Credit union resolution sails to Senate

Without introduction, discussion or debate, a controversial credit union resolution was catapulted from a Utah legislative committee Monday, bound for a Senate vote.

The Senate Revenue and Taxation Committee abruptly passed HJR1, "A Joint Resolution Related to Financial Institutions," to the Senate floor with a favorable recommendation. The vote occurred before the resolution's sponsor, Rep. Jeff Alexander, R-Provo, even introduced the bill.

"I think we've had a lot of consideration in both public meetings and with e-mail communications, and since we have such a full agenda we ask to move it to the floor," said Sen. Howard Stephenson, R-Draper. The remaining two committee members, chairman Curtis Bramble, R-Provo, and Sen. Darin Peterson, R-Nephi, concurred.

Alexander said after the meeting that "it's nice to have it moving forward in the Senate." The resolution will be presented now by its Senate sponsor, Dan Eastman, R-Bountiful.

Scott Simpson, president of the Utah League of Credit Unions, called the committee's vote — to pass the bill out and put it on the Senate's consent calendar — a "procedural stunt, and a pretty sad one at that."

Simpson said Bramble "orchestrated" the meeting, making sure there were just enough committee members to make a quorum, and the right votes to pass it out unanimously — all to stifle debate.

"Here we are in the Senate and have no ability to have comment," Simpson said. "I am pretty disappointed, actually, but it is interesting to see how the process can be gamed.

"This was orchestrated by the chairman, who had the members there that he needed there. He had exactly the number he needed to for a quorum and a vote."

But Howard Headlee, president of the Utah Bankers Association, urged calm.

"This whole process has been blown out of proportion," Headlee said. "This is a resolution. It has been recommended by a legislative task force. I've never seen this much attention dedicated to a resolution before. This (Monday's meeting) is just an indication that there are other issues they want to discuss."

The resolution asks the U.S. Congress to re-examine rulings by the National Credit Union Administration regarding fields of membership for Utah's federally chartered credit unions; allow states and local governments to levy the same taxes on federally chartered credit unions as are imposed on state-chartered ones; and provide states with an explanation for maintaining the current tax structure, if it decides to do so.

What the U.S. Congress will do, if the resolution passes, is unclear. Utah Sen. Bob Bennett indicated in an interview with the Credit Union Journal Daily last week it isn't likely Congress will give the issue much notice, even if the resolution passes.