FARMERS BRANCH, Texas (7/9/10)--The Texas Credit Union League has expressed concerns about the Texas Credit Union Department's (TCUD) proposed rule 97.116, which would require credit unions to reimburse the department for examinations that are unusual or extraordinary. The proposed rule was adopted June 18 by the Texas Credit Union Commission and is in its 30-day comment period. It will be considered for a final rule at the commission's October meeting. "The rule allows the regulator to charge state-chartered credit unions individually when the agency decides to send examiners into a credit union for anything other than the regular examination," according to Jeff Huffman, league vice president for government relations. "This has traditionally been covered as part of the TCUD budget through the regular assessment made on credit unions for operations at the TCUD. The system of funding the agency that has been in place for many years has served Texas credit unions well, in good times and bad," Huffman said in an e-mail to News Now. "This proposed rule further expands the power of the regulator, giving great discretion to the commissioner. It takes away predictability of regulatory costs for state chartered credit unions," he added. "If these types of rules are implemented, state charters in Texas will not only have to pay their regular assessments, but will also be faced with individual assessments from the TCUD when they are least able to afford additional unanticipated and unlimited regulatory costs," Huffman said. Thomas Butler, chair of the Rules Committee, told the Credit Union Commission in its June 18 meeting that the department needs a mechanism to more equitably allocate certain expenses among credit unions based on special circumstances that may arise. The proposed rule requires a credit union to reimburse the department for actual costs incurred if Commissioner Harold Feeney determines that the credit union requires more than its proportionate share of the department's resources, Butler told the commission. The rule would require the credit union to pay the examiner's expenses such as meals, lodging and incidentals as well as the examiner's time spent with the credit union's special circumstances as deemed by the commissioner. The department would be required to provide advance notice to the credit union of its intention to recoup expenses.