It took five years, but credit unions in Florida last year won the ability to accept public deposits.

Gov. Ron DeSantis in May signed legislation that will permit the state’s credit unions to compete against banks for billions of dollars.

The legislation was originally introduced in 2019 after a similar bill failed to pass in 2017.

Now, credit unions in South Carolina are seeking similar treatment.

The Carolinas Credit Union League said this week that  H. 3221, introduced by state Rep. Nathan Ballentine in December, and its companion bill, S. 60, sponsored by state Sen. Sean Bennett, seeks to give local governments and other public entities more choices when selecting financial institutions. 

The current law bars credit unions from accepting public funds, so state agencies, municipalities, school boards, universities and police and fire departments typically do business with commercial banks.

By broadening access to credit unions, this legislation promotes competitive rates and improved financial services for public funds, the League said. The bill has garnered bipartisan support and is currently under review in the state legislature.

“With key legislation introduced in North and South Carolina — alongside our ongoing efforts in Washington — we are committed to creating opportunities and protecting the interests of our member credit unions,” said CCUL SVP of Advocacy, Billy Boylston.

Half of all states explicitly allow credit unions to accept public deposits, including California, Pennsylvania and Texas. At least seven other states let credit unions accept public deposits because their laws do not expressly prohibit it.

Up the road in North Carolina, the state’s General Assembly recently introduced House Bill 187, which the CCUL called “a significant step toward modernizing the state’s credit union charter.”

The bill would update existing statutes to provide credit unions with greater flexibility, allowing them to enhance member services and operate more efficiently. 

If passed, the legislation is expected to streamline operations and expand service offerings, ultimately promoting financial inclusivity and economic growth across the state, the League said.

The legislation previously passed the North Carolina House with strong bipartisan support but did not advance in the Senate before the General Assembly adjourned.

“With its reintroduction, we have another opportunity to pass these much-needed reforms that will help credit unions continue to grow and serve North Carolina communities effectively,” Boylston said.

“From modernizing state charters to securing public deposit access and preserving our tax status, our advocacy ensures credit unions can grow stronger and continue serving their communities for years to come.”

 – Billy Boylston
SVP of Advocacy
CCUL