The bill amends the law regarding the investment of state funds in Arkansas, specifically focusing on the types of securities and bank certificates of deposit that can be utilized. Key changes include the removal of certain obligations previously issued by the State Board of Education and the introduction of new criteria for corporate obligations, which now require an investment grade rating from one nationally recognized statistical rating organization instead of two. Additionally, the bill clarifies that obligations must not be general obligations of municipalities or other political subdivisions of the state.

Furthermore, the bill modifies the procedures for the sale of securities by the Treasurer of State, ensuring that all transactions are conducted through a competitive process approved by the State Board of Finance, aimed at achieving optimal pricing without favoritism towards any broker. It also stipulates that interest earned on state funds must be transferred or credited to fund participants on the second business day after the twenty-fifth of each month, with deductions for administrative expenses.

Statutes affected:
SB 480: 19-3-518(b), 19-3-518(d)
Act 739: 19-3-518(b), 19-3-518(d)