Amended IN Assembly March 21, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1609Introduced by Assembly Member GipsonFebruary 17, 2017 An act to amend add and repeal Section 1023 of 22160.5 of the Financial Code, relating to business. LEGISLATIVE COUNSEL'S DIGESTAB 1609, as amended, Gipson. Banking law. California Finance Lenders Law: reporting.Existing law, the California Finance Lenders Law, prohibits acting as a finance lender without a license from the Commissioner of Business Oversight and defines a finance lender as a person in the business of making consumer or commercial loans. Existing law defines a consumer loan as a loan, secured or unsecured, the proceeds of which are to be used primarily for personal, family, or household purposes. Existing law, in certain instances, prescribes the maximum rate of the charges that may be received for making a consumer loan in relation to the amount of the loan.This bill would require the commissioner to prepare and submit a report to the Legislature on or before July 1, 2018, that identifies the availability of credit for low-income and low- and no-credit borrowers in California, and the extent to which the interest rate limitations in the Consumer Finance Lenders Law limit access to credit. The bill would require that report to include specified information. The bill would repeal these provisions as of January 1, 2022.Existing law, the Banking Law, defines and regulates state banks and commits the enforcement of banking laws with the Commissioner of Business Oversight. Existing law authorizes one or more persons to form a corporation for the purpose of conducting a commercial banking business or a trust business, or both of them, by submitting an application to the commissioner, as specified. Existing law prohibits the commissioner from approving that application until the commissioner has ascertained to his or her satisfaction that certain requirements are met.This bill would make nonsubstantive changes to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 22160.5 is added to the Financial Code, to read:22160.5. (a) The commissioner shall prepare and submit a report to the Legislature on or before July 1, 2018, identifying the availability of credit for low-income and low- and no-credit borrowers in California, and the extent to which the interest rate limitations in Article 3 (commencing with Section 22300) limit access to credit. That report shall include both of the following:(1) Information about credit extended by banks, credit unions, lenders licensed under this division, and other types of alternative and nontraditional lenders.(2) A description of how consumers lacking access to state-regulated credit products meet their short- and long-term credit needs.(b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2022.SECTION 1.Section 1023 of the Financial Code is amended to read:1023.The commissioner may give or withhold his or her approval of the application in his or her discretion, but he or she shall not approve the application until he or she has ascertained all of the following to his or her satisfaction:(a)That the public convenience and advantage will be promoted by the establishment of the proposed bank or trust company.(b)That the proposed bank or trust company will have a reasonable promise of successful operation.(c)That the bank is being formed for no other purpose than the legitimate objects contemplated by this division.(d)That the proposed capital structure is adequate.(e)That the proposed officers and directors have sufficient banking or trust experience, ability, and standing to afford reasonable promise of successful operation.(f)That the name of the proposed bank or trust company does not resemble, so closely as to be likely to cause confusion, the name of any other bank or trust company transacting business in this state or which had previously transacted business in this state.(g)That the applicant has complied with all of the applicable provisions of this division.
Amended IN Assembly March 21, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1609Introduced by Assembly Member GipsonFebruary 17, 2017 An act to amend add and repeal Section 1023 of 22160.5 of the Financial Code, relating to business. LEGISLATIVE COUNSEL'S DIGESTAB 1609, as amended, Gipson. Banking law. California Finance Lenders Law: reporting.Existing law, the California Finance Lenders Law, prohibits acting as a finance lender without a license from the Commissioner of Business Oversight and defines a finance lender as a person in the business of making consumer or commercial loans. Existing law defines a consumer loan as a loan, secured or unsecured, the proceeds of which are to be used primarily for personal, family, or household purposes. Existing law, in certain instances, prescribes the maximum rate of the charges that may be received for making a consumer loan in relation to the amount of the loan.This bill would require the commissioner to prepare and submit a report to the Legislature on or before July 1, 2018, that identifies the availability of credit for low-income and low- and no-credit borrowers in California, and the extent to which the interest rate limitations in the Consumer Finance Lenders Law limit access to credit. The bill would require that report to include specified information. The bill would repeal these provisions as of January 1, 2022.Existing law, the Banking Law, defines and regulates state banks and commits the enforcement of banking laws with the Commissioner of Business Oversight. Existing law authorizes one or more persons to form a corporation for the purpose of conducting a commercial banking business or a trust business, or both of them, by submitting an application to the commissioner, as specified. Existing law prohibits the commissioner from approving that application until the commissioner has ascertained to his or her satisfaction that certain requirements are met.This bill would make nonsubstantive changes to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Assembly March 21, 2017
Amended IN Assembly March 21, 2017
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 1609
Introduced by Assembly Member GipsonFebruary 17, 2017
Introduced by Assembly Member Gipson
February 17, 2017
An act to amend add and repeal Section 1023 of 22160.5 of the Financial Code, relating to business.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1609, as amended, Gipson. Banking law. California Finance Lenders Law: reporting.
