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Senate Bill Report SB 5106 — Municipal Access to Local Financial Services (January 20, 2021)

Summary

A Senate Bill Report on SB 5106, as of January 20, 2021, for the Senate Committee on Business, Financial Services & Trade, with committee activity listed on 1/21/21. The bill's title is An act relating to municipal access to local financial services. The Brief Summary says the bill removes the requirement that limits credit unions from accepting public deposits greater than the maximum insured amount from a county with a population greater than 300,000. The report lists the appropriation as none, a fiscal note as available, and an effective date of ninety days after adjournment of the session in which the bill is passed.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2021-01-21
Case
2021 01 21 A28239 D224921 Bill Report 5106 Sba Bfst 21

Cite this document

“Senate Bill Report SB 5106 — Municipal Access to Local Financial Services (January 20, 2021).” Original at app.leg.wa.gov, dated 2021-01-21. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-01-21-2021-01-21-a28239-d224921-bill-report-5106-sba-bfst-21/, SHA-256 d63b3318ee60dc2ac13991d2a53f7b820c1dc5bcd083760a064f6435f4b0b577.

Full text

                             SENATE BILL REPORT
                                   SB 5106

                                      As of January 20, 2021

Title: An act relating to municipal access to local financial services.

Brief Description: Concerning municipal access to local financial services.

Sponsors: Senators Liias, Rivers and Wilson, C..

Brief History:
     Committee Activity: Business, Financial Services & Trade: 1/21/21.


                                      Brief Summary of Bill
           • Removes the requirement that limits credit unions from accepting public
             deposits greater than the maximum insured amount from a county with a
             population greater than 300,000, or from public funds depositors located
             in a county with a population greater than 300,000 persons.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Clinton McCarthy (786-7319)

     Background: Public funds may be deposited in a bank or trust company, savings bank,
     savings association, or a credit union under certain circumstances, that has been designated
     as a public depositary by the Washington Public Deposit Protection Commission
     (commission). "Public funds" means money, including money held in trust, belonging to or
     held for the state, its political subdivisions, municipal corporations, agencies, courts, boards,
     commissions, or committees.

     To be approved as a public depositary, a bank, credit union, or thrift must meet minimum
     requirements of the commission and must pledge securities as collateral to protect public
     funds on deposit above the amounts insured under the Federal Deposit Insurance
     Corporation. If the deposit insurance and the collateral pledged by a failed institution are



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                             SB 5106
     insufficient to reimburse, all public depositors, the other public depositaries, as part of the
     public depositary pool, are each assessed a proportionate share of the shortfall.

     The commission may request a public depositary to furnish information on its financial
     condition, public deposits, and on the exact status of its net worth. The commission may
     take any action deemed advisable for the protection of public funds and to establish
     procedures for collection or settlement of claims arising from the failure of a public
     depositary.

     In 2018, statute was amended to include credit unions in the definition of public
     depositories. Credit unions are allowed to accept public deposits greater than the maximum
     insured amount from a county with a population of 300,000 persons or less, or from public
     funds depositors located in a county with a population of 300,000 persons or less. Credit
     unions that receive public deposits must meet all of the minimum requirements of the
     commission, must pledge securities as collateral to protect public funds on deposit, and
     must participate in the public depository pool. The Department of Financial Institutions is
     permitted to rely on information from the National Credit Union Association regarding
     credit unions when investigating or examining public depositories.

     Summary of Bill: The condition that limits credit unions from accepting public deposits
     greater than the maximum insured amount from a county with a population greater than
     300,000, or from public funds depositors located in a county with a population greater than
     300,000 persons is eliminated.

     Appropriation: None.

     Fiscal Note: Available.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                              -2-                                         SB 5106

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2021-01-21_a28239_d224921_bill-report-5106-sba-bfst-21.pdf
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Our copy
2021-01-21_a28239_d224921_bill-report-5106-sba-bfst-21.pdf
Original
app.leg.wa.gov
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