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:
- Expand the choices of eligible depositories for public entities to make deposits;
- Keep deposits local in the community; and
- Allow credit unions and their members to participate in state and local initiatives through their credit union.
- http://www.legislature.state.oh.us/bills.cfm?ID=129_SB_292
- http://www.legislature.state.oh.us/bills.cfm?ID=129_HB_441
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).
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