ONTARIO, Calif.–The California Legislature has closed the first portion of the 2017-2018 legislative session and the California CU League is reporting a number of CU-backed measures have been passed, including new regulatory improvements to the Property Assessed Clean Energy (PACE) lending market.
All legislation that was approved by the legislature awaits Gov. Jerry Brown’s signature. He has until Oct. 15 to sign or veto legislation.
“The success of our agenda in Sacramento continues to show the strength of our credit unions in California,” said Diana Dykstra, president and CEO of the California league, in a statement. “Their continued efforts protect not only credit unions from new burdens but also ensure 11.2 million credit union members are protected from the unintended consequences of legislation.”
For years, the league said a priority of the League has been reform within California’s PACE program. At the end of session, Assembly Bill 1284, authored by Assemblymember Matt Dababneh (D-Encino), continued the League’s efforts and was approved by the California Legislature. AB 1284 requires the first-ever state regulatory oversight of PACE lenders, as well as new underwriting protections.
“We commend Assemblymember Dababneh’s leadership and commitment to adding necessary consumer protections to California’s PACE program,” said Courtney Jensen, vice president of state government affairs for the League. “AB 1284 will result in the PACE program finally having state regulatory oversight and underwriting standards, which are important steps in the right direction to protect vulnerable Californians from bad actors.”
However, although AB 1284 and last year’s AB 2693 (Dababneh)—which required the first ever truth-in-lending disclosure for PACE loans—are great steps forward in protecting consumers who choose a PACE loan, there is still much work to be accomplished, according to the league, “Because PACE liens enjoy a super-priority lien status, property owners are still unable to refinance or sell their home without first paying off the remaining amount of their PACE loan,” the league said, adding it will continue to work on getting additional rules put in place.
Other important legislation worked on by the California league:
- Assembly Bill 611—Mandated reporters of suspected financial abuse of an elder or dependent adult: powers of attorney. Supported by the CCUL, it has been sent to governor.
- Assembly Bill 814—Consumer protection: enforcement powers/investigatory subpoena. Opposed by the CCUL, it failed on Senate floor.
- Assembly Bill 1305. Sales and use taxes: worthless accounts. Opposed by the CCUL, it failed in Revenue and Taxation Committee.
- Assembly Bill 1008—Employment discrimination: conviction history. Opposed by the league unless amended, the bill has been sent to the governor.