Amended  IN  Senate  April 02, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1379

Introduced by Senator Hernandez

February 16, 2018

An act to repeal Division 23 (commencing with Section 80000) of the Financial Code, and to add Article 3 (commencing with Section 12350) to Chapter 4 of Part 2 of Division 3 of Title 2 of the Government Code, relating to banks.


LEGISLATIVE COUNSEL'S DIGEST


SB 1379, as amended, Hernandez. Study of unbanked and underbanked populations. populations: Bank on California program.

The

(1) The Financial Institutions Law regulates the activities of various financial entities, including commercial banks, industrial banks, trust companies, credit unions, and savings and loan associations. Existing law establishes the Department of Business Oversight, which is under the direction of the Commissioner of Business Oversight, and the commissioner is responsible for the administration and enforcement of the Financial Institutions Law.
This bill would require the Department of Business Oversight to conduct a comprehensive study of unbanked and underbanked populations. The bill would require the study to include, among other components, information on the particular banking habits of the demographic populations within this state and recommendations on the ways the state can better serve unbanked and underserved populations. The bill would require the department, on or before January 1, 2021, to complete the study and report its findings to the Legislature and the appropriate policy and fiscal committees, and to post the report of its findings on its Internet Web site.
(2) Existing law establishes the Bank on California program within the Department of Business Oversight as a voluntary collaborative that assists Californians in opening bank or credit union accounts. Existing law requires the department to report annually to specified committees of the Legislature on the activities of the program.
This bill would instead require the State Treasurer to administer the Bank on California program and submit the specified annual report on the activities of the program.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 (a) The Department of Business Oversight shall conduct a comprehensive study of unbanked and underbanked populations. The study shall include, but not be limited to, all of the following components:
(1) Information on the particular banking habits of the demographic populations within this state based on city, county, city and county, district, or regional basis, or a combination thereof, so as to provide the most valuable information about these populations.
(2) Inclusion of various demographic indicators, including race, educational attainment, age, income, and employment status.
(3) Inclusion of banking habits based on specific industry.
(4) Recommendations on the ways the state can better serve unbanked and underserved populations.
(b) (1) The department shall complete the study and provide a written report of its findings to the Legislature and the appropriate policy and fiscal committees on or before January 1, 2021. The report shall be submitted in compliance with Section 9795 of the Government Code.
(2) The department shall post the report of its findings on its Internet Web site on or before January 1, 2021.

SEC. 2.

 Division 23 (commencing with Section 80000) of the Financial Code is repealed.

SEC. 3.

 Article 3 (commencing with Section 12350) is added to Chapter 4 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
Article  3. Bank on California Program

12350.
 (a) The Legislature finds and declares that “Bank on California” is a voluntary collaborative initiative that assists Californians in opening a bank or credit union account and saving for the future.
(b) There is hereby established within the office of the Treasurer the Bank on California program.

12352.
 The Treasurer shall provide the respective chairpersons of the Senate Committee on Banking and Financial Institutions and the Assembly Committee on Banking and Finance with a brief annual summary on the activities of the Bank on California Program. Notwithstanding Sections 9795 and 10231.5, the summary shall be submitted no later than August 30 of each year.