The Assembly will convene on Wednesday, June 10, 2020 at 10:00 a.m.
Sacramento, CA – 8 June, 2020 – Surpise, surprise! The California State Assembly posted their schedule for bills to come to vote and AB 2501 appeared as item number 183 of 213. Whether or not it makes it to vote today or the day after is unknown, but it is on today’s calendar scheduled to open at 10am, PST. The bill only requires a simple 41 votes. It had been suggested by a lobbyist source that it would postponed until after the June 15th Budget deadline, but this do not appear to be the case.
The Assembly will convene on Wednesday, June 10, 2020 at 10:00 a.m.
The full assembly meeting can be viewed online here
The California State Assembly has eighty seats currently filled with 61 Democrats (76.3%), 17 Republicans (22.5%) and 1 Independent (1.3%). In order to pass, AB 2501 must only achieve a simple majority of 41. Despite some bipartisan opposition in the two lower committees, a Lobbyist source expects that the bill will garner the necessary the votes to move to the next stages, Procedures Committee, State Senate and then the Governor.
According to an article posted in the in the “National Law Review” on June 9th, the bill has a June 19 deadline to be voted on.
Shady?
If all of this seems to be moving pretty fast and without a lot of forewarning, it should come of little surprise. This has been a problem in the California State legislative process for many years. Over four years ago, against fierce opposition from Democratic politicians, California voters passed Proposition 54, a constitutional amendment that required the Legislature to be more transparent.
Nearly two-thirds of the state’s voters backed Proposition 54, which required the final versions of legislative bills to be in print and online at least 72 hours before final votes. It was aimed at the insidious practice of drafting bills in the dead of night, especially “trailer bills” to the state budget loaded with special interest funding, and enacting them before anyone had an opportunity to know what they contained.
Lawmakers didn’t like the new law and have connived to get around it whenever they could. To get around this, a newly drafted constitutional amendment, ACA 25, would not only undermine major portions of Proposition 54, but give legislators new authority to act secretly. They could even bar the public from their meetings, whenever the governor declares an emergency, such as the current coronavirus pandemic decree.
Assembly Constitutional Amendment 25 (ACA 25) would allow legislators to attend legislative meetings and cast their votes on bills remotely, via webcasts or other electronic means.
Source: Sacramento Bee
Once Bitten Twice Shy
Having previously reported the bills impending vote on June 8, we are reluctant to assume that it will go to full vote. Since there are 213 items on the schedule, I find it a little amazing that any of these Assembly Persons actually read through even half of these. Let’s keep our fingers crossed. This needs to stop.
Stiff Opposition
AB 2501, titled “the COVID-19: homeowner, tenant, and consumer relief Law of 2020” , has been opposed by every major bank, credit union, finance and auto sales association in the state and has thus far been able to move through the first two lower committees with relative ease.
The California Credit Union League, a long-time beneficiary and supporter of the state’s Democratic Party, has rolled out massive grass roots efforts to defeat this bill. From CEO’s all the way down to tellers, credit union staff have been reaching out to the state Assemblypersons to express their concerns over this “Job Killer” bill just over the last few days.
The bill, drafted by California House Banking and Finance Committee Assemblywoman and Committee Chair, Monique Limon (D) of Santa Barbara and introduced on May 11th, is receiving heavy opposition from the California Chamber of Commerce, American Bankers Association (ABA), American Financial Services Association (AFSA), Bank Policy Institute (BPI), Credit Union National Association (CUNA), Housing Policy Council (HPC), Mortgage Bankers Association (MBA) and the Securities Industry and Financial Markets Association (SIFMA.)
On the May 17th, joint letter from the California Chamber of Commerce, American Bankers Association (ABA), American Financial Services Association (AFSA), Bank Policy Institute (BPI), Credit Union National Association (CUNA), Housing Policy Council (HPC), Mortgage Bankers Association (MBA) and the Securities Industry and Financial Markets Association (SIFMA), it was stated that;
“AB 2501 would undermine these ongoing efforts to help customers by creating duplicative and sometimes contradictory requirements for the mortgage and auto finance industries when viewed alongside federal rules, regulations and program requirements established by Congress, regulatory bodies, federal executive agencies, and government sponsored enterprises.”
In a more direct letter, the California Chamber of Commerce referred to the bill as “JOB KILLER” and that “Requiring these institutions to potentially go years without receiving payment is a significant burden that will negatively impact financial opportunities for Californians. Given the financial risk this proposal creates for such institutions, there is no question that the institutions will limit the mortgage and auto loans it offers. There will likely be stricter criteria to qualify, or, higher rates to offset the potential loss these institutions could suffer under AB 2501. This limitation will have a negative impact on the housing market, further exacerbating the housing crisis and creating job loss in the housing industry. It will also unquestionably limit car loans, especially for those with problematic credit history, and will harm both consumers and workers in the auto industry.”
While the larger national and state financial associations have considerable clout, they do not represent the expressed interests of the repossession industry and your support of the California Association of Licensed Repossessors (CALR) lobby is still very much needed. Please donate today!
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