Buddy Gill
Chief Advocacy Officer
Policy papers adopted re League positions on: taxation,
the dual chartering system,
independent state regulator and
data security
Papers will be posted on public area of web site.
Board Approves Four Policy Papers
Four policy papers that outline the League’s official position on taxation, dual chartering, an independent state regulator and data security will be going up on the TCUL web site.
For some time we’ve needed a quick place for legislators, the media, and the public to find basic information our positions on key issues for credit unions in Texas. These policy papers outline our stand on four of our perennial issues. Here’s a brief recap:
Tax exemption: The Texas Credit Union League strongly supports the not-for-profit credit union tax exemption. Credit unions are tax-exempt because they are not-for-profit, democratically controlled cooperatives that are generally directed by volunteer boards and return earnings to the members. Members receive more favorable rates on loans and savings because of the not-for-profit, cooperative structure of credit unions, which allows them to focus on service to members. Changing the tax status would hinder credit unions’ ability to maintain this structure – and a new tax on credit unions would be a new tax on 7 million Texans.
Dual charter: The Texas Credit Union League strongly supports the dual chartering system for Texas credit unions. Like the dual banking system, Texas credit unions have the choice to operate as a federal or state charter. That valuable choice allows a Texas credit union to compare the federal and state systems, by powers, regulatory authority, and benefits, and choose the best system to serve its members.
Independent regulator: The Texas Credit Union League strongly supports maintaining an independent and separate state regulator to charter, examine, and supervise state-chartered credit unions in Texas. The Texas Credit Union Department provides credit union specific supervision and examination to ensure safety and soundness. The Texas Credit Union Department’s continuous high performance ratings demonstrate that the independent regulatory system works well.
Data security: TCUL strongly supports a statewide requirement for merchants capturing credit or debit card data to comply with industry data security standards. TCUL further supports legislatio
n that
will have a reimbursement mechanism requiring non-compliant merchants
to assume all the costs of replacing the compromised accounts. The complete policy papers will be online by January 1, 2008. An additional policy paper will be drafted for LRAC and League Board review on credit unions service to people of modest means.
LRAC
February 15, 2008
Dallas
CUNA GAC
March 3-5, 2008
Washington
LRAC Summit
June 16, 2008
Dallas
Traditionally
the Committee on Business and Industry is not the primary committee for
credit unions, however the committee has an interim charge of grave
importance: Data Security. The committee’s first
charge addresses the larger issue of identity theft but it specifically
states that the committee will examine the problem of electronic data
breaches, as well as the feasibility of requiring periodic destruction
of records for businesses and state entities to limit exposure to
identity theft. Most significantly, the committee is charged with
recommending legislative changes needed to combat the problem.