As Introduced 1
123rd General Assembly 4
Regular Session H. B. No. 510 5
1999-2000 6
REPRESENTATIVE EVANS 8
_________________________________________________________________ 9
A B I L L
To amend section 1733.32, to enact new sections 11
1733.329 and 1733.3210, and to repeal sections 12
1733.329 and 1733.3210 of the Revised Code to 13
revise the qualifications and duties of members
of the Credit Union Council. 14
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 16
Section 1. That section 1733.32 be amended and new 18
sections 1733.329 and 1733.3210 of the Revised Code be enacted to 19
read as follows: 20
Sec. 1733.32. (A)(1) The superintendent of financial 29
institutions shall see that the laws relating to credit unions 31
are executed and enforced.
(2) The deputy superintendent for credit unions shall be 34
the principal supervisor of credit unions. In that position the 35
deputy superintendent for credit unions shall, notwithstanding 36
division (A)(3) of this section, be responsible for conducting 37
examinations and preparing examination reports under that 38
division. In addition, the deputy superintendent for credit 39
unions shall, notwithstanding sections 1733.191, 1733.41, 40
1733.411, and 1733.412 of the Revised Code, have the authority to 42
adopt rules in accordance with those sections, and, 43
notwithstanding section 1733.05 of the Revised Code, shall have 44
the authority to approve issues and matters pertaining to fields 46
of membership. In performing or exercising any of the 47
examination, rule-making, or other regulatory functions, powers, 48
or duties vested by division (A)(2) of this section in the deputy 50
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superintendent for credit unions, the deputy superintendent for 51
credit unions shall be subject to the control of the 53
superintendent of financial institutions.
(3) The superintendent shall develop and implement a 55
system for evaluating the safety and soundness of credit unions 56
and for determining when examinations and supervisory actions are 57
necessary. Credit unions shall be subject to periodic 58
examinations, as specified in rules adopted by the 59
superintendent, and their books, records, and accounts shall be 60
open to the inspection of the superintendent at all times. For 61
the purpose of such examination or inspection, the superintendent 62
may subpoena witnesses, administer oaths, receive testimony, and 63
order the submission of documents. 64
(B) Every credit union shall prepare and submit, on forms 66
provided by the superintendent, a financial report to the 67
superintendent showing its assets and liabilities whenever 68
requested to do so by the superintendent. Every financial report 69
shall be verified by the oaths of the two principal officers in 70
charge of the affairs of the credit union at the time of such 71
verification and shall be submitted to the superintendent within 72
thirty days after the superintendent requests the financial 73
report. 74
(C) An annual financial report of the affairs and business 76
of the credit union, showing its condition as of the thirty-first 77
day of December unless otherwise authorized by the 78
superintendent, shall be filed with the superintendent not later 79
than the date authorized in the rules adopted by the 80
superintendent. 81
(D) If a financial report or an annual financial report is 83
not filed with the superintendent in accordance with division (B) 84
or (C) of this section, the superintendent may do both of the 85
following: 86
(1) Assess a fine, determined by rule adopted by the 88
superintendent, for each day the report is in arrears; 89
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(2) If the superintendent gives written notice to the 91
president of the credit union of the superintendent's intention 93
to do so, issue an order revoking the credit union's articles of 94
incorporation and appointing a liquidating agent to liquidate the 95
credit union in accordance with section 1733.37 of the Revised 96
Code.
