Examiner Expense Idea Encounters Texas League Objection
A proposal by the Texas Credit Union Department to recover travel, time and transportation expenses from CUs involved in "unusual" exam cases ran into opposition from the Texas Credit Union League Thursday.
The league's vice president-government relations, Jeff Huffman, charged a proposed June 18 rule adopted by the Texas Credit Union Commission would provide the state's commissioner, Harold Feeney, undue discretionary power. It would also impose unnecessary financial burdens on small CUs struggling to navigate the recession.
The commission's June 18 rule is currently out for 30-day comment with consideration of the proposal slated for an October meeting. The commission rule requires CUs to pay certain examiner expenses including for lodging and "incidentals" in special or extraordinary circumstances as finally decided by Feeney.
Huffman said the league "has concerns about the TCUD proposed rule 97.116 Recovery of Cost for Extraordinary Services" since it allows the regulator to charge state chartered CU's individually when the agency decides to send examiners into a CU for anything other than the regular examination.
"This has traditionally been covered as part of the TCUD budget through the regular assessment made on CU's for operations at the TCUD," said Huffman. "The system of funding the agency that has been in place for many years has served Texas CU's well, in good times and bad."
The extra expense plan "takes away predictability of regulatory costs for state chartered CU's," maintained Huffman. "If these types of rules are implemented, state charters in Texas will not only have to pay their regular assessments, but could also be faced with individual assessments from the TCUD when they are least able to afford additional unanticipated and unlimited regulatory costs."