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SB-1379 Study of unbanked and underbanked populations: Bank on California program.(2017-2018)

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Date Published: 04/24/2018 09:00 PM
SB1379:v97#DOCUMENT

Amended  IN  Senate  April 24, 2018
Amended  IN  Senate  April 02, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1379


Introduced by Senator Hernandez

February 16, 2018


An act to repeal Division 23 (commencing with Section 80000) of the Financial Code, and to add Article 3 (commencing with Section 12350) to Chapter 4 of Part 2 of Division 3 of Title 2 of the Government Code, relating to banks.


LEGISLATIVE COUNSEL'S DIGEST


SB 1379, as amended, Hernandez. Study of unbanked and underbanked populations: Bank on California program.
(1) The Financial Institutions Law regulates the activities of various financial entities, including commercial banks, industrial banks, trust companies, credit unions, and savings and loan associations. Existing law establishes the Department of Business Oversight, which is under the direction of the Commissioner of Business Oversight, and the commissioner is responsible for the administration and enforcement of the Financial Institutions Law.
This bill would require the Department of Business Oversight to conduct a comprehensive study of unbanked and underbanked populations. populations, replicating the methodology and topics contained in the most recently available Federal Deposit Insurance Corporation (FDIC) National Survey of Unbanked and Underbanked Households, but focusing on at least 6 regions within the state not studied in that survey. The bill would require the study to include, among other components, information on the particular banking habits of the demographic populations within this state and recommendations on the ways the state can better serve products and services that, if made available, would be helpful to unbanked and underserved populations. The bill would require the department, on or before January 1, 2021, to complete the study and report its findings to the Legislature and the appropriate policy and fiscal committees, and to post the a report of its findings on its Internet Web site.
(2) Existing law establishes the Bank on California program within the Department of Business Oversight as a voluntary collaborative initiative that assists Californians in opening bank or credit union accounts. Existing law requires the department to report annually to specified committees of the Legislature on the activities of the program.
This bill would instead require the State Treasurer to administer the Bank on California program and submit the specified annual report on the activities of the program.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Department of Business Oversight shall conduct a comprehensive study of unbanked and underbanked populations. The study shall include, but not be limited to, all of the following components: The study shall replicate the methodology and topics contained in the most recently available Federal Deposit Insurance Corporation (FDIC) National Survey of Unbanked and Underbanked Households, but shall focus only on regions in the state, and shall provide greater California-specific demographic and regional detail than is contained in the FDIC survey.

(1)Information on the particular banking habits of the demographic populations within this state based on city, county, city and county, district, or regional basis, or a combination thereof, so as to provide the most valuable information about these populations.

(2)Inclusion of various demographic indicators, including race, educational attainment, age, income, and employment status.

(3)Inclusion of banking habits based on specific industry.

(4)Recommendations on the ways the state can better serve unbanked and underserved populations.

(b)(1)The department shall complete the study and provide a written report of its findings to the Legislature and the appropriate policy and fiscal committees on or before January 1, 2021. The report shall be submitted in compliance with Section 9795 of the Government Code.

(b) The study shall examine a minimum of six different regions within the state, including two rural regions, that were not studied in the most recently available FDIC survey, and shall seek to answer all of the following questions:
(1) What barriers, if any, limit access to traditional depository institutions by unbanked and underbanked Californians?
(2) In what ways, if any, are services provided by nondepository financial services providers to unbanked and underbanked Californians more desirable to these Californians than similar services provided by depository institutions?
(3) What types of products and services offered by nondepository financial services providers are most sought out by unbanked and underbanked Californians?
(4) What types of products and services are not currently available to unbanked and underbanked Californians, but would be helpful to these populations, if made available?
(c) The study shall contain data exploring how answers to the questions under subdivision (b) differ among demographic groups and regions of the state.
(d) The department may contract with one or more private entities to conduct the study and is authorized to use data already collected and reported by others, if the department believes such data to be timely and relevant to the questions under subdivision (b).

(2)

(e) The department shall post the a report of its findings on its Internet Web site on or before January 1, 2021.

SEC. 2.

 Division 23 (commencing with Section 80000) of the Financial Code is repealed.

SEC. 3.

 Article 3 (commencing with Section 12350) is added to Chapter 4 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
Article  3. Bank on California Program

12350.
 (a) The Legislature finds and declares that “Bank on California” is a voluntary collaborative initiative that assists Californians in opening a bank or credit union account and saving for the future.
(b) There is hereby established within the office of the Treasurer the Bank on California program.

12352.
 The Treasurer shall provide the respective chairpersons of the Senate Committee on Banking and Financial Institutions and the Assembly Committee on Banking and Finance with a brief annual summary on the activities of the Bank on California Program. Notwithstanding Sections 9795 and 10231.5, the summary shall be submitted no later than August 30 of each year.