Investment of public funds-fixed interest bearing deposits.

2018
STATE OF WYOMING
18LSO-0207
Numbered
1.2

HOUSE BILL

NO.
HB0024

Investment of public funds-fixed interest bearing deposits.

Sponsored by:
Joint Minerals, Business & Economic Development Interim Committee

A BILL

for

AN ACT relating to public funds; authorizing investment of public funds in fixed interest bearing deposits as specified; conforming provisions; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section
1
.

W.S.
9
‑
4
‑
802,
9
‑
4
‑
812,
9
‑
4
‑
817(d)(i), 9
‑
4
‑
824 and
9
‑
4
‑
831(a)
by creating a new paragraph
(
xx
v
iii
)

are
amended to read:

9
‑
4
‑
802
.

Board of deposits; application; designation of depositories; revocation of designation.

A bank applying to be a state depository shall file a written application with the secretary of the board of deposits. The application shall be accompanied by a sworn statement of the financial condition of the bank at the time the application is made and a certified resolution providing proper authority of the depository. The secretary of the board of deposits shall review all applications, prepare a recommendation regarding each, and submit a list of all applicants and his recommendations to the board. The secretary of the board shall prepare a list of all financial institutions of the state which are approved by the board to be depositories. The chairman and the secretary of the board shall certify the list to the bank collateral officer who is designated by the state treasurer. Once the bank collateral officer is designated, the state treasurer shall provide a written order to the bank declaring it a state depository until its authority is revoked by the board. Each year, designated state depositories shall submit a current statement of condition,
a certified copy of a resolution indicating its authority to act as a state depository has not been revoked and any other information the secretary of the board deems necessary. If, at any time state funds are on deposit with a state depository, a state depository is subject to any public enforcement action by any federal or state regulatory entity, the state depository shall notify the secretary of the board of the regulatory action if the action is not confidential. The board may revoke a bank's designation as a state depository at any time
,
except that
, absent a default by the state depository,
no time deposit, open account shall be withdrawn from a state depository prior to the date of maturity without providing forty
‑
five (45) days prior written notice
, absent a default by the state depository

and funds invested in fixed
interest
bearing deposits under W.S. 9
‑
4
‑
831(a)(xxviii) shall be withdrawable accordin
g to the terms of the contract under which the funds are invested
.

9
‑
4
‑
812
.

Withdrawals of state funds; liability of treasurer for money or bond loss.

Th
e state treasurer or his authorized deputy may withdraw any and all funds deposited for the purpose of paying the appropriations and obligations of the state as lawfully required or whenever he deems it advisable or to the interests of the state to do so
,
except
that

funds deposited as time deposit, open account shall require notice in advance of withdrawal as specified in W.S. 9
‑
4
‑
809
and funds
invested

in fixed
interest
bearing deposits
under W.S. 9
‑
4
‑
831(a)(xxviii) shall be
withdrawable according to the terms of the contract

under which the funds are invested
. The state treasurer and his sureties are responsible for the faithful performance of the duties of the treasurer under the law, and for a proper accounting and turning over to his successor of all monies paid to the treasurer as such but he shall not be held personally liable for any monies that may be lost by reason of the failure or insolvency of any bank selected as a state depository nor for the deficiency or loss upon any surety bond or securities deposited by any bank, if the surety bond or securities were placed according to law, unless the loss could have been avoided by the exercise of reasonable care and diligence on the part of the treasurer
or his deputy, in which case the treasurer is liable to the state for the loss.

9
‑
4
‑
817
.

Deposits by political subdivisions; selected institutions; security; withdrawals.

(d)

Any bank, savings and loan association or federal savings bank, located in the state, may apply to keep the monies upon the following conditions:

(i)

All deposits are subject to payment when demanded by the proper treasurer on his check, order or demand, except that all funds deposited on time deposit, open account shall be withdrawable
,
under W.S. 9
‑
4
‑
809
and funds invested
in fixed
interest
bearing deposits
under W.S. 9
‑
4
‑
831(a)(xxviii) shall be
withdrawable according to the terms of the contract

under which the funds are invested
;

9
‑
4
‑
824
.

Liability of local treasurers for money loss; power to withdraw funds.

No county, city, town, school district, irrigation district or drainage district treasurer is liable on his official bond for money on deposit in any bank under and by direction of the proper legal authority and in conformity with law if the bank has given bond which has been approved as herein provided, except in cases where any loss could have been prevented by the exercise of reasonable care on the part of the treasurer.
T
he proper treasurer may withdraw any or all funds by him deposited in depositories whenever he deems it advisable or to the interests of the public which he represents, or to pay out money as by law required
, except
that
funds
invested

in fixed
interest
bearing deposits
under W.S. 9
‑
4
‑
831(a)(xxviii) shall be
withdrawable

according to the terms of the contract

under which the funds are invested
.

9
‑
4
‑
831
.

Investment of public funds.

(a)

The state treasurer, or treasurer of any political subdivision, municipality or special district of this state, and the various boards of trustees and boards of directors of county hospitals, airports, fairs and other
duly constituted county boards and commissions, may invest in:

(xxviii
)

Fixed i
nterest bearing
deposits
of
a
n

approved
public
depository
in this state

to the extent the
deposit
s

are

fully secured in the manner set forth in W.S. 9
‑
4
‑
807 and the investments are made
under a
written contract between the
public funds
depositor and depository
that:

(A)

Provides for a
fixed term
and
fixed rate of interest
which is based on market rates for comparable securities with similar terms
;

(B)

Provides that the contract's purpose

is to enable the

making
of
loans
by the depository
for a like term and amount
for projects or endeavors within
this state
;

(C)

Specifies withdrawal and termination requirements
and conditions;
and

(D)

Contains any other terms deemed necessary by the
public funds
depositor and depository to implement the contract.

Section 2
.

This act is effective July 1, 201
8
.

(END)

1
HB0024