On Friday of last week, Assembly Bill 801 was substantially amended in the California State Legislature in Sacramento, effectively defeating the original Community Reinvestment Act (CRA)-style mandate on credit unions.

This outcome demonstrates the value of sustained advocacy by California’s Credit Unions and the collective strength of league-credit union membership. It’s a victory displaying collective action: direct advocacy, the power of the credit union movement, and sustained engagement producing tangible results.

While the California league remains opposed to AB 801, these recent bill amendments dramatically reduced its impact by narrowing its scope to:

• Fair lending and mortgage lending activities.
• Incorporating reviews into existing examinations.
• Giving the California Department of Financial Protection and Innovation (DFPI) commissioner discretion to waive exams.
• Exempting smaller institutions.

Fighting for Both State and Federal CUs

AB 801 began as a proposal to impose a state CRA-style mandate on California’s state-chartered credit unions. California’s Credit Unions opposed the measure because it would have created significant new regulatory costs — estimated at approximately $50,000 to more than $1 million annually, depending on a credit union’s size.

This is direct advocacy in action, and it benefits both state and federally chartered credit unions. By defending the dual-charter system, preventing harmful precedents, and stopping costly mandates from spreading, the California league fights for every California credit union.

This victory in Sacramento cannot be understated. If AB 801’s original proposal became law, the annual CRA compliance cost would be staggering, based on Office of the Comptroller of the Currency (OCC) scales for bank compliance:

• $50,000-$150,000/year for credit unions less than $300 million in assets.
• $150,000-$500,000/year for credit unions between $300-$999 million.
• $500,000-$2 million/year (or more) for credit unions over $1 billion.

Advancing Communities Together (ACT)

California’s Credit Unions would like to thank credit unions for their continued membership and partnership.

However, credit unions’ work is not finished. CRA-style proposals will return, and credit unions must continue demonstrating their impact. Through Advancing Communities Together (ACT), led by California’s Credit Unions Director of Grassroots Advocacy Paige Haskin, the league has a strategy to build a stronger, unified narrative.

The league is asking credit union leaders to connect with Haskin and share examples of their work — from financial education and community lending to backpack drives and other programs that demonstrate the credit union difference. Please email her and share examples of your credit union’s financial education, community lending, charitable giving, and other local efforts.