Relating to an increase of certain credit unions' assets.
Impact
The bill seeks to amend Section 122 of the Texas Finance Code, which governs credit unions, thereby directly impacting small entities as defined by the National Credit Union Administration. By raising the asset limits, credit unions will have more flexibility to manage their funds, invest in community services, and expand lending capabilities, which proponents argue will bolster local economies and enhance financial services available to residents.
Summary
SB1762 is a legislative proposal aimed at increasing the asset limits for certain small credit unions chartered in Texas. Specifically, the bill mandates an increase in asset thresholds from the previous limit of $10 million to $25 million starting January 1, 2015, rising to $40 million by January 1, 2018, and reaching $50 million by January 1, 2019. The intention of this bill is to support smaller financial institutions in Texas, allowing them to expand their operations and better serve their communities under regulated growth conditions.
Sentiment
The general sentiment around SB1762 appears to be positive, particularly among advocates for small credit unions and community financial services. Supporters believe that the increase in asset limits is necessary for the sustainability and growth of small credit unions, which play a vital role in supporting individuals and small businesses. However, there could be concerns from larger financial institutions regarding the competitive dynamics and regulatory impacts of increasing these thresholds.
Contention
Notable points of contention center on the potential risks associated with higher asset thresholds. Critics may express concerns about preventing over-expansion without adequate regulation, which could lead to financial instability for these smaller institutions. The bill's limited expiration date of January 1, 2020, may also indicate uncertainty regarding the long-term sustainability of these provisions, prompting discussions on future legislative action to either extend or further regulate asset expansions in credit unions.
Relating to the banning of school district ad valorem taxes for certain residential properties and an increase in the rates of certain state taxes to cover the increased cost to the state of providing public education; increasing the rates of taxes.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.