Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1282

Introduced by Assembly Member Bonta

February 22, 2013

An act to amend Section begin delete 14000 end delete begin insert 14408 end insert of the Financial Code, relating to financial institutions.

LEGISLATIVE COUNSEL’S DIGEST

AB 1282, as amended, Bonta. Financial institutions: credit unions.

Existing law, the California Credit Union Law, provides for the regulation of credit unions. A willful violation of the California Credit Union Law is a crime. begin insert Existing law prohibits a credit union from making any gift or donation having a value in excess of $25,000 unless the gift or donation is in the best interest of the credit union, is approved by a resolution of the board of directors and is in conformance with any regulation or order, as specified. end insert

This bill would begin delete make a nonsubstantive change to a provision of the California Credit Union Law end delete begin insert instead prohibit a credit union from making any gift or donation in excess of $30,000 subject to those requirements. By changing the definition of a crime, the bill would impose a state-mandated local program end insert .

begin insert

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.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 14408 of the end insert begin insert Financial Code end insert begin insert is amended
to read: end insert

14408.  

No credit union shall make any gift or donation having
a value in excess of begin delete twenty-five thousand dollars ($25,000) end delete begin insert thirty
thousand dollars ($30,000) end insert unless the gift or donation is in the
best interest of the credit union, is approved by a resolution of the
board of directors and is in conformance with any regulation or
order that the commissioner may issue. The resolution of the board
of directors approving the gift or donation shall identify the
recipient of the gift or donation, state the value of the gift or
donation, and specify the basis for the board’s determination that
the gift or donation is in the best interests of the credit union. The
board may establish a budget for gifts and donations and authorize
appropriate officials of the credit union to select recipients and
disburse budgeted funds among those recipients.

begin insert

begin insert SEC. 2. end insert   

end insert begin insert

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.

end insert

begin delete

SECTION 1.  

Section 14000 of the Financial Code is amended
to read:

14000.  

This division shall be known, and may be cited, as the
“California Credit Union Law.”

end delete