Following concerns expressed by the Association during our State Governmental Affairs Conference, the New York Public Banking Act, or Municipal Deposit Bill, was pulled from the March 22 New York State Assembly Banking Committee meeting agenda. The act, which was passed by the New York State Senate in 2022, would grant municipalities the option to use credit unions for some of their banking needs.
Provisions of the bill that were most concerning included:
- Measured reinvestment requirements for credit unions.
- A depository cap at $500,000.
- A six-year sunset provision, which would require legislative action to continue the provisions of the bill.
“While the Association highly supports deposit choice for our municipalities, these provisions are not practical, would place additional compliance burden and limitations on credit unions and impede participation,” said William Mellin, Association President/CEO.
The Association will now continue to work with our elected officials and member credit unions to amend the bill and redefine its provisions.