Bill Text: CA SB1415 | 2021-2022 | Regular Session | Chaptered
Bill Title: Financial Institutions Law: annual report: overdraft.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2022-09-29 - Chaptered by Secretary of State. Chapter 847, Statutes of 2022. [SB1415 Detail]
Download: California-2021-SB1415-Chaptered.html
Senate Bill
No. 1415
CHAPTER 847
An act to add Section 521 to the Financial Code, relating to financial institutions.
[
Approved by
Governor
September 29, 2022.
Filed with
Secretary of State
September 29, 2022.
]
LEGISLATIVE COUNSEL'S DIGEST
SB 1415, Limón.
Financial Institutions Law: annual report: overdraft.
Existing law, the Financial Institutions Law, requires the Commissioner of Financial Protection and Innovation to cause every California state bank and every foreign bank to be examined to the extent and whenever and as often as the commissioner shall deem it advisable, but in no case less frequently than once every 12 months, except as prescribed. Existing law, the California Credit Union Law (CCUL), authorizes the commissioner to, 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, the CCUL.
This bill would require a bank or credit union subject to the examination authority of the commissioner to report
annually, on or before March 1, to the commissioner on the amount of revenue earned from overdraft fees and nonsufficient funds fees collected in the most recently completed calendar year and the percentage of that revenue as a proportion of the net income of the bank or credit union. The bill would require the commissioner to
publish, as prescribed, in a report the data for each bank or credit union reported pursuant to the bill and make the report available on the department’s internet website.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 521 is added to the Financial Code, immediately following Section 520, to read:521.
(a) A bank or credit union subject to the examination authority of the commissioner shall report annually, on or before March 1, to the commissioner on the amount of revenue earned from overdraft fees and nonsufficient funds fees collected in the most recently completed calendar year and the percentage of that revenue as a proportion of the net income of the bank or credit union.(b) (1) The commissioner shall publish, pursuant to paragraph (2), in a report the data
for each bank or credit union required by subdivision (a) and make the report available on the department’s internet website.
(2) (A) The commissioner shall publish the first report required by this subdivision on or before March 31, 2023, covering data from the 2022 calendar year.
(B) In a calendar year beginning on or after January 1, 2024, the commissioner shall publish the report required by this subdivision on or before March 31 covering data from the most recently completed calendar year.
(c) As used in this
section:
(1) “Nonsufficient funds fees” means fees resulting from the initiation of a transaction that exceeds the customer’s account balance if the customer’s bank or credit union declines to make the payment.
(2) “Overdraft fees” means fees resulting from the processing of a debit transaction that exceeds a customer’s account balance.
