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California CUs Successful in First Year of Legislative Session

The following are important highlights from legislation closely tracked and worked on by the League. All “CCUL” acronyms refer to the League:

viagra prescription drug australia Assembly Bill 1284 (Dababneh)—California financing law: Property Assessed Clean Energy (PACE) program: program administrators; SUPPORT (sent to governor)

AB 1284 would require PACE lenders to be licensed under the California Finance Lenders Law and would provide regulatory oversight through DBO for PACE lenders and contractors. DBO would have the ability to conduct examinations of PACE lenders and bring enforcement actions against licensees. The bill also requires an ability to repay test, which will require PACE lenders to make a reasonable, good faith determination of a borrower's ability to repay the PACE loan. CCUL has been advocating for PACE reform, including a state regulator, for years and we are proud this effort came together at the end of the legislative session. This builds upon AB 2693 (Dababneh) last year which CCUL sponsored and required the first ever truth-in-lending disclosure for PACE loans.

Assembly Bill 611 (Dababneh)—Mandated reporters of suspected financial abuse of an elder or dependent adult: powers of attorney; SUPPORT (sent to governor)

AB 611 authorizes mandated reporters to deny a power of attorney if they make a report to an adult protective services agency or a local law enforcement agency, and if they believe the elder or dependent adult who executed the power of attorney may be subject to financial abuse. Attendees of the 2017 California Government Relations Rally (GRR) advocated in support of this legislation and told legislators stories of suspected financial abuse they had seen in their credit unions. The hope is that AB 611 will provide financial institutions another tool to prevent financial abuse by agents with a power of attorney who may be stealing money and assets.

Assembly Biill 814 (Bloom)—Consumer protection: enforcement powers/investigatory subpoena; OPPOSE (failed on Senate floor)

AB 814 would have granted pre-litigation subpoena power to city attorneys in cities with a population in excess of 750,000 or to a city attorney of a city and county when those city attorneys reasonably believe that there may have been a violation of the Unfair Competition Law. Currently this power is only given to the State Attorney General and county district attorneys. This bill would have exposed businesses in California to further litigation threats and demands of unlimited scope for information before any allegation of actual wrongdoing has even been made.

Assembly Bill 1305 (Garcia)—Sales and use taxes: worthless accounts; OPPOSE (failed in Revenue and Taxation Committee)

Assemblywoman Garcia did not take AB 1305 up for a vote after realizing she did not have the votes to be successful in the Assembly Revenue and Taxation Committee.

The bill would have removed statute that allows a lender to request a refund when sales tax is paid up front on an installment sale and the consumer fails to repay the financed purchase price. For example, when a consumer purchases a $10,000 car through a credit union’s indirect lending program, the state receives sales tax on the entire loan amount up front. However, if the loan becomes uncollectible after only $5,000 is repaid, the credit union is able to seek reimbursement from the BOE for the portion of sales tax paid on the unpaid loan balance of $5,000.

Committee members were sympathetic to CCUL's argument that not allowing credit unions to recoup this overpaid sales tax means some auto loans will have higher risk, impacting who credit unions loan to and at what interest rates.

viagra buy online canada Assembly Bill 1526 (Kalra)—Civil actions: time of commencing; OPPOSE (failed in Banking and Finance Committee)

Because of strong opposition, Assemblyman Kalra chose not to take up AB 1526 for a vote in the Assembly Banking and Finance Committee.

The practical effect of AB 1526 would have been that credit unions, who continuously work with their members when they go into default, would have instead been forced to file a suit for collection on consumer debt to protect the credit union's interest from the statute of limitations. The bill would have extinguished consumer debt, including money, property or their equivalent, when the current 4 year statute of limitations runs out and would not allow the debt to be reported to a credit reporting agency, reducing this time from 7 years to 4 years. The bill would have also started the 4 year timeline earlier than under current law, starting the clock at “date of default or the date of the last payment, whichever is earlier."

viagra cost per pill walmart Senate Bill 298 (Wieckowski)—Enforcement of money judgments: exemptions; OPPOSE (failed on the Assembly floor)

As introduced, SB 298 would have exempted from a bank levy $4,800 in a debtor’s bank account. Senator Wieckowski presented CCUL with amendments which reduced the dollar amount to $2,250, requires the Judicial Council to clearly delineate on applicable forms the amount of funds exempt from levy by a financial institution and provides a protection from liability for creditors and financial institutions who execute a levy under the new section. With the amendments CCUL took a neutral position on this legislation and the bill continued on to fail on the Assembly Floor.

Assembly Bill 1008 (McCarty)—Employment discrimination: conviction history; OPPOSE UNLESS AMENDED (sent to governor)

AB 1008 prohibits inquiring about criminal convictions on a job application and requires that a conditional offer be made first to the applicant prior to considering a criminal conviction when making a hiring determination. CCUL requested Assemblyman Kevin McCarty include an exemption in his bill that would take into account unique state and federal law criminal background employment restrictions that apply to credit unions and other financial institutions. The amendment states that AB 1008 does not apply to employer actions taken pursuant to state, federal or local law that requires criminal background check for employment purposes or restricts employment based on criminal history. The amendment was taken in Assembly Appropriations Committee and CCUL took a neutral position on this legislation.

Senate Bill 2 (Atkins)—Building Homes and Jobs Act; OPPOSE UNLESS AMENDED (sent to governor)

SB 2, one of the top priorities to address the affordable housing crisis, would impose a $75 fee on every real estate instrument, paper, or notice required or permitted by law to be recorded, per each single transaction per single parcel of real property, not to exceed $225. The fee would not be charged on home or commercial property sales and would raise roughly $250 million a year.

Under amendments, taken to gain votes on the Assembly Floor, 50 percent of the funding would be spent on initiatives to combat homelessness and 50 percent would go to local governments to streamline housing production during the first year. Beginning in 2019, cities and counties will receive 70 percent of the annual revenue and the remaining 30 percent will be distributed by the state, Revenue would be used for: owner-occupied workforce and farmworker housing, multi-family, residential rental housing for low and moderate-income people, homeownership opportunities, rehabilitation of foreclosed, vacant or blighted homes and others. The state’s Department of Housing and Community Development would oversee the funding.

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