Bill Text: OR SJM10 | 2011 | Regular Session | Introduced

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Bill Title: Urging Congress to enact legislation to assist in establishing a voluntary system of full insurance for public funds accounts.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [SJM10 Detail]

Download: Oregon-2011-SJM10-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 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
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 LC 1846

                    Senate Joint Memorial 10

Sponsored by Senator EDWARDS (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.

  Urges Congress to enact legislation to assist Federal Deposit
Insurance Corporation and National Credit Union Share Insurance
Fund in establishing voluntary system of full insurance for
public funds accounts.

                         JOINT MEMORIAL
To the President of the United States and the Senate and the
  House of Representatives of the United States of America, in
  Congress assembled:
  We, your memorialists, the Seventy-sixth Legislative Assembly
of the State of Oregon, in legislative session assembled,
respectfully represent as follows:
  Whereas the State of Oregon and its local governments have
hundreds of millions of dollars held in banks and credit unions
that serve as public depositories; and
  Whereas those funds are secured by a public funds collateral
pool among all of Oregon's public depositories, which has been
tested by economic conditions and bank failures and found to be
secure; and
  Whereas providing that security comes at the cost of a further
constriction of capital available for lending and takes hundreds
of millions of dollars out of circulation; and
  Whereas collateralization rules vary widely from state to
state, creating a myriad of different systems that discourage
bank and credit union participation; and
  Whereas the Federal Deposit Insurance Corporation recently
established the Temporary Liquidity Guarantee Program to fully
insure personal and public deposits at participating
depositories; and
  Whereas a nationally standardized system would increase bank
and credit union participation and provide additional depository
options for local governments without a loss of available
capital; now, therefore,
Be It Resolved by the Legislative Assembly of the State of
  Oregon:
  (1) The Congress of the United States of America is urged to
enact legislation that:
  (a) Assists the Federal Deposit Insurance Corporation and the
National Credit Union Share Insurance Fund in establishing a
voluntary system of full insurance for public funds accounts; and

  (b) Allows, but does not require, states to discard
state-specific public fund depository collateralization in favor
of the new Federal Deposit Insurance Corporation or National
Credit Union Share Insurance Fund system on a permanent basis,
thereby freeing up capital used as collateral.
  (2) A copy of this memorial shall be sent to the President of
the United States, the Senate Majority Leader, the Speaker of the
House of Representatives and each member of the Oregon
Congressional Delegation.
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