SECTION 1. There shall be a special commission to investigate, study, and make a report on the safety and security of deposits made by public entities, including the commonwealth, cities, towns, counties, districts and regional school districts, said funds being deposited in any form whatsoever in any public depository or in a combined investment fund. The report shall assess the necessity of providing further security for said public deposits and include recommendations to establish reasonable standards for protecting public deposits. The commission shall consist of 11 members: the house and senate chairs of the joint committee on financial services who shall serve as co-chairpersons; the state treasurer or his designee; the state auditor or his designee; the state banking commissioner or his designee; 3 representatives of the Massachusetts Collectors & Treasurers Association, 2 representatives of the Massachusetts Bankers Association; and a representative of the Massachusetts Municipal Association. The commission shall file its report, including its recommendations and a draft of any legislation necessary to carry out its recommendations, by filing the same with the clerks of the house of representatives and the state senate not later than ninety days after passage of this act.

SECTION 2. This act shall take effect upon its passage.