Legislation sponsored by State Rep. Tom Saunders (R-Lewisville) passed out of the House today to allow state libraries to receive private funding and help financial institutions to deposit in public funds.
Senate Bill (SB) 485 passed out of the House with a 90-0 vote to allow the Indiana library and historical boards to establish a nonprofit foundation to solicit and accept private funding.
"By allowing state libraries to receive private funding it will help them tremendously to acquire donations in addition to establishing foundations," Rep. Saunders said. "Changes like this will help libraries to continue to provide services that the communities have requested."
The foundation will be governed by a board of directors and will require the State Board of Accounts to annually audit the foundation.
Members from the Indiana State Library and Indiana Library Federation were present during committee hearings to give public testimony in support of the legislation.
In addition to SB 485 passing today, SB 205 also passed with an 85-2 vote.
Current statue does not allow a financial institution to hold public deposits if the institution:
- Fails to maintain a capital ratio in excess of the minimum required by the governmental supervisory body of the institution; or
- Issues a credit card as a card issuer and it is not in substantial compliance with the federal Credit Card Accountability Responsibility and Disclosure Act of 2009.
SB 205 will provide an exception so that an institution not maintaining the minimum capital ratio could hold public deposits, provided by the institution fully collateralizes the public deposits with the Board for Depositories or the Board's agent.
"Through this legislation, more banks will be encouraged to deposit in public funds," Rep. Saunders said, "which will provide them with additional opportunities to serve their communities."
Members from the Indiana Bankers Association and Association of Indiana Counties were present in committee hearings to provide support for SB 485 legislation.