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Bill

S 8406

Relates to the community bank deposit program

2025 Regular Session Introduced by James Sanders

Bill S 8406 establishes a program for state deposits in community banks, boosting their capacity to support local economies and serve businesses and residents better.

REFERRED TO BANKS
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WeVote Research Nonpartisan
Bill Summary · S 8406

Summary of Bill S 8406: Community Bank Deposit Program

Purpose and Intent

Bill S 8406 aims to establish a community bank deposit program designed to enhance the financial stability and operational capacity of community banks. The bill seeks to facilitate increased deposits in these banks, thereby promoting local economic growth and ensuring that community banks can better serve their customers and communities.

Key Provisions

  • Establishment of the Program: The bill proposes the creation of a community bank deposit program that will allow state funds to be deposited into eligible community banks.
  • Eligibility Criteria: Community banks must meet specific criteria to qualify for participation in the program, which may include asset size, community involvement, and lending practices.
  • Deposit Limits: The bill outlines limits on the amount of state funds that can be deposited in any single community bank to ensure a broad distribution of funds across multiple institutions.
  • Reporting Requirements: Participating banks will be required to report on the use of the deposited funds, including how they are utilized to support local lending and economic development initiatives.

Who Would Be Affected

  • Community Banks: The primary beneficiaries of this bill are community banks, which will gain access to additional deposits that can be used for lending and investment in local economies.
  • Local Businesses and Residents: By strengthening community banks, the bill indirectly supports local businesses and residents who rely on these institutions for loans, mortgages, and other financial services.
  • State Government: The state will play a role in managing the deposits and ensuring compliance with the program's requirements.

Procedural Timeline

  • Introduced: June 09, 2025
  • Legislative Actions:
    • June 12, 2025: Ordered to third reading and passed in the Senate.
    • June 12, 2025: Delivered to the Assembly and referred to the Banks Committee.
    • June 09, 2025: Initially referred to the Rules Committee.

Conclusion

Bill S 8406 represents a strategic effort to bolster community banks through state-supported deposits, aiming to enhance their capacity to serve local economies. By providing a structured program for deposits, the bill seeks to ensure that community banks can thrive and continue to support their communities effectively. The bill is currently under consideration in the Assembly following its passage in the Senate.

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

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