SB-0678, As Passed House, December 13, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 678

 

 

August 22, 2007, Introduced by Senator STAMAS and referred to the Committee on Local, Urban and State Affairs.

 

 

 

     A bill to amend 1943 PA 20, entitled

 

"An act relative to the investment of funds of public corporations

of the state; and to validate certain investments,"

 

by amending section 6 (MCL 129.96), as added by 1997 PA 196.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 6. (1) Subject to subsection (2), before executing an

 

order to purchase or trade the funds of a public corporation, a

 

financial intermediary, broker, or dealer shall be provided with a

 

copy of the public corporation's investment policy and shall do

 

both of the following:

 

     (a) Acknowledge receipt of the investment policy.

 

     (b) Agree to comply with the terms of the investment policy

 

regarding the buying or selling of securities.

 

     (2) A public corporation is subject to subsection (1)


 

beginning on the date that the investment policy of a public

 

corporation takes effect or 180 days after the end of the public

 

corporation's first fiscal year ending after the effective date of

 

the amendatory act that repealed section 2, whichever is earlier.

 

     (3) The investment officer annually shall provide quarterly a

 

written report to the governing body concerning the investment of

 

the funds.