Mississippi 2023 Regular Session

Mississippi Senate Bill SB2650

Introduced
1/16/23  
Refer
1/16/23  

Caption

Public funds depositories; authorize certain credit unions to qualify as.

Impact

The legislation impacts Sections 27-105-5, 27-105-303, 27-105-305, 27-105-315, and 27-105-353 of the Mississippi Code, facilitating a broader inclusion of financial institutions for public fund deposits. This is poised to enhance local governments' flexibility in managing and securing municipal funds. The bill stipulates that these institutions must have accounts insured by the National Credit Union Administration, aligning them with other traditional banking institutions that have Federal Deposit Insurance Corporation coverage.

Summary

Senate Bill 2650 amends several sections of the Mississippi Code to include United States Treasury-certified Community Development Financial Institutions Fund Credit Unions as eligible to serve as public depositories of municipal funds. This amendment is significant as it expands the types of institutions that can hold public funds, thereby increasing the options available to counties and municipalities when selecting depositories. Prior to this change, only institutions with specific capital ratios and insurance coverage could qualify, which may have limited the pool of potential depositories.

Contention

Potential points of contention may arise from the perception of security risks associated with expanding the pool of depositories. Some critics might argue that the amendment could undermine financial stability, as different institutions have varying levels of capitalization and risk management practices. Conversely, supporters of the bill argue that this expansion will bolster competition, potentially leading to better interest rates and services for municipalities while aiding in community development efforts by allowing more local credit unions to participate in public financing.

Companion Bills

No companion bills found.

Previously Filed As

MS SB2421

Public funds depositories; authorize certain credit unions to qualify as.

MS S1103

Amends existing law to provide for state or federal credit unions to be designated as state depositories.

MS HB1523

Public depositories.

MS SB0289

A BILL FOR AN ACT to amend the Indiana Code concerning state and local administration.

MS SF0143

Public monies-deposits in credit unions.

MS HB1325

County depositories; revise interval of time for accepting bids from financial institutions in certain years.

MS HF4118

Credit unions authorized to obtain insurance from a credit union share insurance provider, credit union share guaranty corporations regulated, and conforming changes made.

MS HB1614

Bullion depositories.

MS SB115

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.

MS HB4770

CREDIT UNIONS-VARIOUS

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