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S 3066

Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations

2025 Regular Session Introduced by Jake Ashby and 7 co-sponsors

Expands eligible depositories for municipal funds to include credit unions, savings banks, savings and loan associations, and federal savings associations.

REFERRED TO BANKS
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WeVote Research Nonpartisan
Bill Summary · S 3066

Legislative Bill Summary: S.3066

Overview

S.3066 seeks to broaden where municipalities can place and secure their deposits by allowing a wider set of financial institutions to accept and safeguard municipal funds. Specifically, the bill would authorize credit unions, savings banks, savings and loan associations, and federal savings associations to accept and secure deposits from municipal corporations.

  • Status: Referred to Banks (Senate)
  • Introduced: October 28, 2025
  • Primary sponsor: James Sanders Jr. (with John Kennedy listed as a sponsor)
  • Additional sponsors: Mark Walczyk, Rachel May, Jessica Ramos, Shelley Mayer, Jake Ashby, James Skoufis, Kevin S. Parker
  • Related bills: Several prior-session bills (e.g., S.4785, S.4672, S.286, S.6079, S.670, S.1453) and Assembly companion A.4818

Purpose and Intent

The bill is intended to expand the universe of eligible depository institutions for municipal funds beyond traditional banks. By permitting credit unions, savings banks, savings and loan associations, and federal savings associations to accept and secure municipal deposits, the measure aims to:
- Increase competition and potentially drive better terms or efficiency in handling public funds.
- Provide municipalities with additional choices for depositing and safeguarding funds.

Key Provisions (as described)

  • Expands eligibility to accept and secure municipal deposits to:
    • Credit unions
    • Savings banks
    • Savings and loan associations
    • Federal savings associations
  • Applies to deposits from municipal corporations (e.g., cities, towns, counties, and other government entities that operate as municipal issuers of funds, depending on the final statutory definitions in the bill).

Note: The summary reflects the main operative change described in the bill’s title and summary. The full text would specify any conditions, safeguards, limits, or oversight requirements that apply to these institutions and to municipal deposits.

Affected Parties

  • Municipal corporations and their treasurers or fiscal officers, which would gain additional authorized depository options.
  • Eligible depository institutions (credit unions, savings banks, savings and loan associations, and federal savings associations) that could compete to hold municipal deposits.
  • State banking/financial regulatory framework, which would implement and oversee any new requirements or standards.

Procedural and Timeline Details

  • 2025-01-23: Referred to the Senate Committee on Banks (initial referral).
  • 2025-10-28: Read twice and referred to the Committee on Appropriations; introduced in the Senate.
  • Status indicates the bill is still in committee review and has not advanced to the floor for a vote or enacted into law.

Related and Companion Legislation

  • Related Senate bills from prior sessions: S.4785, S.4672, S.286, S.6079, S.670, S.1453
  • Assembly companion: A.4818

Plain-Language Note

If enacted, S.3066 would broaden the field of institutions eligible to hold municipal funds, potentially increasing options for municipal treasury management. The specifics—such as eligibility criteria, caps, risk protections, and regulatory oversight—would be defined in the bill’s text and accompanying regulatory provisions.

This summary provides the bill’s essential purpose, provisions, affected parties, and current procedural status based on the available information. For a fuller understanding, the full bill text and any fiscal notes or committee reports would be needed.

Compiled from official sources — confirm details with the bill’s official record.

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