Sacramento, CA (April 9, 2025) |
Nearly 180 credit union advocates at this year’s California Government Relations Rally (GRR) met with over 90 state legislators at the capitol in Sacramento on April 8, marking a confident step forward in advocating for the interests of more than 14 million credit union members across the state.
Hosted by the California Credit Union League, industry leaders engaged in productive discussions on important legislative issues, highlighting the positive impact credit unions have on local communities, especially in underserved areas. Attendees arrived prepared, having thoroughly reviewed the League’s support-and-opposition issues and bills, equipped to communicate with lawmakers and their aides.
“The rally was a success. Credit unions came up here and got involved in government the way our democracy’s founders intended,” said Scott Simpson, president and CEO of the California Credit Union League. “They articulated the value credit unions bring to Californians, and they demonstrated their commitment to serving those who need them most.”
During the rally, credit union leaders focused on three primary concerns. Assembly Bill 1065 (Assemblymember Liz Ortega) proposes changes to credit card transaction fees, which the League opposes due to its potential adverse impact on consumers and small businesses. Sarah Klein, president and CEO of Organized Labor Credit Union, testified in front of the Assembly Judiciary Committee in opposition to the bill, joined by more than a dozen credit union representatives standing in opposition. Attendees discussed the bill’s capacity to increase inconvenience — such as requiring multiple card swipes — and operational burdens, while diminishing consumer rewards.
“We want to thank everyone for their leadership in standing before the committee, demonstrating the negative impact this bill would have on credit unions and their members,” said Robert Wilson, senior vice president of state government affairs for the California Credit Union League. “Their willingness to speak displays the commitment we all share in protecting members and the communities that credit unions serve.”
Discussions also centered on elder financial abuse prevention, with credit union leaders advocating for Assembly Bill 83 (Assemblymember Blanca Pacheco). In support of the bill, they spotlighted the proactive approach to safeguarding seniors by enabling financial institutions to delay suspicious transactions and notify trusted third parties. Conversely, they expressed opposition to Assembly Bill 909 (Assemblymember Pilar Schiavo), emphasizing the potential for increased fraud and consumer costs by capping victim liability at $50, which would shift fraud losses to financial institutions. The League opposes AB 909 because it would lead to many negative unintended consequences, but it supports AB 83 as proactive and helpful.
Additionally, Assembly Bill 801 (Mialisa Bonta), concerning the California Community Reinvestment Act (CRA), was addressed with data demonstrating credit unions’ superior lending performance in low-to-moderate-income and minority communities. Attendees shared data showing that on a $225,000 mortgage, California credit unions save consumers in minority-majority areas — $59,591 over banks. On a $40,000 auto loan, credit unions save consumers with the poorest credit, amounting to $8,721 over banks. They also highlighted the existing field-of-membership restrictions and lending caps that make traditional CRA compliance challenging, and that credit unions are already fulfilling the federal CRA’s intent.
Beyond legislative advocacy, credit union leaders shared powerful narratives of their contributions to local communities. Initiatives aimed at promoting financial wellbeing and driving community development were given the floor, displaying the role credit unions play in the state’s economic landscape, particularly in providing financial services to those overlooked by traditional banks. These discussions fostered a deeper understanding between credit union leaders and state legislators from across California, reinforcing the cooperative movement’s commitment to serving their members.
“This rally is a powerful display of the credit union dedication to advocacy and community empowerment,” Wilson said. “The productive discussions we had with the state’s legislators will have an impact. This week, Sacramento heard the voices of more than 14 million credit union members.”
The League expressed gratitude for the dedication of all attendees, reaffirming its ongoing commitment to advocating for state policies that protect local consumers and promote financial prosperity.
“This effort was a testament to the strong connections between credit unions and their communities,” Wilson added. “I can’t overstate the importance of these relationships in shaping the future of California’s financial sector. We look forward to working with our credit unions throughout 2025 as the state legislature continues its work on these important bills.”
