Credit Unions Ramp Up on CA’s AB 1436; NV Gov. Signs Liability Bill

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California credit union staff, volunteers, and supporters have sent more than 4,000 Connect for the Cause messages to California state senators asking them to protect credit unions as Assembly Bill 1436 is scheduled to be heard in the California Senate Judiciary Committee on Tuesday of next week (Aug. 18).

However, more messages are needed. The California Credit Union League is asking credit unions to please keep up the pressure before the committee vote on Tuesday so credit unions and their members can be protected.

AB 1436 is a near repeat of the mortgage forbearance requirements that credit unions defeated in AB 2501 back in late June. If AB 1436 passes out of committee, it will quickly head to the Senate Floor. Please act TODAY by having staff, volunteers, and credit union supporters visit Connect for the Cause to voice concerns to state senators.

If you have questions on AB 1436, reach out to League Vice President of State Government Affairs Robert Wilson. For other questions or issues with Connect for the Cause, contact League Advocacy Specialist Emily Udell.

CCUL and NCUL Board/Audit Committee Elections
Online voting for the 2020-21 California Credit Union League Board and Audit Committee elections is now open and will close at 5 p.m. on Aug. 31, 2020. On Aug. 10, a communication was distributed to member credit union CEOs providing their unique voting credentials.

Regarding the Election Announcement for the 2020-21 Nevada Credit Union League Board of Director elections, a communication was distributed to member credit union CEOs on Aug. 10 announcing the re-election of Scott Arkills and Rick Schmidt by acclamation. The new three-year term commences at the conclusion of the Nevada League’s Annual Business Meeting on Oct. 26.

NV Governor Signs Liability Bill Granting Businesses Protection
Nevada Gov. Steve Sisolak has signed Senate Bill 4, which shields most Nevada businesses from “frivolous lawsuits” related to COVID-19. Sisolak said that the “first in the nation” legislation was the “result of literally months of compromise” between labor groups and the hospitality industry. You can view the details of SB 4 here.

You can also view the Governor’s news release here, where Governor Sisolak states that the bill was “driven by the need to protect the lifeblood of Nevada’s economy, both small businesses and hospitality workers. The measure balances the protection of workers and the needs of the business community to stay afloat during the pandemic and subsequent economic crisis.”

You can also read The Nevada Independent’s overview here.

SB 4, as introduced, did not include credit unions, which lead to a feverish lobbying and grassroots effort to quickly amend the bill. The Nevada Credit Union League was successful in amending the bill to include credit unions with the help of Sen. Joyce Woodhouse.

Thank you to all Nevada credit union CEOs who made calls to legislators!

Credit Union Advocacy Continues
This past week, President Donald Trump announced four stimulus measures via executive order. His actions include authorization for the Treasury Department to allow companies to defer payroll taxes for Americans making less than $100,000 a year.
 
A second order would provide $400 a week in jobless benefits, down from $600 weekly that had been provided through last week. States would be responsible for covering 25 percent of the cost. This provision could possibly result in a legal challenge by states. All orders terminate upon an agreement with congressional leaders over a stimulus package. Negotiations remain sidelined for the moment, and the situation in Washington, D.C. is ever-changing.
 
The House remains out of session while the Senate technically is in session. However, most senators have returned to their states. Advocacy efforts for credit unions continue behind the scenes. The California and Nevada Credit Union Leagues will provide an update once developments start to occur.

VP Running-Mate Kamala Harris’s History with CUs
Sen. Kamala Harris (D-CA) was announced as the vice president running-mate to presumptive nominee Joe Biden’s presidential campaign. Harris has engaged with the California Credit Union League on a few issues of importance for credit unions.

In the previous congressional session, Harris co-sponsored legislation to increase the member business lending cap. She has also been a vocal supporter for increasing access to the Community Development Financial Institutions Fund. During her short tenure in the Senate, her team has focused on aiding low-income communities, borrowers, and expanding access to affordable lending products in underserved areas.

The League has known and worked with Harris since her start as the California attorney general and will continue to work with her office through this cycle and the election.

CMG’s Private Mortgage Insurance Partnership
CUNA Mutual Group is partnering with Mortgage Guaranty Insurance Corp. (MGIC) to provide private mortgage insurance for credit unions as the industry faces challenges to grow lending and serve members in these times. This new partnership aims to help make home ownership more accessible to credit union members by reducing risks for lenders. Private mortgage insurance can help members purchase a home faster by eliminating the need for a 20 percent down payment. MGIC also provides credit unions with a variety of tools to help them offer unique portfolio loan products, generate leads, and educate first-time homebuyers. You can read more here.

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