Topline Q2 2017

General information

We’ve passed the halfway point in the state legislative year. As the only banking trade association in California with a full-time state government advocacy team dedicated to protecting our members’ interests, our goal is to assist banks succeed, even during the uncertainty of the current legislative environment we face on a daily basis. During the last quarter our team has met with legislators and their staff, state agency departments, and the governor’s administration to express support, concern, and opposition to legislative measures introduced since the beginning of 2017.

Noteworthy legislation during the last quarter:

Measures supported by CBA:

  • AB 611 allows a bank to dishonor a power of attorney if the agent has been reported for financial abuse of the elder or dependent adult.
  • SB 363 reduces the percentage of collateral required from 110 percent to 100 percent of a state deposit when the bank pledges a Federal Home Loan Bank letter of credit.

Measures opposed by CBA that have been defeated:

  • AB 5 restricted an employer’s hiring practice by requiring additional hours to be offered to existing staff regardless of geographic location.
  • AB 889 required public disclosure of otherwise confidential legal settlement.
  • AB 1109 placed an interest rate cap on small dollar loans between $2,500 and $10,000, including those secured by real estate.
  • AB 1305 increased taxes for lenders by disallowing a deduction or refund for worthless accounts.
  • AB 1359 required reporting to a state agency if there is a breach of a critical infrastructure business, which included banks.
  • AB 1526 extinguished all consumer debt; including real estate secured debt after a four year statute of limitations has expired.
  • SB 640 imposed a sales tax on services, including financial services.

Measures opposed by CBA that have been neutralized by amendments:

  • AB 1008 prohibits employers from asking about prior criminal history on an employment application and includes notification requirements if an adverse hiring determination is made.
  • SB 299 initially imposed burdens on corporate trustees taking possession of firearms.
  • SB 812 previously prohibited a lender from recovering collateral at a tax defaulted sale.

During the last quarter our state advocacy team shared our knowledge and expertise in the field of banking by participating in the following forums:

  • Served as a panelist during a symposium concerning one of the state’s credit enhancement programs, known as the California Capital Access Program.
  • Delivered a legislative update during CBA’s Annual Convention.
  • Participated as a California Department of Justice taskforce member in offering review and commentary on revised regulations to the real property electronic recording delivery system.
  • Met with representatives from the Small Business Development Centers to discuss enhanced collaboration.
  • Met with the governor’s office regarding industry concerns with property assessed clean energy finance and potential legislative reforms under consideration.

CBA hosted a banking community event for Assembly Republican Leader Chad Mayes and co-hosted a reception for Senator Anthony Portantino.

Conducted 10 state legislative grassroots meetings, four state Capitol advocacy meetings, in addition to four federal legislative grassroots meetings, and two federal Capitol advocacy meetings attended by CBA members.

Planned and executed official second series of meetings for CBA’s State Capitol Advocacy Leadership Program, conducting three regional advocacy meetings with 22 bankers representing 10 CBA member banks. Program attendees and CBA staff conducted 31 meetings with legislators and their staff at the state Capitol.

CBA participated in four federal district fundraisers attended by CBA members.

CBA participated in 36 Sacramento fundraisers and one district fundraiser for members of the state legislature.

CBA conducted one meeting with a state legislative candidate.

Conducted a member survey with the Florida Bankers Association quantifying the increased compliance costs and burdens that BSA/AML regulation has had on banks. The survey results were shared House Financial Committee Chairman Jeb Hensarling, California Rep. Maxine Waters and the committee’s chief consultant, in advance of the June 28 hearing, “Examining the BSA/AML Regulatory Compliance Regime,” held by the House Financial Services Subcommittee on Financial Institutions and Consumer Credit. 

In June, 12 CBA members met with 25 members and staff of the California delegation and various members of the House Committee on Financial Services during the Annual Visit to Washington, D.C. The attendees also heard from Brian Brooks, executive vice president, general counsel and corporate Secretary, Fannie Mae; FDIC chairman Martin Gruenberg; and Beth Knickerbocker, OCC acting chief innovation officer. Issues discussed included equal tax treatment for credit unions, farm credit system reform, relief from regulatory burden and tailored bank regulation.

Raised an additional $38,533 for the CBA State PAC (2017 total: $163,394 – 82% of goal) and an additional $6,858 for the CBA Federal PAC (2017 total: $64,087 – 75% of goal).