It is enacted by the General Assembly as follows:

SECTION 1. Section 42-10-23 of the General Laws entitled "Deposit Banks" is hereby amended to read as follows:

42-10-23. Deposit banks. -- (1) The general treasurer shall designate the banks or trust companies in which all monies of the state, including pension funds, shall be deposited, and may change the banks and trust companies previously designated. No bank or trust company shall be designated or remain designated pursuant to this section if it provides the following services, whether directly or through a subsidiary or agent, to the Republic of South Africa:

(c) Making new loans to the government or private sector in South Africa, other than loans for educational, housing, or health facilities available to all persons on a totally nondiscriminatory basis and located in geographic areas accessible to all population groups without any legal or administrative restrictions.

(2) The general treasurer may designate a bank or trust company which does not meet the criteria set forth in subsection (1) if it is determined that the deposit of state monies in that bank or trust company is necessary to obtain essential services which are not reasonably obtained from another bank or trust company. If the general treasurer finds that a bank or trust company previously designated as a depository of state monies has violated the criteria set forth in subsection (1), he or she shall give the bank or trust company an opportunity to be heard on this finding. If thereafter, it is concluded that the criteria has been violated, thirty days' notice shall be given to the bank or trust company that its designation shall be terminated as of the expiration of the thirty (30) days.

SECTION 2. The provisions of this act are severable.

SECTION 3. This act shall take effect upon passage.