Amended IN Assembly March 18, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2017Introduced by Assembly Member GraysonJanuary 31, 2024An act to amend Section 1780 add Chapter 5.5 (commencing with Section 530) to Division 1 of the Financial Code, relating to financial institutions. LEGISLATIVE COUNSEL'S DIGESTAB 2017, as amended, Grayson. Banking. Banks and credit unions: nonsufficient funds fees.Existing law, the Banking Law, defines and regulates banks and commits the enforcement of banking laws to the Commissioner of Financial Protection and Innovation. Existing law, the California Credit Union Law, defines and regulates credit unions and commits enforcement of credit union laws to the commissioner. Existing law requires a bank or credit union subject to the examination authority of the commissioner to report annually, on or before March 1, to the commissioner on the amount of revenue earned from overdraft fees and nonsufficient funds fees, as defined, collected in the most recently completed calendar year and the percentage of that revenue as a proportion of the net income of the bank.This bill would prohibit certain banks and credit unions from charging a consumer a nonsufficient funds fee when the consumers attempt to initiate a transaction is declined instantaneously or near instantaneously due to nonsufficient funds, as specified.Existing law prohibits a foreign bank from establishing or maintaining an office in California at which it engages in representational functions unless it is licensed to maintain a representative office, agency, or branch office at that place. Existing law also prohibits a person from establishing or maintaining an office in California as representative of a foreign bank unless the bank is licensed to maintain the office as a representative office. This bill would make nonsubstantive changes to those provisions.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. Chapter 5.5 (commencing with Section 530) is added to Division 1 of the Financial Code, to read: CHAPTER 5.5. Nonsufficient Funds Fees530. A bank or credit union subject to the examination authority of the commissioner shall not charge a consumer a nonsufficient funds fee, as defined in Section 521, when the consumers attempt to initiate a transaction is declined instantaneously or near instantaneously by the bank or credit union due to nonsufficient funds.SECTION 1.Section 1780 of the Financial Code is amended to read:1780.(a)A foreign (other nation) bank shall not establish or maintain an office in this state at which it engages in representational functions unless it is licensed to maintain a representative office, agency, or branch office at that place.(b)(1)A person shall not establish or maintain an office in this state as representative of a foreign (other nation) bank unless the bank is licensed to maintain the office as a representative office.(2)For purposes of this chapter, if any person establishes or maintains an office in this state as representative of a foreign (other nation) bank, the bank shall be deemed to establish and maintain the office as a representative office.(c)Neither subdivision (a) nor subdivision (b) shall be deemed to prohibit a foreign (other nation) bank that maintains a federal agency or federal branch in this state from establishing or maintaining one or more representative offices in this state.
Amended IN Assembly March 18, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2017Introduced by Assembly Member GraysonJanuary 31, 2024An act to amend Section 1780 add Chapter 5.5 (commencing with Section 530) to Division 1 of the Financial Code, relating to financial institutions. LEGISLATIVE COUNSEL'S DIGESTAB 2017, as amended, Grayson. Banking. Banks and credit unions: nonsufficient funds fees.Existing law, the Banking Law, defines and regulates banks and commits the enforcement of banking laws to the Commissioner of Financial Protection and Innovation. Existing law, the California Credit Union Law, defines and regulates credit unions and commits enforcement of credit union laws to the commissioner. Existing law requires a bank or credit union subject to the examination authority of the commissioner to report annually, on or before March 1, to the commissioner on the amount of revenue earned from overdraft fees and nonsufficient funds fees, as defined, collected in the most recently completed calendar year and the percentage of that revenue as a proportion of the net income of the bank.This bill would prohibit certain banks and credit unions from charging a consumer a nonsufficient funds fee when the consumers attempt to initiate a transaction is declined instantaneously or near instantaneously due to nonsufficient funds, as specified.Existing law prohibits a foreign bank from establishing or maintaining an office in California at which it engages in representational functions unless it is licensed to maintain a representative office, agency, or branch office at that place. Existing law also prohibits a person from establishing or maintaining an office in California as representative of a foreign bank unless the bank is licensed to maintain the office as a representative office. This bill would make nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Assembly March 18, 2024
Amended IN Assembly March 18, 2024
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 2017
Introduced by Assembly Member GraysonJanuary 31, 2024
Introduced by Assembly Member Grayson
January 31, 2024
An act to amend Section 1780 add Chapter 5.5 (commencing with Section 530) to Division 1 of the Financial Code, relating to financial institutions.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2017, as amended, Grayson. Banking. Banks and credit unions: nonsufficient funds fees.
Existing law, the Banking Law, defines and regulates banks and commits the enforcement of banking laws to the Commissioner of Financial Protection and Innovation. Existing law, the California Credit Union Law, defines and regulates credit unions and commits enforcement of credit union laws to the commissioner. Existing law requires a bank or credit union subject to the examination authority of the commissioner to report annually, on or before March 1, to the commissioner on the amount of revenue earned from overdraft fees and nonsufficient funds fees, as defined, collected in the most recently completed calendar year and the percentage of that revenue as a proportion of the net income of the bank.This bill would prohibit certain banks and credit unions from charging a consumer a nonsufficient funds fee when the consumers attempt to initiate a transaction is declined instantaneously or near instantaneously due to nonsufficient funds, as specified.Existing law prohibits a foreign bank from establishing or maintaining an office in California at which it engages in representational functions unless it is licensed to maintain a representative office, agency, or branch office at that place. Existing law also prohibits a person from establishing or maintaining an office in California as representative of a foreign bank unless the bank is licensed to maintain the office as a representative office. This bill would make nonsubstantive changes to those provisions.
