COMMITTEE ON FINANCIAL INSTITUTIONS
SENATE AMENDMENTS TO S.B. 1451
(Reference to printed bill)
Page 3, between lines 23 and 24, insert:
“Sec. 2. Section 35-315, Arizona Revised Statutes, is amended to read:
35-315. Servicing banks; qualifications; proposals
A. Any bank eligible to become an eligible depository having a total capital structure of ten million dollars or more and assets of two ONE hundred million dollars or more and being otherwise in a sound condition is eligible to be the servicing bank for the state.
B. On the first Monday in March of each year of award, the state board of investment shall provide for public notice to the banks qualified to be a servicing bank of the time and place at which servicing proposals will be received. Requests for proposals shall clearly specify all services required to be performed by the servicing bank. The servicing proposal submitted shall be the compensation for which the qualified bank will agree to perform the required services as a servicing bank for the ensuing period of designation as established by the board of investment. The award shall be made for a period not to exceed five years and may be paid from general fund interest earnings according to rules adopted by the board of investment.
C. On the fourth Monday in April of the year of the award, the state treasurer shall receive the servicing proposals in writing. Only those proposals that conform to the specifications set forth in the request for proposals shall be considered. The qualified bank submitting the proposal with the highest value to this state, as determined by the state treasurer and the board of investment, shall be designated as the servicing bank. Designations shall be evidenced by the signing of the final proposal by the state treasurer, the board of investment and the designee bank. The state treasurer may maintain a bank account in conjunction with the servicing bank account, which must have on deposit at all times a sum of money approximating the average dollar value of daily warrants paid by the bank the previous month.
D. The state treasurer may request and qualified banks may submit proposals for any or all of the services required. The state treasurer may specify differing contract periods for any or all of the services required.
E. The state treasurer or servicing bank may terminate a servicing bank contract at any time after sixty days' prior written notice is given.
F. In addition to the services required of the servicing bank, the state treasurer shall contract for all other banking services required by any state agency. No state agency shall contract for banking services except with the written permission of the state treasurer.
G. This section does not require the state treasurer to utilize a servicing bank.
H. This section or the specifications set forth in the request for proposals shall not be construed to require the servicing bank to purchase warrants.
I. Deposits and withdrawals of monies shall be made by the state treasurer on the servicing bank.
Sec. 3. Section 35-318, Arizona Revised Statutes, is amended to read:
35-318. Investment managers and advisors; treasury monies; investment services account
A. The state treasurer may enter into an agreement with investment managers to invest treasury monies or with advisors to recommend investment strategies or tactics for the investment of treasury monies, including legal advisors AND SOFTWARE TO ASSIST WITH THE ANALYSIS, TRACKING AND TRADING OF SECURITIES. Qualification and selection of investment managers or advisors pursuant to this section are exempt from title 41, chapter 23 but must be conducted by a process that is substantially equivalent to procedures prescribed by title 41, chapter 23. Managers or advisors who enter into a contract pursuant to this section shall be paid from earnings on investments. A contract established pursuant to this section may be annually renewable but shall be limited to a period of not more than three years. A contract may be cancelled by the treasurer with forty‑five days' written notice.
B. An agreement established pursuant to subsection A of this section shall require the investment manager to regularly account for, itemize and inventory all securities under management consistent with the requirements of section 35‑317, subsections C, D and E and report the findings to the state treasurer at least monthly or on demand.
C. The state treasurer shall maintain an investment services account consisting of all monies for payment of contractual financial services authorized by this section. The account shall consist of monies apportioned from the investment earnings of assets under management that are necessary for the payment of current contractual obligations.
D. Expenditures for investment management and advisory fees required by contract pursuant to subsection A of this section shall be paid on approval of the state treasurer from the investment services account established by subsection C of this section.”
Renumber to conform
Amend title to conform