Alabama 2022 Regular Session

Alabama Senate Bill SB133 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1 SB133
2		-	2 215946-4
	2	+	2 215946-1
3	3		3 By Senator Chesteen
4	4		4 RFD: Governmental Affairs
5	5		5 First Read: 01-FEB-22
6	6
7		-	Page 0 SB133
8		-	1 SB133
9		-	2
10		-	3
11		-	4 ENROLLED, An Act,
12		-	5 Relating to public deposits; to amend Section
13		-	6 41-14A-6, Code of Alabama 1975, relating to the composition
14		-	7 and operation of the Security for Alabama Funds Enhancement
15		-	8 (SAFE) Program board of directors, to provide for the use of
16		-	9 virtual technology to participate in meetings, and to require
17		-	10 compliance with the Alabama Open Meetings Act.
18		-	11 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
19		-	12 Section 1. Section 41-14A-6, Code of Alabama 1975,
20		-	13 is amended to read as follows:
21		-	14 "§41-14A-6.
22		-	15 "(a) There is hereby established a Board of
23		-	16 Directors of the SAFE Program charged with responsibility and
24		-	17 authority to assess and manage the sufficiency of the
25		-	18 collateral pool and the SAFE Program to provide adequate
26		-	19 protection from losses to public depositors. In exercising its
27		-	20 powers and performing its responsibilities, the board of
28		-	21 directors shall constitute a body politic under the laws of
29		-	22 the state performing the public function of assuring the
30		-	23 safety of public deposits.
31		-	24 "(b)(1) The State Treasurer shall be a permanent,
32		-	25 standing, voting member of the board of directors and shall
33		-	Page 1 SB133
34		-	1 serve as its chair. The Superintendent of Banks shall be a
35		-	2 permanent, standing, non-voting member of the board of
36		-	3 directors. The remaining six members shall each possess
37		-	4 knowledge, skill, and experience in one or more of the
38		-	5 following areas:
39		-	6 "(1)a. Financial analysis.
40		-	7 "(2)b. Trend analysis.
41		-	8 "(3)c. Accounting.
42		-	9 "(4)d. Banking.
43		-	10 "(5)e. Risk management.
44		-	11 "(6)f. Investment management.
45		-	12 "(2) The remaining six members shall be comprised of
46		-	13 four members each of whom shall be a representative of an
47		-	14 active qualified public depository, which is not in the
48		-	15 process of withdrawing from the SAFE Program and which is in
49		-	16 compliance with all applicable rules, regulations, and
50		-	17 reporting requirements of this chapter, one of whom will be
51		-	18 selected and approved by the State Treasurer and three of whom
52		-	19 shall be selected and approved by the State Treasurer from
53		-	20 three or more nominations submitted by the Alabama Bankers
54		-	21 Association (or any successor association or entity, or, if no
55		-	22 such association or successor association or entity shall then
56		-	23 exist, submitted by the Superintendent of Banks); one member
57		-	24 who shall be a representative of a municipality within the
58		-	25 state and who will be selected and approved by the State
59		-	Page 2 SB133
60		-	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 terms of the members of the board of
67		-	8 directors other than the State Treasurer and the
68		-	9 Superintendent of Banks shall be four years, except that, with
69		-	10 respect to the initial appointments, as determined by the
70		-	11 State Treasurer, one member will serve one year, one member
71		-	12 will serve two years, two members will serve three years, and
72		-	13 two members will serve four years. Any person appointed to
73		-	14 fill a vacancy on the board may serve only for the remainder
74		-	15 of the unexpired term. Any member is eligible for
75		-	16 reappointment and shall serve until a successor is selected.
76		-	17 "(4) The chair shall annually designate a member of
77		-	18 the board of directors to serve as vice chair, and a secretary
78		-	19 who need not be a member of the board of directors. The
79		-	20 secretary shall keep a record of the proceedings of the board
80		-	21 of directors and shall be the custodian of all printed
81		-	22 materials filed with or by the board.
82		-	23 "(5) Notwithstanding the existence of vacancies on
83		-	24 the board of directors, two thirds of the voting members then
84		-	Page 3 SB133
85		-	1 serving shall constitute a quorum. The board of directors may
86		-	2 not take official action in the absence of a quorum.
87		-	3 "(6) The board of directors shall meet quarterly and
88		-	4 at other times deemed necessary to assess and manage the
89		-	5 operations of the SAFE Program.
90		-	6 "(7) Meetings Except as otherwise specifically
91		-	7 provided in subdivision (8) only as it relates to virtual
92		-	8 participation of members of the board and the public, all
93		-	9 meetings and notice of meetings of the board of directors,
94		-	10 including meetings at which administrative fines and penalties
95		-	11 are established, shall be subject to the provisions of Section
96		-	12 13A-14-2, as amended, the Sunshine Law, except the Alabama
97		-	13 Open Meetings Act, Section 36-25A-1 et seq.; provided, that
98		-	14 sessions at which any information that is confidential under
99		-	15 the provisions of subsection (f) below shall not be subject to
100		-	16 Section 13A-14-2, and shall not be open to the public.
101		-	17 "(8) Members of the board of directors or any
102		-	18 committee established by the board may participate in a
103		-	19 meeting of the board or committee by means of telephone
104		-	20 conference, video conference, or similar communications
105		-	21 equipment by means of which all persons participating in the
106		-	22 meeting may hear each other at the same time. Participation by
107		-	23 means authorized in this subdivision shall constitute presence
108		-	24 in person at a meeting for all purposes, including the
109		-	25 establishment of a quorum, to deliberate and to take action.
110		-	Page 4 SB133
111		-	1 The telephone or video conference or similar communications
112		-	2 equipment shall also allow members of the public the
113		-	3 opportunity to simultaneously listen to or observe meetings
114		-	4 held pursuant to this subdivision.
115		-	5 "(c) In adopting, amending or repealing any rule,
116		-	6 regulation, standard, or statement of general applicability,
117		-	7 the board of directors shall be subject to the applicable
118		-	8 requirements of the Alabama Administrative Procedure Act,
119		-	9 Chapter 22 of this title.
120		-	10 "(d) In connection with the assessment and
121		-	11 management of the sufficiency of the collateral pool and the
122		-	12 SAFE Program to provide adequate protection from losses to
123		-	13 public depositors, the board of directors shall be authorized
124		-	14 to exercise the following powers:
125		-	15 "(1) Designate financial institutions as qualified
126		-	16 public depositories and require such collateral, or increase
127		-	17 the collateral-pledging level, of any qualified public
128		-	18 depository as may be necessary to administer the provisions of
129		-	19 this chapter and to ensure the sufficiency of the collateral
130		-	20 pool and the SAFE Program to provide adequate protection from
131		-	21 losses to public depositors.
132		-	22 "(2) Establish guidelines for accepting, or for
133		-	23 reducing the reported value of, collateral as circumstances
134		-	24 may require in order to ensure the pledging of sufficient
135		-	25 marketable collateral to meet the purposes of this chapter.
136		-	Page 5 SB133
137		-	1 "(3) Authorize the State Treasurer to issue
138		-	2 suspensions, disqualifications, administrative penalties, and
139		-	3 cease and desist orders in accordance with Section 41-14A-7
140		-	4 against any qualified public depository that has violated any
141		-	5 of the provisions of this chapter or any rules, regulations,
142		-	6 or orders of the board of directors or the State Treasurer
143		-	7 adopted under this chapter.
144		-	8 "(4) Take such actions as the board of directors
145		-	9 shall consider to be necessary, appropriate, or desirable in
146		-	10 order to assess and manage the sufficiency of the collateral
147		-	11 pool and the SAFE Program to provide adequate protection from
148		-	12 losses to public depositors, including, without limitation:
149		-	13 "a. Establish procedures for the verification of the
150		-	14 reports of any qualified public depository relating to public
151		-	15 deposits it holds when necessary to ensure the availability of
152		-	16 adequate funds to pay any potential losses to public
153		-	17 depositors.
