(a) The amount of state funds on deposit in any depository in excess of the amount insured by an agency of the federal government shall be secured by a deposit guaranty bond issued by a valid bankers surety company or by other securities acceptable to the State Treasurer, pursuant to the dedicated method as defined in 12-1B-4 of this code, in an amount of at least 102 percent of the amount on deposit. The value of the collateral shall be determined by the State Treasurer.
(b) The State Treasurer shall propose rules for legislative approval in accordance with the provisions of 29A-3-1 et seq. of this code and may promulgate emergency rules pursuant to the provisions of 29A-3-15 of this code as are necessary to effectuate the provisions of this section.