To amend chapter 30, RSMo, by adding thereto one new section relating to the deposit of state funds.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI,

AS FOLLOWS:

Section A. Chapter 30, RSMo, is amended by adding thereto one new section, to be known as section 30.255, to read as follows:

30.255. 1. Beginning July 1, 1997, the state treasurer shall not make a new deposit of state funds, continue an existing demand deposit of state funds, or renew an existing time deposit of state funds beyond the expiration date of the deposit in any financial institution where:

(1) The institution has been given by the appropriate federal regulatory agency a written evaluation of the institution's record of meeting the credit needs of its entire community, including low and moderate income neighborhoods, pursuant to the federal Community Reinvestment Act of 1977, as amended, 12 U.S.C. 2905; and

(2) The most recent evaluation of the institution includes a rating of "needs to improve record of meeting community credit needs" or "substantial noncompliance of meeting community credit needs", or categories substantially comparable if said federal law is amended.

2. Within sixty days after the treasurer receives notification of such a rating of a financial institution, he or she shall ensure that all demand deposits are removed from the institution.