SB 5188 passed out of its chamber of origin in early March and moved out of House Appropriations Committee last
week.
The state bank, now referred to as a state public financial cooperative, may issue debt as a cooperative membership organization to support state, local, and tribal governmental entities. The bank would help address the multibillion-dollar deficit local
governments face to support and expand critical infrastructure and economic development projects by issuing low-interest loans.
After receiving amendments in House Consumer and Finance Protection Committee, the bill now requires (rather than allows) a financing document used to secure bonds issued by the cooperative to contain provisions for protecting and enforcing the rights,
security, and remedy of bond owners.
For more information regarding the state bank proposal, see our previous reports.