AL
Alabama House Bill HB85

Alabama 2022 Regular Session

Alabama House Bill HB85 Compare Versions

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11 1 HB85
2-2 215946-2
2+2 215946-1
33 3 By Representative Garrett
44 4 RFD: State Government
55 5 First Read: 11-JAN-22
66
7-Page 0 1 ENGROSSED
7+Page 0 1 215946-1:n:12/27/2021:LK/bm LSA2021-2628
88 2
99 3
10-4 A BILL
11-5 TO BE ENTITLED
12-6 AN ACT
10+4
11+5
12+6
1313 7
14-8 Relating to public deposits; to amend Section
15-9 41-14A-6, Code of Alabama 1975, relating to the composition
16-10 and operation of the Security for Alabama Funds Enhancement
17-11 (SAFE) Program board of directors, to provide for the use of
18-12 virtual technology to participate in meetings, and to require
19-13 compliance with the Alabama Open Meetings Act.
20-14 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
21-15 Section 1. Section 41-14A-6, Code of Alabama 1975,
22-16 is amended to read as follows:
23-17 "§41-14A-6.
24-18 "(a) There is hereby established a Board of
25-19 Directors of the SAFE Program charged with responsibility and
26-20 authority to assess and manage the sufficiency of the
27-21 collateral pool and the SAFE Program to provide adequate
28-22 protection from losses to public depositors. In exercising its
29-23 powers and performing its responsibilities, the board of
30-24 directors shall constitute a body politic under the laws of
31-25 the state performing the public function of assuring the
32-26 safety of public deposits.
33-Page 1 1 "(b)(1) The State Treasurer shall be a permanent,
34-2 standing, voting member of the board of directors and shall
35-3 serve as its chair. The Superintendent of Banks shall be a
36-4 permanent, standing, non-voting member of the board of
37-5 directors. The remaining six members shall each possess
38-6 knowledge, skill, and experience in one or more of the
39-7 following areas:
40-8 "(1)a. Financial analysis.
41-9 "(2)b. Trend analysis.
42-10 "(3)c. Accounting.
43-11 "(4)d. Banking.
44-12 "(5)e. Risk management.
45-13 "(6)f. Investment management.
46-14 "(2) The remaining six members shall be comprised of
47-15 four members each of whom shall be a representative of an
48-16 active qualified public depository, which is not in the
49-17 process of withdrawing from the SAFE Program and which is in
50-18 compliance with all applicable rules, regulations, and
51-19 reporting requirements of this chapter, one of whom will be
52-20 selected and approved by the State Treasurer and three of whom
53-21 shall be selected and approved by the State Treasurer from
54-22 three or more nominations submitted by the Alabama Bankers
55-23 Association (or any successor association or entity, or, if no
56-24 such association or successor association or entity shall then
57-25 exist, submitted by the Superintendent of Banks); one member
58-26 who shall be a representative of a municipality within the
59-27 state and who will be selected and approved by the State
60-Page 2 1 Treasurer from one or more nominations submitted to the State
61-2 Treasurer by the League of Municipalities of Alabama; and one
62-3 member who shall be a representative of a county within the
63-4 state and who will be selected and approved by the State
64-5 Treasurer from one or more nominations submitted to the State
65-6 Treasurer by the Association of County Commissions of Alabama.
66-7 "(3) The appointing authorities shall coordinate
67-8 their appointments to ensure the membership is inclusive and
68-9 reflects the racial, gender, geographic, urban, rural, and
69-10 economic diversity of the state.
70-11 "(3) (4) The terms of the members of the board of
71-12 directors other than the State Treasurer and the
72-13 Superintendent of Banks shall be four years, except that, with
73-14 respect to the initial appointments, as determined by the
74-15 State Treasurer, one member will serve one year, one member
75-16 will serve two years, two members will serve three years, and
76-17 two members will serve four years. Any person appointed to
77-18 fill a vacancy on the board may serve only for the remainder
78-19 of the unexpired term. Any member is eligible for
79-20 reappointment and shall serve until a successor is selected.
80-21 "(4) (5) The chair shall annually designate a member
81-22 of the board of directors to serve as vice chair, and a
82-23 secretary who need not be a member of the board of directors.
