COLUMBIA, S.C.-- A new bill set to be introduced at the South Carolina Statehouse would provide local governments and other public entities—like fire departments—access to credit unions for public deposits, ABC Columbia reported.
Supporters of the bill say access to a credit union for public deposits will help keep money in local communities, reduce risk to taxpayers, and help taxpayer dollars go further, ABC Columbia said.
To date, state law mandates that local governments and local elected officials use a commercial bank, ABC Columbia noted.
Former Aiken, S.C., Mayor Rick Osbon said he believes the proposed bill is about allowing competitive choice and a stronger free market — with 77% of public deposits currently held by out-of-state banks.
“That’s not right, and that’s not how our state’s tax payer dollars should be managed. There’s often a credit union based in these same communities, particularly in rural communities, who can offer better rates and keep those tax dollars in sc. Creating more opportunities for residents to buy homes, buy trucks, or purchase farm equipment,” Osbon stated in the ABC Columbia report.
Also known as the “South Carolina Community Financial Empowerment Act,” Representative Nathan Ballentine says he created and pre-filed the bill after receiving concerned calls from local citizens.
“I’ll be honest, I didn’t even know they couldn’t do what they’re looking to do. It made no sense that we have that boundary in place. We have the same protections at these other local community institutions. Many who are serving communities that the big banks have long left behind or forgotten about,” said Ballentine.
The bill will officially be introduced when session begins again at the Statehouse in January, ABC Columbia said.