ONTARIO, Calf. (2/26/16)-- Legislation championed by the California Credit Union League was formally introduced last week to modernize outdated provisions within the California credit union charter.
Assembly Bill 2274, introduced by California Assembly Banking and Finance Committee Chair Matt Dababneh (D-Encino), updates and strengthens the state-chartered credit union statute, giving credit unions new options in the way they are organized to better serve their members.
“The California state charter must be improved to strengthen the dual credit union charter system and stay competitive with the federal charter,” said Bob Arnould, the California and Nevada Credit Union Leagues’ senior vice president of advocacy. “This legislation brings to fruition what many state-chartered and federally chartered credit unions deem essential to improving service to members. It’s a positive step forward that will advance the lives of consumers across the state.”
A committee of representatives from 11 state-chartered credit unions in California reviewed the charter over the past year and found seven provisions in the state statute that needed to be updated. AB 2274 includes those seven updates. The bill would:
During the leagues’ Government Relations Rally in Sacramento April 4-5, credit union representatives from across California will share their stories on why the modernization bill and other legislation is important to credit unions.