|
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.
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.
|
