This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0625 - State Investments: Banks May Meet Community Credit Needs
L.R. NO. 2428-01
BILL NO. SB 625
SUBJECT: Treasurer: State
TYPE: Original
DATE: January 9, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1996 FY 1997 FY 1998
None $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1996 FY 1997 FY 1998
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1996 FY 1997 FY 1998
None $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of the State Treasurer and Department of Economic
Development-Division of Credit Unions and Division of Finance assume the
proposed legislation would have no fiscal impact on their agencies.
FISCAL IMPACT - State Government FY 1996 FY 1997 FY 1998
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 1996 FY 1997 FY 1998
(10 Mo.)
$0 $0 $0
DESCRIPTION
The proposal would prohibit the State Treasurer from making, continuing or
renewing time deposits of state funds in any Missouri financial institution
that had received a rating of "needs to improve record of meeting community
credit needs" or "substantial noncompliance of meeting community credit
needs" in its most recent evaluation by the appropriate federal regulatory
agency. This provision would become effective beginning July 1, 1997. The
State Treasurer would be required to remove all demand deposits from an
institution that had received either rating within 60 days of receiving
notification of that rating.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Office of the State Treasurer
Department of Economic Development-Division
of Credit Unions and Division of Finance