The proposed legislation, General Assembly Raised Bill No. 216, aims to modify the existing Community Bank and Credit Union Investment Program overseen by the State Treasurer. The bill allows the State Treasurer to create a fund pool of up to three hundred million dollars for investment with eligible community banks and credit unions, sourced from the state's operating cash. It establishes specific eligibility criteria, including an asset limit for participation, which is set at two billion dollars for the period from July 1, 2023, to September 29, 2024. After this period, the asset limit will be adjusted based on the median percentage loan growth of eligible institutions.

Additionally, the bill introduces a new application process for banks and credit unions to seek investment-related services, replacing the previous competitive bidding procedure. The State Treasurer will now accept rates for these services that do not exceed one hundred basis points below the yield of comparable U.S. Treasury securities. The legislation also empowers the State Treasurer to set capital standards for participating institutions. The changes are set to take effect on October 1, 2026, and aim to enhance the investment program's efficiency and accessibility for community financial institutions.

Statutes affected:
Raised Bill: 3-24k