Bill Text: CA AB1784 | 2015-2016 | Regular Session | Amended

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

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Bill Title: State banks.

Spectrum: Bipartisan Bill

Status: (Passed) 2016-08-25 - Chaptered by Secretary of State - Chapter 180, Statutes of 2016. [AB1784 Detail]

Download: California-2015-AB1784-Amended.html

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BILL NUMBER: AB 1784	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 16, 2016
	AMENDED IN ASSEMBLY  MARCH 3, 2016

INTRODUCED BY   Assembly Member Dababneh
   (Principal coauthor: Senator Hertzberg)
    (   Coauthors:   Assembly Members 
 Travis Allen,   Brown,   Hadley,  
and Kim   ) 

                        FEBRUARY 4, 2016

   An act to amend Section 1070 of the Financial Code, relating to
financial institutions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1784, as amended, Dababneh. State banks.
   Existing law defines and regulates state banks and commits the
enforcement of banking laws with the Commissioner of Business
Oversight. The Banking Law prescribes definitions relating to bank
offices and defines a branch office as an office at which core
banking business is conducted other than an automated teller machine,
a device used to facilitate check guarantee or check authorization,
or a remote service facility, as defined.
   This bill would provide, in the definitions that apply to
regulating bank offices, for the authorization of a bank to
participate in a financial education program that involves receiving
deposits or paying withdrawals on the premises of a school or school
facility. The bill would provide that the school premises or facility
will not be considered a branch office of the bank if certain
conditions are met.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1070 of the Financial Code is amended to read:
   1070.  For purposes of this chapter, the following definitions
apply:
   (a) "Automated teller machine" means any electronic information
processing device used by a financial institution and its customers
for the primary purpose of executing transactions solely between the
financial institution and its customers, if the transactions are not
incidental to sales between the customer and a business entity other
than a financial institution.
   (b) "Branch office" means any office at which core banking
business is conducted other than an automated teller machine, a
device used to facilitate check guarantee or check authorization, or
a remote service facility as defined in subsection (d) of Section
345.12 of Title 12 of the Code of Federal Regulations.
   (c) "Core banking business" means the business of receiving
deposits, paying checks, making loans, and other activities that the
commissioner may specify by order or regulation. "Core banking
business," when used to describe the trust business, includes
receiving fiduciary assets and administering fiduciary accounts.
   (d) "Facility" means an office at which a bank engages in noncore
banking business but at which it does not engage in core banking
business.
   (e) "Head office" means the office designated by the bank as its
headquarters.
   (f) "Noncore banking business" means all activities permissible
for banks, except core banking business, and except those activities
prohibited by law or determined by the commissioner by regulation or
order not to be noncore banking business.
   (g) "Office" means the head office, any branch office, and any
facility office of a bank.
   (h) "Redesignate offices" means (1) the relocation by a bank of
its head office to the site of a branch or facility office in this
state and the concurrent establishment by the bank of an office at
the former site of the head office, or (2) the relocation by a bank
of a branch office to the site of a facility office and the
concurrent establishment by the bank of a branch or facility office
at the former site of the branch office.
   (i) A bank may participate in a financial education program that
involves receiving deposits or paying withdrawals on the premises of,
or at a facility used by, a school. The school premises or facility
will not be considered a branch office of the bank if:
   (1) The bank does not establish and operate the school premises or
facility in which the program is conducted.
   (2) Bank employees work at the site only to participate in the
program.
   (3) The program is provided at the discretion of the school.
   (4) The principal purpose of the program is financial education.
For example, a program is educational if it is designed to teach
students the principles of personal financial management, banking
operations, or the benefits of saving for the future, and is not
designed for the purpose of profitmaking.
   (5) No services are provided to the general public. 
   (6) The program is conducted in a manner that is consistent with
safe and sound banking practices and complies with applicable law.