October 30, 2013


Reviewed and monitored the 2,540 legislative measures introduced in 2013, identified 475 as having a potential impact on or of interest to the financial services industry and adopted positions on an additional 21 new state legislative measures, during the third quarter. Of the 46 measures we strongly opposed in 2013, 44 were amended to our satisfaction, defeated within the legislative process or became two-year bills, one measure was vetoed by the governor and one measure was enacted. 

Conducted 19 internal policy committee meetings.

Participated in 25 meetings with legislators and their staff.

Participated in 16 meetings with agency departments and the governor’s administration.

Secured enactment of a CBA co-sponsored measure relating to local agency deposits and private placement services.

Secured enactment of a measure that adopts various revisions to Article 9 of the Uniform Commercial Code set forth in 2010 by the National Conference of Commissioners on Uniform State Laws and the American Law Institute.

Assisted in the passage of a measure that establishes guidelines for student debit cards.

Defeated several measures including:
• A measure requiring unworkable account features and onerous reporting requirements for a voluntary program to assist unbanked individuals
• A measure creating federally pre-empted and costly contract provisions for banks that provide student debit cards
• A measure banning the use of wage garnishment for the collection of defaulted private student loans

Successfully negotiated amendments into a bill relating to electronic benefits transfer cards for the food stamp and unemployment and disability insurance programs, and another measure relating to the collection and use of personal information of minors.

Provided a legislative briefing to the State Bar of California Corporation Committee.

Met with Business, Consumer Services and Housing Agency Secretary Anna Caballero, and Department of Business Oversight Commissioner Jan Owen, regarding pending legislation and the implementation of the governor’s reorganization plan.

Co-sponsored a California Issues Forum event in Sacramento.

Co-hosted the 11th Annual Joint Washington, D.C. Visit in September with the Florida Bankers Association. Twelve CBA members attended the visit, where the two associations met with seven members of the House Committee on Financial Services – Jeb Hensarling (chairman), Gary Miller (vice chairman), Maxine Waters (ranking member), Shelley Moore Capito (Consumer Credit Subcommittee chair), John Delaney, Patrick Murphy and Dennis Ross, Senate Minority Whip John Cornyn, Sen. Kelly Ayotte, FDIC Chairman Martin Gruenberg and Comptroller of the Currency Thomas Curry. Issues discussed included bank capital standards, regulatory relief, elimination of the credit union tax exemption, opposition to expansion of the credit union business lending authority, opposition to expansion of the Farm Credit System (FCS) powers and support for removal of the FCS tax subsidy.

Hosted banking community events for Senators Lou Correa, Kevin de Leon, Ricardo Lara and Richard Roth; the Speaker of the Assembly John A. Pérez; and Assembly Members Henry Perea, Rudy Salas and Don Wagner.

Conducted one district meeting with a member of Congress and three district grassroots meetings with members of the Assembly.

CBA members participated in three district events for federal legislators.

Participated in 21 Sacramento fundraisers for members of the California Legislature and state legislative candidates.

Conducted one meeting with a federal legislative candidate and six meetings with state legislative candidates.

Raised an additional $7,441 for the CBA State PAC (2013 total: $175,001-95 percent of goal) and an additional $4,789 for the CBA Federal PAC (2013 total: $69,492-82 percent of goal).


Developed and distributed two news-style videos as part of the final component the second phase of CBA’s reputation management campaign, which visually demonstrate how banks are vital to the economy and supportive of their communities, and highlight partnerships between banks and their customers. An additional four-week paid radio campaign, extended from the launch of the second phase, ran in the Sacramento media market from early August through September 13, the last day of the legislative session.

Assisted with the development and placement of an opinion editorial authored by CBA board member Louise Walker, president & CEO of First Northern Bank, titled, “Financial Education Vital for High Schoolers,” which appeared in the Sacramento Bee and discussed California banks’ ongoing commitment to financial literacy and our strategic partner, EverFi.

Fielded more than a dozen incoming media inquiries, focused on a wide range of issues including the credit union federal tax exemption, the Richmond eminent domain proposal, bank data breaches and security trends, and the current state of California’s banking industry including M&A trends.

Conducted media interviews with the Los Angeles Times, Sacramento Bee, NPR-Los Angeles, NBC-Bay Area, Sacramento Business Journal, Long Beach Business Journal and the Daily Journal among other publications and news outlets.

Issued a media release announcing the nomination of CBA Past Chairman Tom Shaffer to the American Bankers Association Board of Directors.

Worked closely with the events team to design marketing materials to promote CBA events. Brochures and other collateral material were created for Security Management Conference, Regulatory Compliance Conference and Chief Credit Officers Symposium.

Assisted with several marketing campaigns to highlight new services or product offerings from CBA Banker Benefits and Strategic Partners Diebold and Verafin.


Delivered the Advanced Commercial Lending School “in-house” to six banks and 19 participants.

Held the Enterprise Risk Management Seminar for 46 participants.

Hosted the Directors Certification Update “in-house” for 10 bankers at their location.

Held Accounting for Lenders for 25 participants.

Delivered Writing an Effective Credit Memorandum to 21 participants.

Conducted the annual Regulatory Compliance School for 32 participants.

Hosted two FDIC Compliance Update sessions for 54 participants.

Held Analyzing Corporate and Personal Financial Statements and Tax Returns for 35 participants.

