SACRAMENTO, Calif.–California’s credit unions were successful in getting a number of desired pieces of legislation through the just completed legislative session, according to the California league.
According to the league, Gov. Jerry Brown signed the following bills—all of which the California Credit Union League and member credit unions supported—into law. Commentary with each piece of legislation is from the league:
- Assembly Bill 2274 (authored by California Assembly Banking and Finance Committee Chairman Matt Dababneh, D-Encino)—Signed by the governor on Sept. 14, this bill goes into effect on Jan. 1, 2017. This bill modernizes the California state credit union charter for the first time in almost a decade. AB 2274 is the culmination of efforts by the league’s State Charter Review Committee, chaired by Brett Martinez, CEO of Redwood Credit Union.
- Assembly Bill 2693 (authored by California Assembly Banking and Finance Committee Chairman Matt Dababneh, D-Encino)—Signed by the governor on Sept. 26, this bill goes into effect on Jan. 1, 2017. This bill was sponsored by the league and addresses the substantial issues of Property Assessed Clean Energy (PACE) loans. These green energy loans are being provided by unregulated lenders while enjoying a super-priority lien status. AB 2693 requires a new truth-in-lending disclosure to be provided to consumers and also provides for a three-day right to cancel.
- Assembly Bill 2258 (authored by Assemblywoman Susan Talamantes-Eggman, D-Stockton)—Signed by the governor on Sept. 22, this bill modernizes the state’s unclaimed property laws to recognize Automated Clearing House (ACH) transactions as account contact for purposes of escheatment. Jan. 1, 2017 is the effective date if a credit union is prepared, but Jan. 1, 2018 is the effective date if a credit union needs more time. AB 2258 is the product of a task force organized by the League to work with the state controller to improve the unclaimed property law for credit unions. The task force included Mishel Kaufman, senior vice president of risk management for Redwood Credit Union, and Mary Vogan, assistant vice president of deposit and payment services for SAFE Credit Union.
- Assembly Bill 2546 (authored by Assemblyman Ian Calderon, D-Whittier)—Signed by the governor on Sept. 26, this bill goes into effect on Jan. 1, 2017. It is supported by the league and would require the Instructional Quality Commission to consider including financial literacy in six different grade levels during its next curriculum framework update. Specifically, AB 2546 would require considering two courses of age-appropriate financial education in K-5, two courses in middle school, and two courses in high school.
- Assembly Concurrent Resolution 162 (authored by California Assembly Banking and Finance Committee Chairman Matt Dababneh, D- Encino)—This resolution, which was approved in May 2016, declared the month of April 2016 as Financial Aid & Literacy Month, with the theme of "Prosperity Through Education” to raise public awareness about the continuing need for increased financial literacy. The league was proud to support this resolution and will continue supporting resolutions such as these in the future.
The league reported it negotiated a key amendment to the following bill:
- Senate Bill 1150 (authored by Sen. Mark Leno, D-San Francisco)—Effective Jan. 1, 2017, this bill expands the definition of successors-in-interest who are able to apply for loan modifications under the homeowner’s bill of rights. SB 1150 also includes a private right of action and would have resulted in duplicate compliance burdens for credit unions, as the Consumer Financial Protection Bureau issued final rules on Aug. 4. The league, with the help of member credit unions, was able to negotiate an amendment in the bill which will exempt CUs from the requirements.
“We are honored to work with our member credit unions in California who united to support our movement throughout the state during this crucial time,” said Diana Dykstra, president and CEO of the Ontario, Calif.-based California Credit Union League, in a statement. “Their advocacy efforts have helped make the difference in protecting credit unions and consumers from potentially adverse legislation and new burdens coming out of Sacramento.”