BILL NUMBER: SB 447 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 14, 2011
AMENDED IN SENATE MARCH 29, 2011
INTRODUCED BY Senator DeSaulnier
FEBRUARY 16, 2011
An act to add Section 12322 to the Government Code, relating to
state government.
LEGISLATIVE COUNSEL'S DIGEST
SB 447, as amended, DeSaulnier. 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.
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 12322 is added to the Government Code, to read:
12322. (a) Except as provided in subdivision (g)
(h) , 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 on an annual basis :
(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
spent on philanthropic or charitable donations in the
state.
(8) Participation in CalFHA's CalHFA's
Unemployment Mortgage Assistance Program, with regard to
loans serviced by the financial institution, 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
and have been referred as eligible candidates by CalHFA .
(9) Participation in CalFHA's CalHFA's
Mortgage Reinstatement Assistance Program, with regard to
loans serviced by the financial institution, 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
and have been referred as eligible candidates by CalHFA .
(10) Participation in CalFHA's CalHFA's
Principal Reduction Program, with regard to loans serviced
by the financial institution, 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 and
have been referred as eligible candidates by CalHFA .
(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)
(11) 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) Reporting participation in a mortgage assistance program
specified in subdivision (a) shall not be required if that program
ceases to operate.
(f)
(g) All data reported on lending pursuant to this
section shall be reported using the book value of loans.
(g)
(h) 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)
(i) For purposes of this section:
(1) "CalFHA" "CalHFA"
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 C.F.R. 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.
(3) "Low income" means an individual income that is less than 50
percent of the median income, or a family income that is less than 50
percent of the median family income, in a geographic area.
(4) "Moderate income" means an individual income that is at least
80 percent of, and less than 120 percent of, the median income, or a
family income that is at least 80 percent of, and less than 120
percent of, the median family income, in a geographic area.