BILL NUMBER: SB 447 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 29, 2011
INTRODUCED BY Senator DeSaulnier
FEBRUARY 16, 2011
An act to repeal Section 33334.29 of the Health and
Safety Code, relating to redevelopment. An act to add
Section 12322 to the Government Code, relating to state government.
LEGISLATIVE COUNSEL'S DIGEST
SB 447, as amended, DeSaulnier. Redevelopment agency of
the City of Redding: veterans home property acquisition.
Treasurer: banking deposits and contracts.
Existing law requires the Treasurer to receive and keep in the
vaults of the State Treasury or deposit in banks or credit unions all
moneys belonging to the state. Existing law requires the Treasurer
to keep an account of all money received and disbursed. Existing law
requires the Treasurer to report daily to the Controller the amounts
disbursed during the preceding day and the funds out of which the
disbursements were paid.
This bill would prohibit the Treasurer from depositing any money
of the state in, or from entering into any contracts with, a
financial institution unless the financial institution has provided
to the Treasurer, and the Treasurer has considered, specified
information relating to, among other things, the location of branches
of the financial institution in California, the lending and
investment practices of the financial institution, including
community reinvestment activities, and participation of the financial
institution in certain mortgage assistance programs. The bill would
provide that the Treasurer would not be required to receive this
information from financial institutions that have assets totaling
less than $10 billion.
Existing law authorizes the redevelopment agency of the City of
Redding to borrow and use a specified amount from its Low and
Moderate Income Housing Fund to provide financial assistance for the
acquisition of property for a veterans home.
This bill would repeal this provision of law.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 12322 is added to the
Government Code , to read:
12322. (a) Except as provided in subdivision (g), the Treasurer
shall not deposit any money belonging to the state in, or enter into
any contracts with, a financial institution unless the financial
institution has provided the Treasurer with, and the Treasurer has
considered, all of the following information:
(1) Percentage of California branches of the financial institution
in low- and moderate-income census tracts.
(2) Percentage of California branches of the financial institution
in low-income census tracts.
(3) Percentage of multifamily loans in low- and moderate-income
census tracts in the state.
(4) Total community development lending in the state, expressed as
a percentage of total banking deposits.
(5) Percentage of California community development loans to
nonprofit borrowers.
(6) Percentage of California home purchase loans to low- and
moderate-income borrowers.
(7) Percentage of total deposits reserved for philanthropic or
charitable donations in the state.
(8) Participation in CalFHA's Unemployment Mortgage Assistance
Program, as expressed by the total number of borrowers participating
in the state and total number of borrowers who have applied for
assistance in the state.
(9) Participation in CalFHA's Mortgage Reinstatement Assistance
Program, as expressed by the total number of borrowers participating
in the state and total number of borrowers who have applied for
assistance in the state.
(10) Participation in CalFHA's Principal Reduction Program, as
expressed by the total number of borrowers participating in the state
and total number of borrowers who have applied for assistance in the
state.
(11) Participation in CalFHA's Transition Assistance Program, as
expressed by the total number of borrowers participating in the state
and total number of borrowers who have applied for assistance in the
state.
(12) Participation in the federal Home Affordable Modification
Program, administered by Fannie Mae, as expressed by the total number
of borrowers participating in the state and total number of
borrowers who have applied for assistance in the state.
(b) For purposes of subdivision (a), the Treasurer may request
additional information from a financial institution related to its
lending, investing, or community reinvestment activities.
(c) To the extent that competing financial institutions offer
investment instruments and banking services of substantially
equivalent safety, liquidity, yield, and reliability, the Treasurer
may consider the information required under this section to
differentiate between financial institutions when making investment
decisions on behalf of the state.
(d) A financial institution reporting participation in any
mortgage modification program shall provide the Treasurer with
information on both the number of trial modifications and permanent
modifications whenever applicable.
(e) A financial institution reporting a percentage under this
section shall also indicate the absolute value of the numerator and
denominator used in calculating the percentage.
(f) All data reported on lending pursuant to this section shall be
reported using the book value of loans.
(g) The Treasurer shall not be required to receive information
pursuant to this section from a financial institution that has assets
totaling less than ten billion dollars ($10,000,000,000).
(h) For purposes of this section:
(1) "CalFHA" means the California Housing Finance Agency.
(2) "Community development loans" means loans made for affordable
housing, including multifamily rental housing, for low- or
moderate-income individuals, community services targeted to low- or
moderate-income individuals, activities that promote economic
development by financing businesses or farms that meet the size
eligibility standards of the United States Small Business
Administration's Certified Development Company or Small Business
Investment Company programs (13 CFR 121.301) or have gross annual
revenues of one million dollars ($1,000,000) or less, and activities
that revitalize or stabilize low- or moderate-income geographies or
designated disaster areas.
SECTION 1. Section 33334.29 of the Health and
Safety Code is repealed.