Utah Legislature Sends Anti-CU Bid ToCongress

SALT LAKE CITY - (02/22/05) -- The state Senate voted Monday toapprove an anti-credit union resolution and send it on to drawCongress into the bank-credit union wars. The non-bindingresolution asks Congress to allow states like Utah to tax federallychartered credit unions and to create a dual class of credit unionsfor the first time, small, traditional credit unions; and large,diversified ones which could be targeted for taxation. ScottSimpson, president of the Utah League of CUs, said even thoughCongress has indicated little appetite for wading into thebank-credit union wars, he fears the resolution could pry openlong-term national debate on the credit union tax. "The bank lobbyhas gone to great effort here to get a toehold (on the nationaldebate). But I'm not sure it's going to make a difference," Simpsontold The Credit Union Journal. The anti-credit union resolution,which passed the state House two weeks ago, will now be sent to thestate's two senators, three congressmen, the speaker of the houseand the president of the senate as a show of the statelegislature's intent. Meantime, the Utah league has collected morethan 100,000 names on a petition opposing the resolution and planto pass them on to the state's congressional delegation.