CBA Publications >> Monday Courier>>September 18, 2006

Monday Courier

State Issues

Tax measure vetoed by governor
Last week the governor vetoed a tax measure regarding book income reconciliation in state tax returns for which CBA had opposed. The measure, Assembly Bill 675 by Assembly Tax Committee chair, Johan Klehs, amended current law which requires corporations to pay taxes to the state based upon net income earned in connection with activities in the state. This measure required publicly traded corporations in California with assets over $10 million to file their tax returns with reconciliation between their financial statements reported income or loss and their tax return reported income for all entities included in the combined report. The bill imposed significant new penalties for failure to disclose. We would like to thank the CBA Tax Committee members for their help on this issue.

Federal Issues

CBA urges substantial revision of the ID theft “red flags” proposal
CBA sent a comment letter on behalf of its members to the federal banking agencies urging them to revise their ID theft “red flags” proposal. The agencies would impose several requirements that are not specifically authorized by the FACT Act, such as establishment of a written monitoring, detection, and remediation program, board of directors’ approval, mandatory staff training, and application to business customers. The agencies took an unnecessarily heavy-handed approach, patterned after the BSA that would generate regulatory burdens without helping banks become better prepared to address ID theft. CBA urged that the agencies acknowledge that banks are already highly motivated to prevent ID theft, and that the agencies could best meet their obligations under the FACT Act by articulating objectives rather than establishing yet another regulatory compliance scheme. To view CBA’s comment letter, please click here.

Membership Issues

Department of Financial Institutions Roundtable quarterly meeting
There are still seats available for the next meeting of CBA's DFI Roundtable which has been set for Wednesday, October 4th at 10 a.m. in Sacramento. This quarterly meeting will offer CBA member bank presidents and CEOs a unique opportunity to speak directly with newly appointed DFI Acting Commissioner Michael A. Kelley and members of the senior management staff. These meetings give CBA and its members a great opportunity to engage with the DFI on issues that are important to all involved. This meeting will take place at the CBA office. For more information or to reserve your seat, please contact Yvette Ernst no later than September 21st at 916/438-4414 or via e-mail at yernst@calbankers.com.

CBA Best-in-Category Partner now offering TSoft SBA FormMaster+ User Workshop
Wolters Kluwer Financial Services/Bankers Systems is offering its newest workshop, TSoft SBA FormMaster+ User which gives you the opportunity to take a closer look at the lending software that 80 of the top 100 SBA lenders in the country use to package their loans. For more information, please click here.