In heralding the enactment of a sunset law renewing the Texas Credit Union Department for another 12 years as a major victory for dual chartering, the Texas Credit Union League said the action by state lawmakers should be a factor weighing on Congress as it considers federal regulatory restructuring.
The Texas CU regulatory system, separate from that of the banks, has proved highly successful and should provide a model to Congress in protecting members and the public on CU safety and soundness and ensuring industry growth, according to the league.
"There is compelling evidence here, and we hope our Texas congressional delegation will take this model to heart as regulatory restructuring is contemplated this year in our nation's Capitol," said Buddy Gill, chief advocacy officer for the league.
League President/CEO Richard Ensweiler said an additional goal in passing the sunset law was "to ensure that the bill did not unduly expand regulatory powers and burdens on credit unions in a time of significant financial turmoil."
"Specifically, TCUL worked to successfully remove a new provision that would allow for monetary penalties to be levied on credit unions, and worked to keep in place statutory language to continue allowing for joint 990 filings," Ensweiler noted of the IRS forms for nonprofits.
In passing the sunset law, the league hailed the enactment as an "epic" achievement considering the bruising battles in 1997 with the banking lobby, which sought to contain CUs under a single regulator.