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Battle to gain public funds powers for Ohio CUs begins

Legislation was introduced in the Ohio House of Representatives to allow Ohio credit unions to be eligible depositories for public funds under state law. House Bill 317, jointly sponsored by Majority Floor Leader Tracy Maxwell Heard (D-Columbus) and State Rep. Peter Ujvagi (D-Toledo) and 20 additional co-sponsors, would include credit unions as a choice of eligible depositories for the state, communities, schools, and other public entities. It would also allow credit unions to participate in the Ohio Department of Development’s Minority Business Enterprise Program and Capital Access Loan Program for small businesses. If passed, members would have access to linked deposit programs from the Treasurer of State, including GrowNow, SaveNow, Ag Link, ECO Link, and Bid Ohio, through their credit unions. “The ability of credit unions to participate in these programs would benefit the citizens, businesses, communities, and public entities in Ohio,” said Ohio Credit Union League General Counsel John Kozlowski.

Credit unions are frequently approached by public entities that want to deposit funds, according to Kozlowski. The League contends that public entities should have a choice when making deposits and should not be restricted by an archaic law. More than 20 other states allow credit unions to accept public deposits.

Call to Action: Please call or e-mail your legislator to thank them for their support of this important piece of credit union legislation. A list of the bill’s co-sponsors is available below.

Name

Office Phone

Email Address

Tracy Maxwell Heard (D-Columbus), Sponsor

(614) 466-8010

district26@ohr.state.oh.us

Peter Ujvagi (D-Toledo), Joint-Sponsor

(614) 644-6017

district47@ohr.state.oh.us

Terry Blair (R-Washington Township)

(614) 466-6504

district38@ohr.state.oh.us

Barbara Boyd (D-Cleveland Heights)

(614) 644-5079

district09@ohr.state.oh.us

Mike Foley (D-Cleveland)

(614) 466-3350

district14@ohr.state.oh.us

Nancy Garland (D-New Albany)

(614) 644-6002

district20@ohr.state.oh.us

Ron Gerberry (D-Austintown)

(614) 466-6107

district59@ohr.state.oh.us

Bruce Goodwin (R-Defiance)

(614) 644-5091

district74@ohr.state.oh.us

Robert Hagan (D-Youngstown)

(614) 466-9435

district60@ohr.state.oh.us

Marian Harris (D-Columbus)

(614) 466-4847

district19@ohr.state.oh.us

Sandra Harwood (D-Niles)

(614) 466-3488

district65@ohr.state.oh.us

Matt Huffman (R-Lima)

(614) 466-9624

district04@ohr.state.oh.us

Peggy Lehner (R-Kettering)

(614) 644-6008

district37@ohr.state.oh.us

Tom Letson (D-Warren)

(614) 466-5358

district64@ohr.state.oh.us

Clayton Luckie (D-Dayton)

(614) 466-1607

district39@ohr.state.oh.us

Dale Mallory (D-Cincinnati)

(614) 466-1645

district32@ohr.state.oh.us

Dan Stewart (D-Columbus)

(614) 466-1896

district25@ohr.state.oh.us

W. Carlton Weddington (D-Columbus)

(614) 466-5343

district27@ohr.state.oh.us

Brian Williams (D-Akron)

(614) 644-5085

district41@ohr.state.oh.us

Sandra Williams (D-Cleveland)

(614) 466-1414

district11@ohr.state.oh.us

Tyrone Yates (D-Cincinnati)

(614) 466-1308

district33@ohr.state.oh.us

Kenny Yuko (D-Richmond Heights)

(614) 466-8012

district07@ohr.state.oh.us

Talking Points:
The choice of where to deposit funds should be that of the public entity; it should not be restricted by state law.

House Bill 317:
Amends the Uniform Depository Act Chapter 135 O.R.C. to add credit unions as eligible depositories for public funds.
Permits credit unions to accept deposits from public entities such as the State of Ohio, instrumentalities of the state, schools, counties, municipalities, and townships.
Increases the number of eligible depositories for public funds
Expands the choices available to public entities as to where they can deposit public funds
Allows credit unions to participate in the Department of Development’s Minority Business Enterprise Program
Allows credit unions to participate in the Department of Development’s Capital Access Loan for some businesses
Requires credit unions to pledge security above the amount of insured deposits as set forth in Ohio law and by the Treasurer of State
   
Other facts:
As an eligible depository for public funds, a credit union would have access to Linked Deposit Programs and other offerings available through the Treasurer of State’s office, such as GrowNow, SaveNow, Ag Link, ECO Link, Bid Ohio
Credit unions are permitted to accept deposits from the federal government and its agencies.
Twenty-one other states, including Michigan, Illinois, Indiana, and West Virginia, include credit unions as eligible depositories for public funds.
Funds from community-based public entities would remain in the community served by the local credit union.

The bill has been assigned to the House Financial Institutions, Real Estate & Securities Committee for hearings. For more information about the bill and talking points, contact John Kozlowski at (800) 486-2917, ext. 266, or jkozlowski@ohiocul.org.

10 W. Broad St., Columbus, Ohio 43215 
Phone: (614) 336-2894, (800) 486-2917 
Fax: (614) 336-289

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