Existing law, the Banking Law, defines and regulates banks and commits the enforcement of banking laws to the Commissioner of Financial Protection and Innovation. Existing law, the California Credit Union Law, defines and regulates credit unions and commits enforcement of credit union laws to the commissioner. Existing law requires a bank or credit union subject to the examination authority of the commissioner to report annually, on or before March 1, to the commissioner on the amount of revenue earned from overdraft fees and nonsufficient funds fees, as defined, collected in the most recently completed calendar year and the percentage of that revenue as a proportion of the net income of the bank.
This bill would prohibit certain banks and credit unions from charging a consumer a nonsufficient funds fee when the consumers attempt to initiate a transaction is declined instantaneously or near instantaneously due to nonsufficient funds, as specified.
Existing law prohibits a foreign bank from establishing or maintaining an office in California at which it engages in representational functions unless it is licensed to maintain a representative office, agency, or branch office at that place. Existing law also prohibits a person from establishing or maintaining an office in California as representative of a foreign bank unless the bank is licensed to maintain the office as a representative office.
This bill would make nonsubstantive changes to those provisions.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Chapter 5.5 (commencing with Section 530) is added to Division 1 of the Financial Code, to read: CHAPTER 5.5. Nonsufficient Funds Fees530. A bank or credit union subject to the examination authority of the commissioner shall not charge a consumer a nonsufficient funds fee, as defined in Section 521, when the consumers attempt to initiate a transaction is declined instantaneously or near instantaneously by the bank or credit union due to nonsufficient funds.SECTION 1.Section 1780 of the Financial Code is amended to read:1780.(a)A foreign (other nation) bank shall not establish or maintain an office in this state at which it engages in representational functions unless it is licensed to maintain a representative office, agency, or branch office at that place.(b)(1)A person shall not establish or maintain an office in this state as representative of a foreign (other nation) bank unless the bank is licensed to maintain the office as a representative office.(2)For purposes of this chapter, if any person establishes or maintains an office in this state as representative of a foreign (other nation) bank, the bank shall be deemed to establish and maintain the office as a representative office.(c)Neither subdivision (a) nor subdivision (b) shall be deemed to prohibit a foreign (other nation) bank that maintains a federal agency or federal branch in this state from establishing or maintaining one or more representative offices in this state.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Chapter 5.5 (commencing with Section 530) is added to Division 1 of the Financial Code, to read: CHAPTER 5.5. Nonsufficient Funds Fees530. A bank or credit union subject to the examination authority of the commissioner shall not charge a consumer a nonsufficient funds fee, as defined in Section 521, when the consumers attempt to initiate a transaction is declined instantaneously or near instantaneously by the bank or credit union due to nonsufficient funds.
SECTION 1. Chapter 5.5 (commencing with Section 530) is added to Division 1 of the Financial Code, to read:
### SECTION 1.
CHAPTER 5.5. Nonsufficient Funds Fees530. A bank or credit union subject to the examination authority of the commissioner shall not charge a consumer a nonsufficient funds fee, as defined in Section 521, when the consumers attempt to initiate a transaction is declined instantaneously or near instantaneously by the bank or credit union due to nonsufficient funds.
CHAPTER 5.5. Nonsufficient Funds Fees530. A bank or credit union subject to the examination authority of the commissioner shall not charge a consumer a nonsufficient funds fee, as defined in Section 521, when the consumers attempt to initiate a transaction is declined instantaneously or near instantaneously by the bank or credit union due to nonsufficient funds.
CHAPTER 5.5. Nonsufficient Funds Fees
CHAPTER 5.5. Nonsufficient Funds Fees
530. A bank or credit union subject to the examination authority of the commissioner shall not charge a consumer a nonsufficient funds fee, as defined in Section 521, when the consumers attempt to initiate a transaction is declined instantaneously or near instantaneously by the bank or credit union due to nonsufficient funds.
530. A bank or credit union subject to the examination authority of the commissioner shall not charge a consumer a nonsufficient funds fee, as defined in Section 521, when the consumers attempt to initiate a transaction is declined instantaneously or near instantaneously by the bank or credit union due to nonsufficient funds.
(a)A foreign (other nation) bank shall not establish or maintain an office in this state at which it engages in representational functions unless it is licensed to maintain a representative office, agency, or branch office at that place.
(b)(1)A person shall not establish or maintain an office in this state as representative of a foreign (other nation) bank unless the bank is licensed to maintain the office as a representative office.
(2)For purposes of this chapter, if any person establishes or maintains an office in this state as representative of a foreign (other nation) bank, the bank shall be deemed to establish and maintain the office as a representative office.
(c)Neither subdivision (a) nor subdivision (b) shall be deemed to prohibit a foreign (other nation) bank that maintains a federal agency or federal branch in this state from establishing or maintaining one or more representative offices in this state.