HLS 13RS-574 ENGROSSED
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2013
HOUSE BILL NO. 114
BY REPRESENTATIVES KATRINA JACKSON AND PONTI
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FINANCIAL INSTITUTIONS: Repeals provisions relative to the acceptance of public
funds by certain financial institutions
AN ACT1
To amend and reenact R.S. 49:317 and to repeal R.S. 6:124.1(C) and R.S. 39:1220(A)(4),2
relative to the acceptance of public funds by certain financial institutions; to repeal3
requirement of ratings under the federal Community Reinvestment Act; and to4
provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 49:317 is hereby amended and reenacted to read as follows: 7
ยง317. Designation of state depositories; restriction 8
The Interim Emergency Board shall designate as state depositories such9
financial institutions doing business in this state as it may deem advisable after10
considering the recommendations of the treasurer. No financial institution that has11
received two consecutive ratings of less than satisfactory under the Community12
Reinvestment Act of 1977, 12 U.S.C. 2901 et seq., shall be selected to receive the13
deposits of any public funds. When a financial institution receives two such14
consecutive ratings of less than satisfactory, the institution may continue to hold all15
public funds until maturity to avoid the imposition of a penalty upon the depositor;16
however, the institution shall not accept the public funds for reinvestment and shall17
not accept additional public funds.18
Section 2. R.S. 6:124.1(C) is hereby repealed in its entirety.19
Section 3. R.S. 39:1220(A)(4) is hereby repealed in its entirety.20 HLS 13RS-574 ENGROSSED
HB NO. 114
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Katrina Jackson HB No. 114
Abstract: Repeals requirement that financial institutions receiving public funds not have
received two consecutive less than satisfactory ratings under the federal Community
Reinvestment Act of 1977.
Present law (R.S. 6:124.1) provides that financial institutions are obligated to demonstrate
that their deposit facilities serve the needs and convenience of the communities where they
are chartered to do business. Present law further provides that regulated financial
institutions have a continuing obligation to help meet the credit needs of the communities
where they are chartered. The federal Community Reinvestment Act of 1977 requires that
each financial institution receive an annual rating indicating the degree to which the
institution has met such community credit needs. Proposed law repeals present law
requirement that a financial institution may not receive public funds for deposit if it has
received two consecutive less than satisfactory ratings under the federal Community
Reinvestment Act of 1977.
Present law (R.S. 39:1220(A)(4)) provides that local depositing authorities shall select
financial institutions as the depository for their funds that are domiciled or have branches
in the parish, municipality, or congressional district, along with other specific conditions.
Proposed law repeals present law requirement that the financial institution may not receive
public funds for deposit if it has received two consecutive less than satisfactory ratings under
the federal Community Reinvestment Act of 1977.
Present law (R.S. 49:317) provides that the Interim Emergency Board shall designate as state
depositories such financial institutions doing business in the state as advisable after
considering recommendations from the treasurer. Proposed law repeals present law
requirement that the financial institution may not receive public funds for deposit if it has
received two consecutive less than satisfactory ratings under the federal Community
Reinvestment Act of 1977.
(Amends R.S. 49:317; Repeals R.S. 6:124.1(C) and R.S. 39:1220(A)(4))