TRENTON, N.J. - Yesterday afternoon, the New Jersey Assembly Financial Institutions and Insurance Committee passed the Governmental Unit Depository Act (GUDPA) Reform legislation (A-1597) by a 6-2 vote that New Jersey's credit unions have been lobbying for since last year.
15 credit union representatives were in attendance to show their support of the legislation through testimony and "Support Slips". Representatives from the NJ Bankers Association, as well as representatives from banks throughout the state, were also in attendance to provide opposition to the legislation.
"This is another step forward for New Jersey's credit unions. We are closer to updating the arcane 40 year-old law prohibiting credit unions from participating in public deposits," said New Jersey Credit Union League President/CEO Paul Gentile. "I couldn't be more proud of the progress we have made and the support that our credit unions have shown towards making this happen."
The GUDPA Reform legislation will enable counties, school boards, municipalities and other local government entities to consider credit unions as potential depositories, which will promote competition among providers of government banking services and save taxpayer dollars. By choosing a credit union as a depository, it also increases the likelihood that taxpayer dollars will be leant back to their respective communities and promotes local economic development.
Assembly Speaker Sheila Oliver (D-34), Deputy Speakers Upendra Chivukula (D-17) and John Wisnieski (D-19) sponsored the bill. The bill also has 13 additional co-sponsors from both sides of the aisle.
A companion bill (S-1807) sponsored by Senate President Sweeney (D-3), Senate Republican Conference Leader Bob Singer (R-30), and Deputy Majority Leader Paul Sarlo (D-36) passed the Senate last June.