California Passes New Assessment Matrix
If the three largest state-chartered credit unions in California were to convert to federal charters, the state’s regulator would lose $1.7 million of its $7.2 million budget, leaving small and midsize state-chartered credit unions to subsidize that loss.
That’s the worst case scenario the California Credit Union League wanted to avoid, and the reason the league successfully lobbied the state legislature to approve Assembly Bill 1282, which establishes a new assessment table that provides more parity between state assessments and NCUA operating fees. The bill was signed into law by Gov. Jerry Brown on Aug. 16.
California’s current base assessment rate is 82 cents per $1,000 in assets, a number that has been steadily increasing. By law, this base assessment rate cannot exceed $2.20 per $1,000 in assets.
Credit unions will pay 85% of the base rate for the first asset tier of up to $3 million, and 25% of the base for assets of $3 million to $6 million. The state’s smallest credit unions will pay a minimum $2,000 assessment.