Thanks to the dedicated advocacy of credit union leaders and supporters across the state, Assembly Bill 1065, the credit card interchange bill that the California Credit Union League strongly opposed, has been defeated this week in a California Assembly Banking and Finance Committee hearing on Monday.
This is a significant victory for California credit unions and the more than 14 million members they serve. AB 1065 posed a serious threat, with the potential for adverse consequences on credit unions and their members, potentially leading to increased inconvenience and operational burdens while diminishing valuable consumer rewards. Under this bill, a merchant would not pay interchange on the tax portion of a transaction, with consumers either swiping a card twice for each transaction or paying cash.
The League had the opportunity to serve as the lead witness in opposition to AB 1065 during Monday’s committee hearing, emphasizing credit unions’ unique structure and mission. The League also outlined the implications this bill would have for consumers statewide. Following an in-depth discussion, Committee Chair Avelino Valencia recommended a “no” vote. The bill subsequently failed, receiving zero votes in support.
Assemblymembers Valencia, Chen, Dixon, Fong, Rubio, and Rodriguez voted “no,” while Assemblymembers Krell, Schiavo, and Soria declined to vote. Although the bill was granted reconsideration (a standard procedural move), it is unclear whether it will be brought back for a future vote. The bill’s failure to receive a single vote in committee is a powerful indication of the impact the League and credit unions made together.
“I want to personally thank our Senior Vice President of State Government Affairs Robert Wilson and his outstanding team of colleagues for their hard work in rallying everyone to oppose AB 1065,” said Scott Simpson, president and CEO of the California Credit Union League and Nevada’s Credit Unions, in a message to member credit union CEOs. “Leveraging their foresight and expertise, as well as your earlier visits and compelling stories shared with legislators during the California Government Relations Rally (GRR), we laid the groundwork for this week’s success. Our voices were heard.”
The League would like to thank credit union leaders across California for their dedication to protecting their members. Monday’s outcome is due to the power of credit union engagement, and how advocates told the story of their credit union’s positive impact on local communities, delivering value to all Californians. When credit union leaders unite and make their voices heard, they can effectively protect their members and the communities they serve from harmful legislation.
