SENATE BILL REPORT

SB 5343

BYSenator Moore

Revising criteria for public depositaries.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 2, 1989

Senate Staff:Beverly Tweddle (786-7403)

AS OF JANUARY 31, 1989

BACKGROUND:

State law governs where public funds may be deposited.  A situation could arise in which public funds are deposited in thrifts which are owned primarily by out-of-state interests or which conduct their operations principally out of state.  There is no prohibition against this practice.

SUMMARY:

Public funds cannot be deposited in thrifts which are owned primarily by out-of-state interests or whose operations are principally conducted out of state.  Such out-of-state thrifts are defined as "foreign thrifts."

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested