Public Funds and Financing

Plain English Breakdown

The candidate explanation included speculative statements about potential impacts on participants' earnings and broader budgetary effects, which are not supported by the official source material.

Public Funds and Financing Act

This bill requires the state treasurer to allocate 10% of the investment income from the pooled investment fund to the state highway fund each fiscal year.

What This Bill Does

• Requires the state treasurer to allocate and deposit 10% of the investment income earned by the pooled investment fund in that fiscal year to the state highway fund on or before June 30.

Who It Names or Affects

• The state treasurer, who manages the pooled investment fund and is responsible for allocating funds to the state highway fund.
• The state highway fund, which receives additional funding from the pooled investment fund.

Terms To Know

pooled investment fund

A big account where money from different parts of the government is put together and invested by the state treasurer.

state highway fund

An account used to pay for building and maintaining roads in Tennessee.

Limits and Unknowns

• The bill does not specify what happens if there is no investment income earned by the pooled investment fund.
• It's unclear how this change will affect the overall budget or other state funds.

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

HOUSE BILL 2326
By Williams

SENATE BILL 2569
By Haile
SB2569
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.