Calif. league cites mid-year state legislative successes
The California State Legislature’s summer recess provides state credit unions an opportunity to reflect on the progress they have made in Sacramento before the legislative session ends Aug. 31.
“So far the 2016 legislative session has been a successful one for the California Credit Union League and its member credit unions,” said Bob Arnould, senior vice president of advocacy for the Calfornia and Nevada Credit Union Leagues (CU Weekly July 5.) “League-sponsored legislation has been receiving substantial support from legislative members, and harmful legislation has been deterred.”
The highlights so far include:
- Assembly Bill 2274--The bill’s 7 provisions modernize the California state charter for the first time in a decade. The bill received unanimous support in all votes, including the Assembly Banking and Finance Committee, Assembly Appropriations Committee, Assembly Floor, and Senate Banking and Finance Committee. The bill will be heard in the Senate Appropriations Committee Aug. 1.
- Assembly Bill 2693--Five committee hearings have been held regarding AB 2693, which is sponsored by the league and addresses 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 currently requires a new Truth-in-Lending disclosure to be provided to consumers 3 days before they sign up for this loan, and also provides for a 3-day right to cancel. The legislation has been approved by 4 committees and the Assembly floor.
- Assembly Bill 2258--This bill, supported by the leageu, modernizes the state’s unclaimed property laws to recognize automated clearing house (ACH) transactions as account contact for purposes of escheatment. The bill has received unanimous support through the committee process. It will be heard in the Senate Appropriations Committee Aug. 1.
- Senate Bill 308--This bill increases exemption amounts a debtor can shield from creditors during bankruptcy, removes the 6-month reinvestment requirement for the homestead exemption, and would prevent lenders from declaring an auto loan in default when a debtor files for bankruptcy. The league defeated this bill last year on a vote of the entire assembly, and on June 13 defeated the bill again with a vote of 33-24. The legislation can be taken up again when the legislature reconvenes in August any time before the last day of the legislative session.
- Senate Bill 1150--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 duplicative compliance burdens for credit unions, as the Consumer Financial Protection Bureau is set to issue its final rule this summer. The league, with the help of member credit unions, was able to negotiate a credit union carve-out within the bill.
- Assembly Bill 2546--Supported by the league, this bill would require the California Instructional Quality Commission to include financial literacy in 6 different grade levels during its next curriculum framework update. The bill has passed through the Assembly Education Committee, the Assembly Appropriations Committee, the Assembly Floor and the Senate Education Committee.