BILL NUMBER: AB 1282 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 3, 2013
AMENDED IN ASSEMBLY MARCH 21, 2013
INTRODUCED BY Assembly Member Bonta
( Coauthor: Assembly Member
Bocanegra )
FEBRUARY 22, 2013
An act to amend Section 14408 14351
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. 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.
Existing 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.
This 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.
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. 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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14351 of the
Financial Code is amended to read:
14351. (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%
Total Assets Percentage of
Base
Assessment Rate
$0-$3,000,000 85.0%
$3,000,000-$6,000,000 25.0%
$6,000,000-$10,000,000 13.0%
$10,000,000-$100,000,000 12.5%
$100,000,000-$500,000,000 12.25%
$500,000,000-$1,000,000,000 12.0%
$1,000,000,000-$2,000,000,000 11.5%
$2,000,000,000-$5,000,000,000 8.0%
$5,000,000,000- 3.5%
$10,000,000,000
Excess over $10,000,000,000 3.0%
(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 1. Section 14408 of the Financial Code
is amended to read:
14408. 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.
SEC. 2. 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.