CA AB. 2501 Goes Before the Appropriations Committee Tuesday, June 2, 2020, 9am PST
Sacramento, CA – 29 May 2020 – A joint letter has been sent in to the members of the California Assembly Committee on Appropriations in opposition to Assembly Bill 2501, “COVID-19: homeowner, tenant, and consumer relief Law of 2020” also known as the “JOB KILLER” bill. This letter is being sent ahead of the recently released committee agenda that shows it to go up for vote on Tuesday, June 2, 2020 at 9AM, PST.
The letter, dated 27 May 2020, was issued by the California Association of Collectors, Inc., California New Car Dealers Association, California Chamber of Commerce, Alliance for Automotive Innovation, California Business Properties Association, California Business Roundtable, California Financial Service Providers Association, California Financial Services Association and the California Manufactured Housing Institute. In the letter, which reiterates many of the same points as the May 17th letter to the California House Banking and Finance Committee, it is stated;
“This bill imposes significant new obligations on financial services businesses, that will limit the financial opportunities for Californians, further harming the housing market, and creating job loss. Specifically, the bill requires financial institutions to carry homeowner loans for a year or more without payment and without assessing fines or penalties, prohibits repossession of mobile homes or motor vehicles for non-payment and without assessing fines and penalties, and places onerous restrictions on deferred deposit loans. The provisions of the bill are unprecedented and will restrict Californians’ ability to access credit now and in the future.”
In the Assembly Committee on Appropriations, which is chaired by Democrat Assembly Member Lorena Gonzalez of Oceanside, the bill faces a panel of 15 Democrats and 2 Republicans. Opposition will likely be limited and it should then move forward to the state Assembly for vote., where if it passes, will repeat the process in the state Senate.
Bills that require an appropriation or that take effect immediately, generally require 27 votes in the Senate and 54 votes in the Assembly to be passed. Other bills generally require 21 votes in the Senate and 41 votes in the Assembly.
AB. 2501, passed through the House Banking and Finance Committee with a vote of 7 in favor, 3 opposed and 2 no votes. Worthy of noting, this committee consists of 9 Democrats and 2 Republicans with one seat vacant and received at very least two no votes from the author, Committee Chair, Monique Limon (D) of Santa Barbara’s own party.
In a statement from the California Credit Union League (CCUL), who have also been working in opposition, they stated;
“Assemblymembers Tim Grayson and Rebecca Bauer-Kahan spoke highly of credit unions, with Grayson reading some modeling that Patelco Credit Union provided him. Assemblymember Jesse Gabriel raised concerns with the bill, highlighting that if the bill passes in current form, it could cause job losses at credit unions. Assemblymember and Dr. Shirley Weber brought up the concern that credit unions always get lumped in with big banks.”
The long-term ramifications of this bill have been brought to the attention of Assemblywoman and Committee Chair, Monique Limon, as well as the other five sitting members of the committee but clearly to no avail as seven of the ten voted in favor of it. The long-term damaging effects of it have been clearly spelled out in a series of three letters to the committee by eight large national and state level banking associations.
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