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Rep.  Smith	Sen. Spada

FOR IMMEDIATE RELEASE                                                                  

Contact:   John Kozlowski, General Counsel, or:
Becky Hart, Director of Communications
Ohio Credit Union League
800-486-2917 or 614-336-2894

CREDIT UNION LEGISLATION INTRODUCED IN OHIO GENERAL ASSEMBLY 

Columbus, Ohio (February 24, 2005) -- Legislation introduced this week in the Ohio House of Representatives and the Ohio Senate would update the Ohio Credit Union Act for the first time in 18 years, and benefit Ohio’s 2.8 million credit union members and other consumers who are eligible to join credit unions.

“House Bill 81 is a common-sense bill,” said Rep. Geoffrey Smith (R-24), the bill’s sponsor in the Ohio House. “This legislation is a culmination of discussions with other legislators and the Ohio Credit Union League.  The purpose of the bill is to allow Ohio’s credit unions to better provide the quality financial products and services their member-owners need and deserve. The ultimate winner is the Ohio consumer.”

Sen. Bob Spada (R-24) of North Royalton is the sponsor of a companion bill in the Ohio Senate, Senate Bill 72. “The last time Ohio’s credit union laws were updated was in 1987,” said Spada. “While financial needs of credit union members have changed, the laws regulating credit unions have not evolved to adjust to these needs. It is important that we modernize these laws to ensure that credit unions have the necessary authority to serve their members in the best ways possible.”

The House and Senate legislation would do the following, according to John Kozlowski, General Counsel for the Ohio Credit Union League:  

• Authorize state-chartered and federally-chartered credit unions as depositories for probate and guardianship assets;

• Permit student branches of credit unions to operate in public schools for grades K-12;

• Permit credit unions to offer limited financial services (including check-cashing and wire transfers, among others) to people in underserved areas;

• Establish a safety and soundness standard for membership approval;

• Provide additional authority to the Superintendent of Financial Institutions to adopt rules setting forth membership criteria;

• Simplify the process of adopting parity rules as they relate to other credit unions not chartered under Ohio law;

• Permit electronic technology for meetings, record-keeping, and documentation;

• Add the definition for low income credit unions, net worth, shares, and deposits.

The legislation culminates a process initiated by the Ohio Credit Union League to review the laws and regulations affecting Ohio credit unions, said John Kozlowski.  The 10-member Ohio Charter Task Force was chaired by Jerry Guy, CEO of Kemba Financial Credit Union in Columbus.

“These bills would give Ohio credit unions the regulatory flexibility they need to better serve their members,” said Guy. “There are nearly 3 million Ohioans who have wisely chosen to use credit unions to meet their financial needs. Our only goal is to figure out the best ways to serve these member-owners.”

Kozlowski applauded the efforts of Rep. Smith and Sen. Spada on behalf of Ohio credit unions.  “They are championing the rights of credit unions to serve their members in modern, efficient ways.  Consumers are the winners in this legislation,” he said.

Smith is a third-term Republican whose district includes Grandview Heights, Upper Arlington, and part of Columbus’ West Side. Spada, a Republican, has served in the Senate since 1999. His district includes part of Cuyahoga County.

The following state senators have signed on as co-sponsors of SB 72: Jeffry Armbruster (R-13), Daniel Brady (D-23), Gary Cates (R-4), Marc Dann (D-32), Teresa Fedor (D-11), Timothy Grendell (R-18), Robert Hagan (D-33), Ray Miller (D-15), and Kimberly Zurz (D-28).

The following state representatives are co-sponsors of HB 81: Dixie Allen (D-39), Catherine Barrett (D-32), Kenneth Carano (D-59), Larry Flowers (R-19), Merle Grace Kearns (R-72), Randy Law (R-64), Jim McGregor (R-20), Sylvester Patton (D-60), Jeanine Perry (D-49), Jon Peterson (R-2), Linda Reidelbach (R-21), Dan Stewart (D-25), Fred Strahorn (D-40), Mary Taylor (R-43), Peter Ujvagi (D-47), Shawn Webster (R-53), Larry Wolpert (R-23), and Claudette Woodard (D-9).

The Ohio Credit Union League, located in the Columbus suburb of Dublin, is the trade association for more than 500 credit unions in Ohio.  Credit unions are not-for-profit financial institutions which provide savings, loans, and other consumer financial services to nearly 3 million members in Ohio.

For more information about Ohio credit unions or how consumers can become credit union members, call the Ohio Credit Union League at 800-486-2917, or visit www.OhioCreditUnions.org. 

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