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SB 769 - This act modifies several provisions relating to financial transactions by public entities. SECURITY-COLLATERAL LIST (Sections 30.270 and 95.530) Under current law, the State Treasurer and the Treasurer of the City of St. Louis are limited in the securities they may require as collateral from banks or financial institutions selected and approved for the safekeeping and payment of deposits. With regard to out-of-state municipal bonds, it must be determined that the bonds are rated in the highest category by at least one nationally recognized statistical rating agency to be qualified as collateral. This act changes that standard to require the bonds to be rated "investment grade" by at least one such agency. The act further adds brokered or negotiable certificates of deposit that are fully insured by the FDIC to the collateral list. INVESTMENT OF PUBLIC FUNDS (Section 67.085) Under current law, any public entity or political subdivision may invest public funds if, among other things, on the same date that the public funds are deposited the financial institution also receives an amount of deposits from other financial institutions equal to the amount of the public funds deposited. This act repeals this requirement. DEPOSITARIES FOR PUBLIC FUNDS (Sections 110.010 and 110.070) Current law provides restrictions on the security of the public funds of specific political subdivisions. This act stipulates that the requirements apply to all political subdivisions of the state. Furthermore, the act also allows banks serving as a depositary for public funds to invest in the same manner as the State Treasurer is constitutionally permitted. The act provides that all public governing boards that have the management, use, or custody of any public funds on or before the first Monday in July in the year in which a bid is requested are required to receive sealed proposals from authorized banks in any political subdivision in which the public institution is located. CERTIFIED CHECK REQUIREMENTS (Sections 110.080, 110.140, 165.221, 165.231, and 165.271) Current law requires certain bids made by banks, associations, or trust companies to be accompanied by a certified check. This act repeals those requirements. SCOTT SVAGERA
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