(E)(1) Except as provided in division (E)(2) of this 98
section, each credit union doing business in this state shall 99
remit, semiannually and within fifteen days after billing, to the 100
treasurer of state, a supervisory fee in an amount determined by 101
the superintendent, AND CONFIRMED BY THE CREDIT UNION COUNCIL. 103
THE SUPERVISORY FEE DESCRIBED IN DIVISION (E)(1) OF THIS SECTION 104
SHALL BE based on a percentage of the gross assets of the credit 106
union as shown by its last annual financial report filed with the 107
superintendent in accordance with division (C) of this section. 108
The minimum supervisory fee shall be determined by the 109
superintendent AND CONFIRMED BY THE CREDIT UNION COUNCIL. 110
(2) Each corporate credit union doing business in this 112
state shall remit, semiannually and within fifteen days after 113
billing, to the treasurer of state, a supervisory fee determined 114
by rule adopted by the superintendent AND CONFIRMED BY THE CREDIT 116
UNION COUNCIL. The aggregate annual amount of the fee shall not 117
exceed the annual operating fee that the national credit union 118
administration charges a federally chartered credit union 119
pursuant to the "Federal Credit Union Act," 84 Stat. 994 (1970), 120
12 U.S.C.A. 1751.
(3) THE SUPERINTENDENT ANNUALLY SHALL PRESENT TO THE 122
CREDIT UNION COUNCIL FOR CONFIRMATION THE SUPERVISORY FEES TO BE 125
BILLED CREDIT UNIONS AND CORPORATE CREDIT UNIONS PURSUANT TO
DIVISION (E) OF THIS SECTION. 126
(4) If any supervisory fee is not remitted in accordance 128
with division (E)(1) or (2) of this section, the superintendent 129
may assess a fine, determined by rule adopted by the 130
superintendent, for each day that each fee is in arrears. 131
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(4) The (5)(a) SUBJECT TO DIVISION (E)(5)(b) OF THIS 135
SECTION, THE total amount of each semiannual billing to all 136
credit unions and corporate credit unions combined shall equal 137
one-half of the appropriation made by the main operating 138
appropriation act, including any modifications made by the 139
controlling board, to the division of financial institutions for 140
the regulation of credit unions for the fiscal year in which the 142
billings occur, except that the superintendent, in determining 143
the supervisory fees, may take into consideration any funds 144
lapsed from the appropriation made in the previous fiscal year. 145
(b) IF DURING THE PERIOD BETWEEN THE CREDIT UNION 147
COUNCIL'S CONFIRMATION OF SUPERVISORY FEES AND WHEN SUPERVISORY 148
FEES DESCRIBED IN THIS SECTION ARE COLLECTED, THE CREDIT UNION 149
COUNCIL DETERMINES ADDITIONAL MONEY IS REQUIRED TO ADEQUATELY 150
FUND THE OPERATIONS OF THE DIVISION OF FINANCIAL INSTITUTIONS FOR 151
THAT FISCAL YEAR, THE CREDIT UNION COUNCIL MAY, BY THE 152
AFFIRMATIVE VOTE OF FIVE OF ITS MEMBERS, INCREASE THE SUPERVISORY 153
FEES BILLED. THE SUPERINTENDENT PROMPTLY SHALL NOTIFY EACH 154
CREDIT UNION AND CORPORATE CREDIT UNION OF THE INCREASED 155
SUPERVISORY FEES, AND EACH CREDIT UNION OR CORPORATE CREDIT UNION 156
SHALL PAY THE INCREASED SUPERVISORY FEES BILLED BY THE 157
SUPERINTENDENT.
(5)(6) The fees or fines collected pursuant to this 159
section shall be credited to the credit unions fund created in 161
section 1733.321 of the Revised Code.
(F) A report of such examination shall be forwarded to the 163
president of each credit union after the completion of the 164
examination. Such report may contain comments relative to the 165
management of the affairs of the credit union and also as to the 166
general condition of its assets. Within thirty days of the 167
receipt of such report, a meeting of the directors shall be 168
called to consider matters contained in the report, and the 169
president shall notify the superintendent of any action taken at 170
such meeting. 171
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(G)(1) The superintendent shall furnish reports of 173
examinations or other appropriate information to any organization 174
referred to in section 1733.041 of the Revised Code when 175
requested by such organization and authorized by the credit 176
union. The superintendent may charge a fee for such reports and 177
other information as may be established by rules adopted by the 178
superintendent. 179
(2) A report of examination furnished pursuant to division 181
(G)(1) of this section is the property of the division of credit 182
unions and may be used by the examined credit union only in the 183
conduct of its business. Under no circumstances may the credit 184
union, its current or former directors, officers, employees, 185
agents, shareholders, participants in the conduct of its affairs, 186
or their agents disclose or make public, in any manner, a report 187
of examination or its contents. 188
(H) Except as provided in this division, information 190
obtained by the superintendent of credit unions and the 191
superintendent's employees as a result of or arising out of the 193
examination or independent audit of a credit union, from required 194
reports, or because of their official position, shall be 195
confidential. Such information may be disclosed only in 196
connection with criminal proceedings or, subject to section 197
1733.327 of the Revised Code, when it is necessary for the 198
superintendent to take official action pursuant to Chapter 1733. 199
of the Revised Code and the rules adopted thereunder regarding 200
the affairs of the credit union examined. This division does not 201
prevent the superintendent from properly exchanging information 202
relating to an examined credit union pursuant to division (F) or 203
(G) of this section or with officials of properly authorized 204
state or federal supervisory authorities or with any insurer 205
recognized under section 1733.041 or any surety recognized under 206
section 1733.23 of the Revised Code. This division also does not 207
prevent the superintendent from disclosing information contained 208
in the financial reports or annual financial reports described in 209
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division (B) or (C) of this section to recognized credit union 210
trade associations.
