Protecting the credit union taxexemption, data security accountability for retailers andmortgage market reform are among the legislative priorities creditunions will press during visits with lawmakers at CUNA'sGovernmental Affairs Conference. The event kicks off Feb. 24 at theWashington Convention Center.

“There's a lot of action going on behind the scenes with respectto tax reform. In the House Ways & Means committee, you've gotmembers working on draft legislation. Now in the Senate FinanceCommittee, you're having a transition to a new chairman who's hadhis priority as tax reform for some time,” said Ryan Donovan,CUNA's senior vice president of legislative affairs.

“It's very much an issue that is in play behind the scenes andfrankly, decisions that are made this year about tax reform arereally going to influence the outcome of the legislation wheneverit's finalized,” he added.

David Osborn, president/CEO of the $1.4 billion Anheuser-BuschEmployees' Credit Union in St. Louis, said he views the industry'stax-exempt status as a crucial battle to win every year.

“I think 30% of credit unions would disappear,” Osborn saidabout taxation. “I think it would hit 30% of our bottom line incomeunless we did some tax avoidance kind of things which don't makegood economic sense, but would help the bottom line on taxes.”

Donovan added, “Congress is doing something on it right now andif we wait until the last minute to engage, it's going to be to ourdetriment. We're sending folks up with our top priority next weekto spread the 'Don't Tax My Credit Union' message on Capitol Hill.Now, that in itself would justify 4,500 people being here.”

But that's not all, he said.

“We'll also be up there encouraging Congress to enactlegislation that requires merchants to hold data using the sametype of standards credit unions have to use, that makes them liablefor the losses that are incurred as a result of security breachesand also gives credit unions the ability to notify members wherebreaches occur,” Donovan said.

The CUNA executive added the trade also will be encouraging GACparticipants to advocate for regulatory relief bills sitting inCongress.

“Our privacy notification bill is pending in the Senate. We feelthat we're very close to getting that through the chamber. We haveour IOLTA bill that passed the Financial Services Committee lastyear that we're hoping the House will consider early this year,” hesaid.

CUNA said participants will also be advocating for the Senate tomove forward with housing finance reform.

Legislation that would increase the business lending cap is alsoon the legislative agenda this year, including the Credit UnionSmall Business Jobs Creation Act, which would allowwell-capitalized credit unions to increase their business loanofferings to 27.5% of total assets.

“Member business lending is starting to ramp up here. We're notclose to the cap, but two, three or five years down the road, wewill be; so we would like to see that cap raised. It's really crazythat before 1998 we didn't have a cap and now we've got one. Itreally makes no sense at all,” Osborn said.

“I'm really disappointed we didn't win this whole MBL battleprior to the focus on taxation and rewriting the tax code,” the St.Louis credit union CEO continued. “We should have had that out ofthe way. CUNA really needs to get a win or they're going to havemore credit unions like North Carolina State Employees' CreditUnion. A lot of people are going to say, 'What am I paying dues forif we can't get a win in Congress?'”