Introduction (5 minutes)

Team leaders should introduce themselves first, then call on others. Introductions should include your name, title, credit union, field of membership, and Project Zip Code numbers. After this round of introductions, team leaders should hand over the folder to the legislative member or staff.
 

Senate Bill 1176 (Limón): California Community Reinvestment Act (5 minutes) — NO FORMAL ASK

• The first bill we were slated to discuss was a proposal that would have enacted a state Community Reinvestment Act, Senate Bill 1176 (Limón). We are happy to report that the state CRA will not be moving forward but felt it was important to briefly discuss the pitfalls with a CRA for credit unions.
• First and foremost, we appreciate the amendments to the bill and we understand the author’s good intentions.
• Subjecting credit unions to a CRA will hinder our ability to best serve our members and the communities in which they live.
• The federal CRA passed in 1977 to stop discriminatory practices occurring in the housing sector.
• Credit unions were not included in 1977 and have never been included in the federal act because we are not-for-profit, member-owned financial cooperatives created to exclusively serve our members’ banking and lending needs.
• The state proposal failed to recognize legal restrictions that would hinder a credit union’s ability to comply with the bill, including:

• Due to our unique member-owned structure, credit unions do not need a push to serve people of modest means; it is embedded in the mission of all credit unions. We firmly believe that subjecting credit unions to a CRA is not only unnecessary but will also have unintended consequences in the marketplace.
• We want to thank the author again for amending the bill, and we look forward to continuing to serve the members of the community.
• If you have any questions regarding the California Credit Union League’s position on the Community Reinvestment Act please contact Robert Wilson at (916) 325-1366 or Robertw@ccul.org

 

Assembly Bill 2051 (Cunningham) and Assembly Bill 2215 (Rubio) Financial Literacy Bills (5–7 minutes) — SUPPORT

AB 2051 (Cunningham)
Coauthors: Assembly Members Low and Wicks
Location: Assembly Education Committee 

• AB 2051 directs the California Department of Education to administer a grant program to assist local educational agencies, including schools, districts, charter schools, and county offices, in providing high quality financial literacy education in schools.
• The grant money can be used for things like teacher and educator training, materials, and curriculum development to further financial literacy specific courses in schools.
• Financial literacy is an important part of a student’s education and the statewide grant program in AB 2051 will help expand access to these valuable tools and life skills.
   

AB 2215 (Rubio)
Coauthor: Assembly Member Villapudua
Location: Assembly Education Committee

• AB 2215 would create a public-private partnership to determine the best methods and solutions for instructing K-12 students in personal finance education.
• This partnership would bring together a diverse group of public officials and private sector experts to develop and distribute model curricula, programs, and professional development.
• By providing teachers and school districts with the proper resources and opportunities as laid out in AB 2215, all students in California will have greater access to quality personal finance education.
• This bill is modeled after the successful approach in the State of Washington and seeks to increase the financial literacy of the next generation of Californians in an equitable and systemic way.
• For reference, the Department of Education course framework recommends including financial literacy concepts in grade 12 economics, but California has no financial literacy standards for any grade level.

We also want to share a little bit about how credit unions are providing financial literacy in our communities. *Please share financial literacy examples specific to your credit union or you can use the following example:

• With the assistance of the Richard Myles Johnson Foundation, the state foundation for credit unions in California and Nevada, credit unions host “Bite of Reality” events across the state.
• This program presents students with a variety of financial situations and decisions, walking them through the everyday challenges they will one day face in managing their finances. From purchasing transportation and housing to having children and handling credit card debt, students must budget properly or risk financial failure.
• Since the program launched in 2012, California credit unions have reached more than 109,000 students.

Our “ask”: Please support both AB 2051 and AB 2215 to encourage state efforts to better provide California students with a quality and accessible financial education. Also, if the staff and or member are interested in hosting a financial literacy event, get the best point of contact.