154		-	18 "b. Establish criteria, based on the overall
155		-	19 financial condition of the participants and applicants, as may
156		-	20 be necessary, to ensure the sufficiency of the collateral pool
157		-	21 and the SAFE Program to provide adequate protection from
158		-	22 losses to public depositors.
159		-	23 "c. Establish collateral-pledging levels based on
160		-	24 qualitative and quantitative standards.
161		-	Page 6 SB133
162		-	1 "d. Establish rules and procedures for the State
163		-	2 Treasurer to monitor and confirm, as often as deemed necessary
164		-	3 by the State Treasurer, the pledged collateral held by
165		-	4 custodians.
166		-	5 "e. Set requirements for the filing by qualified
167		-	6 public depositories, custodians, the State Treasurer, the
168		-	7 board's agents and contractors, and other persons of such
169		-	8 documents, reports, records, or other information deemed
170		-	9 necessary by the board of directors to monitor the sufficiency
171		-	10 of the collateral pool and the SAFE Program to provide
172		-	11 adequate protection from losses to public depositors,
173		-	12 including, without limitation:
174		-	13 "1. Require reports of each qualified public
175		-	14 depository to reflect the net average monthly balance of the
176		-	15 public deposits held by the qualified public depository and to
177		-	16 reflect the collateral pledged by qualified public
178		-	17 depositories under this chapter, which reports shall not be
179		-	18 required more frequently than monthly except in the case of
180		-	19 any qualified public depository that is then subject to
181		-	20 default or insolvency or is the subject of an order of
182		-	21 suspension or disqualification or a cease and desist order
183		-	22 issued by the State Treasurer.
184		-	23 "2. Require the submission of copies of quarterly or
185		-	24 annual financial and regulatory reports of qualified public
186		-	25 depositories.
187		-	Page 7 SB133
188		-	1 "f. Direct the State Treasurer to maintain perpetual
189		-	2 inventory of pledged collateral.
190		-	3 "g. Perform, or direct the State Treasurer to
191		-	4 perform, financial analysis of any qualified public depository
192		-	5 as needed.
193		-	6 "h. Establish a minimum amount of required
194		-	7 collateral as the board of directors deems necessary to
195		-	8 provide for the contingent liability pool.
196		-	9 "(5) Empower the State Treasurer to sell pledged
197		-	10 securities, or move pledged securities to an account
198		-	11 established in the Loss Payment Fund's name, for the purpose
199		-	12 of paying losses to public depositors not covered by deposit
200		-	13 insurance or to perfect the Loss Payment Fund's interest in
201		-	14 the pledged securities.
202		-	15 "(6) Empower the State Treasurer to transfer funds
203		-	16 directly from any custodian to public depositors or the
204		-	17 receiver in order to facilitate prompt payment of claims.
205		-	18 "(7) Adopt and implement, and monitor compliance
206		-	19 with, such standards, rules, regulations, guidelines, and
207		-	20 orders as the board of directors shall consider to be
208		-	21 appropriate or desirable for the purposes of maintaining the
209		-	22 sufficiency of the collateral pool to provide adequate
210		-	23 protection from losses to public depositors.
211		-	24 "(8) Delegate to the State Treasurer all of the
212		-	25 responsibility for the day-to-day administration of the SAFE
213		-	Page 8 SB133
214		-	1 Program and of the standards, rules, regulations, guidelines,
215		-	2 and orders adopted by the board of directors, as deemed
216		-	3 appropriate or desirable by the board of directors.
217		-	4 "(9) Establish the conditions under which entities
218		-	5 resulting from mergers, consolidations, sales of assets and
219		-	6 similar transactions involving qualified public depositories
220		-	7 will succeed qualified public depositories and assume the
221		-	8 former institution's contingent liability agreement under
222		-	9 Section 41-14A-8, and to prescribe requirements for
223		-	10 notification by qualified public depositories to the board of
224		-	11 mergers, consolidations, sales of assets, changes of address,
225		-	12 changes of name, and similar matters.
