Financial task force divided over resolution
At what was thought to be its final meeting, the task force's co-chairmen, Sen. Dan Eastman, R-Bountiful, and Rep. Jeff Alexander, R-Provo, submitted a draft resolution for the committee's consideration.
"I believe strongly that we need to send a message to Congress," Alexander said. "I believe it's important for this state to find out what the federal government is really thinking and what their intentions are as we move forward."
As distributed Thursday, the resolution urges Congress to examine the rulings of the National Credit Union Administration, that industry's national regulator, and to take appropriate action; to allow states and local governments to impose the same taxes on federally chartered credit unions as they levy on state chartered ones; to provide a tax structure for financial institutions that lets states determine which taxes to apply, regardless of charter; and to explain its rationale if it determines that no changes to the tax structure are warranted.
Sen. Mike Waddoups, R-Taylorsville, argued that introducing a bank/credit union resolution to the Utah Legislature would resurrect a divisive, bitter debate.
"We're stirring up an issue that's going to create a big rift in the public," Waddoups said. "We're in a time where we just went through a nasty, ugly campaign nationally and in some cases in our state. We're supposed to be getting to a point now where we're healing. We're supposed to be mending fences.
"I believe we're opening the rift further. I don't think sending this almost-meaningless resolution to Congress is going to help put us on an amicable friendly relationship in this state."
But Rep. Michael Noel, R-Kanab, countered that "the purpose of bringing this forward, again, is the very reason we established this task force. There are some real concerns out there, in the financial institutions of this state, that it impacts lots of people's lives, that it impacts our school system.
"To say that we shouldn't have this discussion, I think, really puts our head in the sand," Noel said. "The problem is there. It's like a cut. You can leave it and you can look at it and whatever, but sometimes you've got to get to it, and you've got to wash it out and clean it out and clean it up. It hurts like the dickens, but when you're done it's going to start to heal. We've got to get this through."
He concluded, "We need to do something. If we go through this whole thing and don't come up with any kind of recommendation, what did we do?"
Alexander said neither he nor Eastman intended to present a divisive resolution. Rather, he said, "I'd like us to continue with the resolution and find some ground that we can agree on, so that we can move forward and put this issue behind us."
After two hours, the task force agreed to take more feedback on the proposed resolution and meet again Nov. 30 — the day the committee is supposed to report back to the Legislature on its activities and findings.
E-mail: jnii@desnews.com
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