83-24 The secretary shall keep a record of the proceedings of the
84-25 board of directors and shall be the custodian of all printed
85-26 materials filed with or by the board.
86-Page 3 1 "(5) (6) Notwithstanding the existence of vacancies
87-2 on the board of directors, two thirds of the voting members
88-3 then serving shall constitute a quorum. The board of directors
89-4 may not take official action in the absence of a quorum.
90-5 "(6) (7) The board of directors shall meet quarterly
91-6 and at other times deemed necessary to assess and manage the
92-7 operations of the SAFE Program.
93-8 "(7) (8) Meetings Except as otherwise specifically
94-9 provided in subdivision (8) only as it relates to virtual
95-10 participation of members of the board and the public, all
96-11 meetings and notice of meetings of the board of directors,
97-12 including meetings at which administrative fines and penalties
98-13 are established, shall be subject to the provisions of Section
99-14 13A-14-2, as amended, the Sunshine Law, except the Alabama
100-15 Open Meetings Act, Section 36-25A-1 et seq.; provided, that
101-16 sessions at which any information that is confidential under
102-17 the provisions of subsection (f) below shall not be subject to
103-18 Section 13A-14-2, and shall not be open to the public.
104-19 "(8) (9) Members of the board of directors or any
105-20 committee established by the board may participate in a
106-21 meeting of the board or committee by means of telephone
107-22 conference, video conference, or similar communications
108-23 equipment by means of which all persons participating in the
109-24 meeting may hear each other at the same time. Participation by
110-25 means authorized in this subdivision shall constitute presence
111-26 in person at a meeting for all purposes, including the
112-27 establishment of a quorum, to deliberate and to take action.
113-Page 4 1 The telephone or video conference or similar communications
114-2 equipment shall also allow members of the public the
115-3 opportunity to simultaneously listen to or observe meetings
116-4 held pursuant to this subdivision.
117-5 "(c) In adopting, amending or repealing any rule,
118-6 regulation, standard, or statement of general applicability,
119-7 the board of directors shall be subject to the applicable
120-8 requirements of the Alabama Administrative Procedure Act,
121-9 Chapter 22 of this title.
122-10 "(d) In connection with the assessment and
123-11 management of the sufficiency of the collateral pool and the
124-12 SAFE Program to provide adequate protection from losses to
125-13 public depositors, the board of directors shall be authorized
126-14 to exercise the following powers:
127-15 "(1) Designate financial institutions as qualified
128-16 public depositories and require such collateral, or increase
129-17 the collateral-pledging level, of any qualified public
130-18 depository as may be necessary to administer the provisions of
131-19 this chapter and to ensure the sufficiency of the collateral
132-20 pool and the SAFE Program to provide adequate protection from
133-21 losses to public depositors.
134-22 "(2) Establish guidelines for accepting, or for
135-23 reducing the reported value of, collateral as circumstances
136-24 may require in order to ensure the pledging of sufficient
137-25 marketable collateral to meet the purposes of this chapter.
138-26 "(3) Authorize the State Treasurer to issue
139-27 suspensions, disqualifications, administrative penalties, and
140-Page 5 1 cease and desist orders in accordance with Section 41-14A-7
141-2 against any qualified public depository that has violated any
142-3 of the provisions of this chapter or any rules, regulations,
143-4 or orders of the board of directors or the State Treasurer
144-5 adopted under this chapter.
145-6 "(4) Take such actions as the board of directors
146-7 shall consider to be necessary, appropriate, or desirable in
147-8 order to assess and manage the sufficiency of the collateral
148-9 pool and the SAFE Program to provide adequate protection from
149-10 losses to public depositors, including, without limitation:
150-11 "a. Establish procedures for the verification of the
151-12 reports of any qualified public depository relating to public
152-13 deposits it holds when necessary to ensure the availability of
153-14 adequate funds to pay any potential losses to public
154-15 depositors.
155-16 "b. Establish criteria, based on the overall
156-17 financial condition of the participants and applicants, as may
157-18 be necessary, to ensure the sufficiency of the collateral pool
158-19 and the SAFE Program to provide adequate protection from
159-20 losses to public depositors.
160-21 "c. Establish collateral-pledging levels based on
161-22 qualitative and quantitative standards.
