BILL NUMBER: AB 2749 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 7, 2008
PASSED THE ASSEMBLY AUGUST 12, 2008
AMENDED IN SENATE JUNE 16, 2008
AMENDED IN SENATE JUNE 2, 2008
AMENDED IN ASSEMBLY APRIL 22, 2008
INTRODUCED BY Assembly Member Gaines
FEBRUARY 22, 2008
An act to amend Section 1798.24 of the Civil Code, to amend
Sections 216.3, 1757, and 1935 of, to add Sections 126.7, 131,
139.95, 142.5, 148.5, and 149.3 to, to add Article 6 (commencing with
Section 280) to Chapter 2 of Division 1 of, to repeal Sections 1909,
1930, 1931, 1934, 1936, 1937, 1938, 1939, and 1945 of, and to repeal
and add Section 4825 of, the Financial Code, and to amend Sections
6254.5 and 6276.06 of the Government Code, relating to financial
institutions.
LEGISLATIVE COUNSEL'S DIGEST
AB 2749, Gaines. Financial institutions: disclosure and reporting
requirements.
Existing law, the Banking Law, provides for the licensure and
regulation by the Department of Financial Institutions of various
financial institutions, including banks, commercial banks, and trust
companies. The Banking Law sets forth specified disclosure and
reporting requirements imposed upon those entities. Any person
intentionally making a false statement in any report required under
the Banking Law is guilty of perjury, a crime.
This bill would revise and recast those disclosure and reporting
requirements, as specified, and would provide that those requirements
apply to all licensees regulated by the Department of Financial
Institutions. For those purposes, "licensee" would be defined to
include, among others, banks, industrial banks, trust companies,
foreign (other nation) banks, any corporation licensed by the
commissioner to transmit money or issue traveler's checks, savings
associations, credit unions, foreign (other state) credit unions, and
industrial loan companies. The bill would subject a licensee to the
above-described perjury provisions, thereby expanding a crime and
imposing a state-mandated local program.
Under specified circumstances, this bill would also allow a
foreign (other state) or foreign (other nation) financial
institutions regulatory agency to examine a licensee and any of its
offices. The bill would further set forth procedures related to the
furnishing of confidential information, as defined, by the
Commissioner of Financial Institutions.
This bill would also set forth definitions relative to the rating
of financial institutions pursuant to specified federally established
criteria.
Existing law, the Depository Corporation Sale, Merger, and
Conversion Law, prohibits the merger or conversion of a California
state bank or a California state depository corporation into a
depository corporation that is a mutual organization or the merger or
conversion of such a depository corporation into a California state
bank or California state depository corporation.
This bill would repeal that prohibition and would instead
authorize a California state depository corporation to merge with a
corporation or other business entity that is not a depository
corporation if the California state depository corporation is the
surviving corporation of that merger.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1798.24 of the Civil Code is amended to read:
1798.24. No agency may disclose any personal information in a
manner that would link the information disclosed to the individual to
whom it pertains unless the information is disclosed, as follows:
(a) To the individual to whom the information pertains.
(b) With the prior written voluntary consent of the individual to
whom the record pertains, but only if that consent has been obtained
not more than 30 days before the disclosure, or in the time limit
agreed to by the individual in the written consent.
(c) To the duly appointed guardian or conservator of the
individual or a person representing the individual if it can be
proven with reasonable certainty through the possession of agency
forms, documents or correspondence that this person is the authorized
representative of the individual to whom the information pertains.
(d) To those officers, employees, attorneys, agents, or volunteers
of the agency that has custody of the information if the disclosure
is relevant and necessary in the ordinary course of the performance
of their official duties and is related to the purpose for which the
information was acquired.
(e) To a person, or to another agency where the transfer is
necessary for the transferee agency to perform its constitutional or
statutory duties, and the use is compatible with a purpose for which
the information was collected and the use or transfer is accounted
for in accordance with Section 1798.25. With respect to information
transferred from a law enforcement or regulatory agency, or
information transferred to another law enforcement or regulatory
agency, a use is compatible if the use of the information requested
is needed in an investigation of unlawful activity under the
jurisdiction of the requesting agency or for licensing,
certification, or regulatory purposes by that agency.
