New Jersey Lawmakers Pass Municipal Deposit Law
Marking a milestone in its long-running campaign to allow government deposits in credit unions, the New Jersey Assembly has passed an industry-backed enabling bill.
A companion measure had been adopted by the state Senate in June over objections from the state’s banking lobby.
The bill was approved Wednesday by a vote of 67-8. It now goes to Gov. Chris Christie who is expected to sign it.
"This is a great win for New Jersey credit unions and taxpayers alike as credit unions will bring new competition to the public deposits market that is sorely needed," said Paul Gentile, president/CEO of the New Jersey Credit Union League.
The legislation as enacted would enable counties, school boards, municipalities and other local government entities to utilize credit unions as depositories.
In winning passage, the league said a “a multi-faced grassroots campaign including distribution of 5,000 postcards by CU volunteers, professionals and members plus two Credit Union Days” at the statehouse in Trenton helped turn the tide.
In recent months, the league has also conducted CU exhibits at various government-related conventions.