Your Credit Union, Your Community and HB 317

I want to tell you about an important piece of legislation that was introduced in the Ohio House Representative’s committee this past Wednesday, House Bill 317. The proposed bill would provide a choice to Ohio school districts, township trustees, county treasurers and other public entities – the choice of being able to invest their funds in Ohio’s credit unions – in other words become eligible depositories for public funds.

Currently the Ohio Revised Code prevents the use of credit unions as public depositories under Ohio’s Uniform Depository Act. Currently, more than twenty states (including our neighbors of Michigan, Indiana and West Virginia) allow credit unions to accept public funds and Ohio needs to follow in their footsteps by passing HB 317. 

At a time of increasing mergers and globalization of our banks and lending institutions it is time to allow credit unions the opportunity to accept state public funds and recognize their vital role as financial institutions in our local communities. There are fewer choices for public entities as to where they can deposit their funds which makes it difficult for local officials to find local financial institutions to do business with. This results in less competition, less choice, lower interest paid on deposits and higher rates on loans. Allowing credit unions to accept their deposits would benefit our community and all of us locally who live, work or worship here.

Please contact your local State Representative to support this bill when it comes before the Full House of Representatives. You can reach Representative Dan Dodd who is a member of the committee hearing this bill, at district91@ohr.state.oh.us and ask him to support this bill in committee.

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