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Committee advances bill to remove state deposit cap for credit unions with added protections
Summary
The Senate State Affairs Committee voted to send RS 32240C1 to print; the draft removes the $250,000 cap on state deposits at credit unions and would require collateralization for deposits exceeding the federally insured amount, proponents said.
The Senate State Affairs Committee on Feb. 12 advanced RS 32240C1, a draft relating to the Idaho Credit Union Act that would remove the statutory cap limiting state deposits at credit unions to the federally insured amount and would require credit unions to collateralize any deposits above that threshold.
Zach Forster, speaking for Idaho credit unions, told the committee the draft makes two changes to Idaho Code: it eliminates the cap that restricted state deposits to the federally insured $250,000 per account and adds a collateralization requirement for amounts exceeding that insured level. Senator Harris asked whether the cap would be fully eliminated; Forster confirmed that it would, with collateralization added to protect deposits.
Senator Harris moved that RS 32240C1 be sent to print; Vice Chairman Bernt seconded the motion and the committee recorded the motion as carried by voice vote. The minutes do not record a roll-call tally for the motion.
The committee's action sends the draft into the printing process for formal bill drafting and placement on a future agenda for committee consideration or floor introduction.
