Bill Text: CA AB1177 | 2021-2022 | Regular Session | Introduced

California Assembly Bill 1177 (Prior Session Legislation)

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

Bill Title: California Public Banking Option Act.

Spectrum: Partisan Bill (Democrat 19-0)

Status: (Passed) 2021-10-04 - Chaptered by Secretary of State - Chapter 451, Statutes of 2021. [AB1177 Detail]

Download: California-2021-AB1177-Introduced.html

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 1177

Introduced by Assembly Member Santiago

February 18, 2021

An act to amend Section 16500 of the Government Code, relating to state government.

LEGISLATIVE COUNSEL'S DIGEST

AB 1177, as introduced, Santiago. Deposit: state funds: eligible bank.

Existing law requires the Treasurer, if possible, to deposit all money in the State Treasury or under the control of the Treasurer into an eligible bank. Existing law defines an “eligible bank” as, among other things, a state or national bank located in this state, selected by the Treasurer for the safekeeping of money belonging to, or in the custody of, the state, that has received an overall rating of not less than “satisfactory” in its most recent evaluation by the appropriate federal financial supervisory agency of the bank’s record of meeting the credit needs of the state’s communities.

This bill would make nonsubstantive changes to the definition of an eligible bank.

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 16500 of the Government Code is amended to read:

16500.

As used in this chapter, “eligible bank” means a state or national bank located in this state, selected by the Treasurer for the safekeeping of money belonging to to, or in the custody of of, the state, that has received an overall rating of not less than “satisfactory” in its most recent evaluation by the appropriate federal financial supervisory agency of the bank’s record of meeting the credit needs of the state’s communities, including low- and moderate-income neighborhoods, pursuant to Section 2906 of Title 12 of the United States Code. An eligible bank is eligible to receive deposits only to the extent that it furnishes the security required by this chapter.