162-23 "d. Establish rules and procedures for the State
163-24 Treasurer to monitor and confirm, as often as deemed necessary
164-25 by the State Treasurer, the pledged collateral held by
165-26 custodians.
166-Page 6 1 "e. Set requirements for the filing by qualified
167-2 public depositories, custodians, the State Treasurer, the
168-3 board's agents and contractors, and other persons of such
169-4 documents, reports, records, or other information deemed
170-5 necessary by the board of directors to monitor the sufficiency
171-6 of the collateral pool and the SAFE Program to provide
172-7 adequate protection from losses to public depositors,
173-8 including, without limitation:
174-9 "1. Require reports of each qualified public
175-10 depository to reflect the net average monthly balance of the
176-11 public deposits held by the qualified public depository and to
177-12 reflect the collateral pledged by qualified public
178-13 depositories under this chapter, which reports shall not be
179-14 required more frequently than monthly except in the case of
180-15 any qualified public depository that is then subject to
181-16 default or insolvency or is the subject of an order of
182-17 suspension or disqualification or a cease and desist order
183-18 issued by the State Treasurer.
184-19 "2. Require the submission of copies of quarterly or
185-20 annual financial and regulatory reports of qualified public
186-21 depositories.
187-22 "f. Direct the State Treasurer to maintain perpetual
188-23 inventory of pledged collateral.
189-24 "g. Perform, or direct the State Treasurer to
190-25 perform, financial analysis of any qualified public depository
191-26 as needed.
192-Page 7 1 "h. Establish a minimum amount of required
193-2 collateral as the board of directors deems necessary to
194-3 provide for the contingent liability pool.
195-4 "(5) Empower the State Treasurer to sell pledged
196-5 securities, or move pledged securities to an account
197-6 established in the Loss Payment Fund's name, for the purpose
198-7 of paying losses to public depositors not covered by deposit
199-8 insurance or to perfect the Loss Payment Fund's interest in
200-9 the pledged securities.
201-10 "(6) Empower the State Treasurer to transfer funds
202-11 directly from any custodian to public depositors or the
203-12 receiver in order to facilitate prompt payment of claims.
204-13 "(7) Adopt and implement, and monitor compliance
205-14 with, such standards, rules, regulations, guidelines, and
206-15 orders as the board of directors shall consider to be
207-16 appropriate or desirable for the purposes of maintaining the
208-17 sufficiency of the collateral pool to provide adequate
209-18 protection from losses to public depositors.
210-19 "(8) Delegate to the State Treasurer all of the
211-20 responsibility for the day-to-day administration of the SAFE
212-21 Program and of the standards, rules, regulations, guidelines,
213-22 and orders adopted by the board of directors, as deemed
214-23 appropriate or desirable by the board of directors.
215-24 "(9) Establish the conditions under which entities
216-25 resulting from mergers, consolidations, sales of assets and
217-26 similar transactions involving qualified public depositories
218-27 will succeed qualified public depositories and assume the
219-Page 8 1 former institution's contingent liability agreement under
220-2 Section 41-14A-8, and to prescribe requirements for
221-3 notification by qualified public depositories to the board of
222-4 mergers, consolidations, sales of assets, changes of address,
223-5 changes of name, and similar matters.
224-6 "(10) Establish the conditions under which qualified
225-7 public depositories will be required to involuntarily withdraw
226-8 from participation in the program and for the conditions under
227-9 which collateral pledged by withdrawing qualified public
228-10 depositories will be released.
229-11 "(11) Authorize the filing of any information or
230-12 forms required under this chapter to be by electronic data
231-13 transmission. Such filings of information or forms shall have
232-14 the same force and effect as a signed writing.
233-15 "(e) The board of directors shall adopt rules or
234-16 regulations empowering the State Treasurer to impose
235-17 requirements on qualified public depositories to ensure that
236-18 applicable accounts maintained by covered public entities and
237-19 covered public officials are adequately identified as public
238-20 deposits covered by this chapter and that each qualified
239-21 public depository can identify on its records the name,
240-22 address, and federal employer identification number of the
241-23 covered public entities and covered public officials
242-24 maintaining public deposits in such qualified public
243-25 depository. The State Treasurer may require that each
244-26 qualified public depository shall provide an annual statement
245-27 to each public depositor then maintaining public deposits with
246-Page 9 1 the qualified public depository summarizing the balances of
247-2 public deposits held by the qualified public depository for
248-3 the public depositor. The balances reflected in any such
249-4 annual statement provided by a qualified public depository
250-5 shall be deemed correct unless the public depositor notifies
251-6 the qualified public depository to the contrary within 60 days
252-7 of receipt of the statement.
