Introduced

Passed Senate

Passed House

Became law

Adjourned sine die. The bill was pending when the session ended, so it did not pass.

Last action · January 14, 2026

To Committee On Committees (S)

Introduced January 14, 2026

Senate

Adjourned Sine Die

2026 Regular Session

SB87

AN ACT relating to the provision of financial services and products by credit unions.

Amend KRS 66.480 to allow local government and school district investments in United States obligations by a repurchase agreement with a credit union and in interest-bearing accounts issued through a credit union; amend KRS 41.010 to redefine "bank" and "state depository" to include credit unions; amend KRS 41.070 to prohibit receipts from being held, used, or deposited in a personal or special credit union account; amend KRS 41.220 to allow credit unions to be designated as state depositories; amend KRS 41.240, 41.250, 41.300, 30A.120, and 30A.200 to conform.

Banks and Financial Institutions Education, Finance Funds Investments Local Government Treasurer

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This bill expands the role of credit unions in Kentucky's public finance system by allowing state and local governments, including school districts, to deposit public funds in and conduct investment transactions through credit unions. Currently, these options are largely limited to traditional banks. The bill also updates the legal definitions of "bank" and "state depository" to formally include credit unions. Who it may affect: local government officials, school district administrators, and credit unions operating in Kentucky.

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