(f) To a governmental entity when required by state or federal
law.
(g) Pursuant to the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code).
(h) To a person who has provided the agency with advance, adequate
written assurance that the information will be used solely for
statistical research or reporting purposes, but only if the
information to be disclosed is in a form that will not identify any
individual.
(i) Pursuant to a determination by the agency that maintains
information that compelling circumstances exist that affect the
health or safety of an individual, if upon the disclosure
notification is transmitted to the individual to whom the information
pertains at his or her last known address. Disclosure shall not be
made if it is in conflict with other state or federal laws.
(j) To the State Archives as a record that has sufficient
historical or other value to warrant its continued preservation by
the California state government, or for evaluation by the Director of
General Services or his or her designee to determine whether the
record has further administrative, legal, or fiscal value.
(k) To any person pursuant to a subpoena, court order, or other
compulsory legal process if, before the disclosure, the agency
reasonably attempts to notify the individual to whom the record
pertains, and if the notification is not prohibited by law.
() To any person pursuant to a search warrant.
(m) Pursuant to Article 3 (commencing with Section 1800) of
Chapter 1 of Division 2 of the Vehicle Code.
(n) For the sole purpose of verifying and paying government health
care service claims made pursuant to Division 9 (commencing with
Section 10000) of the Welfare and Institutions Code.
(o) To a law enforcement or regulatory agency when required for an
investigation of unlawful activity or for licensing, certification,
or regulatory purposes, unless the disclosure is otherwise prohibited
by law.
(p) To another person or governmental organization to the extent
necessary to obtain information from the person or governmental
organization as necessary for an investigation by the agency of a
failure to comply with a specific state law that the agency is
responsible for enforcing.
(q) To an adopted person and is limited to general background
information pertaining to the adopted person's natural parents,
provided that the information does not include or reveal the identity
of the natural parents.
(r) To a child or a grandchild of an adopted person and disclosure
is limited to medically necessary information pertaining to the
adopted person's natural parents. However, the information, or the
process for obtaining the information, shall not include or reveal
the identity of the natural parents. The State Department of Social
Services shall adopt regulations governing the release of information
pursuant to this subdivision by July 1, 1985. The regulations shall
require licensed adoption agencies to provide the same services
provided by the department as established by this subdivision.
(s) To a committee of the Legislature or to a Member of the
Legislature, or his or her staff when authorized in writing by the
member, where the member has permission to obtain the information
from the individual to whom it pertains or where the member provides
reasonable assurance that he or she is acting on behalf of the
individual.
(t) (1) To the University of California or a nonprofit educational
institution conducting scientific research, provided the request for
information is approved by the Committee for the Protection of Human
Subjects (CPHS) for the California Health and Human Services Agency
(CHHSA). The CPHS approval required under this subdivision shall
include a review and determination that all the following criteria
have been satisfied:
(A) The researcher has provided a plan sufficient to protect
personal information from improper use and disclosures, including
sufficient administrative, physical, and technical safeguards to
protect personal information from reasonable anticipated threats to
the security or confidentiality of the information.
(B) The researcher has provided a sufficient plan to destroy or
return all personal information as soon as it is no longer needed for
the research project, unless the researcher has demonstrated an
ongoing need for the personal information for the research project
and has provided a long-term plan sufficient to protect the
confidentiality of that information.
(C) The researcher has provided sufficient written assurances that
the personal information will not be reused or disclosed to any
other person or entity, or used in any manner, not approved in the
research protocol, except as required by law or for authorized
oversight of the research project.
(2) The CPHS shall, at a minimum, accomplish all of the following
as part of its review and approval of the research project for the
purpose of protecting personal information held in agency databases:
(A) Determine whether the requested personal information is needed
to conduct the research.
(B) Permit access to personal information only if it is needed for
the research project.
(C) Permit access only to the minimum necessary personal
information needed for the research project.
(D) Require the assignment of unique subject codes that are not
derived from personal information in lieu of social security numbers
if the research can still be conducted without social security
numbers.
(E) If feasible, and if cost, time, and technical expertise
permit, require the agency to conduct a portion of the data
processing for the researcher to minimize the release of personal
information.
(3) Reasonable costs to the agency associated with the agency's
process of protecting personal information under the conditions of
CPHS approval may be billed to the researcher, including, but not
limited to, the agency's costs for conducting a portion of the data
processing for the researcher, removing personal information,
encrypting or otherwise securing personal information, or assigning
subject codes.
(4) The CPHS may enter into written agreements to enable other
institutional review boards to provide the data security approvals
required by this subdivision, provided the data security requirements
set forth in this subdivision are satisfied.
(u) To an insurer if authorized by Chapter 5 (commencing with
Section 10900) of Division 4 of the Vehicle Code.
(v) Pursuant to Section 280, 282, 8009, or 18396 of the Financial
Code.
This article shall not be construed to require the disclosure of
personal information to the individual to whom the information
pertains when that information may otherwise be withheld as set forth
in Section 1798.40.
SEC. 2. Section 126.7 is added to the Financial Code, to read:
126.7. "CAMELS composite rating" shall have the meaning set forth
in Section 327.8(j) of Title 12 of the Code of Federal Regulations.
SEC. 3. Section 131 is added to the Financial Code, to read:
131. (a) "Confidential information" means any information
regarding a licensee contained in, or related to, any of the
following:
(1) Applications filed with the commissioner.
(2) Examination, operating, condition, or any other reports
prepared by, on behalf of, or for the use of, the commissioner.
(3) Information received in confidence by the commissioner.
(b) Confidential information is the property of the commissioner.
SEC. 4. Section 139.95 is added to the Financial Code, to read:
139.95. "Licensee" has the following meanings:
(a) Any bank authorized by the commissioner pursuant to Section
401 to transact banking or trust business.
(b) Any industrial bank authorized by the commissioner pursuant to
Section 401 to transact industrial banking business.
(c) Any trust company authorized by the commissioner pursuant to
Section 401 to transact trust business.
(d) Any foreign (other nation) bank that is licensed under Article
2 (commencing with Section 1725) of Chapter 13.5 or under Article 3
(commencing with Section 1750) of Chapter 13.5.
(e) Any corporation licensed by the commissioner to transmit money
pursuant to Section 1802.7.
(f) Any person licensed by the commissioner to issue traveler's
checks pursuant to Section 1860.
(g) Any person authorized by the commissioner to conduct the
business of a savings association pursuant to Division 2 (commencing
with Section 5000).
(h) Any credit union authorized by the commissioner to conduct
business pursuant to Section 14154.
(i) Any foreign (other state) credit union licensed by the
commissioner to conduct business pursuant to Chapter 11 (commencing
with Section 16000) of Division 5.
(j) Any foreign (other nation) credit union licensed by the
commissioner to conduct business pursuant to Chapter 12 (commencing
with Section 16500) of Division 5.
(k) Any industrial loan company authorized by the commissioner to
conduct insurance premium finance business pursuant to Division 7
(commencing with Section 18000).
(l) Any corporation licensed by the commissioner as a business and
industrial development corporation pursuant to Section 31154.
(m) Any corporation licensed by the commissioner pursuant to
Section 33406 to engage in the business of selling payment
instruments.
SEC. 5. Section 142.5 is added to the Financial Code, to read:
142.5. "ROCA supervisory rating" shall have the meaning set forth
in Section 327.8(k) of Title 12 of the Code of Federal Regulations.
SEC. 6. Section 148.5 is added to the Financial Code, to read:
148.5. "Uniform Interagency Trust Rating System (UITRS)" shall
have the meaning set forth in the policy statement regarding the
uniform interagency trust rating system published by the Federal
Financial Institutions Examination Council on October 13, 1998 (63
Fed. Reg. 54704).
SEC. 7. Section 149.3 is added to the Financial Code, to read:
149.3. "Uniform Rating System for Informational Technology
(URSIT)" shall have the meaning set forth in the policy statement
regarding the uniform rating system for information technology
published by the Federal Financial Institutions Examination Council
on January 20, 1999, and implemented on or before April 1, 1999 (64
Fed. Reg. 3109).
SEC. 8. Section 216.3 of the Financial Code is amended to read:
216.3. (a) For purposes of this section, the following
definitions apply:
(1) "Applicable law" means:
(A) With respect to any bank, Division 1.5 (commencing with
Section 4800), and any of the following provisions of Division 1
(commencing with Section 99) of the Financial Code:
(i) Article 5 (commencing with Section 270) of Chapter 2.
(ii) Article 3 (commencing with Section 640) of Chapter 5.
(iii) Article 4.5 (commencing with Section 670) of Chapter 5.
(iv) Article 6 (commencing with Section 690) of Chapter 5.
(v) Chapter 6 (commencing with Section 750).
(vi) Chapter 10 (commencing with Section 1200).
(vii) Article 1 (commencing with Section 1400) of Chapter 11.
(viii) Chapter 12 (commencing with Section 1500).
(ix) Chapter 13.5 (commencing with Section 1700).
(x) Section 286.
(xi) Section 287.
(xii) Section 289.
(xiii) Section 290.
(xiv) Section 1951.
(xv) Section 3359.
(xvi) Chapter 19 (commencing with Section 3500).
(xvii) Chapter 21.5 (commencing with Section 3750).
(xviii) Chapter 22 (commencing with Section 3800).
(B) With respect to any savings association, any provision of
Division 1.5 (commencing with Section 4800) and Division 2
(commencing with Section 5000).
(C) With respect to any issuer of traveler's checks, any provision
of Chapter 14A (commencing with Section 1851) of Division 1.
(D) With respect to any insurance premium finance company, any
provision of Division 7 (commencing with Section 18000).
(E) With respect to any business and development corporation, any
provision of Division 15 (commencing with Section 31000).
(F) With respect to any credit union, any of the following
provisions:
(i) Section 14252.
(ii) Section 14253.
(iii) Section 14255.
(iv) Article 4 (commencing with Section 14350) of Chapter 3 of
Division 5.
(v) Section 14401.
(vi) Section 14404.
(vii) Section 14408, only as that section applies to gifts to
directors, volunteers, and employees, and the related family or
business interests of the directors, volunteers, and employees.
(viii) Section 14409.
(ix) Section 14410.
(x) Article 5 (commencing with Section 14600) of Chapter 4 of
Division 5.
(xi) Article 6 (commencing with Section 14650) of Chapter 4 of
Division 5, excluding subdivision (a) of Section 14651.
(xii) Section 14803.
(xiii) Section 14851.
(xiv) Section 14858.
(xv) Section 14860.
(xvi) Section 14861.
(xvii) Section 14863.
(G) With respect to any person licensed to transmit money abroad,
any provision of Chapter 14 (commencing with Section 1800).
(H) With respect to any person licensed to sell payment
instruments, any provision of Division 16 (commencing with Section
33000).
(2) "Licensee" means any bank, savings association, credit union,
transmitter of money abroad, issuer of payment instruments, issuer of
traveler's checks, insurance premium finance agency, or business and
industrial development corporation that is authorized by the
commissioner to conduct business in this state.
(b) Notwithstanding any other provision of this code that applies
to a licensee or a subsidiary of a licensee, after notice and an
opportunity to be heard, the commissioner may, by order that shall
include findings of fact which incorporates a determination made in
accordance with subdivision (e), levy civil penalties against any
licensee or any subsidiary of a licensee who has violated any
provision of applicable law, any order issued by the commissioner,
any written agreement between the commissioner and the licensee or
subsidiary of the licensee, or any condition of any approval issued
by the commissioner. Notwithstanding any other provision of law,
neither the commissioner nor any employee of the department shall
disclose or permit the disclosure of any record, record of any
action, or information contained in a record of any action, taken by
the commissioner under the provisions of this section, unless the
action was taken pursuant to paragraph (2) of subdivision (b), to
persons other than federal or state government employees who are
authorized by statute to obtain the records in the performance of
their official duties, unless the disclosure is authorized or
requested by the affected licensee or the affected subsidiary of the
licensee. The commissioner shall have the sole authority to bring any
action with respect to a violation of applicable law subject to a
penalty imposed under this section.
Except as provided in paragraphs (1) and (2), any penalty imposed
by the commissioner may not exceed one thousand dollars ($1,000) a
day, provided that the aggregate penalty of all offenses in any one
action against any licensee or subsidiary of a licensee shall not
exceed fifty thousand dollars ($50,000).
(1) If the commissioner determines that any licensee or subsidiary
of the licensee has recklessly violated any applicable law, any
order issued by the commissioner, any provision of any written
agreement between the commissioner and the licensee or subsidiary, or
any condition of any approval issued by the commissioner, the
commissioner may impose a penalty not to exceed five thousand dollars
($5,000) per day, provided that the aggregate penalty of all
offenses in an action against any licensee or subsidiary of a
licensee shall not exceed seventy-five thousand dollars ($75,000).
(2) If the commissioner determines that any licensee or subsidiary
of the licensee has knowingly violated any applicable law, any order
issued by the commissioner, any provision of any written agreement
between the commissioner and the licensee or subsidiary, or any
condition of any approval issued by the commissioner, the
commissioner may impose a penalty not to exceed ten thousand dollars
($10,000) per day, provided that the aggregate penalty of all
offenses in an action against any licensee or subsidiary of a
licensee shall not exceed 1 percent of the total assets of the
licensee or subsidiary of a licensee subject to the penalty.
(c) Nothing in this section shall be construed to impair or impede
the commissioner from pursuing any other administrative action
allowed by law.
(d) Nothing in this section shall be construed to impair or impede
the commissioner from bringing an action in court to enforce any law
or order he or she has issued, including orders issued under this
section. Nothing in this section shall be construed to impair or
impede the commissioner from seeking any other damages or injunction
allowed by law.
(e) In determining the amount and the appropriateness of
initiating a civil money penalty under subdivision (b), the
commissioner shall consider all of the following:
(1) Evidence that the violation or practice or breach of duty was
intentional or was committed with a disregard of the law or with a
disregard of the consequences to the institution.
(2) The duration and frequency of the violations, practices, or
breaches of duties.
(3) The continuation of the violations, practices, or breaches of
duty after the licensee or subsidiary of the licensee was notified,
or, alternatively, its immediate cessation and correction.
(4) The failure to cooperate with the commissioner in effecting
early resolution of the problem.
(5) Evidence of concealment of the violation, practice, or breach
of duty or, alternatively, voluntary disclosure of the violation,
practice, or breach of duty.
(6) Any threat of loss, actual loss, or other harm to the
institution, including harm to the public confidence in the
institution, and the degree of that harm.
(7) Evidence that a licensee or subsidiary of a licensee received
financial gain or other benefit as a result of the violation,
practice, or breach of duty.
(8) Evidence of any restitution paid by a licensee or subsidiary
of a licensee of losses resulting from the violation, practice, or
breach of duty.
(9) History of prior violations, practices, or breaches of duty,
particularly where they are similar to the actions under
consideration.
(10) Previous criticism of the institution for similar actions.
(11) Presence or absence of a compliance program and its
effectiveness.
(12) Tendency to engage in violations of law, unsafe or unsound
banking practices, or breaches of duties.
(13) The existence of agreements, commitments, orders, or
conditions imposed in writing intended to prevent the violation,
practice, or breach of duty.
(14) Whether the violation, practice, or breach of duty causes
quantifiable, economic benefit or loss to the licensee or the
subsidiary of the licensee. In those cases, removal of the benefit or
recompense of the loss usually will be insufficient, by itself, to
promote compliance with the applicable law, order, or written
agreement. The penalty amount should reflect a remedial purpose and
should provide a deterrent to future misconduct.
