MSIC Secures Committee Passage of its Two Top Legislative Objectives
Release: Yesterday, MSIC secured committee approval of its two top legislative objectives in the Massachusetts Legislature.
First, the Joint Committee on Municipalities and Regional Government has favorably adopted House 1879, An Act to Allow Municipalities to Invest in Credit Unions – commonly referred to as Municipal Deposit Powers. "The redrafted language adopted by the Committee gives us everything credit unions are looking for regarding public deposit powers,” said Mike Hanson, President and CEO of MSIC.
House Chairman Jim O’Day and Senate Chairman Barbara L’Italien were instrumental in securing the bill’s passage. House 1879 was sponsored by Representative Jonathan Zlotnik at the request of Tina Sbrega, CEO of GFA Federal Credit Union and a member of the MSIC Board of Directors. The redrafted language was prepared by MSIC. "I’d also like to thank the entire MSIC Board of Directors and our Governmental Affairs Agents, Dennis Kearney and Paul Donovan, who have all worked tirelessly for the past two years on this effort,” said Hanson.
It has been 25 years since Massachusetts credit unions all obtained federal deposit insurance, and thereby became qualified to accept public funds. This effort by MSIC marks the closest the credit union movement has come to date on this important power. 33 other states currently allow municipalities to invest public monies in credit unions.
MSIC also actively supported another bill on this issue which remains in the Joint Committee on Financial Services, under a requested extension. Second, House 794 (An Act further regulating the Reserve Fund for Credit Unions), making technical revisions to MSIC’s Liquidity Reserve Fund was approved yesterday by the Joint Committee on Financial Services. "We would like to thank House Chairman Aaron Michlewitz and Senate Chairman Jamie Eldridge for their support of our effort,” added Hanson. That bill was introduced by Representative Garrett Bradley on behalf of MSIC. House 1879 and the Public Deposits issue will likely spark a lively debate on the House and Senate floors between now and July. All MSIC Member CEOs will be asked to participate in this important effort in the weeks to come.