253-8 "(f) Any information contained in a report of a
254-9 financial institution provided to the board of directors or
255-10 the State Treasurer under this chapter shall, if made
256-11 confidential by any law of the United States or of this state
257-12 and if the board is notified by the financial institution of
258-13 such confidentiality, be considered confidential and exempt
259-14 from the provisions of Section 36-12-40, and not subject to
260-15 dissemination to anyone other than the board of directors and
261-16 the State Treasurer under the provisions of this chapter.
262-17 "(g) Members of the board of directors shall serve
263-18 without compensation, but shall be reimbursed for each day's
264-19 official duties of the board of directors at the same per diem
265-20 and travel rate as is paid employees of the state.
266-21 "(h) Neither the board of directors nor the State
267-22 Treasurer shall have the authority to assess, charge, or
268-23 collect any of the costs associated with the implementation,
269-24 administration, or enforcement of the SAFE Program against any
270-25 covered public entities, covered public officials, or
271-26 qualified public depositories, provided, however, that this
272-27 subsection shall not limit or restrict the authority of the
273-Page 10 1 board or the State Treasurer, as applicable, to impose
274-2 administrative penalties or order restitution pursuant to
275-3 Section 41-14A-7 or to make assessments against qualified
276-4 public depositories for losses in accordance with Section
277-5 41-14A-9."
278-6 Section 2. This act shall become effective
279-7 immediately following its passage and approval by the
280-8 Governor, or its otherwise becoming law.
281-Page 11 1
282-2
283-House of Representatives3
284-Read for the first time and4
285-5 referred to the House of Represen-
286-6 tatives committee on State Govern-
287-ment...............................7 .......11-JAN-22
288- 8
289-Read for the second time and placed9
290-on the calendar....................10 .......09-FEB-22
291- 11
292-Read for the third time and passed12
293-as amended.........................13 .......31-MAR-22
294-Yeas 100, Nays 0, Abstains 014
295- 15
296-16 Jeff Woodard
297-17 Clerk
298-18
299-Page 12
14+8 SYNOPSIS: Existing law setting forth the Security for
15+9 Alabama Funds Enhancement (SAFE) Program board of
16+10 directors makes no provisions for the participation
17+11 of board members in board meetings by virtual
18+12 means.
19+13 This bill would authorize members of the
20+14 SAFE board to use virtual means to participate in
21+15 any meeting of the board or a committee created by
22+16 the board, and would require those means to allow
23+17 public participation.
24+18 This bill would also require meetings of the
25+19 SAFE board to otherwise comply with the Alabama
26+20 Open Meetings Act.
27+21
28+22 A BILL
29+23 TO BE ENTITLED
30+24 AN ACT
31+25
32+26 Relating to public deposits; to amend Section
33+27 41-14A-6, Code of Alabama 1975, relating to the composition
34+Page 1 1 and operation of the Security for Alabama Funds Enhancement
35+2 (SAFE) Program board of directors, to provide for the use of
36+3 virtual technology to participate in meetings, and to require
37+4 compliance with the Alabama Open Meetings Act.
38+5 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
39+6 Section 1. Section 41-14A-6, Code of Alabama 1975,
40+7 is amended to read as follows:
41+8 "§41-14A-6.
42+9 "(a) There is hereby established a Board of
43+10 Directors of the SAFE Program charged with responsibility and
44+11 authority to assess and manage the sufficiency of the
45+12 collateral pool and the SAFE Program to provide adequate
46+13 protection from losses to public depositors. In exercising its
47+14 powers and performing its responsibilities, the board of
48+15 directors shall constitute a body politic under the laws of
49+16 the state performing the public function of assuring the
50+17 safety of public deposits.