Existing law, the California Finance Lenders Law, prohibits acting as a finance lender without a license from the Commissioner of Business Oversight and defines a finance lender as a person in the business of making consumer or commercial loans. Existing law defines a consumer loan as a loan, secured or unsecured, the proceeds of which are to be used primarily for personal, family, or household purposes. Existing law, in certain instances, prescribes the maximum rate of the charges that may be received for making a consumer loan in relation to the amount of the loan.This bill would require the commissioner to prepare and submit a report to the Legislature on or before July 1, 2018, that identifies the availability of credit for low-income and low- and no-credit borrowers in California, and the extent to which the interest rate limitations in the Consumer Finance Lenders Law limit access to credit. The bill would require that report to include specified information. The bill would repeal these provisions as of January 1, 2022.Existing law, the Banking Law, defines and regulates state banks and commits the enforcement of banking laws with the Commissioner of Business Oversight. Existing law authorizes one or more persons to form a corporation for the purpose of conducting a commercial banking business or a trust business, or both of them, by submitting an application to the commissioner, as specified. Existing law prohibits the commissioner from approving that application until the commissioner has ascertained to his or her satisfaction that certain requirements are met.This bill would make nonsubstantive changes to that provision.
Existing law, the California Finance Lenders Law, prohibits acting as a finance lender without a license from the Commissioner of Business Oversight and defines a finance lender as a person in the business of making consumer or commercial loans. Existing law defines a consumer loan as a loan, secured or unsecured, the proceeds of which are to be used primarily for personal, family, or household purposes. Existing law, in certain instances, prescribes the maximum rate of the charges that may be received for making a consumer loan in relation to the amount of the loan.
This bill would require the commissioner to prepare and submit a report to the Legislature on or before July 1, 2018, that identifies the availability of credit for low-income and low- and no-credit borrowers in California, and the extent to which the interest rate limitations in the Consumer Finance Lenders Law limit access to credit. The bill would require that report to include specified information. The bill would repeal these provisions as of January 1, 2022.
Existing law, the Banking Law, defines and regulates state banks and commits the enforcement of banking laws with the Commissioner of Business Oversight. Existing law authorizes one or more persons to form a corporation for the purpose of conducting a commercial banking business or a trust business, or both of them, by submitting an application to the commissioner, as specified. Existing law prohibits the commissioner from approving that application until the commissioner has ascertained to his or her satisfaction that certain requirements are met.