Sec. 1733.329. (A) THERE IS HEREBY CREATED IN THE 212
DIVISION OF FINANCIAL INSTITUTIONS THE CREDIT UNION COUNCIL, 213
WHICH SHALL CONSIST OF SEVEN MEMBERS. THE DEPUTY SUPERINTENDENT 214
FOR CREDIT UNIONS SHALL BE A MEMBER OF THE COUNCIL AND ITS 215
CHAIRPERSON. THE GOVERNOR, WITH THE ADVICE AND CONSENT OF THE 216
SENATE, SHALL APPOINT THE REMAINING SIX MEMBERS. 217
(B)(1) AT LEAST FIVE OF THE SIX MEMBERS APPOINTED TO THE 219
COUNCIL SHALL HAVE HAD CREDIT UNION EXPERIENCE. 220
(2) AT LEAST FOUR OF THE SIX MEMBERS APPOINTED TO THE 222
COUNCIL SHALL BE, AT THE TIME OF APPOINTMENT, INDIVIDUALS 223
CURRENTLY ENGAGED IN THE EXERCISE OF DUTIES, RESPONSIBILITIES, 224
RIGHTS, AND POWERS OF A DIRECTOR OR CHIEF EXECUTIVE OFFICER OF A 225
STATE-CHARTERED CREDIT UNION HAVING ITS PRINCIPAL OFFICE IN THIS 226
STATE AND DOING BUSINESS IN THIS STATE PURSUANT TO THIS CHAPTER 227
UNDER THE AUTHORITY OF THE SUPERINTENDENT OF FINANCIAL 228
INSTITUTIONS.
(3) AT LEAST ONE OF THE SIX MEMBERS APPOINTED TO THE 230
COUNCIL SHALL BE A DIRECTOR OR CHIEF EXECUTIVE OFFICER OF A 231
STATE-CHARTERED, FEDERALLY INSURED CREDIT UNION. 232
(4) AT LEAST ONE OF THE SIX MEMBERS APPOINTED TO THE 234
COUNCIL SHALL BE A DIRECTOR OR CHIEF EXECUTIVE OFFICER OF A 235
STATE-CHARTERED, PRIVATELY INSURED CREDIT UNION. 236
(5) AT LEAST ONE OF THE SIX MEMBERS APPOINTED TO THE 238
COUNCIL SHALL BE A DIRECTOR OR CHIEF EXECUTIVE OFFICER OF A 239
STATE-CHARTERED CREDIT UNION WITH FIVE MILLION DOLLARS OR LESS IN 240
ASSETS.
(6) AT LEAST ONE OF THE SIX MEMBERS APPOINTED TO THE 242
COUNCIL SHALL BE A DIRECTOR OR CHIEF EXECUTIVE OFFICER OF A 243
STATE-CHARTERED CREDIT UNION WITH MORE THAN FIVE MILLION DOLLARS 244
IN ASSETS.
