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Committee approves printing of RS 32240C1 to remove deposit cap and require collateralization for excess state deposits in credit unions
Summary
Senate State Affairs voted to print RS 32240C1 and refer it to the Senate Commerce Committee. The RS would remove a longstanding cap that limited state deposits in credit unions to the federally insured amount and would require collateralization for any uninsured deposits.
The Senate State Affairs Committee approved printing RS 32240C1, which would make two changes to the Idaho Credit Union Act: remove the cap that restricts state deposits in credit unions to the then-current federally insured amount, and require collateralization for any deposits above the federally insured level.
Zach Forrester, representing Idaho credit unions, told the committee that the existing cap dates to 1986 and currently limits state deposits to amounts equal to federal insurance coverage (for banks and similar depositories, currently $250,000). "We're removing that cap and we're also putting in a requirement that everything above and beyond those uninsured deposits have to be collateralized," Forrester said, describing a negotiated collateral arrangement between credit unions and the state treasurer to protect taxpayer dollars.
Senators asked whether the change removes the cap entirely or sets a new one; Forrester answered that it removes the cap while requiring collateral for uninsured balances. The committee voted to print the RS and refer it to the Commerce Committee. Motion to introduce and send RS 32240C1 to print was made by Senator Harris and seconded; the motion carried.
Votes at a glance
- Motion: Introduce RS 32240C1 and send it to print with referral to the Commerce Committee. Mover: Senator Harris. Second: Senator Berndt. Outcome: Approved (motion carries).
What's next: RS 32240C1 will be printed and referred to the Senate Commerce Committee for further consideration and potential bill drafting.
