Bill
H 3221
Overview: H 3221, Local entity secured deposits, Member(s) request name added as sponsor: Bauer, Introduced: February 27, 2025Purpose and Intent: The main goal of this bill is to e
Overview: H 3221, Local entity secured deposits, Member(s) request name added as sponsor: Bauer, Introduced: February 27, 2025
Purpose and Intent: The main goal of this bill is to establish requirements and procedures for the secure deposit of public funds held by local government entities.
Key Provisions:
- Requires local government entities to deposit public funds in financial institutions that meet certain collateralization requirements to secure the deposits
- Specifies the types of collateral that can be used, such as U.S. government securities, state or municipal bonds, or letters of credit
- Mandates that the total value of the collateral must be at least 102% of the total amount of the public deposits
- Allows local entities to enter into joint powers agreements to collectively manage and secure their deposits
Affected Parties and Impacts:
- Local government entities, such as cities, counties, and special districts, that hold and deposit public funds
- Financial institutions that hold deposits from local government entities and must meet the collateralization requirements
- Taxpayers and the general public, who benefit from the increased security and protection of public funds
Procedural and Timeline Considerations:
- The bill is currently in the legislative process, with a member requesting their name be added as a sponsor
- If passed, the new requirements for secured deposits would take effect on a specified future date to allow time for implementation by local entities and financial institutions
Compiled from official sources — confirm details with the bill’s official record.
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