AB 33 — Revises provisions governing public investments. (BDR 31-357)

(4) Except for investments made pursuant to paragraph (m), the amount of an investment in a single corporation is not greater than 3 percent of the book value of the assets of the State Permanent School Fund;

(l) A pooled or commingled real estate fund or a real estate security that is managed by a corporate trustee or by an investment advisory firm that is registered with the Securities and Exchange - *AB33_R1* – 5 – Commission, either of which may be retained by the State Treasurer as an investment manager.

The total book value of an investment made under this paragraph must not at any time be greaterthe thanState 5Permanent percentSchool ofFund.tal the total book value of all investments of (m) Mutual funds or common trust funds that consist of any combination of the Stateinvestments Permanentlisted Schoolin Fund.paragraphs (a) to (l), inclusive.

(m) Mutual funds or common trust funds that consist of any combination of the investments listed in paragraphs (a) to (l), inclusive.

(o) Commercial paper issued by a corporation, trust or limited- liability company organized and operating in the United States or by- a82nd depositorySession institution(2023) licensed– by5 – state and operating in the United States that:ited States or any state(1) andAt operatingthe intime theof Unitedpurchase Stateshas that:a remaining term to maturity of not more than 270 days;

(1) At the time of purchase has a remaining term to maturity of not more than 270 days;

(p) Notes, bonds and other unconditional obligations for the payment of money, except certificates of deposit that are not issued by commercial banks, insured credit unions, savings and loan associations or savings banks, issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating in the United States that:

If the rating of an obligation is reduced to a level that does not meet the requirements of this paragraph, the State Treasurer shall take such action as he - *AB33_R1* – 6 – or she deems appropriate to preserve the principal value and integrity of the portfolio as a whole and report to the State Board of Finance any action taken by the State Treasurer pursuant totoBoard this paragraph.

The State Treasurer shall contract for the services of independent contractors to manage any - 82nd Session (2023) – 6 – investments of the State Treasurer made pursuant to paragraph (k), (l) , [or] (m) , (o) or (p) of subsection 2.

The State Treasurer shall establish such criteria for the qualifications of such an independent contractor as are appropriate to ensure that each independent contractorcon4.actIn hasaddition expertiseto inthe investments authorized by subsection 2, the managementState Treasurer may make loans of suchmoney investments.from the State Permanent School Fund to school districts pursuant to NRS 387.526.

4.

In addition to the investments authorized by subsection 2, the State Treasurer may make loans of money from the State Permanent School Fund to school districts pursuant to NRS 387.526.

(d) Bonds of this state or other states of the Union;

- *AB33_R1* – 7 – (g) General obligation bonds of irrigation districts and drainage districts in this state which are liens upon the property within those districts, if the value of the property is found by the board or commission making the investments to render the bonds financially sound over all other obligations of the districts;

(1)- The82nd bondsSession are(2023) general– obligation7 bonds– and constitute a lien upon the property within the district which is subject totote a taxation;

§§ 636 to 1012, inclusive, and §§ 1021 to 1129, inclusive, and the Farm Credit Act debentures, consolidated debentures and other obligations issued by banks for cooperatives under the authority of 1971,the Farm Credit Act of 1933, formerly 12 U.S.C.

§§ 2001 to 2259, inclusive, and bonds, debentures, consolidated debentures and other obligations issued by banks for cooperatives under the authority of the Farm Credit Act of 1933, formerly 12 U.S.C.

(n) Bankers’ acceptances of the kind and maturities made eligible by law for rediscount with Federal Reserve banks or trust companies which are members of the Federal Reserve System, except that acceptances may not exceed 180 days’ maturity, and may not, in aggregate value, exceed [20] 25 percent of the total par valueval(o) ofCommercial paper issued by a corporation , trust or limited- liability company organized and operating in the portfolioUnited asStates determinedor atby a depository institution licensed by the timeUnited ofStates purchase;or any state and operating in the United States that:

(o) Commercial paper issued by a corporation , trust or limited- liability company organized and operating in the United States or by - *AB33_R1* – 8 – a depository institution licensed by the United States or any state and operating in the United States that:

and (2) Is rated by a nationally recognized rating service as “A- 1,” “P-1” or its equivalent, or better, - except82nd thatSession investments(2023) pursuant– to8 this– paragraph may not, in aggregate value, exceed 25 percent of the total par value of the portfolio as determined at the time of purchase.

and (3)or Areits ratedequivalent, byor abetter,ionally nationally recognized rating service as “A” or its equivalent, or better,  except that investments pursuant to this paragraph may not, in aggregate value, exceed 25 percent of the total par value of the portfolio as determined at the time of purchase.

(3) At the time of purchase has a remaining term to maturity of 5 years or less;

andandof purchase has a remaining term to maturity (4) Is rated by a nationally recognized rating service as “AA” or its equivalent, or better, - *AB33_R1* – 9 –  except that investments pursuant to this paragraph may not, in aggregate value, exceed 15 percent of the total par value of the portfolio as determined at the time of purchase;

- 82nd Session (2023) – 9 – (1) Is denominated in United States dollars;

(3) Is registered with the Securities and Exchange Commission in accordance with the provisions of the Securities Act of 1933,1933(4) 15Is U.S.C.purchased from a registered broker-dealer;

§§ 77a et seq., as amended;

(4) Is purchased from a registered broker-dealer;

Repurchase agreements and reverse-repurchase agreements are proper and lawful investments of money of the State and the State Insurance Fund for the purchase or sale of securities which are negotiable and of the types listed in subsection 1 if made ininhich are accordance with the following conditions:

and (3) Have executed a written master repurchase agreement or master reverse-repurchase agreement, as applicable, in a form - *AB33_R1* – 10 – satisfactory to the State Treasurer and the State Board of Finance pursuant to which all repurchase agreements or reverse-repurchase agreements are entered into.

The master repurchase agreement and master reverse-repurchase agreement must require the prompt - 82nd Session (2023) – 10 – delivery to the State Treasurer and the appointed custodian of written confirmations of all transactions conducted thereunder, and must be developed giving consideration to the Federal Bankruptcy Act, 11 U.S.C.

(b) In(1) At or before the time money to pay the purchase price is transferred, title to the purchased securities must be recorded in the name of the appointed custodian, or the purchased securities must be delivered with all repurchaseappropriate, agreements:executed transfer instruments by physical delivery to the custodian;

(1) At or before the time money to pay the purchase price is transferred, title to the purchased securities must be recorded in the name of the appointed custodian, or the purchased securities must be delivered with all appropriate, executed transfer instruments by physical delivery to the custodian;

(3) The market value of the purchased securities must exceed 102 percent of the repurchase price to be paid by the counterparty and the value of the purchased securities must be marked to the market weekly;

and (5)at Thethe purchasedtime securitiesof mustpurchase notin haveexcess of 10 years.ave a term to maturity at(c) theIn timeall ofreverse-repurchase purchaseagreements: in excess of 10 years.

(c) In all reverse-repurchase agreements:

and - *AB33_R1* – 11 – (3) Money received by the custodian pursuant to subparagraph (1) may be used by the State only to purchase - 82nd Session (2023) – 11 – securities whose maturity matches or is not longer than the term of the reverse-repurchase agreement.

(a) “Counterparty” means a bank organized and operating or licensedlaw toor operatea insecurities thedealer Unitedwhich Statesis:ates pursuant to federal or state law(1) orA aregistered securitiesbroker-dealer; dealer which is:

(1) A registered broker-dealer;

(a) Bonds and debentures of the United States, the maturity dates of which do not extend more than 10 years after the date of purchase.

- *AB33_R1*82nd Session (2023) – 12 – (c) A bond, note or other obligation publicly issued in the United States by a foreign financial institution, corporation or government that:

(2)(3) Is aaregisteredsecwith senioruntheordSecuritiesigandon;Exchange unsecuredCommission unsubordinatedin obligation;accordance with the provisions of the Securities Act of 1933, §§ 77a et seq., as amended;

(3) Is registered with the Securities and Exchange Commission in accordance with the provisions of the Securities Act of 1933, §§ 77a et seq., as amended;

(e) Bills and notes of the United States Treasury, the maturity datedat(f) Obligations of whichan isagency notor moreinstrumentality thanof 10 years after the dateUnitedse. of purchase.

(f) Obligations of an agency or instrumentality of the United States of America or a corporation sponsored by the government, the maturity date of which is not more than 10 years after the date of purchase.

and (2) If the certificates are not within the limits of insurance provided by an instrumentality of the United States, are rated by a nationally recognized rating service as “A-1,” “P-1” or its equivalent, or better, or are collateralized in the same manner as is required for uninsured deposits by a county treasurer pursuant to NRS 356.133, - except82nd thatSession not(2023) more– than13 5– percent of the total par value of the portfolio may be invested in notes, bonds and other unconditionalunconditionalhe - *AB33_R1* – 13 – obligations issued by any one commercial bank, insured credit union, savings and loan association or savings bank.

For the purposes of subparagraph (2), any reference in NRS 356.133 to a “county treasurer” or “board of county commissioners” shall be deemed to refer to the appropriate financial officer or governing body of the local government purchasing the certificates.