(15) Other factors as the commissioner may, in his or her opinion,
consider relevant to assessing the penalty or establishing the
amount of the penalty.
(f) The amounts collected under this section shall be deposited in
the appropriate fund of the department. For purposes of this
subdivision, the term "appropriate fund" means the fund to which the
annual assessments of fined licensees, or the parent licensee of the
fined subsidiary, are credited.
SEC. 9. Article 6 (commencing with Section 280) is added to
Chapter 2 of Division 1 of the Financial Code, to read:
Article 6. General Operational Provisions
280. (a) In this section, "governmental agency" includes, without
limitation, any agency of this state, of any other state of the
United States, of the United States, or of any foreign nation.
(b) The commissioner may furnish information to a governmental
agency that regulates financial institutions.
(c) The commissioner may furnish to a governmental agency that
administers a loan guarantee or similar program, information relating
to a person who participates in the program.
(d) The commissioner may furnish to a governmental agency that
regulates business activities, other than the type described in
subdivision (b), information relating to any of the following:
(1) A suspected violation of a law administered by the agency.
(2) A person involved in an application to the agency for a
license, approval, or other authorization.
(e) The commissioner may furnish to a governmental agency that is
a law enforcement agency information relating to a suspected crime.
(f) The commissioner may furnish information to any person who
provides share insurance or guaranty of the shares of a credit union
in accordance with Section 14858, 16004, or 16503.
(g) The commissioner may furnish confidential information
regarding a licensee to the directors, officers, employees,
attorneys, accountants, and consultants of that licensee in
accordance with Section 282.
(h) This section does not prescribe the only circumstances under
which the commissioner may furnish information.
281. With the prior approval of the commissioner, a foreign
(other state) or foreign (other nation) financial institutions
regulatory agency may examine a licensee and any of its offices,
provided that the agency has a regulatory interest in the licensee.
Any regulatory agency approved by the commissioner under this section
shall be considered a supervisory agency under subdivision (f) of
Section 7480 of the Government Code.
282. (a) Directors, officers, employees, attorneys, accountants,
or consultants of a licensee may not disclose in any manner to any
person confidential information regarding the licensee received from
the commissioner. The prohibition in this section shall not apply to
disclosures of confidential information by directors, officers,
employees, attorneys, accountants, or consultants of the licensee:
(1) Made pursuant to a subpoena or other discovery proceeding.
(2) Made to any state or federal prosecuting or investigatory
agency or authority.
(3) Made to any state, federal, or foreign (other nation)
financial institutions regulatory agency that has a direct regulatory
interest in the licensee.
(4) Made to any state or federal taxing agency.
(5) Made as otherwise required by law.
(6) Made as otherwise authorized by the commissioner in writing.
(b) Any director, officer, employee, attorney, accountant, or
consultant that discloses confidential information in a manner other
than allowed by this section shall be liable for a civil penalty not
to exceed fifty thousand dollars ($50,000). The commissioner may
impose a penalty under this section in accordance with the procedures
set forth in Section 216.3.
(c) The prohibition set forth in subdivision (a) shall not apply
to any discussion, analysis, or other use of confidential information
provided by the commissioner that occurs between directors,
officers, employees, attorneys, accountants, or consultants of the
licensee.
283. Every licensee shall make and file with the commissioner
whenever required by him or her a report in any form as the
commissioner may prescribe and verified in any manner the
commissioner prescribes, showing its financial condition and any
other information as the commissioner may require at the close of
business on any day designated by him or her. Any verification shall
state that each of the officers making the verification has a
personal knowledge of the matters in the report and that each of them
believes that each statement in the report is true.
284. The commissioner shall call for the report specified in
Section 283 from all licensees at least four times each year upon
dates selected by the commissioner.
285. The commissioner may at any time require any licensee to
make and file with him or her a special report furnishing any
information as the commissioner may specify when necessary to inform
him or her fully of the actual financial condition and all other
affairs of the licensee. The reports shall be in the form and filed
on a date prescribed by the commissioner and shall, if required by
the commissioner, be verified in any manner that he or she
prescribes.
