Bill Text: CA AB2006 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Credit union services.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-07 - Chaptered by Secretary of State - Chapter 246, Statutes of 2012. [AB2006 Detail]

Download: California-2011-AB2006-Introduced.html

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BILL NUMBER: AB 2006	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member John A. Pérez

                        FEBRUARY 23, 2012

   An act to amend Section 14800 of the Financial Code, relating to
credit unions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2006, as introduced, John A. Pérez. Credit union services.
   Existing law prohibits an officer, director, committee member, or
employee of a credit union from extending any benefit or service of
the credit union to any person, unless that person is admitted to
membership in the credit union. Existing law also prohibits a credit
union from creating any obligation with a person who is not admitted
to membership in the credit union, except as specified. A knowing or
willful violation of these provisions is a crime, as specified.
   This bill would authorize a credit union to sell, to persons in
the field of membership, negotiable checks, money orders, and other
similar money transfer instruments. The bill would also authorize a
credit union to, for a fee, cash checks and money orders and receive
international and domestic electronic fund transfers for persons in
the field of membership.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 14800 of the Financial Code is amended to read:

   14800.  (a) Every credit union may admit to membership those
persons qualified for membership upon the occurrence of any of the
following:
   (1) Upon the purchase of a membership in the credit union as
provided in the credit union's bylaws.
   (2) Upon the payment of an entrance fee established from time to
time by the board of directors.
   (3) Upon the purchase of one or more shares in the credit union as
provided in the credit union's bylaws.
   (b) No officer, director, committee member, or employee of any
credit union shall approve a person for admission to membership or
admit an applicant for membership in the credit union or extend any
benefit or service of the credit union to any person, unless that
person is admitted to membership in the credit union pursuant to
subdivision (a).
   (c) Nothing in subdivisions (a) and (b) shall be construed to
limit the powers of a credit union to engage in joint service
programs or business relationships for the benefit of their members
where some incidental benefit may flow to third parties to the
transaction or the authority for a credit union to engage in joint
loan programs pursuant to Section 14959.
   (d) Nothing in this section prohibits a credit union from
admitting to membership a corporation in which the credit union holds
shares pursuant to Section 14650 or a corporation formed to provide
services to credit unions or to credit union members in which the
credit union holds shares or a limited liability company formed to
provide services to credit unions or to credit union members in which
the credit union holds membership or economic interests pursuant to
Section 14651. 
   (e) Notwithstanding subdivision (b) and Section 14750, a credit
union may do all of the following:  
   (1) Sell, to persons in the field of membership, negotiable
checks, including travelers checks, and money orders, and other
similar money transfer instruments, including international and
domestic electronic fund transfers.  
   (2) Cash checks and money orders and receive international and
domestic electronic fund transfers for persons in the field of
membership for a fee.