highway fund.
• It is not clear if this change will affect other parts of the state budget or funding for other projects.

Official Summary Text

Present law establishes
the pooled investment fund
(the "fund")
for the purpose of receiving and investing any money in the custody of any officer of the state unless prohibited by statute to be invested.

The state treasurer
must
administer the fund on behalf of the participants
and
establish a revolving account, under the state treasurer's custody, to defray administrative costs of the fund. The state treasurer may deduct from each participant's pro rata earnings through the fund a reasonable charge for a
dministering the fund.
If
the state treasurer does deduct an administrative fee, it
must be
deposited and expended through the revolving account.

O
n or before June 30 of each year,
this bill requires
the
state
treasurer
to
allocate and deposit 10% of the investment income earned by the fund in that fiscal year to the state highway fund.

Current Bill Text

SENATE BILL 2569
By Haile

HOUSE BILL 2326
By Williams
HB2326
012034
- 1 -

AN ACT to amend Tennessee Code Annotated, Section 9-
4-603, relative to earnings of the state pooled
investment fund.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 9-4-603, is amended by adding the
following as a new subsection:
(j) Notwithstanding this section or another law to the contrary, on or before June
30 of each year, the treasurer shall allocate and deposit ten percent (10%) of the
investment income earned by the pooled investment fund in that fiscal year to the state
highway fund.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.