NY A07334

Expands eligibility for municipal public deposits to include credit unions, savings banks, savings and loan associations, and federal savings associations, in addition to traditional banks.

Establishes escalating deposit limits for credit unions from 2022-2027, starting at $500,000 per institution in 2022 and increasing to $5 million by 2027.

Requires credit unions accepting municipal deposits exceeding $300,000 average daily balance to invest 0.35% of that balance (up to $100,000 annually) in community development including minority/women-owned businesses, affordable housing, community services, or financial literacy.

Directs the Department of Financial Services to study and report by January 1, 2027 on the impact of allowing these alternative financial institutions to accept local government deposits.

Increases the maximum state deposit limit in community banking institutions from $250 million to $300 million under existing community bank deposit programs.