Committee approves bill allowing counties and municipalities to deposit funds with credit unions
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Summary
Senate Bill 247, which clarifies that county and local governments may deposit funds with credit unions (including federal credit unions) without joining them, was advanced after testimony from credit-union representatives arguing the change will increase competition and help underserved communities. The committee released the bill by roll-call vote.
The committee advanced Senate Bill 247, which would amend Titles 9 and 22 of the Delaware Code to clarify that counties and municipalities are authorized to deposit public funds with credit unions, including federal credit unions, whether or not the credit union is named in a charter. The sponsor said the change is consistent with federal law and removes ambiguity in the current code.
Michael Edwards, counsel for the Cooperative Credit Union Association, testified in support and said the measure would "save Delaware County and municipal governments money by increasing competition" and would level the playing field for credit unions. Blanche Jackson, CEO of Stepping Stones Community Federal Credit Union in Wilmington, also testified that the bill would provide affordable, federally insured deposit options that could help low- and moderate-income communities expand local access to capital. Rory Murray of the Delaware Credit Union Association echoed support, saying the bill "keeps local money local" and costs the state nothing.
No opposing public comments were recorded. A motion to release the bill was approved by roll call and the clerk announced the bill had received the required votes and was released from committee. The sponsor and witnesses emphasized that the bill does not compel municipalities to change where they bank; it simply provides an additional, clarified option.
