BILL NUMBER: AB 1617	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Dickinson

                        FEBRUARY 8, 2012

   An act to add Section 16511 to the Government Code, relating to
the State Treasury.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1617, as introduced, Dickinson. State Treasury: community
banks.
   Existing law requires all moneys in the State Treasury or under
control of the Treasurer belonging to or in the custody of the state
to be deposited by the Treasurer to the credit of the state in
eligible banks, as specified.
   This bill would require the Treasurer to deposit not less than 30%
of moneys in the State Treasury in community banks, as defined to
mean bank or savings institution in California with aggregate assets
of less than $1,000,000,000.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 16511 is added to the Government Code, to read:

   16511.  (a) Notwithstanding Section 16500 or 16505, the Treasurer
shall deposit not less than 30 percent of moneys in the State
Treasury in community banks.
   (b) The allocation of moneys deposited in community banks shall be
proportionate by geographic region throughout the state with roughly
one-third deposited among northern California community banks,
one-third deposited among central California community banks, and
one-third deposited among southern California community banks.
   (c) When choosing which community banks to use in each regional
area, the Treasurer shall take into consideration the following:
   (1) Whether the community bank services a rural or urban
community.
   (2) Whether the community bank services a predominantly low- or
moderate-income community.
   (3) Whether the community bank offers small business loans.
   (d) For purposes of this section, a "community bank" means a bank
or savings institution in California with aggregate assets of less
than one billion dollars ($1,000,000,000).