LOCAL PUBLIC ENTITY; DEPOSITORIES S.B. 455 (S-1):
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 455 (Substitute S-1 as reported)
CONTENT
The bill would amend Public Act 40 of 1932, which provides for the designation of depositories for public money of local units of government, to do the following:
-- Require an officer of a local public entity authorized to deposit public money collected by the entity to deposit the money in a financial institution as soon as practicable.
-- Allow a county treasurer to keep on hand a reasonable amount of money necessary to conduct the affairs of his or her office.
-- Revise the process for a governing body to designate by resolution a financial institution as a depository for public money.
-- Allow a local public entity's treasurer to recommend to the entity's governing body one or more financial institutions that met the requirements for deposit under the Act.
-- Create financial record-keeping requirements for an officer of a local public entity responsible for depositing its money.
-- Revise various provisions throughout the Act to refer to a "treasurer", instead of a "tax collector".
The bill would repeal Section 5 of the Act, and Public Act 99 of 1909. (Section 5 states that "deposit" includes the purchase of or investment in shares with a credit union. The bill would re-enact this statement. Public Act 99 of 1909 authorizes certain county officials to designate a depository or depositories for public money received by a county treasurer.)
MCL 129.11 et al. Legislative Analyst: Drew Krogulecki
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Date Completed: 5-30-18 Fiscal Analyst: Ryan Bergan
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.