League-Opposed CA Bill Defeated: CUs Spared from Lawsuits

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Senate Bill 561 will not advance in 2019 after dying in the appropriations committee of the California State Senate—a move which ensures credit unions do not face additional frivolous class-action lawsuits.

The bill would have expanded upon Assembly Bill 375 (the California Consumer Privacy Act—or CCPA) by removing the state attorney general’s guidance for businesses, removing the 30-day right-to-cure for businesses, and making the CCPA subject to private right-of-action.

SB 561 was authored by Sen. Hannah-Beth Jackson and sponsored by State Attorney General Xavier Becerra. The California Credit Union League opposed it.

The bill’s defeat is another notable state victory that the League was able to help secure on the heels of other “wins” in Sacramento over the past few years. Every year’s state political accomplishments build upon the prior, making a perpetual impact on credit unions continually reaping those benefits.

“We opposed SB 561 to shield credit unions from frivolous class-action lawsuits,” said Diana Dykstra, president and CEO of the California Credit Union League. “If passed, these anticipated lawsuits would have been to the detriment of our industry and the individuals we serve. This is another example of how the League continually stands guard in the halls of the California State Legislature to project credit unions and their members.”

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