Date: 12/13/2013

Final
Department of Treasury SMART Act Presentation

COMMITTEE ON JOINT FINANCE

Votes: View--> Action Taken:
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11:25 AM -- Department of Treasury SMART Act Presentation

 The Senate members of the committee left the meeting to swear in their newest member.

Brett Johnson, Deputy Treasurer, came to the table. He provided the committee with a copy of his presentation (Attachment E). Mr Johnson stated that the department recently updated its performance plan, but that it was still looking for ways to improve it ahead of the July 1, 2014 deadline for completion of the plan. He also noted that the department does not fall under the Office of State Planning and Budgeting, and therefore has unique reporting requirements as part of the SMART Act. He proceeded with an overview of the department's recent activities and the changes that have been made in recent years, covering the financial management policies of the Treasury and where they currently stand. Mr. Johnson stated that the department is now 100 percent in compliance with Securities and Exchange Commission and federal requirements for reporting and disclosure.

13JtFinance1213AttachE.pdf13JtFinance1213AttachE.pdf

11:34 AM

Representative Priola asked about a prison that the state built using certification of participation (COPs) that has remained empty due to difficulties and technicalities in finding a tenant. Mr. Johnson stated that the public sector is benefiting from tax-exempt rates on its COPs, and that the department could only work with the federal government or private sector by turning these projects into taxable enterprises. He noted that the financing has been restructured so that the department can consider private enterprises as tenants of the prison and avoid any forms of arbitrage in leasing the prison in a for-profit manner.

Representative Becker asked Mr. Johnson about the Treasury's refinancing opportunities, and what the process is that they use to look at refinance rates. Mr. Johnson spoke to the refinance consideration process of the office, and said that the state has no debt, as COPs are not technically debt, meaning that there are few refinancing needs or options.


11:39 AM

Mr. Johnson spoke to the state's financial obligation policy, and noted again that the state does not have any true debt. Mr. Johnson mentioned that the state has a $9 billion investment portfolio. He continued with an overview of the department's performance measures and goals, and appropriations that are being sought for the Treasury with the Joint Budget Committee.

Representative Court asked Mr. Johnson about the state's unclaimed property program, and how long it can hold property before it can be sold. Mr. Johnson responded, noting that it depends on the type of property held by the state. He then described the overall size of unclaimed property held by the state and the obligations that the state has with this property.