Bill Text: MI SB0455 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Local government; financing; recommendation of a treasurer to a local public entity of 1 or more financial institutions as depositories of public money; provide for. Amends secs. 1, 2, 4 & 6 of 1932 (1st Ex Sess) PA 40 (MCL 129.11 et seq.) & repeals sec. 5 of 1932 (1st Ex Sess) PA 40 (MCL 129.15) & 1909 PA 99 (MCL 129.31 - 129.40).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2018-12-28 - Assigned Pa 462'18 [SB0455 Detail]
Download: Michigan-2017-SB0455-Introduced.html
SENATE BILL No. 455
June 14, 2017, Introduced by Senators CONYERS and CASPERSON and referred to the Committee on Local Government.
A bill to amend 1932 (1st Ex Sess) PA 40, entitled
"An act to provide for the designation of depositories for public
moneys; to prescribe the effect thereof on the liability for such
deposits; to suspend the requirement of surety bonds from
depositories of public moneys; and to repeal all acts and parts of
acts inconsistent with the provisions of this act,"
by amending sections 1, 2, 4, and 6 (MCL 129.11, 129.12, 129.14,
and 129.16), sections 2 and 4 as amended and section 6 as added by
1997 PA 33; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. All moneys which shall come into the
hands of any
Except as otherwise provided by law, money collected or received by
an
officer of any county, or of any
township, school district, city
or
village, or of any other municipal or public corporation within
a local public entity in this state, pursuant to any provision of
law
authorizing such the officer to collect or receive the same,
shall
be denominated public moneys within the meaning of this
act.money, is public money for the purposes of
this act. An officer
of a local public entity authorized to deposit public money
collected or received by the local public entity shall as soon as
practicable deposit the public money collected or received in 1 or
more financial institutions designated under this act. This section
does not prevent the officer of a local public entity authorized to
deposit public money collected or received by the local public
entity from keeping on hand a reasonable amount of money necessary
to conduct the affairs of his or her office.
Sec.
2. (1) The county board of commissioners, or board of
county
auditors in a county in which there is a board of county
auditors,
the township board of a township, the district board, or
board
of education of a school district, or the legislative body of
a
city or village shall provide by governing
body of a local public
entity
shall adopt a resolution for the
designation and deposit of
designating 1 or more financial institutions or types of financial
institutions that meet the requirements under subsection (2) and
are recommended by the treasurer of the local public entity under
subsection (3) as depositories of public money, including, but not
limited
to, tax money, coming into the
possession of the county
treasurer,
township treasurer, school district treasurer, city
treasurer
or tax collector, or village treasurer, in 1 or more
financial
institutions in the proportion and
manner as may be
provided in the resolution.
(2) To be designated as a depository of public money by a
local public entity under subsection (1), a financial institution
must meet either of the following:
(a) The financial institution maintains a principal office or
branch office located in this state under the laws of this state or
the United States.
(b) The financial institution does not maintain a principal
office or branch office located in this state and all of the
following apply:
(i) The local public entity has a geographic boundary
bordering another state.
(ii) The financial institution maintains a principal office or
branch office in the bordering state under the laws of this state
or the United States.
(iii) There is no principal office or branch office of a
financial institution that maintains a principal office or branch
office in the local public entity.
(3) A treasurer of a local public entity shall recommend to
the governing body of that local public entity 1 or more financial
institutions that meet the requirements of subsection (2) for
designation as a depository of public money, using a procurement
process that is consistent with best practices for procurement of
banking services by local governments, including, but not limited
to, the practices established by the Government Finance Officers
Association or the Association of Public Treasurers of the United
States and Canada.
(4) (2)
Assets acceptable for pledging to
secure deposits of
public funds are limited to any of the following:
(a) Assets considered acceptable to the state treasurer under
section 3 of 1855 PA 105, MCL 21.143, to secure deposits of state
surplus funds.
(b) Any of the following:
(i) Securities issued by the federal home loan
mortgage
corporation.Federal Home Loan Mortgage Corporation.
