New S.C. Legislation Would Allow Local Governments To Deposit Taxpayer Dollars Into CUs

South Carolina State House

The South Carolina Financial Freedom Act has been introduced in the South Carolina Senate. The legislation, S.60, and its companion bill in the South Carolina House of Representatives, H.3221, permit local governments to deposit taxpayer dollars into credit unions, the Post and Courier reported.

Under current state law, local governments can only deposit taxpayer funds into traditional banks. The legislation was introduced in the Senate by Sean Bennett (R).

“As of 2023, this outdated restriction has funneled more than 78% of all deposits in South Carolina into out-of-state banks. As banks continue to leave South Carolina and close branches in local communities across the state, taxpayers are at risk of more of their dollars leaving South Carolina for New York City and Chicago,” the Post and Courier said.

The effort to give local governments the financial freedom and flexibility to bank where they can deliver the highest rate of returns on taxpayer dollars is spearheaded by the Palmetto Public Deposits Coalition (PPDC). PPDC coalition supporters include the Municipal Association of South Carolina (MASC) and the Carolinas Credit Union League (CCUL), the Post and Courier noted.

Courtesy of CUToday