BEAVERTON, Ore.-Three bills targeting credit unions have been introduced in the Oregon state legislature, including one that seeks to impose the corporate excise tax on credit unions, an opening salvo on the CU tax exemption.
A spokesperson for the Northwest CU Association said it is moving quickly to respond to the "anti-credit union legislation."
The introduction of the bills in Oregon reflect a national focus by bank trade associations at both the state and national levels to use federal and state deficits to focus attention on the credit union tax exemption, among other issues.
Introduced into the legislature were:
* HB 2486, would impose corporate excise tax on state chartered and interstate CUs holding one or more deposits of public funds that exceed $250,000, or holding commercial loans that in aggregate exceed 10% of assets.
* HB 2484, which would require CUs to file periodic reports with Oregon's Director of Department of Consumer and Business Services, summarizing the number and amount of member business loans and certain other loans, and describing the services a CU provides to people with low and moderate incomes. It also would require credit unions to list the total amount of deposits they hold at their main office and at locations where the CU accepts deposits.
* HB 2485, which states credit unions have "a continuing and affirmative obligation to help meet credit needs of the community in which the credit union has offices or branches." It would require the Director of Department of Consumer and Business Services to adopt rules to govern the nature and scope of this obligation, and provides the Director must consider federal regulations that implement federal Community Reinvestment Act rules.
'CRA-Like Language'
Regarding HB 2485, Lynn Heider, VP-public relations and communications for the NWCUA, told Credit Union Journal any imposition of "CRA-type language" is "unnecessary," because credit unions already do much for their communities.
As for the other two bills, she said the Northwest Credit Union Association is "always vigilant" about any legislation that might affect credit unions.
The NWCUA confirmed that the Oregon Bankers Association sent an email to members of the Oregon legislature in which it addressed the three separate bills.
"Our relationships with legislators are very strong because they historically have understood the benefits of credit unions," she said. "Tax benefits are provided when the benefits to consumers outweigh whatever revenue there would be from a miniscule tax. We don't take any anti-credit union legislation lightly and we feel because of ongoing grassroots efforts and the longstanding relationships between legislators and credit unions we are prepared to advocate for credit unions and their consumer-members."
Heider said the association will continue to work "shoulder to shoulder" with its affiliated CUs to reach out to members of the legislature. "Typically with these bills they are assigned to a committee, then it is decided if they get a hearing, much less a vote," she said.
At press time Heider said her understanding is the committee assignments have not yet been made.
The legislation follows a "study" that was financed by the Oregon Bankers Association that called on CUs in the state to be taxed (CU Journal, Jan. 21).
