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

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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-Chaptered.html

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BILL NUMBER: AB 1784	CHAPTERED
	BILL TEXT

	CHAPTER  180
	FILED WITH SECRETARY OF STATE  AUGUST 25, 2016
	APPROVED BY GOVERNOR  AUGUST 25, 2016
	PASSED THE SENATE  AUGUST 11, 2016
	PASSED THE ASSEMBLY  AUGUST 15, 2016
	AMENDED IN SENATE  AUGUST 1, 2016
	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 add Section 1083 to the Financial Code, relating to
financial institutions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1784, 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 authorize 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.
The bill would specify that banks participating in these programs
are still liable for deposits, as specified.


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

  SECTION 1.  Section 1083 is added to the Financial Code, to read:
   1083.  (a) 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, as
that term is defined in Section 1070 of the Financial Code, if all of
the following conditions are met:
   (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.
   (b) A bank that participates in a financial education program
pursuant to this section shall be liable for all deposits made on the
premises of, or at a facility used by, a school as if the deposit
was made directly at a branch office of the bank.