Senate Bill 1075 — legislation on overdraft and non-sufficient fund fees (NSF) — passed out of the California Senate Banking and Financial Institutions Committee, where Chair Monique Limón and members Ana Caballero, Caroline Menjivar, and Steven Bradford (author) supported the bill. Meanwhile, Sens. Roger Niello and Janet Nguyen voted “no,” while Sen. Anthony Portantino abstained.
The committee had a robust conversation on the merits of the bill (view the bill language here). Many committee members struggled with the fact that the bill singles out only state-chartered credit unions. Those members were concerned about how this legislation would impact members of those credit unions.
Despite voting in favor of the bill, Caballero made positive comments about the benefits of credit unions serving their communities. She urged the author and the California Credit Union League to work toward a solution.
The League expected SB 1075 would pass in committee since the author (Bradford) and joint author are committee members. Going forward, the bill will be heard in the California Senate Appropriations Committee, where it will be given a fiscal tag (a financial impact analysis on the state’s budget).
The League will work with appropriations committee staff to ensure the committee understands the costs of SB 1075 to the State of California. It’s imperative that all credit union supporters across the state continue opposing this bill through sending Connect for the Cause messages to local state legislators! SB 1075 will be the League’s top priority during the 2024 California Government Relations Rally (GRR) from April 8 to 9 (next week).
You can view SB 1075 details on the League’s California GRR Resource Site, including stringent requirements, premature timing, unintended consequences, and additional problematic and burdensome requirements. This legislation would unfairly target state-chartered credit unions by limiting courtesy overdraft protection and NSF services for their members. It would limit the number of overdraft and NSF transactions to three per month, while also mandating a five-day waiting period before a fee can be assessed.
Through Connect for the Cause, you can share your concerns about the negative impact SB 1075 will have on credit union members and ask that the bill be tabled.
Please stay tuned for ongoing updates from the League.
