Allowing interest and earnings on federal COVID-19 relief moneys to be retained in the funds or accounts where those moneys are invested
Impact
The bill has a clear impact on state financial regulations concerning how federal relief funds can be managed and invested. By allowing these funds to accrue interest while retained within the investment accounts, the state is anticipated to benefit financially. This could potentially increase the available resources within the General Revenue Fund, thereby providing more fiscal flexibility for state funding priorities. The retroactive applicability of this provision ensures that any earnings generated from the date of receipt of these federal funds can be retained, maximizing the utility of available resources for state programs and services.
Summary
House Bill 4496 aims to amend the West Virginia Code to allow for the retention of interest and earnings on federal COVID-19 relief moneys by the funds or accounts where such moneys are deposited. This bill was passed on March 11, 2022, and is set to take effect ninety days from its passage. The bill is particularly significant as it addresses the handling and retention of funds received under federal acts designed to provide economic relief during the COVID-19 pandemic, such as the Coronavirus Aid, Relief, and Economic Security Act and the American Rescue Plan Act.
Sentiment
General sentiment surrounding HB 4496 appears to be supportive, particularly among legislators who view it as a prudent financial management strategy. The ability to retain interest on COVID-19 relief funds is seen as a beneficial move to enhance the state's financial position in the wake of federal funding. However, there may be underlying concerns from watchdogs about the management and oversight of these funds to ensure they are used effectively and transparently.
Contention
While there are no significant points of contention noted in the aftermath of the bill's passage, the broader context around COVID-19 relief funding has been contentious across various states. Critics of federal funding mechanisms often raise questions about the efficiency and transparency of how such funds are implemented and whether adjustments like those in HB 4496 adequately address potential concerns. The bill’s provision to allow the retention of interest highlights a delicate balance between utilizing federal aid effectively and managing state treasury obligations.
Substitute for HB 2152 by Committee on Financial Institutions and Pensions - Mandating financial institutions to secure governmental unit deposits in excess of the amount insured or guaranteed by the FDIC by utilizing a public moneys pooled method of securities, prohibiting investment advisers that execute bids for the investment of public moneys from managing moneys directly from such bid, allowing governmental unit deposits to be invested at a rate agreed upon by the governmental unit and the financial institution, requiring certification from a governmental unit that deposits in the municipal investment pool fund were first offered to a financial institution in the preceding year and allowing financial institutions to file complaints upon the failure to comply.
Enacting the Kansas bullion depository act to authorize the state treasurer to establish, administer or contract for the administration of bullion depositories and allowing for state moneys to be deposited in such bullion depositories and invested in specie legal tender.