Removing Barriers Blog

Ohio Budget Bill with Credit Union Provisions Advances
Posted May 08, 2017 by CUNA Advocacy

Recently, the Ohio House passed the budget (Sub. H. 49) by a 58-37 vote. The bill contains several provisions that would impact credit unions, including public deposits, a Good Funds correction and remote notarization.  The Ohio League is working diligently to strengthen those provisions as the measure heads to the Senate.

The budget bill grants credit unions access to Ohio’s public deposit programs, Business Link and Ag-Link, however it still requires credit unions pay the Treasurer Assessment Rate. Banks are not subject to the Treasurer Assessment rate and the League is seeking to amend the language to grant credit unions parity in the Senate.  

The budget bill also includes a correction to Ohio’s Good Funds provision. During lame-duck session last year, an amendment was included in an omnibus bill that placed a monetary cap of $1,000 on the use of certified and cashier’s checks during a real estate settlement. Further, the amendment was written so that a wire transfer would be the only acceptable financial instrument to move money from an escrow account.

Under an amendment to the budget bill, the monetary cap was raised to $10,000 and all electronic financial instruments would be acceptable to move funds between escrow accounts. The League was a leading group requesting the change as it is currently too restrictive. 

As a bonus, another item that was included in the state budget allows for remote notarization. The League is working with a coalition to enact remote notarization through stand-alone legislation in the Senate and to their surprise, an unknown House member included the drafted language in the state budget without any communication or direction.

Language included would permit any financial institution to establish or contract with a vendor to implement technology that would allow remote notarization across the entire real estate settlement process. Since the provision is similar to what was originally drafted, the League will work to solidify remote notarization permissions in the budget.

The League is already working closely with Senate leaders to ensure credit union interests are well-represented and protected in their version of the budget bill.