CU Tax Status Protected at Nat'l. Meeting of State Lawmakers Posted by AVCU on 12:22 PM

State legislators from around the country gathered in Indianapolis last week for the American Legislative Exchange Council’s (ALEC) annual meeting.  On behalf of AVCU and other state leagues, CUNA staff were present to bring the credit union perspective to state policymakers around the country. ALEC counts 25% of all state legislators among its members.

During the meeting, CUNA worked with a state senator to explain the importance of the credit union tax status, convincing the legislator to amend his proposal. His proposed amendment to ALEC model legislation would have, if implemented, required a statement of legislative intent for the credit union tax status (among other “tax expenditures”) every two years, or face discontinuation, and require exemptions to be re-authorized every two years.

CUNA’s arguments convinced the state senator to remove the discontinuation threat, remove the reauthorization requirements, and extend the review to 10 years.

Although the proposal was changed at the ALEC level, CUNA remains concerned that other individual lawmakers will introduce the original bill. CUNA and state leagues across the country will be on alert to that possibility.

CUNA Director of Advocacy Shelton Roulhac gave a presentation to the ALEC financial services subcommittee. Roulhac detailed the numerous steps credit unions take to protect their members’ data. He also dispelled myths perpetuated by retailers that PIN is the solution to fraud and data breaches.
CUNA will be re-engaging with state lawmakers at the upcoming National Conference of State Legislators Annual Legislative Summit
.