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))