AB 1784, as amended, Dababneh. State banks.
Existing law defines and regulates state banks and commits the enforcement of banking laws with the Commissioner of Business Oversight. The Banking Law prescribes definitions relating to bank offices and defines a branch office as an office at which core banking business is conducted other than an automated teller machine, a device used to facilitate check guarantee or check authorization, or a remote service facility, as defined.
This bill would provide, in the definitions that apply to regulating bank offices, for the authorization of a bank to participate in a financial education program that involves receiving deposits or paying withdrawals on the premises of a school or school facility. The bill would provide that the school premises or facility will not be considered a branch office of the bank if certain conditions are met.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1070 of the Financial Code is amended
2to read:
For purposes of this chapter, the following definitions
4apply:
5(a) “Automated teller machine” means any electronic
6information processing device used by a financial institution and
7its customers for the primary purpose of executing transactions
8solely between the financial institution and its customers, if the
9transactions are not incidental to sales between the customer and
10a business entity other than a financial institution.
11(b) “Branch office” means any office at which core banking
12business is conducted other than an automated teller machine, a
13device used to facilitate check guarantee or check authorization,
14or a remote service facility as
defined in subsection (d) of Section
15345.12 of Title 12 of the Code of Federal Regulations.
16(c) “Core banking business” means the business of receiving
17deposits, paying checks, making loans, and other activities that
18the commissioner may specify by order or regulation. “Core
19banking business,” when used to describe the trust business,
20includes receiving fiduciary assets and administering fiduciary
21accounts.
22(d) “Facility” means an office at which a bank engages in
23noncore banking business but at which it does not engage in core
24banking business.
25(e) “Head office” means the office designated by the bank as
26its headquarters.
27(f) “Noncore banking
business” means all activities permissible
28for banks, except core banking business, and except those activities
29prohibited by law or determined by the commissioner by regulation
30or order not to be noncore banking business.
31(g) “Office” means the head office, any branch office, and any
32facility office of a bank.
33(h) “Redesignate offices” means (1) the relocation by a bank of
34its head office to the site of a branch or facility office in this state
35and the concurrent establishment by the bank of an office at the
P3 1former site of the head office, or (2) the relocation by a bank of a
2branch office to the site of a facility office and the concurrent
3establishment by the bank of a branch or facility office at the
4former site of the branch office.
5(i) A bank may participate in a financial education program that
6involves receiving deposits or paying withdrawals on the premises
7of, or at a facility used by, a school. The school premises or facility
8will not be considered a branch office of the bank if:
9(1) The bank does not establish and operate the school premises
10or facility in which the program is conducted.
11(2) Bank employees work at the site only to participate in the
12program.
13(3) The program is provided at the discretion of the school.
14(4) The principal purpose of the program is financial education.
15For example, a program is educational if it is designed to teach
16students the principles of personal
financial management, banking
17operations, or the benefits of saving for the future, and is not
18designed for the purpose of profitmaking.
19(5) No services are provided to the general public.
begin insert
20
(6) The program is conducted in a manner that is consistent
21with safe and sound banking practices and complies with
22applicable law.
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