1. (a) As used in this section, "investment pool" means the local government investment pool established by subsection (b).
2. (b) The local government investment pool is established within the office and custody of the treasurer of state.
3. (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.
4. (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.
5. (e) 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 .

6. (f) The treasurer of state:

   1. (1) shall administer the investment pool; and
   2. (2) 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.

7. (g) The treasurer of state shall establish and make public the policies that the treasurer of state will follow to ensure the efficient administration of and accounting for the investment pool. The policies must provide the following:

   1. (1) There is not a minimum time for which funds paid into the investment pool must be retained by the investment pool.
   2. (2) 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.
   3. (3) 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.
   4. (4) 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.

   5. (5) The state and each unit of government participating in the investment pool shall receive electronic or paper reports, including:

      1. (A) a daily transaction confirmation, reflecting any activity in the state's or unit's account; and

      2. (B) a monthly report showing:

         1. (i) the state's or unit's investment activity in the investment pool; and
         2. (ii) the performance and composition of the investment pool.
   6. (6) The investment pool shall be audited at least annually by an independent auditing firm, with an electronic or a paper copy of the audit provided to the state and each unit of government participating in the pool.
   7. (7) No less than fifty percent (50%) of funds available for investment shall be deposited in banks qualified to hold deposits of participating local government entities.
8. (h) 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 auditor of state 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 auditor of state to cease wiring the funds as previously directed by the unit.

As added by P.L.117-2007, SEC.1.