Wednesday, July 11, 2012

Legislative Update - issues affecting credit unions


Here are some legislative issues that affect your credit union.

Federal

Tax Support – Credit unions are financial cooperatives where every member has a say in our future. This cooperative structure means that we do not pay taxes on our profits. Congress ratified the federal tax-exemption on several occasions, most recently in 1998 with the enactment of H.R. 1151, the Credit Union Membership Access Act. Big banks and other financial institutions are opposed to credit unions federal tax-exempt status.
Business Lending – Credit unions are limited in the amount of loans we can make to businesses. We are trying to get Congress to enact legislation which increases the credit union member business lending cap from 12.25% of assets to 27.5% for well-capitalized credit unions and adds significant safeguards to ensure that qualifying credit unions do this additional lending safely and soundly.
The following legislators supported credit unions on the issues of Tax Support and Business Lending: Senator Sherrod Brown (D), Congresswomen Betty Sutton (D) and Marcy Kaptur (D), and Congressman Steve LaTourette (R).

State of Ohio

In the Senate, the credit union public funds bill is Senate Bill 292, and in the credit union public funds bill is House Bill 441.

Public Funds – Local government entities such as municipalities and schools cannot open credit union accounts. Legislation was introduced in the Ohio House of Representatives and the Ohio Senate to allow Ohio credit unions to be eligible depositories for public funds under state law.

More importantly, this bill would be a benefit to the local governments, small businesses and Ohio’s citizens because it will also:

  1. Expand the choices of eligible depositories for public entities to make deposits;
  2. Keep deposits local in the community; and
  3. Allow credit unions and their members to participate in state and local initiatives through their credit union. 

The following legislators supported credit unions on the issue of Public Funds:  bill sponsors in the House are Representatives Marlene Anielski  (R), Casey Kozlowski  (R), Barbara Boyd (D), Mike Foley (D), Kenny Yuko (D), and Sandra Williams (D); bill sponsors in the Senate are Senators  Mike Skindell (D),  and Nina Turner (D).

Friday, July 06, 2012