CCUL-backed CU government deposits bill becomes law

SACRAMENTO, Calif. – A bill passed by the state legislature that allows credit unions to accept deposit funds from local governmental agencies has been signed into law by Gov. Gray Davis. A.B. 743 takes effect Jan. 1, 2002. The law identifies sections of the state education and government codes that address state and local governmental deposits, and adds credit unions where banks and savings and loans are already listed as repositories or investment options for state and local authorities. The governor’s action ensures that local government agencies can safely deposit funds in a financial institution that is based in their community, and which likely serves the agency’s employees and other members of that community, said Bob Arnould, vice president, state governmental affairs for CCUL.