COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
LR No.: 3931-04
Bill No.: Truly Agreed to and Finally Passed HCS for SCS for SB 1093
Subject: Political Subdivisions: Finances, Investments
Type: Original
Date: May 24, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials of the Office of State Treasurer assumes no fiscal impact.
Officials of the Jasper, Platte, and Jefferson County Commissions assume no fiscal impact
In response to almost identical legislation (3931-03) officials of Little Blue Valley Sewer District assume no fiscal impact.
Officials of the City of Springfield, and City of North Kansas City assume no fiscal impact.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This act allows political subdivisions and other public entities to invest funds that are not immediately needed for their intended use. For such investments, certain conditions must be met, which include placing the funds in a financial institution, the financial institution must arrange for the deposit of the funds in certificates of deposit, each certificate of deposit must be insured by the FDIC, the financial institution must act as custodian for the public entity with respect to the certificate of deposit, and the financial institution must receive an equal amount of deposits from customers of other banking institutions to that of the public funds initially placed by the public entity.
This act allows a bank, credit union, trust company, a savings and loan association or savings bank, to act as a custodian and place funds in other financial institutions as long as they are insured by the FDIC.
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 State Treasurer
Jasper County Commission
Little Blue Valley Sewer District
Platte County Commission
Jefferson County Commission
City of Springfield
City of North Kansas City
NOT RESPONDING
Oversight sent all political subdivisions that are on our respondents list a request for fiscal impact. Only those listed above responded.
Mickey Wilson, CPA
Director
May 24, 2004