NY S00670

Allows credit unions with principal or branch offices within a local government's jurisdiction to accept municipal public deposits, with deposit limits increasing annually from $500,000 (2022) to $5,000,000 (2027).

Permits savings banks, savings and loan associations, and federal savings associations with principal or branch offices in qualifying locations to accept municipal deposits for the first time.

Requires credit unions accepting municipal deposits with average daily balances exceeding $300,000 to invest in community development (minority and women-owned businesses, affordable housing, community services, or revitalization), with annual contributions equal to 0.35% of average daily balance, capped at $100,000 per year.

Directs the Department of Financial Services to study and report by January 1, 2027 on the impact of allowing these financial institutions to accept municipal deposits, including effects on commercial banks and small community banks.

Increases the maximum state deposits in community banking institutions from $250 million to $300 million under the existing community bank deposit program and requires annual reporting on program efficacy.