As the State Legislature winds down its 2019 Session (scheduled to end Wednesday, June 19th), one of the pieces of legislation receiving active consideration is a bill which would permit credit unions and savings banks to accept public sector deposits (A. 3262-A / S. 6079-A).
The authorization would begin January 1, 2020 and expire December 31, 2025. The maximum amount which could be deposited in a credit union by a public entity would be capped at $500,000 for 2020 and gradually increased each year through 2025 (savings banks would not be subject to this cap).
The bill also contains a requirement that the Superintendent of Financial Services submit to the Governor and State Legislature, by January 1, 2025, a public report with recommendations concerning the impact of allowing credit unions and savings banks to accept public deposits. The report would need to be prepared in consultation with various stakeholders including local governments, banks, credit unions and savings banks.
Although NYGFOA is not taking a position on this legislation, it is following it very closely and will keep you 'in the loop' on developments.
Click on the link below to see the bill text and latest status:
To see what other legislation the Association is following, click on the Legislative Resources link below: