Bill Text: CA SB1031 | 2019-2020 | Regular Session | Amended
Bill Title: Credit unions.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-03-26 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I. [SB1031 Detail]
Download: California-2019-SB1031-Amended.html
Amended
IN
Senate
March 26, 2020 |
Introduced by Senator Portantino (Principal coauthor: Assembly Member Grayson) |
February 14, 2020 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law, subject to specified exceptions, makes it a crime for a person to contrive, prepare, set up, propose, or draw any
lottery, whether it is called a lottery, raffle, gift enterprise, or other name. The CCUL authorizes a credit union to sponsor or participate in a savings promotion that provides savings account depositors with a chance to win designated prizes if the credit union satisfies certain requirements and prohibits these savings promotions from being considered a lottery or raffle within the meaning of those aforementioned criminal provisions, as provided.
This bill would specify that those provisions apply to any credit union authorized to do business in the state that is chartered under the laws of this state, another state, or specified federal law.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 14250 of the Financial Code is amended to read:14250.
(a) (1) The commissioner may at any time investigate into the affairs and examine the books, accounts, records, files, and any office within or outside of this state used in the business of every credit union, whether it acts or claims to act under or without authority of this division.SEC. 2.
Section 14410 of the Financial Code is amended to read:14410.
(a) (1) A member of the board of directors, supervisory committee, audit committee, or credit committee shall not receive compensation for that member’s services as a member of the board of directors, supervisory committee, audit committee, or credit committee, but the member may be provided with reasonable health, accident, and similar insurance.SEC. 3.
Section 14456 of the Financial Code is amended to read:14456.
Unless the bylaws expressly reserve any or all of the following duties to the members, the directors have all of the following special duties:(2)A member expelled pursuant to this subdivision shall have the right to appeal that expulsion to the supervisory or audit committee, as applicable.
(c)
(1)The chairperson of a membership committee or an executive committee.
(2)An officer, director, committee member, or employee, pursuant to a written membership plan adopted by the board of
directors.
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
SEC. 4.
Section 14655 of the Financial Code is repealed.(a)A credit union may expel members as provided in Section 14456 of this division and Section 7341 of the Corporations Code.
(b)A member who is expelled by the board of directors, or by the person or committee to whom that authority has been delegated pursuant to Section 14456, shall have the right to appeal that expulsion to the supervisory or audit committee, as applicable.
(c)Notwithstanding Section 7341 of the Corporations Code, an expulsion pursuant to subparagraph (D) of paragraph (1) of subdivision (b) of Section 14456 may take effect immediately and without advance notice or an opportunity to be heard, if the board of directors, or its designee pursuant to Section 14456, determines that immediate expulsion is reasonably necessary for the protection of the credit union or its staff, volunteers, or members. A member expelled pursuant to subparagraph (D) of paragraph (1) of subdivision (b) of Section 14456 shall be provided written notice within five days after the effective date of that expulsion.
SEC. 6.SEC. 5.
Section 14807 of the Financial Code is amended to read:14807.
(a) A member may withdraw from membership in the credit union at any time. A withdrawing member may be required to give 60 days’ notice of intention to withdraw shares and 30 days’ notice of intention to withdraw certificates for funds, except when a different period of notice is required by the commissioner for the withdrawal of shares or share certificates that may be established by the board of directors.SEC. 7.SEC. 6.
Section 14811 of the Financial Code is amended to read:14811.
(a) A member who has no outstanding obligations with the credit union and whose share account is below the amount established by the bylaws may be transferred to inactive member status.SEC. 8.SEC. 7.
Section 14851 of the Financial Code is amended to read:14851.
(a) Every credit union may issue shares as follows:(a)For purposes of this section, the following definitions apply:
(1)“Credit union” means a credit union chartered under this division or under the Federal Credit Union Act (12 U.S.C. Sec. 1751 et seq.) or a credit union chartered under the credit union law of another state and authorized to do business in this state.
(2)“Nonqualifying account” means a deposit account, other than a demand deposit account, that is not a qualifying account.
(3)“Qualifying account” means a deposit account, other than a demand deposit account, through which a credit union’s depositors may obtain chances to win prizes in a savings promotion.
(4)“Savings
promotion” means a contest or promotion to encourage savings deposits that is sponsored by one or more credit unions, or by a credit union trade association or its subsidiary in conjunction with one or more credit unions, and in which credit union depositors are offered a chance to win designated prizes.
(b)A credit union may sponsor or participate in a savings promotion if all of the following requirements are satisfied:
(1)Credit union depositors are not required to pay any fee or otherwise provide any consideration in order to enter the savings promotion.
(2)All material terms of, and fees charged by a credit union in connection with, a qualifying account are comparable to those of comparable nonqualifying accounts offered by the credit union.
(3)Each entry in the savings promotion has an equal chance of winning.
(4)Participants in the savings promotion are not required to be present at a prize drawing in order to win.
(c)For purposes of this section, a depositor’s deposit of at least a specified amount of money in a qualifying account, which is required in order to enter the savings promotion, is not consideration if the interest rate associated with the qualifying account is not reduced, as compared to comparable nonqualifying accounts offered by the credit union, to account for the possibility of winning a prize.
(d)A savings promotion offered by a credit union shall not be considered a lottery within the meaning of Section 319 or 319.3 of the Penal
Code or a raffle within the meaning of Section 320.5 of the Penal Code.