WASHINGTON–CUNA and the Cornerstone Credit Union League are down to their last week of lobbying for two of seven proposed amendments to the Texas State Constitution that are of strong interest to credit unions. The election is set for Nov. 7.
The first amendment, Proposition 2, would give credit unions the ability to incentivize savings accounts, also known as prize-linked savings accounts. The second amendment, Proposition 7, would provide members greater access to home equity loans.
CUNA, the CCUL and the state’s credit unions have all been working to get both initiatives passed.
Given that it’s an off-election year and that it’s constitutional amendments that are on the ballot, turnout is expected to be low. For that reason, CUNA’s Richard Gose said messaging has been targeting those most likely to vote in such an election.
According to the league, Proposition 2 (SJR 60) updates the Home Equity Lending Law and reads:
"The constitutional amendment to establish a lower amount for expenses that can be charged to a borrower and removing certain financing expense limitations for a home equity loan, establishing certain authorized lenders to make a home equity loan, changing certain options for the refinancing of home equity loans, changing the threshold for an advance of a home equity line of credit, and allowing home equity loans on agricultural homesteads."
Proposition 7 (HJR 37) for prize-linked savings accounts reads:
"The constitutional amendment relating to legislative authority to permit credit unions and other financial institutions to award prizes by lot to promote savings."
The CCUL reported that the state legislature considered 156 amendments to the Texas constitution during the regular session this year, but only approved seven measures for voter consideration.