HCS HB 825 -- DIVISION OF CREDIT UNIONS

SPONSOR:  Schilling

COMMITTEE ACTION:  Voted "do pass" by the Committee on Consumer
Protection and Housing by a vote of 17 to 0.

This substitute makes several changes to the provisions
governing the Division of Credit Unions.  Current law requires
credit unions to pay an annual fee based upon total assets
according to a fee schedule.  This substitute repeals the fee
schedule and requires the Director of the Division of Credit
Unions to determine the fee, according to a new maximum fee
schedule.

The substitute also repeals the current authorization of the
director to assess each credit union with a surcharge to
complete the director's office budget, including support
services and fringe benefits for the director's office.  All
credit unions pay the same percentage rate of the annual fee.
Instead, no more than 15% of examination and administration
expenses, supporting services, and an amount sufficient to cover
the cost of fringe benefits will be paid by the credit unions by
payment of the annual fees according to the new maximum fee
schedule.

Repealed is the requirement that the amount for supporting
services, fringe benefits, and any amount remaining in the
Division of Credit Unions Fund exceeding 5% of the amount
assessed to credit unions be returned to the General Revenue
Fund.  Instead, the substitute allows any amount remaining in
the Division of Credit Unions Fund to remain in the fund,
subject to appropriation, to be applied against supporting
services and fringe benefits expenditures and to be applied
toward the reduction of the amount assessed to the credit unions
in the succeeding fiscal year.

In the case of a merger or consolidation of credit unions,
excess amounts in the fund will be credited to the surviving or
new credit union for assessment purposes.

The substitute has an emergency clause.

FISCAL NOTE:  Estimated Net Increase to Division of Credit
Unions Fund of $150,435 in FY 2000, $150,435 in FY 2001, and
$150,435 in FY 2002.  Loss to General Revenue Fund of $3,435 in
FY 2000, $3,435 in FY 2001, and $3,435 in FY 2002.

PROPONENTS:  Supporters say that credit union fees have not been
adjusted for many years and that increasing fees is necessary to
fund the regulatory body.

Testifying for the bill were Representative Schilling; and
Division of Credit Unions.

OPPONENTS:  There was no opposition voiced to the committee.

Donna Schlosser, Legislative Analyst

HB 825 -- Division of Credit Unions

Sponsor:  Schilling

This bill makes several changes to the provisions governing the
Division of Credit Unions.  Current law requires credit unions
to pay an annual fee based upon total assets according to a fee
schedule.  This bill repeals the fee schedule and requires the
Director of the Division of Credit Unions to determine the fee,
according to a new maximum fee schedule.

The bill also repeals the current authorization of the director
to assess each credit union with a surcharge to complete the
director's office budget, including support services and fringe
benefits for the director's office.  All credit unions pay the
same percentage rate of the annual fee.  Instead, no more than
15% of examination and administration expenses, supporting
services, and an amount sufficient to cover the cost of fringe
benefits will be paid by the credit unions by payment of the
annual fees according to the new maximum fee schedule.

Repealed is the requirement that the amount for supporting
services, fringe benefits, and any amount remaining in the
Division of Credit Unions Fund exceeding 5% of the amount
assessed to credit unions be returned to the General Revenue
Fund.  Instead, the bill allows any amount remaining in the
Division of Credit Unions Fund to remain in the fund, subject to
appropriation, to be applied against supporting services and
fringe benefits expenditures and to be applied toward the
reduction of the amount assessed to the credit unions in the
succeeding fiscal year.

In the case of a merger or consolidation of credit unions,
excess amounts in the fund will be credited to the surviving or
new credit union for assessment purposes.