--- title: HB 871. Local government; additional authorized investments; provide collection: bills id: 2025-2026/hb871 cite_as: HB 871, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/hb871 md_url: https://georgiacommons.org/bills/2025-2026/hb871.md text_url: https://georgiacommons.org/bills/2025-2026/hb871/text source_url: https://www.legis.ga.gov/legislation/71804 date: 2025-03-31 status: introduced corpus_version: bills-2026-08-28 license: Public record of the Georgia General Assembly, via LegiScan; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/bills/2025-2026.md previous: https://georgiacommons.org/bills/2025-2026/hb870.md next: https://georgiacommons.org/bills/2025-2026/hb872.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 129 omitted_url: https://georgiacommons.org/bills/2025-2026/hb871.md?full=1 bill_number: HB 871 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: House bill_type: bill status_date: 2025-03-27 last_action: House Second Readers sponsors: - Victor Anderson - Bruce Williamson - Kimberly New - David Clark - Ron Stephens - Billy Mitchell text_version: Introduced has_text: true legiscan_url: https://legiscan.com/GA/bill/HB871/2025 upstream_id: 2016104 summaries_model: claude-sonnet-5 topic_tags: - local government finance - public funds investment - municipal bonds - commercial paper - financial regulation --- # HB 871. Local government; additional authorized investments; provide ## Text 25 LC 44 3189ER House Bill 871 By: Representatives Anderson of the 10th, Williamson of the 112th, New of the 40th, Clark of the 100th, Stephens of the 164th, and others A BILL TO BE ENTITLED AN ACT To amend Code Section 36-83-4 of the Official Code of Georgia A nnotated, relating to1 authorized investments, delegation of investment authority to financial officer, and objective2 of investment, so as to provide for additional authorized investments; to provide for related3 matters; to repeal conflicting laws; and for other purposes.4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 SECTION 1.6 Code Section 36-83-4 of the Official Code of Georgia Annotated, relating to authorized7 investments, delegation of investment authority to financial of ficer, and objective of8 investment, is amended by revising paragraph (1) of subsection (a) as follows:9 "(a)(1) Subject to the procedures set forth in this chapter, the governing authority of any10 local government may invest and reinvest any money subject to i ts control and11 jurisdiction in:12 (A) Obligations of this state or of other states;13 (B) Obligations issued by the United States government;14 (C) Obligations fully insured or guaranteed by the United Stat es government or a15 United States government agency;16 H. B. 871 - 1 - 25 LC 44 3189ER (D) Obligations of any corporation of the United States government;17 (E) Prime bankers' acceptances;18 (F) The local government investment pool established by Code Section 36-83-8;19 (G) Repurchase agreements; and20 (H) Obligations of other political subdivisions of this state;21 (I) Securities of or other interests in any no-load, open-end management type22 investment company or investment trust registered under the fed eral Investment23 Company Act of 1940, as authorized by Code Section 36-82-7;24 (J) A commingled stable net asset value investment trust estab lished by an25 intergovernmental agreement by two or more units of local gover nment pursuant to26 Article IX, Section III, Paragraph I(a) of the Constitution of Georgia; and27 (K) Commercial paper issued by domestic corporations carrying ratings no lower than28 P-1 by Moody's Investors Service, Inc., A-1 by Standard and Poor's Corporation, or F-129 by Fitch, Inc."30 SECTION 2.31 All laws and parts of laws in conflict with this Act are repealed.32 H. B. 871 - 2 - ## Summaries written by Georgia Commons The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary. A Georgia House bill would let city and county governments invest public funds in additional options, including certain mutual funds, pooled investment trusts, and highly rated commercial paper. ### Plain-language summary Current Georgia law (O.C.G.A. § 36-83-4) lists the specific types of investments local governments are allowed to put public money into, such as government bonds, bank acceptances, and repurchase agreements. This bill adds three new categories to that list. Local governments would be allowed to invest in shares of certain no-load, open-end mutual funds or investment trusts registered under a federal investment law, in commingled stable net asset value investment trusts set up jointly by two or more local governments, and in commercial paper (short-term corporate debt) issued by companies that carry top-tier credit ratings from Moody's, Standard and Poor's, or Fitch. The bill does not remove any existing investment options, and it repeals any conflicting laws. No specific effective date is stated beyond the standard process. ### What it does - Adds mutual funds and investment trusts registered under the federal Investment Company Act of 1940 to the list of investments local governments may use. - Allows local governments to invest in a commingled stable net asset value investment trust formed jointly by two or more local governments. - Permits investment in commercial paper (short-term corporate debt) issued by companies rated at least P-1, A-1, or F-1 by major credit rating agencies. - Leaves all previously authorized investment types, such as U.S. and state government obligations and repurchase agreements, unchanged. ### Who it affects City and county governments and other local government bodies in Georgia that manage and invest public funds, along with the financial officers who make investment decisions on their behalf. ### Why it matters Local governments would gain more places to put taxpayer money while it sits uninvested, potentially earning different returns than under current law. The change affects how cities and counties manage cash reserves, not how much money they have to spend. ### Key provisions - Section 1 revises paragraph (1) of subsection (a) of O.C.G.A. § 36-83-4, the code section governing which investments local governments may make. - Adds subparagraph (I) allowing investment in no-load, open-end management type investment companies or trusts registered under the federal Investment Company Act of 1940. - Adds subparagraph (J) allowing investment in a commingled stable net asset value investment trust created by intergovernmental agreement among two or more local governments. - Adds subparagraph (K) allowing investment in commercial paper from domestic corporations rated P-1 (Moody's), A-1 (Standard and Poor's), or F-1 (Fitch). - Section 2 repeals any conflicting laws. ## Status - Status: Introduced (2025-03-27) - Last action: House Second Readers (2025-03-31) - Sponsors: Victor Anderson, Bruce Williamson, Kimberly New, David Clark, Ron Stephens, Billy Mitchell - Official page: https://www.legis.ga.gov/legislation/71804 > The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb871.md?full=1