The California Credit Union League is celebrating a significant legislative win: Assembly Bill 801, the proposed state Community Reinvestment Act (CRA) bill, will not be moving forward this year. This decision marks a huge victory for credit union leaders across California who fiercely opposed the measure.

The League received confirmation from the office of the bill’s author that signaled an end to the ongoing debate. For months, credit unions have argued that a state-mandated CRA was unnecessary. In Sacramento and elsewhere, credit union leaders have emphasized that their community-focused mission is inherently embedded in what they do.

Despite bill amendments, the League’s core opposition remained steadfast, arguing the bill would introduce new and burdensome compliance which could hinder credit unions’ ability to serve their members.

“This is a major victory,” said Robert Wilson, senior vice president of state government affairs for the League. “We lobbied this during the California Government Relations Rally (GRR) and have been standing by our message that credit unions do not need to be told to support communities.”

AB 801, introduced by Assemblymember Mia Bonta, aimed to expand community reinvestment efforts. Throughout this year’s legislative session in Sacramento:

• The League maintained credit unions already contribute to underserved populations through their member-centric financial services model.
• Previous data displayed this commitment, showing how credit unions save consumers in minority-majority areas substantial amounts on mortgages and provide significant savings on auto loans for consumers with the poorest credit (compared to banks).
• State-chartered credit union mortgage lenders were also shown to equally or outperform California banks in 150 out of 159 metrics when lending to low-to-moderate-income and minority borrowers.

Credit union leader and advocates’ rigorous advocacy efforts played a role in the outcome after intense lobbying within the California State Senate. The League would like to thank CEOs and advocacy leaders who complemented these efforts by hosting district meetings with members of the California Senate Banking and Financial Institutions Committee, providing firsthand accounts of credit unions’ community impact.

“Thank you to everyone who participated in GRR, local district meetings, and Connect For The Cause,” Wilson said. “Your efforts amplified our movement’s voice and led to the bill’s withdrawal from consideration this session.”