BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1268
                                                                  Page  1

          Date of Hearing:   May 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 1268 (Gaines) - As Amended:  May 11, 2009 

          Policy Committee:                              Banking and  
          Finance      Vote:                            11-0
                       Judiciary                              10-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill revises and reorganizes provisions of the Financial  
          Code relating to depository institutions, updating definitions,  
          the powers of the Commissioner of Financial Institutions, the  
          Division of Credit Unions in the Department of Financial  
          Institutions, the Credit Union Advisory Committee, processes for  
          prosecuting violators, and reorganizations of seized banks.

           FISCAL EFFECT
           
          Negligible state costs.

           COMMENTS
           
          1)Background  . Existing law provides for the regulation and  
            licensure by the Department of Financial Institutions (DFI) of  
            state-chartered savings banks, credit unions, and other  
            financial institutions doing business in this state. It also  
            specifies various penalties and procedures for the enforcement  
            of these laws and regulations.

           2)Rationale  . According to the author, this bill is part of  
            on-going efforts to streamline and consolidate provisions of  
            the California Financial Code so as to improve regulatory  
            oversight of financial institutions and make the law more  
            understandable to the licensed and regulated institutions.   
            Last year, AB 1301 (Gaines, Chapter 125, Stats. of 2008) and  
            AB 2749 (Gaines, Chapter 501, Stat. of 2008) clarified a  
            number of existing provisions in the Financial Code, updated  
            certain definitions to reflect changes in other provisions of  








                                                                  AB 1268
                                                                  Page  2

            law, and modernized procedures in certain ways, such as  
            authorizing banks to receive electronic filings.  This measure  
            focuses on streamlining the process of prosecuting violators,  
            clarifying the powers of the Commissioner of Financial  
            Institutions, and reorganizing seized banks.



           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081