§ 5-13-9-12 — Local government investment pool board; members; establishment of policies

Indiana § 5-13-9-12

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 13: INVESTMENT OF PUBLIC FUNDS
• Ch. 9: Deposit and Investment Powers

Text

(a) As used in this section, "board" refers to
the Indiana local government investment pool board established by
subsection (c).
(b) As used in this section, "investment pool" refers to the local
government investment pool established by section 11(b) of this
chapter.
(c) The Indiana local government investment pool board is
established as a continuing board under the executive branch of state
government. The purpose of the board is to establish policies for the
investment of funds contributed to the investment pool.
(d) The board consists of the following seven (7) members:
(1) The treasurer of state.
(2) The director of the Indiana department of financial
institutions.
(3) Two (2) members with practical experience with financial
institutions, local government or public finance, or financial
investments domiciled in Indiana, appointed by the president pro
tempore of the senate.
(4) Two (2) members with practical experience with financial
institutions, local government or public finance, or financial
investments domiciled in Indiana, appointed by the speaker of the
house of representatives.
(5) One (1) member with practical experience with financial
institutions, local government or public finance, or financial
investments domiciled in Indiana, appointed by the governor.
(e) A member appointed under subsection (d)(3), (d)(4), or (d)(5)
serves a term of four (4) years and may be reappointed by the
appointing authority.
(f) A member appointed under subsection (d)(1) or (d)(2) who
ceases to hold the office or qualification described in that subsection
ceases to be a member of the board.
(g) The governor shall designate one (1) of the members as
chairperson. The chairperson has one (1) vote on all matters voted on
by the members.
(h) A member of the board who is appointed under subsection
(d)(3), (d)(4), or (d)(5) serves a term that ends June 30 of the
odd-numbered year four (4) years after appointment.
(i) The board shall meet at least four (4) times a year and at the call
of the chairperson.
(j) Five (5) members of the board constitute a quorum. The
affirmative votes of four (4) members are required to take any action.
(k) Each member of the board who is not a state employee is entitled
to the minimum salary per diem provided by IC 4-10-11-2.1(b) for each
day that the member is engaged in the official business of the board.
The member is also entitled to reimbursement for mileage, traveling
expenses, and other expenses actually incurred in connection with the
member's duties, as provided in the state travel policies and procedures
established by the Indiana department of administration and approved
by the budget agency.
(l) The expenses of the board shall be paid from the investment
pool.
(m) The board shall establish policies regarding how the treasurer
of state shall administer and invest the funds in the investment pool.
The policies must provide the following:
(1) There is not a minimum time for which funds paid into the
investment pool must be retained by the investment pool.
(2) There is not a limit on the number of accounts that the state or
a unit of government participating in the investment pool may
establish within the investment pool.
(3) The investment pool shall be audited at least annually by an
independent auditing firm, with an electronic or paper copy of the
audit provided to the state and each unit of government
participating in the pool.
(4) Not less than fifty percent (50%) of funds available for
investment shall be deposited in banks qualified to hold deposits
of participating local government entities.
(n) The board may select and direct the treasurer of state to 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.

Legislative History

As added by P.L.213-2025, SEC.63.