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Bill

Bill

SB 289

Public depositories.

2026 Regular Session Introduced by Scott Baldwin and 2 co-sponsors

SB 289 modifies Indiana's public depository regulations governing how state and local governments deposit and manage taxpayer funds in financial institutions.

Senator Randolph added as coauthor
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WeVote Research Nonpartisan
Bill Summary · SB 289

Legislative bill overview

SB 289 establishes or modifies regulations governing public depositories in Indiana—financial institutions authorized to hold government funds from state and local entities. The bill, currently in early stages, has been referred to the Committee on Insurance and Financial Institutions for review.

Why is this important

Public depositories are critical infrastructure for state and local government operations, holding taxpayer funds for schools, municipalities, and state agencies. Changes to depository regulations can affect interest rates paid on public funds, safety requirements, and access to banking services for governmental entities.

Potential points of contention

  • Collateral requirements: Disputes may arise over what security deposits banks must pledge against public funds, balancing government protection with banking industry costs
  • Interest rate compensation: Disagreement over whether public depositories should receive competitive interest rates or whether government funds should subsidize lower rates for public benefit
  • Bank eligibility standards: Debate over which financial institutions qualify as public depositories, potentially favoring larger banks over community institutions or vice versa

Compiled from official sources — confirm details with the bill’s official record.

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