HB 4801 — Relating generally to the banking authority of the State Treasurer’s Office

HB4801 SFATSUB1 SFA Azinger #1 2-6Casey2-5Casey  7988 Senator Azinger moved to amend the bill by striking out everything after the titleenacting clause and substitutinginserting thereforin alieu newthereof title,the tofollowing:  readARTICLE as1. follows:Eng.

Com.STATE DEPOSITORIES.

Sub.§12-1-1b.

forProhibited Houseclauses Billin 4801—State ATreasurer Billcontracts. to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §12-1-1b;

(a) Any term or condition in any contract entered into by the State Treasurer shall be void ab initio to amendthe extent that it requires the State Treasurer to agree to or abide by a term and reenactcondition §12-1-5prohibited in §5A-3-62 of saidthis code;code.

and(b) toNo amendofficial, andemployee, reenactagent, §12-1B-5or representative of the State Treasurer may contravene this section, and §12-1B-7no oforal saidor code,written allexpression relatingof generallyconsent to theany bankingterm andor contractualcondition authoritydeclared ofvoid theab Stateinitio Treasurer’sby Office;this section, or signature on a contract, may be deemed as such.

settingAny forthcontract prohibitedthat termscontains anda conditionsterm inor Statecondition Treasurerdeclared contractsvoid consistentab withinitio generalby restrictionsthis onsection othershall stateotherwise contracts;be enforceable as if it did not contain such term or condition.

authorizingAll rulemakingcontracts entered into by the State Treasurer;Treasurer, except for contracts with another government, shall be governed by West Virginia law notwithstanding any term or condition to the contrary.

and§12-1-5. requiring advance announcement by the State Treasurer of the West Virginia Security for Public Deposits Program commencement date by publication in the State Register.     AdoptedRejected

Limitation on amount on deposit;

dedicated method;

rules.

 (a) The amount of state funds on deposit in any depository in excess of the amount insured by an agency of the federal government shall be secured by a deposit guaranty bond issued by a valid bankers' surety company or by other securities acceptable to the State Treasurer, pursuant to the dedicated method as defined in §12-1B-4 of this code, in an amount of at least 102 percent of the amount on deposit.

The value of the collateral shall be determined by the State Treasurer.(b) The State Treasurer shall may propose rules for legislative approval in accordance with the provisions of §29A-3-1 et seq.

of this code and may promulgate emergency rules pursuant to the provisions of §29A-3-15 of this code as are necessary to effectuate the provisions of this section.(c) For the purposes of this section, the term "dedicated method" means the securing of public deposits without accepting the contingent liability for the losses of public deposits of other designated state depositories as provided in this section.

ARTICLE 1B.

WEST VIRGINIA SECURITY FOR PUBLIC DEPOSITS ACT.

§12-1B-5.

West Virginia Security for Public Deposits Program established authorized.

 The West Virginia Security for Public Deposits Program is hereby established authorized.

The State Treasurer shall announce the commencement of the West Virginia Security for Public Deposits Program, at which time the requirements of this article become effective, by publishing a notice in the State Register at least 30 days prior to commencement of the program.

The Treasurer shall implement and administer the West Virginia Security for Public Deposits Program under the terms and conditions required by this article.

The Public Deposits Program shall be operable on or before March 1, 2024.  §12-1B-7.

Powers and duties of the State Treasurer;

rules;

charges;

contracts.

 In order to implement and administer the Public Deposits Program, the State Treasurer shall may:(1) Propose rules for legislative approval in accordance with the provisions of §29A-3-1 et seq.

of this code and may promulgate emergency rules pursuant to the provisions of §29A-3-15 of this code as are necessary to effectuate the provisions of this article, including, but not limited to, the following:(A) The terms and conditions under which public deposits must be secured;(B) The method for determining the pooled collateral requirements based on the balance of public funds held in the designated state depository in excess of funds insured by an agency of the federal government and the evaluation of the overall financial condition of the designated state depository;(C) The collateral requirements and collateral pledging level for each designated state depository as determined to be prudent under the circumstances and based on nationally recognized financial rating services information and established financial performance guidelines;(D) The securities or instruments that constitute eligible collateral under this article and the percentage of face value or market value of such securities or instruments that can be used to secure public deposits;(E) Reporting requirements for designated state depositories;

(F) The process for a designated state depository to withdraw from the pooled method of securing public deposits and instead be governed by the procedures for securing such deposits by the dedicated method or other approved method permitted in this code, consistent with the primary purpose of protecting public deposits;(G) The process for determining when a default or insolvency has occurred, or is likely to occur, and the actions necessary for the protection, collection, compromise, or settlement of any claim arising in case of default or insolvency;(H) Requirements for the payment of losses by pooled or dedicated methods;

and (I) Any and all guidelines necessary and proper for the full and complete administration of this article;(2) Charge and collect any necessary administrative fees, fines, penalties, and service charges in connection with the Public Deposits Program or any agreement, contract, or transaction pursuant to this article;(3) Execute contracts, agreements, or other instruments for goods and services necessary to effectuate this article, including agreements with designated state depositories or any other entity.

Selection of these services is not subject to §5A-3-1 et seq.

of this code;

and (4) Perform all other lawful actions necessary to effectuate the provisions of this article, subject to applicable state and federal law.   AdoptedRejected