Legislative Report

Report 09-27
July 31, 2009

CONFEREES GET TAX COMPROMISE BACK ON TRACK

House and Senate budget negotiators announced on Thursday that the general provisions of an agreement had been worked out on a tax package to supplement the 2009-11 state budget. Several details remain to be resolved on the proposal that would raise more than $950 million to offset potential reductions in state services.

The General Assembly also approved a third resolution to provide continuing budget authority for state operations. This continuing resolution remains in effect until the Appropriations Act of 2009 is enacted.

THE TREASURER’S GOVERNANCE AND TRANSPARENCY ACT OF 2009

The Treasurer’s Transparency Act originally was introduced as  freestanding bills in the House and Senate (HB 556 and SB 632). However, the provisions of the Transparency Act were incorporated in Senate Bill 691 by the House Finance Committee. The amended bill was signed into law by Governor Perdue on July 10th.

The key provisions of the Transparency Act are summarized below.

• The Treasurer’s Investment Advisory Committee is expanded to a total of seven members by increasing the number of public members from two to four. The public members must have experience in an area relevant to a large investment program, such as: investment management, securities law, or related field.
   
• The Treasurer must discharge her duties regarding the retirement systems:  solely in the interests of participants and beneficiaries, for the exclusive purpose of providing benefits to participants and beneficiaries, incurring costs that are appropriate and reasonable, and in accordance with a good faith interpretation of the laws governing the systems.
   
• Whenever the General Assembly broadens the investment authority of the Treasurer, the treasurer must provide a detailed annual report on the use of this new authority in terms of types of investment, returns, changes in value, etc.