Texas Regulator Seeks Reimbursement for 'Unusual' Exams
Citing "extraordinary" costs in special cases, the Texas Credit Union Department wants to be reimbursed from the industry for certain examination expenses, it was disclosed last week.
In a proposed rule out for comment this month, Texas CU Commissioner Harold E, Feeney said the agency may seek "direct reimbursement for time and actual expenses incurred by the department" for CU examinations deemed extraordinary.
Expenses including personnel and transportation costs, meals, lodging and incidentals would be declared "unique and directly attributable to an individual credit union," the proposed rule read.
Deputy Commissioner James Deese said so far he has not witnessed a large number of comments on the rule likely to be acted upon at the commission's October meeting. The comment period on the rule that was issued June 18 runs for 30 days.
The proposed rule stipulates that if the commissioner "determines that the nature of a service is unusual and recovery of costs associated with the extraordinary service is appropriate, the Department shall provide advance notice to the credit union of its intention to recover expenses."
Unless an appeal is filed, the full amount would be due when the credit union receives the bill.
In seeking reimbursement, "the commissioner shall consider the amount of the costs involved, the nature of the service, the impact of the activity on other department services, and other factors deemed appropriate."
Deese said he was unfamiliar with similar rules in other states but that the commission seeks to recover "a fair share" of expenses from those CUs where examiners were spending copious amounts of time. Just how many Texas CUs might make the list CUs deserving special agency attention was unavailable, he said.