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Who cares
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Sponsors
1 Co-sponsor
History
- Referred to local government
- Reported and committed to finance
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Establishes the savings bank, savings and loan association or credit union municipal deposit program
In Assembly Committee · Ways And Means · Sponsor Harvey Weisenberg
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the general municipal law and the state finance law, in relation to the establishment of a savings bank, savings and loan association or credit union municipal deposit program, and limiting deposits of public funds in such institutions to one million dollars
Purpose
Allows savings banks, savings and loan associations and credit unions to accept deposits from municipalities when such local governing body designates, by resolution, one or more savings banks, savings and loan associations or credit unions as its depositary financial institution.
Current law
Under current law, only commercial banks and trust companies are allowed to accept municipal deposits.
Justification
The current law restricting municipal deposits to commercial banks is inadequate and out-dated for the twenty-first century, stemming from the days when commercial banks were the most prominent option for these types of investments. Financially sound, federally insured savings banks, savings & loan associations and credit unions are regularly approached by local governing bodies requesting to place public funds in their financial institutions, but have no choice but to turn them away. This bill would give any local governing body such as schools, library, fire districts, towns and counties, more depository choices.
This legislation would require such local governing bodies to designate, by resolution, one or more savings banks, savings & loan associations or credit unions as their designated depositary giving them depository choice, and an opportunity to take advantage of the best possible rates in the interest of the public they serve. Municipalities would only be allowed to deposit up to $1 million per depository. In addition to saving taxpayer dollars, allowing savings banks, savings & loans and credit unions to accept municipal deposits would be beneficial to such communities because funds would stay local allowing for reinvestment directly back into the community.
Legislative history
New bill.
Fiscal implications
None to the State.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.