For the purposes of this paragraph, any reference in NRS 356.133 to a “county treasurer” or “board of county commissioners” shall be deemed to refer to the appropriate financial officer or governing body of the local government purchasingpur(j) Subject to the certificates.limitations contained in NRS 355.177, negotiable notes or medium-term obligations issued by local governments of the State of Nevada pursuant to NRS 350.087 to 350.095, inclusive.

(j) Subject to the limitations contained in NRS 355.177, negotiable notes or medium-term obligations issued by local governments of the State of Nevada pursuant to NRS 350.087 to 350.095, inclusive.

Purchases of bankers’ acceptances may- not82nd exceedSession [20](2023) 25– percent14 of– the money available to a local government for investment as determined at the time of purchase.

- *AB33_R1* – 14 – (I) The interest on the obligation is exempt from gross income for federal income tax purposes;

(1) At the time of purchase has a remaining term to maturity of no m(2) Is rated by a nationally recognized rating service as “A- 1,” “P-1” or its equivalent, or better,  except that investments pursuant to this paragraph may not, in aggregate value, exceed 25 percent of the total par value of the portfolio as determined at the time of purchase, and not more than 2705 days;percent of the total par value of the portfolio may be invested in commercial paper issued by any one corporation or depository institution.

andIf (2)the Israting ratedof byan obligation is reduced to a nationallylevel recognizedthat ratingdoes servicenot asmeet “A-the 1,”requirements “P-1”of orthis itsparagraph, equivalent,the orinvestment better,advisor must exceptreport thatthe investmentsreduction pursuantin the rating to thisthe paragraphgoverning maybody not,of inthe aggregatelocal value,government exceedthat 25purchased percentthe investment, the governing body of the totallocal pargovernment valueor, ofif the portfoliopurchase aswas determinedeffected atby the timeState ofTreasurer purchase,pursuant andto nothis moreor thanher 5investment percentof a pool of money from local governments, the totalState parTreasurer valuemust oftake such action as the governing body or State Treasurer deems portfolio mayas bea investedwhole inand commercialthe papergoverning issuedbody byor State Treasurer, as applicable, must report to the State Board of Finance any oneaction corporationtaken orpursuant depositoryto institution.this paragraph.

If the rating of an obligation is reduced to a level that does not meet the requirements of this paragraph, the investment advisor must report the reduction in the rating to the governing body of the local government that purchased the investment, the governing body of the local government or, if the purchase was effected by the State Treasurer pursuant to his or her investment of a pool of money from local governments, the State Treasurer must take such action as the governing body or State Treasurer deems appropriate to preserve the principal value and integrity of the portfolio as a whole and the governing body or State Treasurer, as applicable, must report to the State Board of Finance any action taken pursuant to this paragraph.

- 82nd Session (2023) – 15 – (I) Securities issued by the Federal Government or agencies of the Federal Government;

(II) Master notes, bank notes or other short-term commercial paper rated by a nationally recognized rating service as “A-1,” “P-1” or its equivalent, or better, issued by a corporation organized and operating in the United States or by a depositorydepositoryion - *AB33_R1* – 15 – institution licensed by the United States or any state and operating in the United States;

The master repurchase agreement must require the prompt delivery to the governing body of the local government and the appointed to custodian of written confirmations of all transactions conducted thereunder, and must be developed giving consideration to the Federal Bankruptcy Act.

(II)- Notify82nd theSession governing(2023) body– of16 the– local government when the securities are marked to the market if the required margin on the agreement is not maintained;

- *AB33_R1* – 16 – (3) The market value of the purchased securities must exceed 102 percent of the repurchase price to be paid by the counterparty and the value of the purchased securities must be marked to the market weekly;

The securities described in paragraphs (a), (d) and (e) of subsection 1 and the repurchase agreements described in subsection 2 may be purchased when, in the opinion of the governing body of the local government, there is sufficient money in any fund of the local government to purchase those securities and the purchase will not result in the impairment of the fund for the purposes for which it was created.

Any interest earned on money invested pursuant to subsection 3, may, at the discretion of the governing body of the local government, be credited to the fund from which the principal waswas6. taken or to the general fund of the local government.

6.

- 82nd Session (2023) – 17 – 7.

8.

As used in this section:

- *AB33_R1* – 17 – (2) Designated by the Federal Reserve Bank of New York as a “primary” dealer in United States government securities;

1.companies described in subsection 1 of NRS 355.270, private equitylity funding;

Provide, through the limited partnerships or limited-liability companies described in subsection 1 of NRS 355.270, private equity funding;

- 82nd Session (2023) – 18 – (6) Information technology.

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