226		-	13 "(10) Establish the conditions under which qualified
227		-	14 public depositories will be required to involuntarily withdraw
228		-	15 from participation in the program and for the conditions under
229		-	16 which collateral pledged by withdrawing qualified public
230		-	17 depositories will be released.
231		-	18 "(11) Authorize the filing of any information or
232		-	19 forms required under this chapter to be by electronic data
233		-	20 transmission. Such filings of information or forms shall have
234		-	21 the same force and effect as a signed writing.
235		-	22 "(e) The board of directors shall adopt rules or
236		-	23 regulations empowering the State Treasurer to impose
237		-	24 requirements on qualified public depositories to ensure that
238		-	25 applicable accounts maintained by covered public entities and
239		-	Page 9 SB133
240		-	1 covered public officials are adequately identified as public
241		-	2 deposits covered by this chapter and that each qualified
242		-	3 public depository can identify on its records the name,
243		-	4 address, and federal employer identification number of the
244		-	5 covered public entities and covered public officials
245		-	6 maintaining public deposits in such qualified public
246		-	7 depository. The State Treasurer may require that each
247		-	8 qualified public depository shall provide an annual statement
248		-	9 to each public depositor then maintaining public deposits with
249		-	10 the qualified public depository summarizing the balances of
250		-	11 public deposits held by the qualified public depository for
251		-	12 the public depositor. The balances reflected in any such
252		-	13 annual statement provided by a qualified public depository
253		-	14 shall be deemed correct unless the public depositor notifies
254		-	15 the qualified public depository to the contrary within 60 days
255		-	16 of receipt of the statement.
256		-	17 "(f) Any information contained in a report of a
257		-	18 financial institution provided to the board of directors or
258		-	19 the State Treasurer under this chapter shall, if made
259		-	20 confidential by any law of the United States or of this state
260		-	21 and if the board is notified by the financial institution of
261		-	22 such confidentiality, be considered confidential and exempt
262		-	23 from the provisions of Section 36-12-40, and not subject to
263		-	24 dissemination to anyone other than the board of directors and
264		-	25 the State Treasurer under the provisions of this chapter.
265		-	Page 10 SB133
266		-	1 "(g) Members of the board of directors shall serve
267		-	2 without compensation, but shall be reimbursed for each day's
268		-	3 official duties of the board of directors at the same per diem
269		-	4 and travel rate as is paid employees of the state.
270		-	5 "(h) Neither the board of directors nor the State
271		-	6 Treasurer shall have the authority to assess, charge, or
272		-	7 collect any of the costs associated with the implementation,
273		-	8 administration, or enforcement of the SAFE Program against any
274		-	9 covered public entities, covered public officials, or
275		-	10 qualified public depositories, provided, however, that this
276		-	11 subsection shall not limit or restrict the authority of the
277		-	12 board or the State Treasurer, as applicable, to impose
278		-	13 administrative penalties or order restitution pursuant to
279		-	14 Section 41-14A-7 or to make assessments against qualified
280		-	15 public depositories for losses in accordance with Section
281		-	16 41-14A-9."
282		-	17 Section 2. This act shall become effective
283		-	18 immediately following its passage and approval by the
284		-	19 Governor, or its otherwise becoming law.
285		-	Page 11 SB133
286		-	1
	7	+	Page 0 1 215946-1:n:12/27/2021:LK/bm LSA2021-2628
287	8		2
288	9		3
289	10		4
290		-	President and Presiding Officer of the Senate
291		-
292	11		5
293		-	6 Speaker of the House of Representatives
294		-	SB1337
295		-	8 Senate 09-FEB-22
296		-	9 I hereby certify that the within Act originated in and passed
297		-	10 the Senate.
298		-	11
299		-	12 Patrick Harris,
300		-	13 Secretary.
301		-	14
302		-	15
303		-	16
304		-	17 House of Representatives
305		-	18 Passed: 07-APR-22
306		-	19
307		-	20
308		-	21 By: Senator Chesteen
309		-	Page 12
	12	+	6
	13	+	7
	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