AB 1282, as amended, Bonta. Financial institutions: credit unions.
begin insertExisting law, the California Credit Union Law, provides for the regulation of credit unions. Existing law prohibits membership shares, certificates for funds, or other securities from being issued by any credit union until it has applied for and obtained a certificate authorizing it to act as a credit union.
end insertbegin insertExisting law authorizes the Commissioner of Financial Institutions until July 1, 2013, and thereafter the Deputy Commissioner of Business Oversight for the Division of Financial Institutions pursuant to Governor’s Reorganization Plan No. 2 of 2012, to annually levy on and collect from credit unions holding certificates authorizing them to act as credit unions an assessment in an amount sufficient to meet the expenses for administering this law and other laws relating to credit unions or the credit union business and in order to provide a reasonable reserve for contingencies. Under existing law, the amount of the annual assessment is required to be the greater of $1,500 or the sum of the products determined by multiplying increments of the credit union’s total assets by percentages of the base assessment rate according to a table with increments of total assets up to an excess over $10,000,000.
end insertbegin insertThis bill would delete that table used for determining the annual assessment and would establish a new table with increments of total assets up to an excess of over $10,000,000,000.
end insertExisting 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. 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.
This bill would 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.
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.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: yes.
State-mandated local program: begin deleteyes end deletebegin insertnoend insert.
The people of the State of California do enact as follows:
begin insertSection 14351 of the end insertbegin insertFinancial Codeend insertbegin insert is amended to read:end insert
(a) The amount of the annual assessment on any credit union holding a certificate authorizing it to act as a credit union shall be the greater of (1) one thousand five hundred dollars ($1,500) or (2) the sum of the products determined by multiplying (A) increments of the credit union’s total assets by (B) percentages of the base assessment rate, according to the following table:
|
Total Assets |
Percentage of Base |
|
(In millions) |
Assessment Rate |
|
First $3 |
85.0% |
|
Next $3 |
30.0% |
|
Next $4 |
12.5% |
|
Excess over $10 |
11.0% |
begin insert
| begin insert
Total Assets end insert | begin insert
Percentage of Base |
|---|---|
| begin insert
$0-$3,000,000 end insert | begin insert
85.0% end insert |
| begin insert
$3,000,000-$6,000,000 end insert | begin insert
25.0% end insert |
| begin insert
$6,000,000-$10,000,000 end insert | begin insert
13.0% end insert |
| begin insert
$10,000,000-$100,000,000 end insert | begin insert
12.5% end insert |
| begin insert
$100,000,000-$500,000,000 end insert | begin insert
12.25% end insert |
| begin insert
$500,000,000-$1,000,000,000 end insert | begin insert
12.0% end insert |
| begin insert
$1,000,000,000-$2,000,000,000 end insert | begin insert
11.5% end insert |
| begin insert
$2,000,000,000-$5,000,000,000 end insert | begin insert
8.0% end insert |
| begin insert
$5,000,000,000-$10,000,000,000 end insert | begin insert
3.5% end insert |
| begin insert
Excess over $10,000,000,000 end insert | begin insert
3.0% end insert |
(b) The base assessment rate for each annual assessment shall be fixed by the commissioner but shall not exceed two dollars and twenty cents ($2.20) per one thousand dollars ($1,000) of total assets.
Section 14408 of the Financial Code is amended to read:
No credit union shall make any gift or donation having a value in excess of thirty thousand dollars ($30,000) 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 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.
No reimbursement is required by this act pursuant to
36Section 6 of Article XIII B of the California Constitution because
37the only costs that may be incurred by a local agency or school
38district will be incurred because this act creates a new crime or
39infraction, eliminates a crime or infraction, or changes the penalty
40for a crime or infraction, within the meaning of Section 17556 of
P4 1the Government Code, or changes the definition of a crime within
2the meaning of Section 6 of Article XIII B of the California
3Constitution.
O
97