SB 1360 - Public Deposits

• Adds credit unions to the list of financial institutions eligible to be designated as qualified public depositories for holding public funds.

• Requires the Chief Financial Officer to designate credit unions as qualified public depositories only if a public depositor commits to depositing funds and at least four credit unions are either designated or actively applying.

• Mandates the Chief Financial Officer withdraw from collateral agreements with credit unions if fewer than five credit unions are designated or applying within any 90-day period, with credit unions required to return deposits within 10 business days.

• Establishes separate accounting for credit union collateral proceeds, assessments, and penalties from those of banks and savings associations, and limits the Chief Financial Officer's authority to cap public deposits held by any single credit union.

• Updates deposit insurance references to include the National Credit Union Share Insurance Fund and modifies collateral requirements to apply to all qualified public depositories rather than just banks and savings associations; effective July 1, 2023.