Amends existing law to provide for state or federal credit unions to be designated as state depositories.

This bill expands opportunities for Idaho credit unions to accept additional state deposits beyond the federally insured amount of $250,000 set by the National Credit Union Share Insurance Fund. Currently, Idaho Code limits credit unions’ ability to take State deposits beyond this federally insured amount, with the cap originally established in 1986. Expanding this opportunity will allow funds to remain in the state to be reinvested in Idaho communities and Idaho citizens. Additionally, the bill requires credit unions that accept deposits greater than the insured amount to collateralize all funds beyond the insured limit. This collateral will protect taxpayer dollars by ensuring that State funds are secured. The collateral will be negotiated between the credit union and the public entity.