Deposit of Demand Funds; Investment of Funds; Reports; Remittance of Interest Earned; Motor Fuel Tax Revenues

  1. Law
  2. Georgia Code
  3. State Government
  4. State Debt, Investment, and Depositories
  5. State Depositories
  6. Deposit of Demand Funds; Investment of Funds; Reports; Remittance of Interest Earned; Motor Fuel Tax Revenues

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  1. All demand funds held by any department, board, bureau, or other agency of the state shall be deposited in state depositories, except the monthly deposits of funds for current operating expenses may be deposited in a foreign bank by any department, board, bureau, or other agency of the state which has a foreign office, provided that the department, board, bureau, or other agency of the state limits its operating deposits in foreign banks to conform to guidelines and dollar limitations prescribed by the State Depository Board; and such funds that are in excess of requirements for current operating expenses shall be placed under time deposit agreements by the state treasurer conforming to interest contracts then having approval of the board made pursuant to Code Section 50-17-52; and any funds not deposited or placed under time deposit agreements shall be subject to immediate withdrawal on order of the state treasurer when directed by the board. The board may permit any department, board, bureau, or other agency to invest funds collected directly by that department, board, bureau, or agency in short-term time deposit agreements, provided the interest income of those funds is remitted to the state treasurer as revenues of the state.
  2. All departments, boards, bureaus, and other agencies of the state shall report to the board, on such forms and at such times as the board may prescribe, such information as the board may reasonably require concerning deposits and withdrawals pursuant to this Code section and shall enable the board to determine compliance with this Code section. Interest earned on state funds withdrawn from the state treasury on approved budgets shall be remitted to the Office of the State Treasurer by each department, board, bureau, or agency and placed in the general fund. The board may permit the state treasurer to invest in any one or more of the following: bankers' acceptances; commercial paper; bonds, bills, certificates of indebtedness, notes, or other obligations of the United States and its subsidiary corporations and instrumentalities or entities sanctioned or authorized by the United States government including, but not limited to, obligations or securities issued or guaranteed by Banks for Cooperatives regulated by the Farm Credit Administration, the Commodity Credit Corporation, Farm Credit Banks regulated by the Farm Credit Administration, Federal Assets Financing Trusts, the Federal Financing Bank, Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Financial Assistance Corporation chartered by the Farm Credit Administration, the Government National Mortgage Association, the Import-Export Bank, Production Credit Associations regulated by the Farm Credit Administration, the Resolution Trust Corporation, and the Tennessee Valley Authority; obligations of corporations organized under the laws of this state or any other state but only if the corporation has a market capitalization equivalent to $100 million; provided, however, that such obligation shall be listed as investment grade by a nationally recognized rating agency; the shares of any mutual fund the investments of which are limited to securities of the type described in this subsection and distributions from which are treated for federal income tax purposes in the same manner as the interest on said obligations, provided that at the time of investment such obligations, or the obligations held by any such unit investment trust or the obligations held or to be acquired by any such mutual fund, are limited to obligations which are rated within one of the top two rating categories of any nationally recognized rating service or any rating service recognized by the commissioner of banking and finance, and no others, or to securities lending transactions involving securities of the type described in this subsection; bonds, notes, warrants, and other securities not in default which are the direct obligations of the government of any foreign country which the International Monetary Fund lists as an industrialized country and for which the full faith and credit of such government has been pledged for the payment of principal and interest, provided that such securities are listed as investment grade by a nationally recognized rating agency; or obligations issued, assumed, or guaranteed by the International Bank for Reconstruction and Development or the International Financial Corporation, provided that such securities are listed as investment grade by a nationally recognized rating agency; provided, however, that interest earned on the investment of motor fuel tax revenues shall be defined as motor fuel tax revenues and shall be appropriated in conformity with and pursuant to Article III, Section IX, Paragraph VI(b) of the Constitution of Georgia. The board may also permit the state treasurer to lend any of the securities of the type identified in this subsection subject to the limitations of subsection (b) of Code Section 50-5A-7 and this chapter.

(Ga. L. 1960, p. 1144, § 4; Ga. L. 1973, p. 149, § 12; Ga. L. 1979, p. 399, § 2; Ga. L. 1983, p. 3, § 66; Ga. L. 1993, p. 1402, § 17; Ga. L. 1997, p. 569, § 3; Ga. L. 1997, p. 863, § 2; Ga. L. 2000, p. 1474, § 11; Ga. L. 2004, p. 319, § 3; Ga. L. 2004, p. 335, § 1; Ga. L. 2010, p. 863, §§ 2, 4/SB 296; Ga. L. 2011, p. 752, § 50/HB 142; Ga. L. 2020, p. 566, § 1/HB 901.)

The 2011 amendment, effective May 13, 2011, part of an Act to revise, modernize, and correct the Code, substituted "this chapter" for "Chapter 17 of this title" at the end of subsection (b).

The 2020 amendment, effective August 3, 2020, inserted "the shares of any mutual fund the investments of which are limited to securities of the type described in this subsection and distributions from which are treated for federal income tax purposes in the same manner as the interest on said obligations, provided that at the time of investment such obligations, or the obligations held by any such unit investment trust or the obligations held or to be acquired by any such mutual fund, are limited to obligations which are rated within one of the top two rating categories of any nationally recognized rating service or any rating service recognized by the commissioner of banking and finance, and no others, or to securities lending transactions involving securities of the type described in this subsection;" in the middle of the third sentence of subsection (b).

Law reviews.

- For article commenting on the 1997 amendment of this Code section, see 14 Ga. St. U.L. Rev. 306 (1997).

OPINIONS OF THE ATTORNEY GENERAL

Procedure when deposit exceeds bond.

- Former Code 1933, § 100-108 (see O.C.G.A. § 50-17-59) did not in any way authorize the treasurer (now director of the Office of Treasury and Fiscal Services) to make a deposit in excess of the bond or other authorized security for a ten-day period; it instead provided for a grace period of ten days within which the treasurer (now director of the Office of Treasury and Fiscal Services) whenever a deposit through accumulation of interest or otherwise grew beyond the amount of the bond, must either withdraw the excess or obtain additional bond (or authorized security) from the depository; this applied to all state funds, including former Code 1933, §§ 100-104 and 100-111 and Ga. L. 1960, p. 1144, § 4 (see O.C.G.A. §§ 50-17-58,50-17-62, and50-17-63). 1971 Op. Att'y Gen. No. 71-65.

Appropriation of interest on motor fuel tax revenues.

- Interest earned on motor fuel tax revenues is constitutionally appropriated for activities incident to the construction and maintenance of roads and bridges. 1984 Op. Att'y Gen. No. 84-6.

Audit billeting funds or armory rentals of DOD.

- Funds collected by the Department of Defense (DOD) as billeting funds or armory rentals pursuant to regulations issued under O.C.G.A. § 38-2-195 are state funds which may be retained by DOD. The management of the funds is subject to requirements of the Office of Planning and Budget, the State Auditor, and the State Depository Board. 1993 Op. Att'y Gen. No. 93-4.

Repurchase agreements.

- Office of the State Treasurer is empowered to enter into repurchase agreements and reverse repurchase agreements in connection with fulfilling its role related to managing the investment and liquidity needs of the state. 2012 Op. Att'y Gen. No. 12-1.


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