(C)(1) INITIAL APPOINTMENTS TO THE COUNCIL SHALL BE MADE 246
WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION. OF 247
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THE INITIAL APPOINTMENTS, TWO SHALL EXPIRE ONE YEAR AFTER THE 248
EFFECTIVE DATE OF THIS SECTION, TWO SHALL EXPIRE TWO YEARS AFTER 249
THE EFFECTIVE DATE OF THIS SECTION, AND TWO SHALL EXPIRE THREE 250
YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION. THEREAFTER, 251
TERMS OF OFFICE SHALL BE FOR THREE YEARS. 252
(2) EACH MEMBER SHALL HOLD OFFICE FROM THE DATE OF 254
APPOINTMENT UNTIL THE END OF THE TERM FOR WHICH THE MEMBER WAS 255
APPOINTED. IN THE CASE OF A VACANCY IN THE OFFICE OF ANY MEMBER, 256
THE GOVERNOR SHALL APPOINT A SUCCESSOR, WHO SHALL HOLD OFFICE FOR 257
THE REMAINDER OF THE TERM FOR WHICH THE SUCCESSOR'S PREDECESSOR 258
WAS APPOINTED. ANY MEMBER SHALL CONTINUE IN OFFICE SUBSEQUENT TO 259
THE EXPIRATION DATE OF THE MEMBER'S TERM UNTIL THE MEMBER'S 260
SUCCESSOR TAKES OFFICE, OR UNTIL SIXTY DAYS HAS ELAPSED, 261
WHICHEVER OCCURS FIRST.
(3) IF DURING A MEMBER'S TERM ON THE COUNCIL, THE MEMBER 263
CEASES TO BE A DIRECTOR OR CHIEF EXECUTIVE OFFICER OF A CREDIT 264
UNION AS DESCRIBED IN DIVISIONS (B)(2) TO (6) OF THIS SECTION FOR 265
A PERIOD EXCEEDING NINETY DAYS, THE MEMBER SHALL BE INELIGIBLE TO 266
CONTINUE TO SERVE AS A MEMBER OF THE COUNCIL, AND THE MEMBER'S 267
POSITION ON THE COUNCIL SHALL BE CONSIDERED VACANT. 268
(D) NO PERSON APPOINTED AS A MEMBER OF THE CREDIT UNION 270
COUNCIL MAY SERVE MORE THAN TWO CONSECUTIVE FULL TERMS. HOWEVER, 271
A MEMBER MAY SERVE TWO CONSECUTIVE FULL TERMS FOLLOWING THE 272
REMAINDER OF A TERM FOR WHICH THE MEMBER WAS APPOINTED TO FILL A 273
VACANCY OR FOLLOWING ANY TERM FOR WHICH THE MEMBER WAS APPOINTED 274
PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. 275
(E)(1) THE COUNCIL SHALL HOLD REGULAR MEETINGS AT THE TIME 277
AND PLACE IT FIXES, BUT AT LEAST ONCE EVERY SIX MONTHS, AND SHALL 278
MEET AT ANY TIME ON CALL OF THE DEPUTY SUPERINTENDENT TO CONDUCT 279
ITS BUSINESS AND TO DECIDE BY VOTE OF THE MEMBERS THE LOCATION OF 280
FUTURE MEETINGS. EACH MEMBER SHALL BE PROVIDED WITH WRITTEN 281
NOTICE OF THE TIME AND LOCATION OF EACH COUNCIL MEETING AT LEAST 282
TWO DAYS PRIOR TO THE SCHEDULED DATE OF THE MEETING, UNLESS THE 283
COUNCIL BY RESOLUTION PROVIDES FOR A SHORTER TIME. FOUR OF THE 284
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MEMBERS OF THE COUNCIL CONSTITUTE A QUORUM TO TRANSACT AND VOTE 285
ON ALL BUSINESS COMING BEFORE THE COUNCIL. 286
(2) THE COUNCIL, BY A MAJORITY VOTE OF THOSE PRESENT AT A 288
MEETING AT WHICH THERE IS A QUORUM, MAY ADOPT AND AMEND BYLAWS 289
AND RULES THE COUNCIL CONSIDERS NECESSARY AND PROPER. THE 290
COUNCIL SHALL SELECT ONE OF ITS MEMBERS AS SECRETARY, WHO SHALL 291
KEEP A RECORD OF ALL ITS PROCEEDINGS. 292
(3) NO MEMBER SHALL PARTICIPATE IN A PROCEEDING BEFORE THE 294
COUNCIL INVOLVING ANY CREDIT UNION OF WHICH THE MEMBER IS OR WAS 295
AT ANY TIME IN THE PRECEDING TWELVE MONTHS A MEMBER OF THE BOARD 296
