Florida’s House Insurance and Banking subcommittee recently sent a message to Florida’s municipalities when it voted 8-7 to not allow credit unions to accept public deposits. HB 669, by Rep. Jason Brodeur of Sanford, would have allowed qualified public depositories to include credit unions, thus allowing municipalities a choice of where to do business. Now banks will continue to enjoy a virtual monopoly.

Banks argued that credit unions shouldn’t serve local government because they “don’t pay taxes.” This isn’t true. Credit unions do pay tangible personal property taxes, real property taxes and all employment taxes like any bank. Credit unions’ tax exemption lies in their not-for-profit structure, including cooperative ownership and volunteer leadership, not because of their size or the types of services they provide. Credit unions are 100 percent locally owned, returning all profits back to their membership in the form of lower fees, better interest rates and better returns on deposits. There are 40 Subchapter S banks in Florida, which like credit unions, receive an exemption from corporate income taxes, yet are allowed to serve the state as qualified public depositories.

Rep. Evan Jenne of Fort Lauderdale voted against HB 669, agreeing that banks should be the only financial institution to accept municipal deposits. This action should strike a nerve with Florida taxpayers. He would rather limit state dollars to banks than allow municipalities a free-market choice. It’s irresponsible and disappointing that Rep. Jenne is listening to the bank lobby and not his community.

Patrick La Pine, president/CEO, League of Southeastern Credit Unions, Tallahassee

Mike Bridges, vice president, Marketing and Communications, League of Southeastern Credit Unions, Tallahassee