California Legislation
Striking Compromise
by Melanie Cuevas, VP of Government Relations
Deals on debt collection legislation benefit industry and consumers alike.
Lawmakers Seek More Oversight of Crypto
by Jason Lane, VP/Deputy Director of Government Relations
According to the Federal Trade Commission’s latest Data Spotlight, Consumers reported losing over $1 billion to fraud involving cryptocurrencies from January 2021 through March 2022. Crypto investment scams, tempting consumers with the promise of high returns, have resulted in 1 out of every 4 dollars lost to scammers, according to the report. Between geographical fragmentation, a lack of government backing and a scarcity of case law to determine the legality of smart contracts, consumers have little recourse when they fall victim to fraud.
California Legislature Gavels Down, Congress Still in Session
by Kevin Gould, EVP/Director of Government Relations
California Legislature Update
After taking action on hundreds of legislative measures in just a few short days, the California Legislature adjourned on August 31. The governor will now have until September 30 to sign or veto the measures reaching his desk. With the legislative session now over, we are pleased to provide an update on a few impactful state-side issues.
Purported Consumer Protection Measure Tramples Borrower’s Rights, Incentivizes Institutional Investors
by Kevin Gould, EVP/Director of Government Relations
A measure working its way through the California Legislature makes sweeping reforms to how real property in foreclosure is sold. Applicable to all real property, including commercial and residential, Senate Bill 1323 bifurcates the methodology for the sale of property at foreclosure by requiring that properties where there is equity, defined as debt not exceeding 90 percent of appraised market value, be sold by a licensed real estate agent on the open market.
Labor & Employment Round-Up
by Melanie Cuevas, VP of Government Relations
The California Legislature considers new labor and employment laws that will further regulate business operations in the Golden State.
It is said that banks succeed when our communities succeed and likewise suffer when our communities suffer. That sentiment similarly carries over into the realm of policy – labor and employment related legislation proposed by California lawmakers impacting the broader business community not only will force changes upon banks as employers, the changes also impact banks’ customers and the state’s business climate.
Legislative Updates
by Kevin Gould, EVP/Director of Government Relations
Federal Legislative Update
In March, we were pleased to return to Washington, D.C. with California bankers for the American Bankers Association’s Washington, D.C. Summit. During this visit, we met in-person with representatives from the California Congressional delegation. We will plan to travel back to Washington, D.C. a couple of more times this year, including our joint visit with the Florida Bankers Association, scheduled for September 27-29.
Public Bank Advocates Charge Ahead
by Jason Lane, VP/Deputy Director of Government Relations
Last month, the San Francisco working group established to form a public bank finalized the group’s membership and hired public banking consultant HR&A Advisors to formulate a plan to establish San Francisco’s first public bank.
According to a news release issued by the working group:
While the Best Offense is a Good Defense, We Often Support Measures Too
by Kevin Gould, SVP/Director of Government Relations
Unfortunately, we often find ourselves writing about legislation that we oppose. This time, we are pleased to share an update on a few measures that we are proud to support. While regrettably much of our attention focuses on opposing measures that result in unintended negative consequences that frustrate our ability to support our customers and the communities we serve, or that create new compliance burdens and legal liability, we commonly do support measures that are good public policy.
Legislative Sessions Underway in Washington, D.C. and Sacramento
by Kevin Gould, SVP/Director of Government Relations
At the federal level, Congress is in and we are seeing the re-introduction of several measures from the prior Congressional session that are impactful to the banking industry. One important factor that distinguishes this session compared to the prior is that Democrats have taken control of the Senate while maintaining a narrower margin in the House of Representatives. This could have implications on measures important to our industry.
California Advances COVID Relief to Struggling Californians
by Kevin Gould, SVP/Director of Government Relations
Since the Legislature’s return in January, the state has taken swift action to advance COVID-19 relief to struggling Californians. Economic assistance provided through the state’s efforts are designed to augment federal relief and extend support to individuals and small businesses that may not have received help in prior efforts.
CBA Responds to AB 1177, the California Public Banking Option Act
SACRAMENTO, Calif. – The California Bankers Association (CBA), issued the following statement in response to today’s press conference supporting AB 1177:
“Here we go again with the annual introduction of yet another bill seeking to introduce public banking to California. Despite voter rejection of the idea at the polls and public opinion polling indicating Californians’ opposition to the concept, advocates are nonetheless back pushing an idea with limited support.