Credit Unions & CA League Continue Building Upon Victories

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The California Credit Union League’s mission has been magnified as it continues focusing on helping California credit unions change people’s lives by supporting staff, volunteers, operations, awareness, guidance, strategy and philosophy.

The following state legislative successes, congressional achievements, and regulatory outcomes over the past few years are direct examples of how the League’s victories and operations positively impact ALL credit unions across California! (You can also view the entire impact report here)

6 Major Achievements in California Legislature
PASSED Senate Bill 269: SB 269 strengthens and modernizes the charter for state-chartered credit unions. The bill was signed into law on Oct. 9, 2021, and it will go into effect Jan. 1, 2022. The new law will help credit unions navigate an ever-changing landscape and aid them to better serve their members.

DEFEATED Assembly Bills 1436 and 2501: AB 1436 moved from one senate committee to another and was a near repeat of the mortgage forbearance requirements credit unions had already defeated in AB 2501 in late June. The mortgage provision from then-defeated AB 2501 was dropped into a housing eviction/rent relief bill (AB 1436). Earlier in the year, AB 2501 was introduced after state legislators came back from an unexpected COVID-19 recess. The bill would have let any borrower request a mortgage forbearance for up to 12 months, and up to six months on an auto loan, without any proof of economic impact due to the pandemic. It also included a year-long moratorium on foreclosures, meaning a borrower could go up to two years without making a payment. With credit unions’ help, we rallied together during two intense Connect For The Cause campaigns, sending 21,125 messages to assemblymembers and senators to kill AB 2501 and AB 1436!

MAINTAINED Stability Through Assembly Bill 3088: AB 3088 maintains credit unions’ ability to work with members on mortgage forbearances — a MAJOR VICTORY. We worked extensively with Governor Gavin Newsom to shape the outcome of AB 3088. The bill does not include any language on foreclosure moratoriums, mandatory forbearance, or long-term eviction moratoriums. It was a last-minute compromise out of multiple bills dealing with eviction and forbearance. AB 3088 came after we battled and defeated AB 1436 and AB 2501.

PASSED Senate Bill 1121 (2018): SB 1121 clarifies the Gramm-Leach-Bliley Act (GLBA) exemption included in the new California Consumer Privacy Act and protects credit unions from large compliance costs related to updating information-technology systems for new consumer notices and opt-out requirements.

ALWAYS REPRESENTING Credit Unions: We consistently work with assemblymembers and senators to craft state laws that have a better impact on locally member-owned credit unions as they serve consumers. There is only ONE association in Sacramento that represents your credit union’s voice — the League!

10 Notable Accomplishments in Congress
Proactive on YOUR Behalf: Legislation Defeated: A new Internal Revenue Service (IRS) reporting provision would have required credit unions and other financial service providers to report gross cash flow for accountholders as a means to closing the “tax gap.” Regardless of the proposal’s variations, the League and the Credit Union National Association (CUNA) worked with two congressional representatives from California and Nevada to end this provision:

  • Rep. Lou Correa (D-CA) championed a letter signed by 21 House Democrats who opposed the provision and withheld their vote until the overall package on this piece was delivered. These two elements brought about the termination of the IRS reporting-requirement proposal.
  • Rep. Stephen Horsford (D-NV) aided by assembling a coalition of Democrats to formally oppose the issue. Through Rep. Horsford, the Nevada Credit Union League directly lobbied Deputy Treasury Secretary Wally Adeyemo and a team of assistant secretaries to revise and withdraw their proposal.

Legislation Advanced:

  • Rep. Norma Torres’ (D-CA) amendment was included in the House-passed Financial Services and General Government Appropriations Bill, which authorizes grants from the Community Development Revolving Loan Fund to be utilized for grant-writing purposes for credit unions under $100 million in assets.
  • H.R. 3958, which makes the extended borrowing authority of the National Credit Union Administration’s (NCUA) Central Liquidity Facility permanent, is pending on the House Floor.
  • H.R. 2133 updates the Federal Credit Union Act, shifting membership expulsions from members to the board of directors. It has advanced from the House Financial Services Committee by voice-vote with unified bipartisan support. It is a shining example of how credit union bills should be addressed in Congress. The bill is pending on the House Floor.
  • Working with the League, Rep. Linda Sanchez (D-CA) won support to include a fix to the IRS Employee Tax Credit (ERC) and apply it to federal credit unions (state credit unions were initially eligible).

Bills in Progress:

  • The Expanding Financial Access for Underserved Communities Act would remove field-of-membership restrictions, allowing unlimited access to underserved communities and banking deserts. This effort is being led by the chairwoman of the House Financial Services Committee, one of the most powerful policymakers in banking law.
  • Rep. Brad Sherman’s (D-CA) H.R. 1471 provides a one-year safe harbor for the credit union member business lending cap during periods of economic disaster.
  • Rep. Cortez Masto’s (D-NV) Expanding Access to Lending Options Act (S. 762) raises the federally chartered credit union maturity limit to 20 years for non-mortgage loans. Sen. Alex Padilla (D-CA) is a lead co-sponsor.

Communication from Congress to the Administration:

  • In early February, House Financial Services Committee Chairwoman Maxine Waters (D-CA) requested NCUA Board Chairman Todd Harper to provide federal regulatory relief with respect to stimulus checks and other federal government deposits coming into credit unions.

PAC, Grassroots Advocacy, Regulatory Reform & More
Click here to view the entire report, including additional wins and victories in:

  • Supporting the credit union cause, fundraisers, and district meetings with elected officials.
  • The Internal Revenue Service (IRS) reporting provision's grassroots campaign, Project Zip Code, and volunteer leadership.
  • Looking out on credit unions' behalf with respect to the California Department of Financial Protection and Innovation (DFPI), National Credit Union Administration (NCUA), Consumer Financial Protection Bureau (CFPB), the Federal Reserve Board (FRB), and Federal Housing Finance Agency (FHFA).
  • Innovative webinars, seminars, and events.
  • Compliance for superior performance.
  • Communication with a purpose.
  • Business solutions that work.
  • Bringing it all together.

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