The Minerals, Business & Economic Development Committee advanced Senate File 143 on a unanimous 8-0 vote, sending the bill to general file. The measure would add “credit unions” to the list of institutions eligible to accept public deposits in Wyoming, allowing local governments and other public entities to include credit unions when soliciting depositories.

Senator Teran Nethercott, Majority Floor Leader and sponsor, told the committee: “All it simply does is everywhere that our Wyoming banks are allowed to accept public deposits, we are adding the statement credit unions.” Nethercott also said credit unions are covered by safety and insurance programs similar to banks: “Credit unions have the same program through the National Credit Union Association, so those consumer protection issues or safety measures are still in play for credit unions just as they are for banks.”

Supporters described local service benefits and examples where the prohibition has constrained communities. Lloyd Larson, House District 54, recalled an attorney general opinion and legislative history that previously expanded allowable depositories and argued SF 143 follows that precedent. Bill Novotny, a Johnson County commissioner, and Mayor Joel Highsmith of Shoshone said residents and small towns sometimes travel long distances to reach banks and would prefer to use nearby credit unions for public deposits and local lending. Bobby Frank, representing Wyoming’s credit unions, supplied economic figures to the committee: he said Wyoming has 23 credit unions serving about 330,000 members, employing roughly 900 people and contributing about $178,000,000 to the state economy.

Opponents and skeptics raised regulatory and tax differences between banks and credit unions. Scott Meyer of the Wyoming Bankers Association said the Community Reinvestment Act (CRA) governs many obligations for FDIC-insured banks and argued that because credit unions are organized differently they are not subject to the same CRA requirements. Meyer told the committee: “If you wanna engage in banking activities, then you should be regulated like a bank, you should be taxed like a bank, and have the responsibilities of a bank.”

Committee members pressed for clarification on public-safety and financial safeguards. Supporters pointed to federal insurance coverage for depositors through the National Credit Union Administration and to Wyoming examples in which credit unions and community banks cooperated on local projects. Committee members also received data included in witness handouts showing participation levels in the state treasurer’s time-deposit program and a breakout of public deposits by institution type.

Action at the meeting: Representative Lolli moved the bill out of committee; Representative Schmidt seconded. The roll-call vote recorded eight ayes, zero noes and one excused member; the committee clerk announced the bill passed and will be placed on general file.