(ii) Securities issued by the federal national
mortgage
association.Federal National Mortgage Association.
(iii) Securities issued by the government national
mortgage
association.Government National Mortgage Association.
(c) Other securities considered acceptable to the depositor of
public funds and the financial institution.
(5) (3)
All proceedings in connection with
the deposit of
public
money shall must be
conducted and be governed under section
4
this act and under
applicable law not in conflict with
this act.
Upon
designation of a 1 or more
financial institution or
institutions
in compliance with this act, the or types of financial
institutions
under subsection (1), a treasurer or
tax collector of
a
local public entity shall deposit all funds
coming into the
treasurer's
possession, including tax money in the treasurer's name
as
treasurer or tax collector, and public
money collected or
received in the designated financial institution or institutions in
the proportion and manner as may be provided by the resolution.
(6) (4)
As to If a deposit or deposits is made
in a designated
financial institution in accordance with the resolution adopted
under
subsection (1), neither the
treasurer or tax collector, nor
of
the local public entity and the
sureties on their respective
bonds,
shall be the treasurer's
bonds are not liable for a loss
occasioned or sustained by the failure or default of the designated
financial
institution. This exemption from liability shall apply
applies
even though a requirement of a
statute if applicable law
provides
for the furnishing of a bond by depositories of public
money.
a financial institution. The treasurer or tax collector of a
local
public entity and the sureties on their
respective the
treasurer's
bonds shall be are liable
for all money not deposited
as provided under this act.
Sec.
4. (1) Notwithstanding section 2, additional funds
coming
into
the possession of a county treasurer, township treasurer,
school
district treasurer, city treasurer or tax collector, or
village
treasurer shall money
collected or received by a treasurer
of a local public entity must not be deposited or invested in a
financial institution that is not eligible to be a depository of
surplus
funds belonging to the of
this state under section 6 of
1855 PA 105, MCL 21.146.
(2) An officer of a local public entity responsible for
depositing money belonging to the local public entity shall keep
all accounts at a financial institution designated under this act
upon the regular books or records of the officer so that each item
of all accounts appear on the books or records and shall maintain a
cash control ledger recording deposit and investment activity
affecting the money, including, but not limited to, a record of the
cash and investment equity of each fund of the local public entity.
Money deposited with a treasurer under this act, including any
surplus money, must be invested by the treasurer as investment
officer for the local public entity in a manner that complies with
1943 PA 20, MCL 129.91 to 129.97a.
Sec.
6. (1) As used in this act:
, "financial institution"
(a) "Deposit" includes the purchase of or investment in shares
of a credit union.
(b) "Financial institution" means a state or nationally
chartered bank or a state or federally chartered savings and loan
association, savings bank, or credit union whose deposits are
insured
by an agency of the United States government. and, except
as
provided in subsection (2), maintains a principal office or
branch
office located in this state under the laws of this state or
the
United States.
(2)
A governmental unit described in section 2 may designate
and
deposit public money, including tax money, in 1 or more
financial
institutions that do not maintain a principal office or
branch
office in this state if all of the following apply:
(a)
The governmental unit borders another state.
(b)
The financial institution maintains a principal office or
branch
office in the border state under the laws of this state or
the
United States.
(c)
There is no principal office or branch office of a state
or
nationally chartered bank or a state or federally chartered
savings
and loan association, savings bank, or credit union whose
deposits
are insured by an agency of the United States government
that
maintains a principal office or a branch office in the
governmental
unit.
(c) "Governing body" means a council, commission, board, or
other official body that has legislative powers over a local public
entity.
(d) "Local public entity" means a county, city, village,
township, school district, district, authority, municipal
corporation, or any other political subdivision organized under the
laws of this state.
Enacting section 1. Section 5 of 1932 (1st Ex Sess) PA 40, MCL
129.15, is repealed.
Enacting section 2. 1909 PA 99, MCL 129.31 to 129.40, is
repealed.
Enacting section 3. This amendatory act takes effect 90 days
after the date it is enacted into law.
