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Committee clears change allowing state to deposit amounts greater than federal insurance cap with collateral protections
Summary
The committee approved Senate Bill 11-03 to allow the state treasurer to deposit sums larger than the federal insurance cap (currently $250,000) into credit unions, subject to standard collateralization practices. The bill passed the committee and will move to the floor with a due pass.
Representative Brent Crane (District 13) presented Senate Bill 11-03 on March 5, 2025, a statutory change that removes a long-standing cap on the amount the state treasurer may deposit in credit unions and replaces it with a requirement that deposits above the federal insurance limit be collateralized to protect taxpayer funds.
Committee discussion focused on safeguards: a representative from the treasurer's office explained that collateralization is standard industry practice and that the change updates a cap that has existed since 1986. Committee members asked whether the change injects additional risk; the treasurer's representative said collateralization and competitive bidding are intended to protect deposits and that the change is intended to allow the treasurer to manage larger deposits under existing budgeting procedures.
No public testimony was offered. The committee voted to send SB 11-03 to the House floor with a due-pass recommendation by voice vote.