286. Every licensee shall keep its corporate records, financial
records, and books of account in words and figures of the English
language and in form satisfactory to the commissioner.
287. Every licensee shall notify
the commissioner of any change in the following officers of the
licensee, to the extent that those officers exist within the
licensee: chairperson, chief executive officer, president, general
manager, managing officer, chief financial officer, and chief credit
officer.
288. (a) Each report required under this article, or under any
other provision of law administered by the commissioner, shall be
filed with the commissioner at the time that the commissioner may
require. If any licensee fails to make any required report at the
time specified by the commissioner or fails to include therein any
matter required by this article, any provision of law administered by
the commissioner, or by the commissioner, it shall be liable to the
people of this state in the sum of not more than one hundred dollars
($100) for each day that the report is delayed or withheld by the
failure or neglect of the licensee.
(b) The provisions of Section 216.3 shall not apply to this
section.
289. (a) Every licensee shall file with the commissioner one copy
of all material filed by the licensee with any applicable federal
financial institutions regulatory agency, law enforcement agency, or
other federal agency that is required to be filed by law or order of
the agency.
(b) Each copy required to be filed pursuant to subdivision (a)
shall be filed with the commissioner on or before the date upon which
the original is filed with the federal regulatory agency and shall
be available for inspection by the public except to the extent the
information contained therein is accorded confidential treatment
under federal law or regulations. That material shall be open for
inspection by the Attorney General.
290. Any person intentionally making a false statement in any
report required to be rendered under this article or other provision
of law administered by the commissioner is guilty of perjury.
SEC. 10. Section 1757 of the Financial Code is amended to read:
1757. (a) Whenever the commissioner calls for a report under
Section 283 from commercial banks organized under the laws of this
state, the commissioner shall call for a report from each foreign
(other nation) bank that is licensed to transact business in this
state.
(b) (1) A foreign (other nation) bank that is licensed to transact
business in this state shall prominently display in the lobby of
each agency and branch office, except an automated teller machine
branch office (as defined in Section 550), a notice that any person
may obtain a financial report from the bank. The notice shall include
the address and telephone number of the person or office to be
contacted for a financial report. The bank shall, promptly after
receiving a request for a financial report, mail or otherwise furnish
the financial report to the requester. The first financial report
shall be provided without charge.
(2) The financial report called for in this subdivision shall
contain either (A) the information that the commissioner may require
by regulation or (B) in the absence of a regulation, the last balance
sheet and income statement, each without any schedules, that the
bank filed with the commissioner pursuant to Section 283.
SEC. 11. Section 1909 of the Financial Code is repealed.
SEC. 12. Section 1930 of the Financial Code is repealed.
SEC. 13. Section 1931 of the Financial Code is repealed.
SEC. 14. Section 1934 of the Financial Code is repealed.
SEC. 15. Section 1935 of the Financial Code is amended to read:
1935. (a) A California state bank shall prominently display in
the lobby of its main office and each branch office, except an
automated teller machine branch office, as defined in Section 550, a
notice that any person may obtain a financial report from the bank.
The notice shall include the address and telephone number of the
person or office to be contacted for a financial report. The bank
shall, promptly after receiving a request for a financial report,
mail or otherwise furnish the financial report to the requester. The
first financial report shall be provided without charge.
(b) The financial report called for in this section shall contain
either (1) the information that the commissioner may require by
regulation or (2) in the absence of a regulation, the last balance
sheet and income statement, each without any schedules, that the bank
filed with the commissioner pursuant to Section 283.
SEC. 16. Section 1936 of the Financial Code is repealed.
SEC. 17. Section 1937 of the Financial Code is repealed.
SEC. 18. Section 1938 of the Financial Code is repealed.
SEC. 19. Section 1939 of the Financial Code is repealed.
SEC. 20. Section 1945 of the Financial Code is repealed.
SEC. 21. Section 4825 of the Financial Code is repealed.
