Hearings Set for Legislation to Authorize Deposit of Public Funds in Credit Unions

Hearings have been scheduled for March 3 in the Senate Finance Committee and March 6 in the House Economic Matters Committee for SB975 and HB1489.

Public Deposit MapThe legislation would enable Maryland to join 26 states that have laws expressly permitting credit unions to accept public funds and permit government entities to deposit public funds in credit unions. 9 other states have laws that allow depository institutions to receive, or government entities to provide, public deposits. 

The legislation was introduced at the request of local government. The MD|DC Credit Union Association fully supports the bills to enable localities to have the opportunity to keep their public deposits in local institutions that will reinvest back into their communities. In a letter to Senator Hershey, the sponsor of SB975, the Association affirms that under the Federal Credit Union Act, credit unions may be public depositories of public money and act as a guarantor for public deposits. The Association will provide updates on any developments as the bills move through the legislative process.