Current Events - 05/19/2003

Legislative Alert: COLI bill up in Assembly

If your bank has purchased corporate-owned life insurance (COLI) to fund employee benefits, you will be interested to know that a bill (AB 226) currently on the Assembly floor may jeopardize your ability to continue to use it.  If your bank uses this form of insurance, please refer to the attached letter (“AB 226 – Oppose Unless Amended”) to help you frame your correspondence to your elected officials. Because this bill is being considered now, it is important that you contact your legislators as quickly as possible on this issue.  If you have any questions on this legislation, please contact James Clark at jclark@calbankers.com or 916/441-7377 ext. 209.

Capitol Corner

Registered Warrants: An Update

The Governor’s Office has just issued the May Revision of the budget and the expected revenues upon which the original proposed budget was based are much lower than expected.  Accordingly, California’s budget crisis grows.  There remains the possibility that the state will issue registered warrants for payment of state employee salaries, legislative staff salaries, and/or senior administrative staff salaries.  CBA is requesting meetings with the State Treasurer Phillip Angelides and State Controller Steve Westly to discuss the technical and procedural issues that may arise if warrants are issued.  The results of these meetings will be forthcoming in future issues of the Monday Courier.

Now more than ever, it is important that each institution consider whether or not it will accept registered warrants and on what terms.  It will be important for each institution to give due consideration to what is financially prudent, what is in the best interest of the institution’s customers, what is best for the State of California and what constraints are faced in the competitive marketplace. The importance of each factor may vary significantly from one institution to another so individual institutional assessments are key. 

CBA will continue to function as an information resource on an on-going basis to provide information as it is made available.  But it is important to consider the possibilities today so our members are prepared should the need arise.

FCRA extension correction

Contrary to our report in the May 12 Advocacy Alert, Assistant Treasury Secretary Wayne Abernathy did not specifically endorse an extension of the expiring pre-emption provisions of the Fair Credit Reporting Act.   Rather, he indicated the administration had not yet completed its review of all identity protection issues (as Advocacy Alert reported), and therefore, he would not be able to make specific recommendations on any aspect of the subject area.  Abernathy did, however, express strong agreement that uniform standards are critical.  Separately, both Abernathy and Treasury Secretary Snow have publicly supported an extension of the expiring FCRA provisions, but the White House has not yet signed off. 

The Fed PAC race is on!

At the Bank Presidents meeting in January, F&M Bank received the first annual Bank of the Year award for Federal PAC contributions “above and beyond the call of duty.”  And though F&M Bank is anxious to repeat its victory and take home the Bank of the Year trophy again in January 2004, you can see from the list below that there are many in the hunt for the coveted trophy, with The Mechanics Bank currently in the lead.  Thanks to all of the banks listed below which have exceeded their Fed PAC goals already this year and to all of our members who have contributed.  If you are interested in making an additional contribution to the Fed PAC or running a contribution campaign in your bank, please contact Mary Boruff at 916/441-7377 ext. 207.

Bank                                                               % of Goal

The Mechanics Bank.........................................255%

F& M Bank......................................................248%

Bank of Stockton..............................................163%

Visalia Community Bank...................................155%

Encino State Bank............................................146%

Pacific Crest Bank............................................146%

Affinity Bank....................................................135%

First Northern Bank of Dixon............................135%

Mid-State Bank & Trust...................................125%

Montecito Bank & Trust...................................123%

Alliance Bank...................................................122%

Temecula Valley Bank......................................115%

Verdugo Banking Company..............................108%

Union Bank of California...................................103%

As of 4/29/03

Legislative meeting update

The following meetings have been scheduled between CBA members and their elected officials.  If you would like more information on these meetings, or would like to participate in any of the meetings, please contact Mary Boruff at 916/441-7377, ext. 207.  If you are not available, please consider sending an officer from your bank.

You are welcome to phone in to a grassroots conference call (888/903-2663) every Thursday afternoon (4:00 pm – State Legislature / 4:30 pm – House of Representatives) prior to a scheduled district office meeting(s) to discuss CBA’s priority issues and to answer any questions you may have regarding meeting with your legislator.

DATE	TIME	LEGISLATOR	LOCATION
May 30	2:00 p.m.	Senator Dick Ackerman (CBA Facilitator: James Clark)	Tustin
May 30 ***	1:30 p.m.	Senator Sheila Kuehl (CBA Facilitator: Don Robinson, Bank of the West, Los Angeles)	Los Angeles
May 30 ***	10:00 a.m.	Assembly Member Sarah Reyes (CBA Facilitator: Bob Longatti)	Fresno
June 6	11:00 a.m.	Assembly Member Jerome Horton (CBA Facilitator: Richard Proudfit, Gateway Business Bank, Cerritos)	Inglewood
June 13	10:00 a.m.	Assembly Member Ed Chavez (CBA Facilitator: Rich Jett)	City of Industry
June 13 ***	4:00 p.m.	Assembly Member Manny Diaz (CBA Facilitator: Bob Longatti)	San Jose
June 13	10:00 a.m.	Assembly Member Rick Keene (CBA Facilitator: Steve Johnson, Butte Community Bank, Chico	Chico
June 13 ***	2:00 p.m.	Assembly Member Gloria Negrete McLeod (CBA Facilitator: Tim Walbridge, 1st Centennial Bank, Redlands)	Montclair
June 20 ***	11:00 a.m.	Assembly Member Dario Frommer (CBA Facilitator: Ray Dumser, Verdugo Banking Company, Glendale)	Glendale
June 20 ***	10:00 a.m.	Assembly Member Christine Kehoe (CBA Facilitator: Mike Jones)	San Diego
June 20	10:00 a.m.	Assembly Member Carol Liu (CBA Facilitator: Rich Jett)	Pasadena
June 27 ***	2:30 p.m.	Assembly Member Paul Koretz (CBA Facilitator: Tom McCullough, First Regional City, Century City)	West Hollywood
July 25 ***	1:30 p.m.	Assembly Member John Campbell (CBA Facilitator: James Clark)	Irvine

*          Freshman legislator
**        Meeting rescheduled – new time
***      Meeting rescheduled – new date/time