Bill No.:                     HB0188                                 Drafter:  MDO

LSO No.:                   13LSO-0525                         Effective Date:  7/1/2013

Enrolled Act No.:    HEA0040

Chapter No.:            CH0068

Prime Sponsor:       Representative Stubson

Catch Title:              Investment of public funds-interest bearing deposits.

Subject:                     Administration of the Government.

Summary/Major Elements:

· Currently in statute, the state treasurer or treasurer of any political subdivision of the state may invest public funds in “certificates of deposit.”

·  This act expands the allowable investments of state funds to include all “interest bearing deposits” in certain specified federal savings banks or savings and loan associations.  “Interest bearing deposits” include previously authorized “certificates of deposit.”

· Removes the timing requirement that investment of public funds in an interest bearing deposit in a federal savings and loan association or federal savings bank may be made if the depository “simultaneously” arranges for the deposit of the public funds in interest bearing deposits in one or more banks or savings and loan associations or federal savings banks wherever located in the U.S. for the account of the public funds depositor.