OF DIRECTORS, AN OFFICER, AN EMPLOYEE, OR A SHAREHOLDER. A 297
MEMBER MAY REFRAIN FROM PARTICIPATING IN THE PROCEEDINGS OF THE 298
COUNCIL FOR ANY OTHER CAUSE THE MEMBER CONSIDERS SUFFICIENT. 299
(F) THE MEMBERS OF THE COUNCIL SHALL RECEIVE NO SALARY, 301
BUT THEIR EXPENSES INCURRED IN PERFORMANCE OF THEIR DUTIES SHALL 302
BE PAID FROM FUNDS APPROPRIATED FOR THAT PURPOSE. 303
(G) THE GOVERNOR MAY REMOVE ANY OF THE SIX MEMBERS 305
APPOINTED TO THE COUNCIL WHENEVER IN THE GOVERNOR'S JUDGMENT THE 306
PUBLIC INTEREST REQUIRES REMOVAL. UPON REMOVING A MEMBER OF THE 307
COUNCIL, THE GOVERNOR SHALL FILE WITH THE SUPERINTENDENT OF 308
FINANCIAL INSTITUTIONS A STATEMENT OF THE CAUSE FOR THE REMOVAL. 309
Sec. 1733.3210. (A) THE CREDIT UNION COUNCIL SHALL DO ALL 311
OF THE FOLLOWING: 312
(1) CONSULT WITH, ADVISE, AND MAKE RECOMMENDATIONS TO THE 314
SUPERINTENDENT OF FINANCIAL INSTITUTIONS AND THE DEPUTY 315
SUPERINTENDENT FOR CREDIT UNIONS ON MATTERS RELATING TO THE 316
BUSINESS FOR CREDIT UNIONS, INCLUDING FIELD OF MEMBERSHIP, 317
REGULATION, EXAMINATION, SAFETY AND SOUNDNESS, AND APPLICATIONS 318
OF CREDIT UNIONS UNDER THIS CHAPTER;
(2) CONSIDER AND MAKE RECOMMENDATIONS UPON ANY MATTER 320
ADDRESSED IN CHAPTERS 1733. AND 1761. OF THE REVISED CODE THAT 321
THE SUPERINTENDENT OR DEPUTY SUPERINTENDENT SUBMITS TO THE 323
COUNCIL FOR THAT PURPOSE; 324
(3) PASS UPON AND DETERMINE ANY MATTER THE SUPERINTENDENT 326
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OR DEPUTY SUPERINTENDENT SUBMITS TO THE COUNCIL FOR 327
DETERMINATION;
(4) SUBMIT TO THE GOVERNOR RECOMMENDATIONS CONCERNING 329
AMENDMENTS TO THE CREDIT UNION LAWS OF THIS STATE OR RULES 330
ADOPTED PURSUANT TO THOSE LAWS THAT THE COUNCIL CONSIDERS 331
APPROPRIATE;
(5) CONSIDER AND DETERMINE WHETHER TO CONFIRM THE 333
SUPERVISORY FEES PROPOSED BY THE SUPERINTENDENT OF FINANCIAL 334
INSTITUTIONS IN ACCORDANCE WITH DIVISION (E) OF SECTION 1733.32 335
OF THE REVISED CODE. 336
(6) WITH RESPECT TO THE ADOPTION, AMENDMENT, OR RECISSION 338
OF RULES ADOPTED PURSUANT TO THIS CHAPTER, BE PRESENT AT THE 339
PUBLIC HEARING REQUIRED BY SECTION 119.03 OF THE REVISED CODE AND 340
PROVIDE RECOMMENDATIONS, ADVICE, OR ASSISTANCE AT THE PUBLIC 341
HEARING.
(B) NEITHER THE DEPUTY SUPERINTENDENT, NOR ANY OTHER 343
MEMBER OF THE COUNCIL, SHALL BE LIABLE, IN ANY CIVIL OR CRIMINAL 345
ACTION OR PROCEEDING, FOR ANY MISTAKE OF JUDGMENT OR DISCRETION 346
IN ANY ACTION TAKEN, OR IN ANY OMISSION MADE, IN GOOD FAITH BY 347
THE DEPUTY SUPERINTENDENT OR OTHER MEMBER. 348
Section 2. That existing section 1733.32 and sections 350
1733.329 and 1733.3210 of the Revised Code are hereby repealed. 352
Section 3. The Credit Union Council as it existed prior to 354
the effective date of this act, within sixty days after the 355
effective date of this act, shall conclude any pending matters 356
for which the council was responsible under law prior to the 357
effective date of this act and for which the council is not 358
responsible under this act.