West Virginia 2024 Regular Session

West Virginia Senate Bill SB826

Introduced
2/16/24  
Refer
2/16/24  
Engrossed
2/28/24  
Refer
2/29/24  
Enrolled
3/7/24  
Passed
3/26/24  

Caption

Creating exemption from bond or security requirement of banking institutions holding certain funds for county commissions

Impact

If enacted, SB826 would notably alter the existing legislation governing how counties secure their funds with banks. Rather than requiring a bonding process for excess deposits, which can be burdensome and complicate the management of county funds, the bill allows for a much simpler process through the acceptance of a deposit placement program. The program must meet specific criteria, including arranging for the redeposit of funds into federally insured banks or savings associations, thus building an additional security layer for the deposits while easing administrative procedures for counties.

Summary

Senate Bill 826 aims to amend and reenact section 7-6-2 of the West Virginia Code, addressing the requirements for banking institutions holding county commission funds that exceed federally insured amounts. The bill creates an exemption from the bond or security requirements for these banking institutions, allowing for funds to be redeposited through a deposit placement program that meets specified conditions. This provides a pathway for counties to manage their funds more effectively while ensuring adequate protection for these deposits.

Sentiment

The overall sentiment surrounding SB826 appears to be supportive, especially among those representing county interests who see this as a progressive measure that streamlines financial procedures. Proponents laud the potential for increased flexibility and efficiency in handling public funds, which can enhance fiscal management at the county level. Nonetheless, it may face scrutiny from those concerned about the adequacy of protections for public funds and the implications of removing traditional bond requirements.

Contention

Despite the supportive sentiment, some contention may arise regarding the safeguards implemented under the bill. Critics might voice concerns about the adequacy of the deposit placement programs and whether they will sufficiently protect public moneys against potential financial instability of participating banks. Furthermore, the absence of traditional bond requirements could be seen as a risk factor, placing greater reliance on the performance of the banking institutions involved in the deposit placements.

Companion Bills

No companion bills found.

Previously Filed As

WV SB430

Relating to State Treasurer’s authority to contract with financial institutions for banking goods and services

WV SB101

Exempting Social Security from personal income tax

WV HB3308

Authorizing PSC consider and issue financing orders to certain utilities to permit the recovery of certain costs through securitization via consumer rate relief bonds

WV SB193

Exempting Social Security payments from state income tax

WV SB149

Exempting certain organizations from property taxation

WV HB2152

Exempting social security benefits from personal income tax

WV HB2115

Exempting law-enforcement officers from payment of income and personal property taxes

WV HB3057

Amending surface mining reclamation requirements

WV SB305

Relating to dog racing requirements

WV SB631

Updating administration, funding, and requirements for federal elections held in WV

Similar Bills

CA AB945

Local government: financial affairs: surplus funds.

AZ SB1614

Financial institution; depositories

CA AB2618

Surplus funds: investment.

NH HB1504

Relative to special purpose depository institutions.

CA AB83

The California Elder Financial Abuse Prevention Act.

WV HB4779

Permit banks the discretion to choose whether to receive deposits from other banks, savings banks, or savings and loan associations when arranging for the re-deposits of county, municipal, and state funds

US HB478

Promoting New Bank Formation Act

CA AB3253

Local government: financial affairs.