This bill would make nonsubstantive changes to that provision.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 22160.5 is added to the Financial Code, to read:22160.5. (a) The commissioner shall prepare and submit a report to the Legislature on or before July 1, 2018, identifying the availability of credit for low-income and low- and no-credit borrowers in California, and the extent to which the interest rate limitations in Article 3 (commencing with Section 22300) limit access to credit. That report shall include both of the following:(1) Information about credit extended by banks, credit unions, lenders licensed under this division, and other types of alternative and nontraditional lenders.(2) A description of how consumers lacking access to state-regulated credit products meet their short- and long-term credit needs.(b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2022.SECTION 1.Section 1023 of the Financial Code is amended to read:1023.The commissioner may give or withhold his or her approval of the application in his or her discretion, but he or she shall not approve the application until he or she has ascertained all of the following to his or her satisfaction:(a)That the public convenience and advantage will be promoted by the establishment of the proposed bank or trust company.(b)That the proposed bank or trust company will have a reasonable promise of successful operation.(c)That the bank is being formed for no other purpose than the legitimate objects contemplated by this division.(d)That the proposed capital structure is adequate.(e)That the proposed officers and directors have sufficient banking or trust experience, ability, and standing to afford reasonable promise of successful operation.(f)That the name of the proposed bank or trust company does not resemble, so closely as to be likely to cause confusion, the name of any other bank or trust company transacting business in this state or which had previously transacted business in this state.(g)That the applicant has complied with all of the applicable provisions of this division.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 22160.5 is added to the Financial Code, to read:22160.5. (a) The commissioner shall prepare and submit a report to the Legislature on or before July 1, 2018, identifying the availability of credit for low-income and low- and no-credit borrowers in California, and the extent to which the interest rate limitations in Article 3 (commencing with Section 22300) limit access to credit. That report shall include both of the following:(1) Information about credit extended by banks, credit unions, lenders licensed under this division, and other types of alternative and nontraditional lenders.(2) A description of how consumers lacking access to state-regulated credit products meet their short- and long-term credit needs.(b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2022.
SECTION 1. Section 22160.5 is added to the Financial Code, to read:
### SECTION 1.
22160.5. (a) The commissioner shall prepare and submit a report to the Legislature on or before July 1, 2018, identifying the availability of credit for low-income and low- and no-credit borrowers in California, and the extent to which the interest rate limitations in Article 3 (commencing with Section 22300) limit access to credit. That report shall include both of the following:(1) Information about credit extended by banks, credit unions, lenders licensed under this division, and other types of alternative and nontraditional lenders.(2) A description of how consumers lacking access to state-regulated credit products meet their short- and long-term credit needs.(b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2022.
22160.5. (a) The commissioner shall prepare and submit a report to the Legislature on or before July 1, 2018, identifying the availability of credit for low-income and low- and no-credit borrowers in California, and the extent to which the interest rate limitations in Article 3 (commencing with Section 22300) limit access to credit. That report shall include both of the following:(1) Information about credit extended by banks, credit unions, lenders licensed under this division, and other types of alternative and nontraditional lenders.(2) A description of how consumers lacking access to state-regulated credit products meet their short- and long-term credit needs.(b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2022.
22160.5. (a) The commissioner shall prepare and submit a report to the Legislature on or before July 1, 2018, identifying the availability of credit for low-income and low- and no-credit borrowers in California, and the extent to which the interest rate limitations in Article 3 (commencing with Section 22300) limit access to credit. That report shall include both of the following:(1) Information about credit extended by banks, credit unions, lenders licensed under this division, and other types of alternative and nontraditional lenders.(2) A description of how consumers lacking access to state-regulated credit products meet their short- and long-term credit needs.(b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2022.
22160.5. (a) The commissioner shall prepare and submit a report to the Legislature on or before July 1, 2018, identifying the availability of credit for low-income and low- and no-credit borrowers in California, and the extent to which the interest rate limitations in Article 3 (commencing with Section 22300) limit access to credit. That report shall include both of the following:
(1) Information about credit extended by banks, credit unions, lenders licensed under this division, and other types of alternative and nontraditional lenders.
(2) A description of how consumers lacking access to state-regulated credit products meet their short- and long-term credit needs.
(b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2022.
The commissioner may give or withhold his or her approval of the application in his or her discretion, but he or she shall not approve the application until he or she has ascertained all of the following to his or her satisfaction:
(a)That the public convenience and advantage will be promoted by the establishment of the proposed bank or trust company.
(b)That the proposed bank or trust company will have a reasonable promise of successful operation.
(c)That the bank is being formed for no other purpose than the legitimate objects contemplated by this division.
(d)That the proposed capital structure is adequate.
(e)That the proposed officers and directors have sufficient banking or trust experience, ability, and standing to afford reasonable promise of successful operation.
(f)That the name of the proposed bank or trust company does not resemble, so closely as to be likely to cause confusion, the name of any other bank or trust company transacting business in this state or which had previously transacted business in this state.
(g)That the applicant has complied with all of the applicable provisions of this division.