SEC. 22. Section 4825 is added to the Financial Code, to read:
4825. A California state depository corporation may merge with a
corporation or other business entity that is not a depository
corporation if the California state depository corporation is the
surviving corporation of that merger. The merger of a corporation or
other business entity with and into a California state depository
corporation shall be effected in accordance with Division 1
(commencing with Section 100) of the Corporations Code.
SEC. 23. Section 6254.5 of the Government Code is amended to
read:
6254.5. Notwithstanding any other provisions of the law, whenever
a state or local agency discloses a public record which is otherwise
exempt from this chapter, to any member of the public, this
disclosure shall constitute a waiver of the exemptions specified in
Sections 6254, 6254.7, or other similar provisions of law. For
purposes of this section, "agency" includes a member, agent, officer,
or employee of the agency acting within the scope of his or her
membership, agency, office, or employment.
This section, however, shall not apply to disclosures:
(a) Made pursuant to the Information Practices Act (commencing
with Section 1798 of the Civil Code) or discovery proceedings.
(b) Made through other legal proceedings or as otherwise required
by law.
(c) Within the scope of disclosure of a statute which limits
disclosure of specified writings to certain purposes.
(d) Not required by law, and prohibited by formal action of an
elected legislative body of the local agency which retains the
writings.
(e) Made to any governmental agency which agrees to treat the
disclosed material as confidential. Only persons authorized in
writing by the person in charge of the agency shall be permitted to
obtain the information. Any information obtained by the agency shall
only be used for purposes which are consistent with existing law.
(f) Of records relating to a financial institution or an affiliate
thereof, if the disclosures are made to the financial institution or
affiliate by a state agency responsible for the regulation or
supervision of the financial institution or affiliate.
(g) Of records relating to any person that is subject to the
jurisdiction of the Department of Corporations, if the disclosures
are made to the person that is the subject of the records for the
purpose of corrective action by that person, or if a corporation, to
an officer, director, or other key personnel of the corporation for
the purpose of corrective action, or to any other person to the
extent necessary to obtain information from that person for the
purpose of an investigation by the Department of Corporations.
(h) Made by the Commissioner of Financial Institutions under
Section 280, 282, 8009, or 18396 of the Financial Code.
(i) Of records relating to any person that is subject to the
jurisdiction of the Department of Managed Health Care, if the
disclosures are made to the person that is the subject of the records
for the purpose of corrective action by that person, or if a
corporation, to an officer, director, or other key personnel of the
corporation for the purpose of corrective action, or to any other
person to the extent necessary to obtain information from that person
for the purpose of an investigation by the Department of Managed
Health Care.
SEC. 24. Section 6276.06 of the Government Code is amended to
read:
6276.06. Bank and Corporation Tax, disclosure of information,
Article 2 (commencing with Section 19542), Chapter 7, Part 10.2,
Division 2, Revenue and Taxation Code.
Bank employees, confidentiality of criminal history information,
Sections 777.5 and 4990, Financial Code.
Bank reports, confidentiality of, Section 289, Financial Code.
Basic Property Insurance Inspection and Placement Plan,
confidential reports, Section 10097, Insurance Code.
Beef Council of California, confidentiality of fee transactions
information, Section 64691.1, Food and Agricultural Code.
Bids, confidentiality of, Section 10304, Public Contract Code.
Birth, death, and marriage licenses, confidential information
contained in, Sections 102100 and 102110, Health and Safety Code.
Birth defects, monitoring, confidentiality of information
collected, Section 103850, Health and Safety Code.
Birth, live, confidential portion of certificate, Sections 102430,
102475, 103525, and 103590, Health and Safety Code.
Blood tests, confidentiality of hepatitis and AIDS carriers,
Section 1603.1, Health and Safety Code.
Blood-alcohol percentage test results, vehicular offenses,
confidentiality of, Section 1804, Vehicle Code.
Bureau of Fraudulent Claims, investigations or publication of
information, Section 12991, Insurance Code.
Business and professions licensee exemption for social security
number, Section 30, Business and Professions Code.
SEC. 25. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.