"This is a chance to make a policy statement," said Sen. Tom Hatch, R- Panguitch. "What it boils down to is a state's rights issue — whether we have the right to set tax policy, or whether federal regulators do."

Eastman maintained that the task force was formed, at least in part, to research whether there were differences in the types of credit unions operating in Utah — some that functioned like "traditional" credit unions, and others that acted more like banks.

"My thought on it, and again we're brainstorming, is that we send that resolution, reiterating what took place (in 2003, with the passage of HB162), and express our desire that these large financial institutions — and I'm talking about banks and credit unions — be treated similarly when it comes to taxation. I think that's the crux of the bill that was passed, and that's about as far as the resolution, if we do a resolution, needs to go."

Major components of HB162 were postponed until 2005, when the Legislature will have to decide questions of credit union taxation and fees. HB162 provided for the designation of non-tax exempt credit unions, the possible imposition of "competitive equity fees," and taxation. Under HB162, lawmakers will have to bring new legislation to enact either the fee or the tax.

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