An Act To Amend Titles 9 And 22 Of The Delaware Code Relating To County And Municipal Government Deposits Of Funds.
Summary
SB247 amends Delaware law governing how county and municipal governments may deposit public funds. For counties, the bill updates Title 9 to allow the receiver of taxes, county treasurer, or director of finance to deposit public money in any depository bank or credit union in the state at the county seat, and it preserves the existing requirement that funds be deposited within three days of receipt. For municipalities, the bill adds a new provision in Title 22 stating that, notwithstanding any other provision of the Delaware Code or a municipal charter, a municipality may deposit any revenue in any depository bank or credit union.
The bill is primarily a clarification and expansion of local government banking authority. It aligns counties and municipalities more closely with the State’s existing flexibility in choosing depositories, while leaving intact the rules on custody, transfer, and investment of idle or surplus county funds. The measure does not create a new revenue source or tax; instead, it changes where local governments may place their funds and broadens the set of eligible financial institutions to include credit unions.
Impact
SB247 would amend Title 9 and Title 22 of the Delaware Code to expressly authorize counties and municipalities to deposit public revenues in any depository bank or credit union, overriding any conflicting municipal charter provisions. For counties, it also modernizes the language describing the responsible officials and maintains the three-day deposit requirement for public money. The practical effect is to expand local government treasury options and potentially increase competition among financial institutions for public deposits.
Sentiment
The available voting history suggests broad bipartisan support and little controversy. The bill passed the Senate unanimously 20-0 and the House unanimously 35-0, indicating that legislators viewed it as a straightforward administrative clarification rather than a substantive policy dispute. No committee transcripts were provided, and the synopsis frames the measure as extending to counties and municipalities a flexibility the State already has.
Contention
No notable opposition is reflected in the available record. The only potentially sensitive issue is the bill’s override of municipal charters and its expansion of eligible depositories to include credit unions, which could matter to local governments and financial institutions competing for public deposits. However, the unanimous votes suggest these issues were not contentious in practice.