SB 455 — Relating generally to banking and contractual authority of State Treasurer’s Office

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee Substitute for Senate Bill 455 ByBYSENATORS SenatorsNELSON, Nelson,TARR,ANDAZINGER Tarr,[Originating andin Azingerthe [IntroducedCommittee Januaryon 15,Banking 2024;and Insurance;

referredreported toJanuary the30, Committee2024] onCS Bankingfor and Insurance] Intr SB 455 2024R2952S 2024R2910H A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §12-1-1b;

and to amend and reenact §12-1B-5 of said code;code, all relating generally to the banking and contractual authority of the State Treasurer's Office and the West Virginia Security for Public Deposits Program;

allsetting relatingforth generallyprohibited toterms theand bankingconditions authorityin ofState theTreasurer Statecontracts Treasurer'sconsistent Office;with general restrictions on other state contracts;

settingproviding forththat prohibitedthe clauses in State Treasurer contractsmay consistentpropose withrules generalfor restrictionslegislative onapproval otherto stateimplement contracts;the West Virginia Security for Public Deposits Program;

providingand thatrequiring advance announcement by the State Treasurer mayof implementthe commencement of the West Virginia Security for Public Deposits Program;Program by publication in the State Register.

and requiring announcement of the West Virginia Security for Public Deposits Program commencement date on the State Treasurer's website.

(a) NotwithstandingAny term or condition in any exemptioncontract fromentered into by the requirementsState ofTreasurer §5A-3-1shall etbe seq.void ab initio to the extent that it requires the State Treasurer to agree to or abide by a term and condition prohibited in §5A-3-62 of this code.

of(b) thisNo code,official, aemployee, conditionagent, enteredor intorepresentative byof the State Treasurer ismay voidcontravene tothis thesection, extentand thatno itoral requiresor thewritten Stateexpression Treasurerof consent to agreeany toterm or abidecondition bydeclared avoid contractab clauseinitio orby conditionthis prohibitedsection, inor §5A-3-62signature ofon thisa code,contract, asmay thatbe sectiondeemed appliesas tosuch. spending units.

(b)Any Nocontract official,that employee,contains agent,a term or representativecondition ofdeclared thevoid Stateab Treasurerinitio mayby contravene this section,section andshall nootherwise oralbe orenforceable writtenas expressionif ofit consentdid tonot anycontain such term or conditioncondition. declared void by this section, or signature on a contract, may be considered as such.

Any contract that contains a term or condition declared void by this section shall otherwise be enforceable as if it did not contain such term or condition.

(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 CS for SB 455 a valid bankers' surety company or by other securities acceptable to the State Treasurer, pursuant to Intr SB 455 2024R2952S 2024R2910H 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.

(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.

The requirementsState ofTreasurer this article shall becomeannounce effective upon the datecommencement of the West Virginia Security for Public Deposits ProgramProgram, commences,at which time the Staterequirements Treasurerof shallthis announcearticle become effective, by publishing a notice onin the WestState VirginiaRegister Stateat Treasurer'sleast Office30 website.days prior to commencement of the program.

The Public Deposits Program shall be operable on or before March 1, 20242024. NOTE:

The purpose of this bill is to set forth prohibited clauses in State banking contracts and to remove the date by which the Public Deposits Program must be operable under the West Virginia Security for Deposits Act to allow discretion for program implementation.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.