Important credit union news came out of Sacramento this week: three California Credit Union League-supported bills — Assembly Bill 2927, Assembly Bill 2288, and Senate Bill 92 — passed the California State Legislature and will be signed by Governor Gavin Newsom.
With the passage and commitment from the governor to sign these bills, proponents of the two corresponding ballot measures have agreed to withdraw their measures from the 2024 November General Election ballot.
Personal Finance Course for CA High School Students
AB 2927 (McCarty) adds the completion of a separate, stand-alone one-semester course in personal finance to the graduation requirements for high school students, including charter schools, beginning with the 2030-31 school year. The League supported AB 2927 since it was introduced earlier this year and wants to thank 2024 California Government Relations Rally (GRR) attendees for lobbying in support of this bill in April.
The League also endorsed the Californians for Financial Education Ballot Initiative that would have required a standalone personal finance course. However, with the passage of AB 2927, the ballot measure is no longer needed.
For years, credit unions continuously advocated for increased financial literacy in California. Historically, these efforts have fallen short. Between the League and credit unions’ consistent advocacy efforts, working with other industry stakeholders, and the qualified ballot initiative, the state legislature and the governor finally gained the political will this year to get it done at the last minute.
PAGA Reform Agreement
AB 2288 (Kalra) and SB 92 (Umberg), the two bills containing content of the agreement to reform the California Private Attorneys General Act (PAGA), have also passed the state legislature.
For years, PAGA’s lawsuit-first approach has proven to be unfair for businesses and ineffective for workers, and many credit unions have been the targets of predatory lawsuits. This reform agreement strikes a good balance to ensure workers can resolve labor claims and receive fair compensation, while limiting shakedown lawsuits.
Both bills were passed as an urgency statute taking effect immediately, with the provisions applied to civil actions brought on or after June 19, 2024. This effective date of June 19 was key to preventing a rush of lawsuits after the reform agreement was announced last week.
With this legislation, PAGA reform is guaranteed, and a contentious ballot initiative campaign will be avoided — a win-win.
The League is proud to announce these major wins this week and wants to thank every credit union advocate who worked hard to make the credit union movement’s voice heard in Sacramento!
