AUSTIN, Texas–Two of seven proposed amendments to the Texas State Constitution will be specific to credit unions and will be on the Nov. 7 ballot in the state.
It will mark a “historical first if passed by voters,” noted the Cornerstone Credit Union League. The amendments would give credit unions the ability to incentivize savings accounts and provide members greater access to home equity loans.
The two propositions relating to credit union powers will be proposition numbers 2 and 7 on the ballot.
"Credit unions will need to educate voters about prop 2 and 7 to ensure both measures pass in November," said Caroline Willard, president/CEO of the Cornerstone Credit Union League, in comments first published by the CCUL.
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.