Public Relations >> Press Release, February 28, 2002

Press Release

Contact: Anissa Yates
For Release: 2/28/02
916/441-7377

SACRAMENTO - (February 28, 2002) - The California Bankers Association (CBA) today announced its sponsorship of the following pieces of legislation:

• SB 1271 (Ackerman) - This measure permits the use of a Transfer on Death designation for investment accounts so that customers may avoid the expense and delay of probating such assets upon the death of the account-holder. If passed, this legislation would eliminate the cost and inconvenience of the probate process that many families experience. This legislation will be heard in the Senate Judiciary Committee on March 12.
  
  
• SB 1877 (Johnson) - This measure would repeal the sunset on the provision of law that allows CBA's health trust to negotiate with health insurers for reimbursement for administrative services provided. This will allow CBA, and other qualified associations acting on behalf of their members, to lower health care costs for its small-employer organizations.
  
  
• AB 2126 (Robert Pacheco) - Amending existing law, this proposed legislation would adjust the time frame in which financial institutions must give initial notice to trust fund beneficiaries when the trust fund is in a bank-affiliated mutual fund. In addition, this measure would permit the initial notice to be given by a fund prospectus or other written description of the fees and charges of the investment. These proposed changes would provide greater flexibility in the timing of the notice to be given and promotes accurate disclosure of fees and rates to be charged.
  
  
• AB 2871 (Goldberg) - This measure would create an advisory committee in the Department of Finance, which would create structural parity with the credit unions. The advisory committee would meet quarterly with the Department on banking issues and would be comprised of industry leaders from state-chartered banks.

In addition to the three pieces of legislation highlighted above, CBA will provide lobbying support to AB 1893 (Papan), which seeks parity for state-chartered banks by allowing them to extend the limits for loans secured with segregated deposits, much as federally-chartered banks currently do. This measure would create greater competition between state-chartered and federally-chartered banks.

About CBA
Established more than 110 years ago, the California Bankers Association (CBA) is one of the largest state banking trade associations in the country. CBA leads the way in developing relevant educational and legislative solutions to some of California's more pressing financial and banking issues, including financial privacy, predatory lending, usage fees, and financial elder abuse. CBA's membership includes more than 300 of California's commercial, industrial and community banks and savings associations.

For further information, visit www.calbankers.com or contact Anissa Yates at 916/441-7377.