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F I S C A L   I M P A C T   R E P O R T

 

 

SPONSOR:

Jennings

 

DATE TYPED:

02/19/03

 

HB

 

 

SHORT TITLE:

Deposits By County and Municipal Treasurers

 

SB

664

 

 

ANALYST:

Martinez

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

NFI

 

NFI

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

LFC Files

 

Responses Received From

Taxation and Revenue Department

Regulation and Licensing Department

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 664 amends the law that allows counties and municipalities to make deposits outside their respective localities.  The legislation maintains that the treasurers of irrigation and conservancy districts within the state may not deposit outside of their subdivisions.

 

FISCAL IMPLICATIONS

 

The legislation broadens the type of institution in which county and municipal treasurers deposit public funds.  This bill may help municipalities and counties by allowing treasurers to search for competitive bank rates outside their respective political subdivisions.

 

POSSIBLE QUESTIONS

 

  1. Which counties and/or municipalities will most likely take advantage of the change?
  2. How will smaller cities and counties be affected?
  3. Are there specific advantages to this amendment in law? 
  4. Will small local financial institutions suffer if they lose county and/or city business?
  5. What is the economic impact at the local level?

 

MM/yr