SB133 Alabama 2022 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Donnie ChesteenSenator
Republican
Session: Regular Session 2022
Title: Public deposits, Security for Alabama Funds Enhancement (SAFE) Program board, to allow for virutal meetings, Sec. 41-14A-6 am'd.
Summary: SB133 updates the SAFE Program board to allow virtual meetings and strengthens public deposit protections by redefining board composition and collateral oversight.
What This Bill Does
It designates the State Treasurer as chair; adds six voting members with finance and banking expertise plus municipal and county representatives; and preserves the Superintendent of Banks as a non-voting member. It allows board meetings to occur virtually and requires compliance with the Open Meetings Act, with confidential sessions exempt from public access. It authorizes the board to designate qualified public depositories, set and monitor collateral requirements, require ongoing reporting, and impose penalties for violations, while giving the State Treasurer authority to manage losses and oversee day-to-day administration of the SAFE Program.

Who It Affects
Qualified public depositories (banks and similar institutions) and their custodians: must meet collateral requirements, undergo monitoring and reporting, and may face penalties for violations.
Public depositors and public entities (state agencies, municipalities, counties) and their officials: their deposits are safeguarded by the SAFE Program, and they participate in governance and oversight through the board; they gain clearer protections and reporting related to public deposits.

Key Provisions
Board composition and powers: State Treasurer as chair; Superintendent of Banks as non-voting member; six additional members including four depository representatives and municipal/county representatives, with four-year terms and staggered initial terms.
Virtual meetings: board and public meetings may be held via virtual technology; public attendees can listen/observe; all meetings follow open meetings rules except for confidential sessions.
Collateral and depository oversight: board can designate qualified public depositories, set collateral requirements and levels, monitor pledged collateral, and require reporting on deposits and collateral.
Enforcement and loss payments: board can impose suspensions, penalties, and cease-and-desist orders; can move or sell pledged securities to fund losses not covered by insurance, and transfer funds to pay claims as needed.
Administration and disclosures: day-to-day administration may be delegated to the State Treasurer; electronic filings are permitted; annual statements identifying public deposits may be required; confidentiality protections apply to certain financial information.
Costs and compensation: board members serve without pay but are reimbursed for official duties; costs of the SAFE Program cannot be charged to covered public entities or depositories, with specified exceptions for penalties and restitution.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Public Deposits