51+18 "(b)(1) The State Treasurer shall be a permanent,
52+19 standing, voting member of the board of directors and shall
53+20 serve as its chair. The Superintendent of Banks shall be a
54+21 permanent, standing, non-voting member of the board of
55+22 directors. The remaining six members shall each possess
56+23 knowledge, skill, and experience in one or more of the
57+24 following areas:
58+25 "(1)a. Financial analysis.
59+26 "(2)b. Trend analysis.
60+27 "(3)c. Accounting.
61+Page 2 1 "(4)d. Banking.
62+2 "(5)e. Risk management.
63+3 "(6)f. Investment management.
64+4 "(2) The remaining six members shall be comprised of
65+5 four members each of whom shall be a representative of an
66+6 active qualified public depository, which is not in the
67+7 process of withdrawing from the SAFE Program and which is in
68+8 compliance with all applicable rules, regulations, and
69+9 reporting requirements of this chapter, one of whom will be
70+10 selected and approved by the State Treasurer and three of whom
71+11 shall be selected and approved by the State Treasurer from
72+12 three or more nominations submitted by the Alabama Bankers
73+13 Association (or any successor association or entity, or, if no
74+14 such association or successor association or entity shall then
75+15 exist, submitted by the Superintendent of Banks); one member
76+16 who shall be a representative of a municipality within the
77+17 state and who will be selected and approved by the State
78+18 Treasurer from one or more nominations submitted to the State
79+19 Treasurer by the League of Municipalities of Alabama; and one
80+20 member who shall be a representative of a county within the
81+21 state and who will be selected and approved by the State
82+22 Treasurer from one or more nominations submitted to the State
83+23 Treasurer by the Association of County Commissions of Alabama.
84+24 "(3) The terms of the members of the board of
85+25 directors other than the State Treasurer and the
86+26 Superintendent of Banks shall be four years, except that, with
87+27 respect to the initial appointments, as determined by the
88+Page 3 1 State Treasurer, one member will serve one year, one member
89+2 will serve two years, two members will serve three years, and
90+3 two members will serve four years. Any person appointed to
91+4 fill a vacancy on the board may serve only for the remainder
92+5 of the unexpired term. Any member is eligible for
93+6 reappointment and shall serve until a successor is selected.
94+7 "(4) The chair shall annually designate a member of
95+8 the board of directors to serve as vice chair, and a secretary
96+9 who need not be a member of the board of directors. The
97+10 secretary shall keep a record of the proceedings of the board
98+11 of directors and shall be the custodian of all printed
99+12 materials filed with or by the board.
100+13 "(5) Notwithstanding the existence of vacancies on
101+14 the board of directors, two thirds of the voting members then
102+15 serving shall constitute a quorum. The board of directors may
103+16 not take official action in the absence of a quorum.
104+17 "(6) The board of directors shall meet quarterly and
105+18 at other times deemed necessary to assess and manage the
106+19 operations of the SAFE Program.
107+20 "(7) Meetings Except as otherwise specifically
108+21 provided in subdivision (8) only as it relates to virtual
109+22 participation of members of the board and the public, all
110+23 meetings and notice of meetings of the board of directors,
111+24 including meetings at which administrative fines and penalties
112+25 are established, shall be subject to the provisions of Section
113+26 13A-14-2, as amended, the Sunshine Law, except the Alabama
114+27 Open Meetings Act, Section 36-25A-1 et seq.; provided, that
115+Page 4 1 sessions at which any information that is confidential under
116+2 the provisions of subsection (f) below shall not be subject to
117+3 Section 13A-14-2, and shall not be open to the public.
118+4 "(8) Members of the board of directors or any
119+5 committee established by the board may participate in a
120+6 meeting of the board or committee by means of telephone
121+7 conference, video conference, or similar communications
122+8 equipment by means of which all persons participating in the
123+9 meeting may hear each other at the same time. Participation by
124+10 means authorized in this subdivision shall constitute presence
125+11 in person at a meeting for all purposes, including the
126+12 establishment of a quorum, to deliberate and to take action.
127+13 The telephone or video conference or similar communications
128+14 equipment shall also allow members of the public the
129+15 opportunity to simultaneously listen to or observe meetings
130+16 held pursuant to this subdivision.
