H889 - Banking Development Districts

• Establishes the Banking Development District Program in the Office of the Commissioner of Banks to encourage bank branch expansion in areas with demonstrated unmet banking service needs.

• Allows municipalities to partner with banks to apply for designation of Banking Development Districts based on criteria including proximity of existing banking services, consumer needs, economic viability, and potential for economic development.

• Permits the State Treasurer to select banks in designated districts as depositories for state funds and negotiate fixed interest rates on deposits, notwithstanding existing depository selection statutes.

• Allows municipal governing bodies to select banks in designated districts as local depositories by resolution, with authority to set maximum deposit amounts and negotiate fixed interest rates on deposits.

• Takes effect October 1, 2015.