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Committee approves introduction of bill to remove insured-deposit cap for state treasurer deposits in credit unions
Summary
An RS (RS32240C1) to amend the Idaho Credit Union Act was printed and referred to the Senate Commerce Committee; it would remove the longstanding limit that state treasurer deposits to credit unions be capped at the federally insured amount and require collateralization for uninsured deposits.
The Senate State Affairs Committee voted to print RS32240C1, a proposed revision to the Idaho Credit Union Act that would remove a long-standing cap limiting state treasurer deposits in credit unions to the federally insured amount and would require collateralization for uninsured deposits.
Zach Forrester, representing Idaho credit unions, told the committee RS32240C1 makes two changes to the Idaho Credit Union Act: it removes a cap established in 1986 that restricts the state treasurer to depositing state funds in a credit union only up to the federally insured amount (currently $250,000) and it requires that any uninsured portion be collateralized in negotiation between the state treasurer and the credit union. Forrester said the change would allow the state more flexibility while protecting taxpayers through collateral requirements.
A committee motion to introduce RS32240C1 and send it to print was made and adopted by voice vote; the chair noted the RS will be referred to the Senate Commerce Committee for further consideration.