131+17 "(c) In adopting, amending or repealing any rule,
132+18 regulation, standard, or statement of general applicability,
133+19 the board of directors shall be subject to the applicable
134+20 requirements of the Alabama Administrative Procedure Act,
135+21 Chapter 22 of this title.
136+22 "(d) In connection with the assessment and
137+23 management of the sufficiency of the collateral pool and the
138+24 SAFE Program to provide adequate protection from losses to
139+25 public depositors, the board of directors shall be authorized
140+26 to exercise the following powers:
141+Page 5 1 "(1) Designate financial institutions as qualified
142+2 public depositories and require such collateral, or increase
143+3 the collateral-pledging level, of any qualified public
144+4 depository as may be necessary to administer the provisions of
145+5 this chapter and to ensure the sufficiency of the collateral
146+6 pool and the SAFE Program to provide adequate protection from
147+7 losses to public depositors.
148+8 "(2) Establish guidelines for accepting, or for
149+9 reducing the reported value of, collateral as circumstances
150+10 may require in order to ensure the pledging of sufficient
151+11 marketable collateral to meet the purposes of this chapter.
152+12 "(3) Authorize the State Treasurer to issue
153+13 suspensions, disqualifications, administrative penalties, and
154+14 cease and desist orders in accordance with Section 41-14A-7
155+15 against any qualified public depository that has violated any
156+16 of the provisions of this chapter or any rules, regulations,
157+17 or orders of the board of directors or the State Treasurer
158+18 adopted under this chapter.
159+19 "(4) Take such actions as the board of directors
160+20 shall consider to be necessary, appropriate, or desirable in
161+21 order to assess and manage the sufficiency of the collateral
162+22 pool and the SAFE Program to provide adequate protection from
163+23 losses to public depositors, including, without limitation:
164+24 "a. Establish procedures for the verification of the
165+25 reports of any qualified public depository relating to public
166+26 deposits it holds when necessary to ensure the availability of
167+Page 6 1 adequate funds to pay any potential losses to public
168+2 depositors.
169+3 "b. Establish criteria, based on the overall
170+4 financial condition of the participants and applicants, as may
171+5 be necessary, to ensure the sufficiency of the collateral pool
172+6 and the SAFE Program to provide adequate protection from
173+7 losses to public depositors.
174+8 "c. Establish collateral-pledging levels based on
175+9 qualitative and quantitative standards.
176+10 "d. Establish rules and procedures for the State
177+11 Treasurer to monitor and confirm, as often as deemed necessary
178+12 by the State Treasurer, the pledged collateral held by
179+13 custodians.
180+14 "e. Set requirements for the filing by qualified
181+15 public depositories, custodians, the State Treasurer, the
182+16 board's agents and contractors, and other persons of such
183+17 documents, reports, records, or other information deemed
184+18 necessary by the board of directors to monitor the sufficiency
185+19 of the collateral pool and the SAFE Program to provide
186+20 adequate protection from losses to public depositors,
187+21 including, without limitation:
188+22 "1. Require reports of each qualified public
189+23 depository to reflect the net average monthly balance of the
190+24 public deposits held by the qualified public depository and to
191+25 reflect the collateral pledged by qualified public
192+26 depositories under this chapter, which reports shall not be
193+27 required more frequently than monthly except in the case of
194+Page 7 1 any qualified public depository that is then subject to
195+2 default or insolvency or is the subject of an order of
196+3 suspension or disqualification or a cease and desist order
197+4 issued by the State Treasurer.
198+5 "2. Require the submission of copies of quarterly or
199+6 annual financial and regulatory reports of qualified public
200+7 depositories.
201+8 "f. Direct the State Treasurer to maintain perpetual
202+9 inventory of pledged collateral.
203+10 "g. Perform, or direct the State Treasurer to
204+11 perform, financial analysis of any qualified public depository
205+12 as needed.
206+13 "h. Establish a minimum amount of required
207+14 collateral as the board of directors deems necessary to
208+15 provide for the contingent liability pool.
209+16 "(5) Empower the State Treasurer to sell pledged
210+17 securities, or move pledged securities to an account
211+18 established in the Loss Payment Fund's name, for the purpose
212+19 of paying losses to public depositors not covered by deposit
213+20 insurance or to perfect the Loss Payment Fund's interest in
214+21 the pledged securities.
