House committee backs bill letting local governments deposit funds with credit unions

CHEYENNE, Wyo. — The House Committee of the Whole recommended passage of Senate File 143, a bill that would allow local governments to deposit public funds with state-chartered credit unions as an option alongside banks.

Representative Heiner, who carried the bill, framed it as a matter of local control and access to depository services, noting several Wyoming communities lack a bank branch and currently must travel long distances to make deposits. He told members a local credit union in his area offered much higher checking-account interest rates than a bank and suggested the additional interest could support local government services.

Proponents in floor debate stressed credit unions are examinated and insured in ways similar to banks and that the measure simply expands choices rather than compelling local governments to change depositories. Representative Lucas, who has private-sector experience in both banks and credit unions, described regulatory parity and encouraged support.

Some members raised constitutional and tax-related questions. Representative Geringer asked whether the state constitution's depository-language referencing "bank or banks" requires a constitutional amendment to explicitly include credit unions; Representative Larson replied that prior legislative changes to allow savings and loans, and an attorney-general opinion, supported statutory treatment to permit similar institutions to hold public funds.

Representative Larsons and others noted the policy will be voluntary, not mandatory, and the change would particularly benefit small towns where using a local credit union could reduce security risks from transporting cash and reduce travel costs.

The Committee of the Whole recommended the bill on a voice vote and it advanced for further House consideration.