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GA SB358

Bill

Status

Engrossed

2/28/2018

Primary Sponsor

Michael Rhett

Click for details

Origin

Senate

2017-2018 Regular Session

AI Summary

  • Authorizes the Georgia Department of Community Affairs to designate "banking improvement zones" within county or municipal jurisdictions to encourage banks to open branches or offices in areas underserved by banking services
  • Requires the Department to determine, before approving a zone, that any potential gains to a bank from a below-market interest rate agreement constitute ample consideration for a substantial public benefit under the Georgia Constitution
  • Directs the Department to evaluate five factors when considering applications: proximity of existing banking services, consumer needs, economic viability and local credit needs, existing commercial development, and the potential economic development impact of additional banking services
  • Allows local governments, upon zone approval, to designate a bank within the zone as the depository for local government funds via ordinance or resolution, provided public fund deposit standards under Chapter 8 of Title 45 are met
  • Requires the deposit agreement to set a fixed interest rate at or below the bank's posted two-year certificate of deposit rate, effectively offering banks a favorable deposit arrangement as an incentive to locate in underserved areas

Legislative Description

Counties/Municipal Corporations; establishment of banking improvement zones; agreement for deposit of public funds; provide

Last Action

House Committee Favorably Reported

3/12/2018

Full Bill Text

No bill text available