HB2879 HFIN FBM

HOUSE COMMITTEE ON BANKING & INSURANCE

FLOOR BOOK MEMO

H. B. 2879 (Relating to certain limitations on amount of state funds on deposit in any depository.)

Sponsors:             Delegates Walters, Frich, Azinger, Shott, Nelson, E., Deem, Waxman, White, B., and Ashley

Attorney:              AC 

Date:                     February 24, 2015

Title:                     Ok

Fiscal Note:          No

Code:                    §12-1-5 (amend)

Purpose: The bill would amend the provisions of the WV Code relating to limitations on state deposits. Current code limits the amount of state funds in any depository in excess of the amount insured by an agency of the federal government or the amount insured by a deposit guaranty bond to not exceed 90% of the value of collateral pledged on the collaterally secured bond given by the depository. This would require the depository to have secured by approximately 111% the amount of state deposit beyond that guaranteed by the FDIC. The bill would rewrite the provisions of the section and limit the amount to be secured by the depository in excess of the amount insured by an agency of the federal government to 102% of the amount on deposit.

Committee Action: The Committee on Banking and Insurance reported the bill without amendment.

Effective Date:     Regular