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--- version:INTRODUCED
+++ version:(document, no version)
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-25.0742.04000
-Sixty-ninth
+25.0742.04002
+Title.06000
+Prepared by the Legislative Council
+staff for Representative Steiner
+Sixty-ninth
+February 6, 2025
 Legislative Assembly
 of North Dakota
 Introduced by
@@ -7,89 +11,79 @@
 Senators Bekkedahl, Hogue, Patten, Rummel
 A BILL for an Act to create and enact two new sections to chapter 54-11 of the North Dakota
 Century Code, relating to the management and investment of moneys in the state treasury and
-a cash management and investment board; to provide a report; and to provide a penalty.
+a cash management and investment board; to provide a report; and to provide a penaltyan
+expiration date.
 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
 SECTION 1. A new section to chapter 54-11 of the North Dakota Century Code is created
 and enacted as follows:
-Moneys in the state treasury - Management and investment - Prohibition - Penalty -
-Investment costs and reports.
-1. The state treasurer shall develop policies and procedures for the management and
-investment of moneys in the state treasury based on the policies adopted by the cash
-management and investment board. For purposes of this section, moneys in the state
-treasury:
-a. Include the general fund and special funds.
-b. Exclude the veterans' postwar trust fund and funds invested by the state
-investment board and the board of university and school lands.
-2. Notwithstanding section 6  -  09  -  07, the state treasurer may invest a portion of the
+Moneys in the state treasury - Management   and investment - Prohibition - Penalty -
+Investment costs and reports  .
+      1. The state treasurer   in coordination with the Bank of North Dakota and the cash
+management board   shall   review existing policies and procedures and, if necessary,   develop
+policies and procedures for the management   and   investment   of moneys in the state treasury
+based on the policies adopted by the cash   management and investment board  . For purposes of
+this section, moneys in the state   treasury:
+a.  1.  Include the general fund and special funds.
+b.  2.  Exclude the veterans' postwar trust fund and funds invested by the state   investment
+board and the board of university and school lands.
+      2.    Notwithstanding section 6  -  09  -  07, the state treasurer may invest a portion of the
 moneys in the state treasury as liquid reserves or invested reserves based on the
+Page No. 1 25.0742.04002
+ HOUSE BILL NO. 1278
+PROPOSED AMENDMENTS TO
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 policies adopted by the cash management and investment board as provided in
 section     2 of this Act.
-3. The state treasurer:
-a. Shall apply the prudent investor rule for investing the moneys in the state
+      3.    The state treasurer:
+              a.    Shall apply the prudent investor rule for investing the moneys in the state
 treasury in the same manner as section 21  -  10  -  07.
-b. Shall properly account for the investment of the moneys in the state treasury,
+              b.    Shall properly account for the investment of the moneys in the state treasury,
 including the allocation of investment earnings to the appropriate state funds.
-Page No. 1 25.0742.04000
- HOUSE BILL NO. 1278
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-c. May commingle, for investment purposes, the moneys in the state treasury when
+              c.    May commingle, for investment purposes, the moneys in the state treasury when
 determined to be advantageous.
-d. May not make social investments as provided in section 21  -  10  -  08.1.
-e. May not personally profit in any manner from transactions to manage and invest
+              d.    May not make social investments as provided in section 21  -  10  -  08.1.
+              e.    May not personally profit in any manner from transactions to manage and invest
 the moneys in the state treasury. A violation of this subdivision is a class     A
 misdemeanor.
-4. Within the limits of legislative appropriations, the state treasurer shall pay for
+      4.    Within the limits of legislative appropriations, the state treasurer shall pay for
 investment costs associated with the investment of the moneys in the state treasury,
 including counseling fees, trustee fees, custodial fees, performance measurement
 fees, money manager search expenses, audit fees, expenses to review investment
 managers, and asset allocation expenses.
-5. Annually, the state treasurer shall prepare a report on the investment performance of
+      5.    Annually, the state treasurer shall prepare a report on the investment performance of
 the moneys in the state treasury. The report must include a list of investments at
 market value with a comparison to the previous reporting period, comparisons to
 relevant benchmarks, investment returns, and investment costs.
 SECTION 2. A new section to chapter 54-11 of the North Dakota Century Code is created
 and enacted as follows:
-Cash management and investment board - Report.
-1. The cash management and investment board is created to develop policies to present
-to the state treasurer and the Bank of North Dakota for the management and
-investment of moneys in the state treasury.
