Committee approves bill allowing spaceport district to invest excess proceeds in local government pool

House Bill 261, as amended, would allow a regional spaceport tax district to invest excess funds in the State Treasurer’s Local Government Investment Pool rather than through the State Investment Council; the committee approved the amended bill with an 11-0 vote.

Representative Dowd presented the bill, describing it as a “cleanup” measure to give the spaceport district shorter-term investment flexibility and access to higher rates of return. County Commissioner Paxton of Sierra County, representing one of the three counties that benefit from the tax district, told the committee the district collects a 2/8ths percent tax used first to pay a bond and to remit 25% of proceeds to county education funds; he said the district currently has excess funds that the county would like to invest in local infrastructure at the spaceport.

An amendment was offered and adopted to remove authority for the State Investment Council and instead transfer investment authority to the State Treasurer; the amendment also included an emergency clause so the authority could be used immediately. Representative Schroeder and other members asked questions about the functional difference: supporters described the treasurer’s pool as providing short-term liquidity and flexibility compared with longer-term State Investment Council options.

Commissioner Paxton said the excess balance currently available to invest is approximately $21,000,000 and confirmed that the bill would not change the monthly intercept that sends 25% of proceeds to the schools or payments to the bond; the bill would apply only to excess funds after those obligations. The committee did not provide additional details about ongoing oversight or reporting requirements beyond the statutory change proposed in the bill.

The committee voted to give HB 261 a due-pass recommendation as amended by voice and roll call; the final tally announced in committee was 11 yes, 0 no.