Ohio House of Representatives Passes Credit Union Modernization Legislation
DUBLIN, Ohio - The Ohio House of Representatives passed the Credit Union Member Services Powers Bill - House Bill 81 - by a vote of 91-2 on Oct. 18. Sponsored by Rep. Geoffrey Smith (R-Upper Arlington), the measure modernizes the state's credit union law for the first time in 18 years. Among House Bill 81's provisions, it: * makes numerous revisions to the state Credit Union Law including general powers and services offered; lending authority; authority granted by parity rules; member accounts; meetings of the board of directors; compensation; liquidity funds and liquidation; investments; record keeping; confidentiality; use of trade names; and out-of-state CUs. * modifies existing parity rules governing banks, savings and loans associations, and savings banks to conform more closely to the revised parity rules being proposed for credit unions. * modifies probate and fiduciary laws and the laws dealing with an interest-bearing trust account (IOLTA) and on-premises police officers to include credit unions and savings banks as eligible financial institutions and included qualifications for on-premises police officers at any financial institution. This week, House Bill 81 is expected to be introduced in the Ohio Senate where there is currently a companion bill, Senate Bill 72 sponsored by Sen. Robert Spada (R-N-Royalton). House Bill 81 will be referred to the Senate Finance and Financial Institutions Committee. Rep. Smith is expected to give sponsor testimony before the committee on the bill. Commenting on the House's passage of House Bill 81, Ohio Credit Union League General Counsel John Kozlowski said, "It's fitting that the Ohio House of Representatives passed this legislation during International Credit Union Week, as members and consumers are celebrating the unique service they get from their credit unions. House Bill 81 is consumer-friendly legislation."