BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON
                         BANKING AND FINANCIAL INSTITUTIONS
                            Senator Steven Glazer, Chair
                                2015 - 2016  Regular 

          Bill No:             AB 2907        Hearing Date:    June 29,  
          2016
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          |Author:    |Committee on Banking and Finance                     |
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          |Version:   |June 22, 2016    Amended                             |
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          |Urgency:   |No                     |Fiscal:    |No               |
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          |Consultant:|Eileen Newhall                                       |
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              Subject:  Financial institutions and services: regulation


           SUMMARY       Makes technical changes to provisions of law administered  
          by the Department of Business Oversight (DBO).
          
           DESCRIPTION
             
            1.  Corrects and updates cross-references, updates terminology,  
              corrects unintended errors contained in prior legislation,  
              and re-adds a provision that was mistakenly allowed to  
              sunset.  

           EXISTING LAW
           
           2.  Contains outdated and incorrect cross-references and  
              out-of-date terminology.

           COMMENTS
         
          1.  Purpose:   This bill is author-sponsored and contains  
              provisions intended to be nonsubstantive and corrective in  
              nature.  

           2.  Background and Discussion:   The provisions of this bill:

               a.     Replace references to the Commissioner of Financial  
                 Institutions with references to the Commissioner of  
                 Business Oversight (commissioner) to reflect the  







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                 elimination of the Department of Financial Institutions  
                 through Government Reorganization Plan #2 in July 2013.

               b.     Replace references to the Office of Thrift  
                 Supervision with references to the Office of the  
                 Comptroller of the Currency to reflect the elimination of  
                 the Office of Thrift Supervision through enactment of the  
                 federal Dodd-Frank Wall Street Reform and Consumer  
                 Protection Act of 2010.  

               c.     Reinsert a provision that was mistakenly allowed to  
                 sunset, which clarifies what information is sufficient on  
                 a statement of account sent or made available by a bank  
                 to a customer to reasonably identify items paid.  The  
                 language being re-inserted clarifies that a statement of  
                 account provides sufficient information if the item is  
                 described by item number, amount, and date of payment.

               d.     Strike references to an issuer or subsidiary of an  
                 issuer that has a security designated as a national  
                 market system security on an interdealer quotation system  
                 by the National Association of Securities Dealers, Inc.   
                 This change reflects the fact that the National  
                 Association of Securities Dealers Automated Quotations  
                 (NASDAQ) became independent from the National Association  
                 of Securities Dealers in 2000 and became a national  
                 securities exchange in 2006.  

               e.     Correct code section references.

               f.     Strike a reference to a certificate of approval of  
                 the articles of incorporation of a social purpose  
                 corporation issued by the commissioner.  This change  
                 reflects the fact that social purpose corporations do not  
                 receive such certificates, but instead receive  
                 commissioner endorsements.    

           3.  Summary of Arguments in Support:   None received.

          4.  Summary of Arguments in Opposition:    None received.

           
          LIST OF REGISTERED SUPPORT/OPPOSITION
            








          AB 2907 (Committee on Banking and Finance)              Page 3  
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          Support
           
          None received

           Opposition
               
          None received


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