California Assembly amends cross-border services bill

SACRAMENTO, Calif. - The state Assembly June 23 removed a key provision of a California Credit Union League-sponsored bill that provides a legislative and regulatory framework for state-chartered credit unions to open branches in foreign countries. S.B. 1472, introduced by Sen. Deborah Ortiz (D-Sacramento) and passed unanimously by the state Senate in June provided that all interstate or international expansions would be subject to the approval of the California Department of Financial Institutions, as well as the regulators of the other state or country. The bill, as amended deletes the provision relating to credit unions organized in other states and replaces it with separate, new provisions governing licensing of credit unions of other states and CUs of foreign countries that intend to do business in California. These provisions, among other things, would require deposit or share accounts of these credit unions to be insured "by the NCUA or other insurer," provide for various fees to be paid to the commissioner, allow the commissioner to examine the books, accounts, and records of the credit union, and provide for enforcement provisions. It also deletes a provision that would have allowed California regulators to decide field-of-membership questions for credit unions operating in the state with a charter from another state. - ekingoff@cutimes.com