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Bill to change advisory-board membership for public deposit investment pool advances after amendment adding executive-council review
Summary
House Bill 469 would add a municipal manager to the Public Deposit Investment Pool advisory board and reduce banker representation; lawmakers also adopted an amendment to require the adviser contract to go before the governor and executive council.
Representative Jim Majori (Rockingham 23) introduced House Bill 469, proposing to add a member of the New Hampshire Municipal Managers Association (MMNH) to the Public Deposit Investment Pool (PDIP) advisory board and to reduce banker representation by one seat.
Majori said municipal managers oversee fiscal and fiduciary responsibilities for towns and that including a manager would add practical, local-government perspective to advisory oversight. He said the change was not intended to displace bankers but to lessen a perceived conflict of interest because banks have been vendors to the PDIP.
Mike McLaughlin, representing PFMS (the PDIP investment adviser), testified neutrally and outlined the PDIP’s sole fiduciary purpose: maximizing return to shareholder cities and towns. He observed that oversight of the PDIP had recently moved from the banking department to the state treasurer and described concerns about divided loyalties if bankers held multiple roles in oversight and in private banking business.
Christy Merrill, president of the New Hampshire Bankers Association, opposed removing a bank representative and urged that bankers’ expertise remains essential—especially after recent statutory changes that direct the investment adviser to strive to place PDP funds in New Hampshire banks. Merrill said bankers are not opposed to the additional municipal-manager seat but asked that removing a banker seat be reconsidered.
Executive Councilor John Stevens and others sought—and the committee accepted—an amendment to require that the PDIP’s adviser contract be submitted to the governor and executive council for approval, adding an extra layer of public-contract oversight. The committee approved the bill as amended and moved it to pass by consent.
Committee discussion included whether PDIP funds should be set aside for in-state banks (witnesses said any such placements must still meet fiduciary duties) and concerns about perceived conflicts when an advisory board includes vendor institutions. The sponsor and witnesses emphasized the PDIP’s fiduciary obligation to maximize returns for shareholder municipalities.
