With Elections Over, Attention Is Now Turning To Issues Including Privacy, Taxes

Lobbyists for the California/Nevada leagues told credit unions in their states that the recent elections should have a generally positive effect on credit unions.

Chris Kerecman, the league's VP of federal government affairs, said the impact of the Republican Party taking over control of the Senate-and adding to its prior ownership of the House of Representatives and the Presidency-means improved chances for regulatory relief and expanded powers for CUs.

On the down side, Kerecman said, are the issues of taxation and the Community Reinvestment Act (CRA).

Bob Arnould, league vice president of state governmental affairs, noted that, in contrast with the federal government, California saw a Democratic sweep of state offices-the first time in state history that party has done so.

"We had a successful year in Sacramento this year," Arnould told the leagues' annual meeting here, "The league supported all winning candidates."

In Nevada, Republicans swept all statewide offices for the first time since the 1800s.

According to Arnould, issues the league will be watching in the California legislature this year include privacy legislation, elimination of sales taxes (which he said is unlikely with the state facing a budget shortfall), and "modernization" of the financial code as it pertains to banks and CUs.

Asked about NCUA Chairman Dennis Dollar, whose term expires in the spring, Kerecman said Dollar possibly will remain in the seat for a year or more until a successor is qualified.

"I say 'possibly' in front of that sentence, because President Bush could appoint another chairman soon, or Chairman Dollar could move to the private sector," he said. "In a recent conversation, Chairman Dollar told me he expects to stay on, possibly more than a year."