Committee approves measure to tighten state oversight of local government investment pools
February 19, 2026 | 2026 Legislature Georgia, Georgia
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The Georgia Senate Banking Committee voted unanimously to advance a proposal that would require state oversight of any local government investment pools (LGIPs) offered to other local governments or public funds.
State Treasurer Steve McCoy described the measure as a guardrail to prevent unregulated pools from exposing municipalities to elevated risk. ‘‘We manage billions across our state for institutions that are there,’’ McCoy said, noting the scale and professional resources available at the treasurer’s office.
Treasury testimony described LGIPs as trust structures that allow local governments and state agencies to co-invest short-term funds while preserving liquidity; the sponsor and treasurer said the bill would require new LGIPs marketed to other public entities to meet the state depository board’s governance and audit standards and would not impose costs to the state’s general fund because user fees or contract structures would cover implementation.
Committee members pressed for clarification on whether counties and cities could still manage funds intergovernmentally; witnesses said local governments could continue to pool funds among themselves, but any pool marketed more broadly would need board approval and to meet the same criteria used for the state-managed pools.
Senators moved, seconded and recorded a unanimous vote to pass the measure out of committee. Committee chair and members said the bill preserves the longstanding protections afforded by Georgia’s LGIP trust while preventing the creation of unregulated, market-facing local pools.
The committee recorded no registered opposition on the sign-up list during today’s session.
State Treasurer Steve McCoy described the measure as a guardrail to prevent unregulated pools from exposing municipalities to elevated risk. ‘‘We manage billions across our state for institutions that are there,’’ McCoy said, noting the scale and professional resources available at the treasurer’s office.
Treasury testimony described LGIPs as trust structures that allow local governments and state agencies to co-invest short-term funds while preserving liquidity; the sponsor and treasurer said the bill would require new LGIPs marketed to other public entities to meet the state depository board’s governance and audit standards and would not impose costs to the state’s general fund because user fees or contract structures would cover implementation.
Committee members pressed for clarification on whether counties and cities could still manage funds intergovernmentally; witnesses said local governments could continue to pool funds among themselves, but any pool marketed more broadly would need board approval and to meet the same criteria used for the state-managed pools.
Senators moved, seconded and recorded a unanimous vote to pass the measure out of committee. Committee chair and members said the bill preserves the longstanding protections afforded by Georgia’s LGIP trust while preventing the creation of unregulated, market-facing local pools.
The committee recorded no registered opposition on the sign-up list during today’s session.
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