Capitol Corner: What have we done for you lately?

The CBA Sacramento staff has been feverishly working to stop the seemingly endless onslaught of harmful legislation directed at financial institutions and the business community in general. As a result of the relentless efforts of your representatives in Sacramento, CBA successfully amended SB 590 (Speier) to remove financial institutions from the definition of “seller” of personal information so that the measure no longer has an impact on our members. In addition, we revised SB 691 (Escutia) so that it does not impose liability on users of credit information in credit histories for the disparate impact of discrimination. Further, we have altered SB 1022 (Perata) which regulates debt collection so that it does not adversely impact debt collection by financial institutions. We have obtained amendments to AB 46 (Simitian) regarding identity theft and the use of Social Security numbers. CBA has stopped AB 224 (Kehoe) regarding identity verification and AB 757 (Montanez) that would have created a lottery system for bidding on public deposits. Both are not moving this year. In addition, we worked to make two (2) bills two-year bills, and therefore inactive through the end of the year: AB 1295 (Calderon), regarding elder financial abuse reporting and; SB 901 (Dunn), which sought to create a state charter for low-income credit unions. Finally, CBA amended Senator Machado’s Homestead Exemption bill, SB 804, to satisfy our objections to a full-scale expansion of the exemption from credit claims for all homeowners. There are several issues, including SB 1 (Speier), the financial privacy measure, that remain on our plate and so we continue to battle on your behalf.

Governor backs privacy bill

The debate surrounding the financial privacy bill (SB 1) got more interesting late last week as Governor Gray Davis endorsed the bill with a slew of new amendments. Most notable among those amendments is a “four-step” qualifying system that would exempt financial institutions from having to get explicit consent from their customer to share information with affiliated companies. Despite the fact that these amendments are a step in the right direction, CBA remains opposed to the bill and is still working toward further amendments to address the industry’s concerns. We still believe that additional amendments must be added if there is to be a compromise that produces a more workable and reasonable bill. The governor’s endorsement is a curiosity. Some believe it is his attempt to gain public approval in the face of a recall election. But the possible divisions this creates for Democrats deciding the issue bear note. Word has it that moderate Democrats are displeased by the endorsement because the governor did not work with them on the issue and any further division in either party only makes the budget process that much more difficult. The bill could be heard as early as June 17 and we will keep you posted as further amendments and developments occur.

1^st Centennial Bank honored

Congratulations to Tim Walbridge and everyone at 1^st Centennial Bank in Redlands for being named the Business of the Year by the local Chamber of Commerce. We know how important these coveted awards are to our member banks and wish 1^st Centennial Bank continued success this year and in the years to come. If your bank is being honored with a similar civic or business award, please contact Anissa Yates at ayates@calbankers.com to have it noted in upcoming issues of the Monday Courier.

Ron and Judith (Bambury) Reinartz pass away

CBA recently learned of the death of Judith (Bambury) Reinartz, formerly of Santa Clara. Judy passed away earlier this year on January 5 after a courageous battle with cancer. Her death followed the death of her husband, Ron Reinartz, by approximately six months. Judy was a very committed member of CBA’s State Government Relations Committee for many years and Judy and her husband Ron were both active supporters and participants in CBA’s Annual Bankers Legislative Conference. They had recently retired from the Bank of Santa Clara and moved to Arizona just before their deaths. The world was a better place with the Reinartzes in it and their absence is a loss to all of us.

CBA Lenders School

The banking industry is facing a hiring crisis when it comes to lending officers. Experienced lenders are leaving our industry due to consolidation and many will retire within the next few years. Recognizing the need to prepare more lending officers for the demands our industry will soon be facing, CBA is beginning its own Lending School. For more information, please read the attachment entitled “CBA Lending School.”

Legislative meetings 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 send a senior officer from your bank. These meetings are a good opportunity for your senior management to get to know the legislators who vote on the issues of importance to 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
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.	Senator Dennis Hollingsworth (CBA Facilitator: James Clark)	El Cajon
June 20 ***	2:30 p.m.	Assembly Member Christine Kehoe (CBA Facilitator: Mike Jones)	San Diego
June 27 ***	1:00 p.m.	Assembly Member Paul Koretz (CBA Facilitator: Tom McCullough, First Regional Bank, Century City)	West Hollywood
June 27***	11:30 a.m.	Assembly Member Carol Liu (CBA Facilitator: Rich Jett)	Pasadena
July 11 ***	10:00 a.m.	Assembly Member Rick Keene * (CBA Facilitator: Steve Johnson, Butte Community Bank, Chico)	Chico
August 1 ***	1:30 p.m.	Assembly Member John Campbell (CBA Facilitator: James Clark)	Irvine

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

Current Events - 06/16/2003