California Assembly Bill AB1191

California 2023-2024 Regular Session

• Introduced: 2/16/23
• Failed: 2/1/24

Caption

Depository corporations.

Impact

The modifications made by AB 1191 are intended to enhance clarity without introducing any major new regulatory frameworks or altering existing regulatory practices. The bill focuses on refining the legislative language to ensure that the provisions governing depository corporations are clear and easy to understand, potentially reducing confusion among financial institutions regarding compliance with state regulations. This aligns with a broader goal of simplifying regulatory compliance for businesses within the financial sector.

Summary

Assembly Bill 1191, introduced by Assembly Member Flora, seeks to amend Section 4800 of the Financial Code, relating to financial institutions. The primary focus of this bill is the regulation surrounding depository corporations in the context of sales, mergers, and conversions. By making nonsubstantive changes to existing provisions of the law, the bill aims to clarify and streamline the legislative language concerning these financial operations.

Contention

Although AB 1191 is presented as a technical amendment with no substantive changes, there may still be discussions regarding its implications on the operational flexibility of depository corporations. Critics may argue that even minor regulatory changes should be examined closely, as they can unintentionally create compliance burdens or alter the competitive landscape among financial institutions. Proponents, however, are likely to view this bill as a necessary step to maintain clear and efficient regulatory practices within California's financial system.