California Proposition 45, Use of Credit Unions for State Deposits (1986)
The official ballot summary said, "The California Constitution currently provides that Legislature may provide for the deposit of public moneys in any bank or savings and loan association in this state. This measure authorizes the Legislature to also provide for the deposit of public moneys in any credit union in this state."
The California Municipal Treasurers Association "by an overwhelming majority" of its general membership voted to oppose Proposition 45 because, they said, the California Superintendent of Banks, given regulatory authority for credit unions that accept public funds, was not in a position to dictate the methods of dollar settlement to depositors in some specific instances of default or closure.
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- See also: Amending the California Constitution
Specifically, Proposition 45 altered Paragraph (b) of Section 11. This text shows the previous version of (b) with provisions that Proposition 45 deleted printed in
strikeout type and new provisions added or inserted by Proposition 45 in italic type.
- (b) The Legislature may, however, provide for the deposit of public moneys in any bank in this state or in any savings and loan association in this state or any credit union in this state and for
thepayment of interest, principal and redemption premiums of public bonds and other evidencesevidence of public indebtedness by banks within or without this state. It may also provide for investment of public moneys in securities and the registration of bonds and other evidences of indebtedness by private persons or bodies, within or without this state, acting as trustees or fiscal agents.
The fiscal estimate provided by the California Legislative Analyst's Office said, "By itself, this measure has no direct fiscal effect. The legislation already approved to implement this measure could result in greater interest income to the state and local governments by increasing competition for the deposit of public moneys."
Path to the ballot
The California State Legislature voted to put Proposition 45 on the ballot via Assembly Constitutional Amendment 21 (Statutes of 1984, Resolution Chapter 106).