Robert L. Ehrlich, Jr. press release, March 12, 1998

MEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1 407 York Rood, Suite 304 Lutherville, Maryland 21093 3 1 5 Cannon House Office Building Washington, D.C. 20515 FOR IMMEDIATE RELEASE: CONTACT: Richard Cross March 1 2, 1 998 202-225-306 1 EHRLICH INTRODUCES BILL REDEFINING FIELDS OF MEMBERSHIP ’’FOR CREDIT UNIONS Congressman Bob Ehrlich (R-2nd., MD), a member of the House Banking and Financial Services Committee, has introduced legislation which will revise and update the federal law governing eligibility for credit union membership. Under the 1934 Federal Credit Union Act, membership in credit unions is limited to “groups having a common bond of occupation or association, or to groups within a well-defined neighborhood, community, or rural district.” Through 1982, the “common bond of occupation" requirement was understood to mean that credit union members shared the same employer. In 1982, the National Credit Union Administration (NCUA), the federal agency which oversees credit unions, began interpreting the law in a way allowing multiple employer groups to constitute a common bond of occupation. In February, the Supreme Court upheld a lower court’s ruling that NCUA’s action violated the 1934 law’s common bond of occupation requirement. The Ehrlich bill, the Federal Credit Union Membership Act of 1998, redefines the fields of membership in a federal credit union, specifically limiting membership to groups which have a common bond of enterprise, trade, or association, or within a well-defined community, neighborhood, or rural district. Additionally, the bill does not impose taxation or regulatory burdens on credit unions. The Ehrlich bill also safeguards the interests of millions of credit