215+22 "(6) Empower the State Treasurer to transfer funds
216+23 directly from any custodian to public depositors or the
217+24 receiver in order to facilitate prompt payment of claims.
218+25 "(7) Adopt and implement, and monitor compliance
219+26 with, such standards, rules, regulations, guidelines, and
220+27 orders as the board of directors shall consider to be
221+Page 8 1 appropriate or desirable for the purposes of maintaining the
222+2 sufficiency of the collateral pool to provide adequate
223+3 protection from losses to public depositors.
224+4 "(8) Delegate to the State Treasurer all of the
225+5 responsibility for the day-to-day administration of the SAFE
226+6 Program and of the standards, rules, regulations, guidelines,
227+7 and orders adopted by the board of directors, as deemed
228+8 appropriate or desirable by the board of directors.
229+9 "(9) Establish the conditions under which entities
230+10 resulting from mergers, consolidations, sales of assets and
231+11 similar transactions involving qualified public depositories
232+12 will succeed qualified public depositories and assume the
233+13 former institution's contingent liability agreement under
234+14 Section 41-14A-8, and to prescribe requirements for
235+15 notification by qualified public depositories to the board of
236+16 mergers, consolidations, sales of assets, changes of address,
237+17 changes of name, and similar matters.
238+18 "(10) Establish the conditions under which qualified
239+19 public depositories will be required to involuntarily withdraw
240+20 from participation in the program and for the conditions under
241+21 which collateral pledged by withdrawing qualified public
242+22 depositories will be released.
243+23 "(11) Authorize the filing of any information or
244+24 forms required under this chapter to be by electronic data
245+25 transmission. Such filings of information or forms shall have
246+26 the same force and effect as a signed writing.
247+Page 9 1 "(e) The board of directors shall adopt rules or
248+2 regulations empowering the State Treasurer to impose
249+3 requirements on qualified public depositories to ensure that
250+4 applicable accounts maintained by covered public entities and
251+5 covered public officials are adequately identified as public
252+6 deposits covered by this chapter and that each qualified
253+7 public depository can identify on its records the name,
254+8 address, and federal employer identification number of the
255+9 covered public entities and covered public officials
256+10 maintaining public deposits in such qualified public
257+11 depository. The State Treasurer may require that each
258+12 qualified public depository shall provide an annual statement
259+13 to each public depositor then maintaining public deposits with
260+14 the qualified public depository summarizing the balances of
261+15 public deposits held by the qualified public depository for
262+16 the public depositor. The balances reflected in any such
263+17 annual statement provided by a qualified public depository
264+18 shall be deemed correct unless the public depositor notifies
265+19 the qualified public depository to the contrary within 60 days
266+20 of receipt of the statement.
267+21 "(f) Any information contained in a report of a
268+22 financial institution provided to the board of directors or
269+23 the State Treasurer under this chapter shall, if made
270+24 confidential by any law of the United States or of this state
271+25 and if the board is notified by the financial institution of
272+26 such confidentiality, be considered confidential and exempt
273+27 from the provisions of Section 36-12-40, and not subject to
274+Page 10 1 dissemination to anyone other than the board of directors and
275+2 the State Treasurer under the provisions of this chapter.
276+3 "(g) Members of the board of directors shall serve
277+4 without compensation, but shall be reimbursed for each day's
278+5 official duties of the board of directors at the same per diem
279+6 and travel rate as is paid employees of the state.
280+7 "(h) Neither the board of directors nor the State
281+8 Treasurer shall have the authority to assess, charge, or
282+9 collect any of the costs associated with the implementation,
283+10 administration, or enforcement of the SAFE Program against any
284+11 covered public entities, covered public officials, or
285+12 qualified public depositories, provided, however, that this
286+13 subsection shall not limit or restrict the authority of the
287+14 board or the State Treasurer, as applicable, to impose
288+15 administrative penalties or order restitution pursuant to
289+16 Section 41-14A-7 or to make assessments against qualified
290+17 public depositories for losses in accordance with Section
291+18 41-14A-9."
292+19 Section 2. This act shall become effective
293+20 immediately following its passage and approval by the
294+21 Governor, or its otherwise becoming law.
295+Page 11