State 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.

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.

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:

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.

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. 

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.

SACRAMENTO, Calif. – The California Bankers Association (CBA) released the following statement regarding Assembly Bill 3088:

“Our members have worked proactively with their customers since the beginning of this pandemic to provide important financial relief, including the forbearance of mortgage payments.

SACRAMENTO, Calif. –  Eligible Californians are expected to soon be receiving federal stimulus benefits, as part of the coronavirus economic relief package passed recently by Congress. Known as economic impact payments, it is estimated that this relief will bring $25 to $30 billion in funds to Californians who are struggling during these challenging times brought about by the COVID-19 pandemic.