On Aug. 28, CAL LEG passed bill amending provisions to credit unions.
CAL LEG passed bill AB 2062, Credit unions, with changes to membership applications, governance structures, sale of credit union assets, and virtual member meetings.
Existing law specifies manner of deposit for savings capital of credit union; bill would define savings capital of credit union to consist of payments by members on shares.
Authorized directors (delegate) to utilize automated system to establish membership eligibility pursuant to a written membership plan adopted by the board of directors
If specified conditions met, including automated system regularly tested for compliance, including credit union’s field of membership, applicable laws, regulations.
Authorize board to delegate specified duties to asset-liability management committee.
Including duty to determine interest rate on obligations, declare dividends, determine interest rate paid on certificates for funds, and dividend rates on share accounts.
Credit union can invest in corporation or LLC if corporation or limited liability company formed by corporation or LLC organized solely for purpose of providing services to CUs.
Revised amount which person is liable when CU officer, director, employee violates prohibition of purchasing (interest in) CU assets for less than current market value.
Bill authorized method for determining market value and would exclude from those prohibitions certain gifts from CU and purchase of certain equipment or furnishings.
Authorized annual meeting for election or special meetings to be conducted remotely.
Legislative History
On Feb. 1, 2024, bill introduced into Assembly; on May 9, 2024, bill passed Assembly.
On May 9, 2024, bill introduced into Senate; on Aug. 20, 2024, bill passed the Senate.
On Aug. 22, 2024, Assembly concurred with Senate amendments; sent to enrolling.
On Aug. 28, 2024, bill was delivered to the governor; pending governor review.
Effectiveness
If enacted, bill will become effective as of Jan. 1, 2025.
Sep. 2024 CAL LEG bill Approval
On Sep. 20, 2024, CAL LEG reported AB-2062 approved by governor, Chapter 305.
