AB 1282, as amended, Bonta. Financial institutions: credit unions.
Existing law, the California Credit Union Law, provides for the regulation of credit unions. Existing law prohibits membership shares, certificates for funds, or other securities from being issued by any credit union until it has applied for and obtained a certificate authorizing it to act as a credit union.
Existing law authorizes the Commissioner of Financial Institutions until July 1, 2013, and thereafter the Deputy Commissioner of Business Oversight for the Division of Financial Institutions pursuant to Governor’s Reorganization Plan No. 2 of 2012, to annually levy on and collect from credit unions holding certificates authorizing them to act as credit unions an assessment in an amount sufficient to meet the expenses for administering this law and other laws relating to credit unions or the credit union business and in order to provide a reasonable reserve for contingencies. Under existing law, the amount of the annual assessment is required to be the greater of $1,500 or the sum of the products determined by multiplying increments of the credit union’s total assets by percentages of the base assessment rate according to a table with increments of total assets up to an excess over $10,000,000.
This bill wouldbegin delete delete that table used for determining the annual assessment and would establish a new table with increments of total assetsend deletebegin insert require the amount of the annual assessment to be the greater of $2,000 or the sum of the products determined by multiplying increments of the credit union’s total assets by percentages of the base assessment rate according to a newly established table with increments of total assetsend insert
up to an excess of over $10,000,000,000.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 14351 of the Financial Code is amended
2to read:
(a) The amount of the annual assessment on any credit
4union holding a certificate authorizing it to act as a credit union
5shall be the greater of (1)begin delete one thousand five hundred dollars begin insert two thousand dollars ($2,000)end insert or (2) the sum of the
6($1,500)end delete
7products determined by multiplying (A) increments of the credit
8union’s total assets by (B) percentages of the base assessment rate,
9according to the following table:
|
Total Assets |
Percentage of Base |
|---|---|
|
$0-$3,000,000 |
85.0% |
|
$3,000,000-$6,000,000 |
25.0% |
|
$6,000,000-$10,000,000 |
13.0% |
|
$10,000,000-$100,000,000 |
12.5% |
|
$100,000,000-$500,000,000 |
12.25% |
|
$500,000,000-$1,000,000,000 |
12.0% |
|
$1,000,000,000-$2,000,000,000 |
11.5% |
|
$2,000,000,000-$5,000,000,000 |
8.0% |
|
$5,000,000,000-$10,000,000,000 |
3.5% |
|
Excess over $10,000,000,000 |
3.0% |
24(b) The base assessment rate for each annual assessment shall
25be fixed by the commissioner but shall not exceed two dollars and
P3 1twenty cents ($2.20) per one thousand dollars ($1,000) of total
2assets.
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