Bill Text: OR HB4139 | 2012 | Regular Session | Introduced

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Bill Title: Relating to depositories of public funds.

Sponsorship: Partisan Bill (Democrat 9)

Status: (Failed) 2012-03-05 - In committee upon adjournment. [HB4139 Detail]

Download: Oregon-2012-HB4139-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2012 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 260

                         House Bill 4139

Sponsored by Representative DOHERTY; Representatives BAILEY,
  BARNHART, BUCKLEY, DEMBROW, FREDERICK, HUNT, KOTEK, WITT
  (Presession filed.)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Directs public officials to deposit public funds in certain
community banks. Directs public officials, to extent practicable,
to transfer deposited public funds to community banks not later
than January 1, 2014.
  Directs State Treasurer to study feasibility of increasing
investment of state moneys in community banks and to file report
with Legislative Assembly not later than date of convening of
2013 regular session of Legislative Assembly.

                        A BILL FOR AN ACT
Relating to depositories of public funds.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2012 Act is added to and made
a part of ORS 295.001 to 295.108. + }
  SECTION 2.  { + (1) A public official shall deposit public
funds with a community bank if:
  (a) The community bank is a depository that complies with ORS
295.008; and
  (b) The cost to the public official for the community bank to
provide banking services, when multiplied by a factor of 0.9, is
lower than the cost for a depository that is not a community bank
to provide the same banking services.
  (2) As used in this section, 'community bank' means:
  (a) An insured institution that is organized under the
provisions of ORS chapter 707 and has its principal place of
business in this state;
  (b) A credit union, as defined in ORS 723.006, that has its
principal place of business in this state; or
  (c) An interstate credit union, as defined in ORS 723.001, that
is chartered under ORS chapter 723 and has its principal place of
business in this state. + }
  SECTION 3.  { + To the extent practicable, not later than
January 1, 2014, a public official that has deposited public
funds in a depository qualified under ORS 295.001 to 295.108
shall transfer the public funds to a community bank, as defined
in section 2 of this 2012 Act, in accordance with section 2 of
this 2012 Act. + }
  SECTION 4.  { + (1) The State Treasurer, in consultation with
the Oregon Investment Council, shall:
  (a) Study the feasibility of increasing state investment in
certificates of deposit at community banks for the purpose of
promoting community investment in this state by community banks;
and
  (b) Identify the portion of moneys in the State Treasury that
are not needed to meet short-term liquidity needs and propose an
investment program for the remaining moneys that is aimed at
increasing community bank lending to persons in this state.
  (2) In complying with subsection (1) of this section, the State
Treasurer shall balance investment priorities, in a manner
consistent with fiduciary standards, including the provisions of
ORS 293.721 and 293.726, with the need for an investment program
that provides community banks with additional reserves to lend to
persons in this state.
  (3) The State Treasurer shall submit a report, and may include
recommendations for legislation, to the Legislative Assembly no
later than the date of the convening of the regular session of
the 2013 Legislative Assembly as specified in ORS 171.010. The
report shall be made in the manner prescribed by ORS 192.245.
  (4) As used in this section, 'community bank' means:
  (a) An insured institution that is organized under the
provisions of ORS chapter 707 and has its principal place of
business in this state;
  (b) A credit union, as defined in ORS 723.006, that has its
principal place of business in this state; or
  (c) An interstate credit union, as defined in ORS 723.001, that
is chartered under ORS chapter 723 and has its principal place of
business in this state. + }
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