-2. The board shall develop policies with a goal of managing and investing moneys in the
-state treasury to ensure principal preservation and adequate liquidity for the state's
-cash flow needs while maximizing total return for an appropriate level of risk. The
-policies must include:
-a. A priority list to effectively manage cash resources.
-b. An available cash resource plan to meet agency cashflow needs.
-c. The determination of adequate liquidity levels for government operations.
-3. The board shall adopt policies for managing the moneys in the state treasury which
-must include designations for:
-a. Operating cash to provide for the state's daily cash flow and liquidity needs.
-Page No. 2 25.0742.04000
+Cash management   and investment   board - Report.
+1. The cash management   and investment   board is created to  :
+                  a.        Review   existing policies and, if necessary,   develop policies   to present   to  in
+coordination with   the state treasurer and the Bank of North Dakota for the
+management   and   investment   of moneys in the state treasury.
+                  b.        Provide transparency regarding the state's consolidated   financial position.
+                  c.        Identify state agency and interagency cash     flow characteristics and processes  .
+Page No. 2 25.0742.04002
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-b. Liquid reserves to provide for the state's short  -  term cash flow and liquidity needs.
-c. Invested reserves to provide for the state's intermediate or long  -  term cash flow
+                  d.        Review state agency cash management technology and opportunities to improve
+state cash management practices.
+                  e.        Review state agency and statewide operational cash flow requirements and
+forecast cash f  low needs  .
+                   f.        Identify cash management practices to improve cash structures and to provide
+transaction efficiencies.
+2. The board shall   review existing policies and, if necessary,   develop policies with a goal
+of managing   and investing   moneys in the   state treasury to ensure principal
+preservation and adequate liquidity for the state's   cash flow needs while maximizing
+total return   for  based on   an appropriate level of   statewide   risk. The   policies   must  may
+include:
+a. A priority list to effectively manage cash resources  An appropriate tiered cash flow
+structure  .
+b. An available cash resource plan to meet agency cashflow needs  Authorization to
+commingle, for management purposes, moneys in the state treasury   wh  en
+determined to be advantageous  .
+c. The determination of adequate liquidity levels for government
+operations  Prioritization to optimize cash flow structuring to align with   the mission
+of state agencies and   the state's consolidated financial position  .
+3. The board shall adopt policies for managing the moneys in the state treasury which
+must include designations for:
+              a.    Operating cash to provide for the state's daily cash flow and liquidity needs.
+              b.    Liquid reserves to provide for the state's short  -  term cash flow and liquidity needs.
+              c.    Invested reserves to provide for the state's intermediate or long  -  term cash flow
 and liquidity needs while achieving a higher investment return.
-4. The board shall determine the investment policies for the liquid reserves and invested
+      4.    The board shall determine the investment policies for the liquid reserves and invested
 reserves, including the asset allocation and appropriate risk level.
-5. The state treasurer shall provide staff services to the board. The staff and consultants
-of the state treasurer's office and the Bank of North Dakota shall advise the board in
-developing policies and determining investment policies.
-6. Upon request, a state agency shall provide information to the board regarding cash
+      5.    The   state treasurer  Bank of North Dakota   shall provide staff services to the board.   The
+staff and consultants   of the state treasurer's office and the Bank of North Dakota shall
+advise the board in   developing policies and determining investment policies.
+Page No. 3 25.0742.04002
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+6.  4.  Upon request, a state agency shall provide information to the board regarding cash
 flow and liquidity needs, including projections for the timing of revenues and
 expenditures.
-7. The board consists of:
+7.  5.  The board consists of:
 a. The state treasurer or the state treasurer's designee who shall serve as the
 chairman;
 b. The director of the office of management and budget or the director's designee;
 c. The president of the Bank of North Dakota or the president's designee;
 d. Two members of the house of representatives appointed by the house majority
-leader; and
-e. Two members of the senate appointed by the senate majority leader.
-8. Legislative members of the board are entitled to receive compensation and expense
+leader;   and
+e. Two members of the senate appointed by the senate majority leader  ; and
+                   f.        The   governor   or the governor's designee  .
+8.  6.  Legislative members of the board are entitled to receive compensation and expense
 reimbursement as provided under section 54  -  03  -  20 and reimbursement for mileage as
 provided by law for state officers. The legislative council shall pay the compensation
 and expense reimbursement for the legislative members.
-9. The board shall provide at least one report each fiscal year to the budget section.
-Page No. 3 25.0742.04000
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+9.  7.  The board shall provide at least one report each fiscal year to the budget section.
+SECTION 3. EXPIRATION DATE. This Act is effective through June 30, 2028, and after that
+date is in effective.
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