Bill Text: CA SB747 | 2019-2020 | Regular Session | Amended
Bill Title: Banking development districts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2020-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB747 Detail]
Download: California-2019-SB747-Amended.html
Amended
IN
Senate
March 27, 2019 |
Senate Bill | No. 747 |
Introduced by Senator Bradford |
February 22, 2019 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law, the Banking Law, provides for the licensure and regulation of banks, under the supervision of the Commissioner of Business Oversight, and requires that a state bank be incorporated, as specified. Existing law requires that a request for authority to organize and establish a corporation to engage in the banking business be set forth in an application in a form and containing any information that the commissioner may require along with a specified fee.
This bill would make nonsubstantive changes in these provisions.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:SEC. 2.
Division 18 (commencing with Section 40000) is added to the Financial Code, to read:DIVISION 18. BANKING DEVELOPMENT DISTRICT PROGRAM
40000.
The Banking Development District Program is hereby created in order to encourage the establishment of banking branches that provide needed products and services in specifically designated geographic locations where there is an underserved community. These designated geographic locations shall be known as banking development districts. A bank may seek to participate in the program in order to do either of the following:40001.
For purposes of this division:40002.
(a) The Banking Development District Program shall be established within the department.40003.
The department shall set forth the selection criteria to evaluate a local agency’s application. The selection criteria shall aim to accomplish the following:40004.
The department shall evaluate and approve applications submitted pursuant to Section 40002. In evaluating whether to approve the application, the department shall evaluate the extent to which the bank is prepared to offer and to market products suited for lower income consumers, including those products that accomplish the following:40005.
The department shall develop and provide a range of incentives to help banks located within a banking development district overcome short-term costs that prevent them from offering products and services that have long-term business potential. The incentives shall be all of the following requirements:40006.
Upon designation of a banking development district by the department, the bank located within the banking development district shall be eligible for the following range of incentives:40007.
The department may work with local agencies and economic development officials to develop additional local incentives for participating banks. These local incentives may include, but shall not be limited to, the following:40008.
The department shall adopt rules and regulations for the establishment and maintenance of banking development districts, as provided for in this division.40009.
The department shall establish and post on its internet website a performance review process to ensure that a bank taking part in the Banking Development District Program is meeting its goals and initiatives, and its services are having a recognizable impact on underserved communities.The request for authority to organize and establish a corporation to engage in the banking or trust business shall be set forth in an application in a form and containing any information as the commissioner may require and shall be accompanied by a fee of five thousand dollars ($5,000).