Bill Text: CA AB1075 | 2009-2010 | Regular Session | Amended

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Bill Title: Financial institutions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1075 Detail]

Download: California-2009-AB1075-Amended.html

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BILL NUMBER: AB 1075	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 22, 2009
	AMENDED IN ASSEMBLY  APRIL 2, 2009

INTRODUCED BY   Assembly Member Nava

                        FEBRUARY 27, 2009

   An act to add Sections 187 and 14408.5 to the Financial Code,
relating to financial institutions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1075, as amended, Nava. Financial institutions.
   Existing law, the Banking Law, provides for the regulation and
certification of state  organized   chartered
 banks by the Commissioner of Financial Institutions. Existing
law, the California Credit Union Law, provides for the regulation and
certification of state  organized   chartered
 credit unions by the commissioner.
   This bill would prohibit a state  regulated  
chartered  bank or credit union that is a recipient of federal
or state emergency economic assistance from using money derived from
that assistance for specified purposes  , except as specified
 . The bill would make a bank or credit union that violates
these provisions subject to a civil penalty of at least $100,000 per
violation, would require those penalties to be deposited in either
the State Banking Account or the Credit Union Fund, and would
prohibit those banks or credit unions from receiving any future
emergency economic assistance, as specified.
   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 187 is added to the Financial Code, to read:
   187.  (a) A bank, or any subsidiary, that is a recipient of
federal or state emergency economic assistance shall not use any
funds derived from that assistance for any of the following:
   (1) Lobbying expenditures or political contributions.
   (2) The hosting or sponsorship of, or payments for, conferences
and events.
   (3) The use of corporate aircraft, travel accommodations, and
travel expenditures. 
   (4) For the purpose of mergers or acquisitions.  

   (5) 
    (4)  Expenses relating to office or facility renovations
or relocations. 
   (6) 
    (5)  Expenses relating to entertainment, holiday
parties, employee recognition events, or similar ancillary corporate
expenses. 
   (7) 
    (6)  Executive bonuses. 
   (b) Emergency economic assistance received by a state chartered
bank shall not include money received under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. Secs. 5121 to
5207, incl.).  
   (b) 
    (c)  Any bank that violates this section shall be
subject to a civil fine of at least one hundred thousand dollars
($100,000) per violation and shall be ineligible to receive any
future emergency economic assistance until the bank has completed
measures to comply with, and to prevent future violations of, the
provisions of this section. Fines collected pursuant to this
subdivision shall be deposited in the State Banking Account.
  SEC. 2.  Section 14408.5 is added to the Financial Code, to read:
   14408.5.  (a) A credit union, or any subsidiary, that is a
recipient of federal or state emergency economic assistance shall not
use any funds derived from that assistance for any of the following:

   (1) Lobbying expenditures or political contributions.
   (2) The hosting or sponsorship of, or payments for, conferences
and events.
   (3) The use of corporate aircraft, travel accommodations, and
travel expenditures. 
   (4) For the purpose of mergers or acquisitions.  

   (5) 
    (4)  Expenses relating to office or facility renovations
or relocations. 
   (6) 
    (5)  Expenses relating to entertainment, holiday
parties, employee recognition events, or similar ancillary corporate
expenses. 
   (7) 
    (6)  Executive bonuses. 
   (b) Emergency economic assistance received by a state chartered
bank shall not include money received under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. Secs. 5121 to
5207, incl.).  
   (b) 
    (c)  Any credit union that violates this section shall
be subject to a civil fine of at least one hundred thousand dollars
($100,000) per violation and shall be ineligible to receive any
future emergency economic assistance until the credit union has
completed measures to comply with, and to prevent future violations
of, the provisions of this section. Fines collected pursuant to this
subdivision shall be deposited in the Credit Union Fund.