(a)The following definitions apply
throughout this section:
(1)"Clearinghouse" refers to the clearinghouse registered with the
department of state revenue under IC 6-8.1-9.5-3.5.
(2)"Investment pool" means the local government investment
pool established by subsection (b).
(3)"Board" refers to the Indiana local government investment
pool board established by section 12 of this chapter.
(b)The local government investment pool is established within the
office and custody of the treasurer of state.
(c)An officer designated in section 1 of this chapter may pay any
funds held by the officer into the investment pool, for the purpose of
deposit, investment, and reinvestment of the funds by the treasurer of
state on behalf of the unit of government paying the funds into the
investment pool.
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(a) The following definitions apply
throughout this section:
(1) "Clearinghouse" refers to the clearinghouse registered with the
department of state revenue under IC 6-8.1-9.5-3.5.
(2) "Investment pool" means the local government investment
pool established by subsection (b).
(3) "Board" refers to the Indiana local government investment
pool board established by section 12 of this chapter.
(b) The local government investment pool is established within the
office and custody of the treasurer of state.
(c) An officer designated in section 1 of this chapter may pay any
funds held by the officer into the investment pool, for the purpose of
deposit, investment, and reinvestment of the funds by the treasurer of
state on behalf of the unit of government paying the funds into the
investment pool.
(d) The treasurer of state may pay state funds into the investment
pool for the purpose of deposit, investment, and reinvestment of the
state funds.
(e) The treasurer of state shall establish an account in the investment
pool for the operator of the clearinghouse. The treasurer shall hold
amounts paid by the department of state revenue for deposit in the
clearinghouse operator's account in the investment pool.
(f) Upon signed written request of the operator of the clearinghouse,
the treasurer of state shall distribute the money in the operator's
account established under subsection (e):
(1) to the operator of the clearinghouse; or
(2) to specific investment pool accounts of political subdivisions
represented by the clearinghouse, if the written request submitted
under this subsection specifies:
(A) the political subdivision to which the funds are to be
disbursed;
(B) the specific amount of the funds to be disbursed; and
(C) the specific investment pool account to which the
disbursement is owed.
The clearinghouse shall assume liability for any legal or administrative
claims filed against a disbursement made by the treasurer of state that
complies with this section.
(g) Any interest accrued by the investment pool on funds held in the
operator's account shall be distributed to the political subdivisions at a
rate equal to the percentage owed to that political subdivision based on
the overall setoff paid by the department of state revenue. No interest
shall accrue under this subsection on any fees owed to the
clearinghouse under IC 6-8.1-9.5-10(b).
(h) The treasurer of state shall invest the funds in the investment
pool in the same manner, in the same type of instruments, and subject
to the same limitations provided for the deposit and investment of state
funds by the treasurer of state under IC 5-13-10.5.
(i) The treasurer of state:
(1) shall administer the investment pool in accordance with the
policies of the board; and
(2) with the permission of the board, may contract with
accountants, attorneys, regulated investment advisors, money
managers, and other finance and investment professionals to
make investments and provide for the public accounting and legal
compliance necessary to ensure and maintain the safety, liquidity,
and yield of the investment pool.
(j) The treasurer of state shall follow the policies established by the
board. The treasurer of state must ensure the following:
(1) The administrative expenses of the investment pool shall be
accounted for by the treasurer of state and shall be paid from the
earnings of the investment pool.
(2) The earnings of the investment pool in excess of the
administrative expenses of the investment pool shall be credited
to the state and each unit of government participating in the
investment pool in a manner that equitably reflects the different
amounts and terms of the state's investment and each unit's
investment in the investment pool.
(3) The state and each unit of government participating in the
investment pool shall receive electronic or paper reports,
including:
(A) a daily transaction confirmation, reflecting any activity in
the state's or unit's account; and
(B) a monthly report showing:
(i) the state's or unit's investment activity in the investment
pool; and
(ii) the performance and composition of the investment pool.
(k) A unit of government participating in the investment pool may
elect to have any funds due from the state wired directly to the
custodian bank of the investment pool for credit to the unit's investment
pool account by submitting in writing a request to the state comptroller
to wire the funds as directed. An election made by a unit of government
under this subsection may be revoked at any time by the unit by
submitting in writing a request to the state comptroller to cease wiring
the funds as previously directed by the unit.