Delivered the Safety & Soundness Workshop in two locations to 62 participants.


Finalized logistics and conference materials for the 35th Annual Regulatory Compliance Conference.

Finalized planning and logistics for the 2013 Chief Credit Officers Symposium.

Finalized speakers/agenda, opened registration and completed mailings of invitation and brochure for the 2014 Bank Presidents Seminar.

Began planning and marketing for the 27th Annual Lenders Conference.

Began planning and marketing for the 123rd Annual Convention and 47th Annual Bank Counsel Seminar.

Continued research of potential locations for the 2014 Security Management Conference.


Convened the Compensation Survey Advisory Committee meeting to review and discuss the 2013 Compensation and Benefits Benchmark Survey results, in conjunction with Crowe Horwath LLP. The survey provides base salary, incentive and commission compensation data for 129 job classifications, directors’ compensation information, human resources practices, comparative health care cost information and employee benefits summary statistics. The survey was published and marketed in late August and to date, 120 copies of the summary have been purchased by banks doing business in California.

CBA filed a friend of the court brief in the legal challenge by certain trustees of mortgage-backed securities against the City of Richmond’s intended use of its eminent domain authority to take underwater mortgages at a discount and resell them to other investors.

CBA asked for depublication of a decision, Glaski v. Bank of America, that would introduce a new way to challenge residential property foreclosures. The court allowed a borrower to challenge the legitimacy of a foreclosure action based on alleged irregularities on the securitization of the loan. The decision thus upsets the California statutory scheme of non-judicial foreclosure that does not permit additional conditions to the process.

CBA filed an amicus brief In Highlands Capital Partners v. Bank of the West in support of the bank’s position that it does not owe a duty to limited partners to ensure that they would not be defrauded by their general partner. The case is pending.

CBA requested publication of Aspiras v. Wells Fargo Bank, N.A., an opinion that counters a recent trend in the courts to impose greater lender liability. Here, the court refused to apply a heightened duty of care in connection with modification negotiations and servicing of a residential loan. The court granted the request to publish the opinion.

CBA requested review or depublication of an opinion, Greene v. Bank of America, in which the subject of a police report successfully challenged the immunity provision of 31 U.S.C. 5318(g)(3)(A) (the Annunzio-Wiley Anti-Money Laundering Act) that protects banks from liability for making reports of a crime. The requests were denied.

Published Regulatory Compliance Bulletins on the following:

  • The Federal Department of Housing and Urban Development’s final rule regarding its policy of enforcing the Federal Housing Act and Equal Credit Opportunity Act under the “disparate impact” theory of liability
  • Basel III standards that pertain to real estate lending
  • The retailer industry’s successful challenge to two key provisions of the Federal Reserve Board’s final rule implementing the Durbin Amendment, namely, the interchange fee amount permitted to be charged and the rule requiring multiple networks
  • The California Supreme Court’s decision in Rose v. Bank of America, which allows law suits for violations of the Truth in Savings Act (TISA) under Business & Professions Code Section 17200, even though TISA does not allow private suits
  • The Consumer Financial Protection Bureau’s complaint and settlement against a Florida debt relief firm for deceptive and abusive acts or practices
  • The Greene v. Bank of America decision, discussed above, which allows a bank to be sued for filing a police report despite the immunity provision of 31 U.S.C. 5318(g)(3)(A) (the Annunzio-Wiley Anti-Money Laundering Act)
  • AB 212, which reduces the dollar threshold for the escheat of certain assets to the State Controller’s Office
  • SB 233, which enacts the Fair Debt Buying Practices Act to regulate the activities of purchasers of charged-off consumer debt
  •  AB 279, which expands the kind of deposit accounts into which local government agencies may place surplus funds. The bill also requires that a depository institution accepting such deposits must meet regulatory capital standards related to brokered deposits, and it places a 10 percent limit on deposits placed with any one private sector placement service
  •  AB 526, which extends military reservists’ existing debt deferral rights to reservists who are called to active duty on or after January 1, 2014, for any reason, not just those who serve in Iraq and Afghanistan
  • A federal Court of Appeals decision, Historic Boardwalk Hall, LLC et. al v. Commissioner of Internal Revenue, which makes it more difficult for partnerships (including banks) to qualify for tax credits if an investor is not adequately exposed to risks of loss or does not enjoy the economic potential of the enterprise
  •  AB 978, which restricts opening or maintaining correspondent or payable-through accounts by foreign financial institutions where those accounts facilitate certain prohibited activities related to Iran
  • The successful legal challenge against the U.S. Department of Labor’s 2010 interpretation that treats most mortgage loan officers as not exempt under the “administrative” exemption of the Fair Labor Standards Act
  • SB 426 that expands the state’s anti-deficiency statutes by prohibiting not just deficiency judgments against borrowers in connection with certain real estate secured lending, but also liability for any deficiency
  •  AB 60 that creates a new category of driver’s licenses available to a person who is unable to prove that he or she is lawfully residing in the United States.


Welcomed two new affiliate members, Moffett & Grigorian LLP and Experian Decision Analytics.

Six bank visits conducted by President & CEO Rod Brown.

Strategic Partners

Conducted a membership survey focused on long-term care insurance with LTC Partners and Insurance Services. More than half of all CBA members responded to the survey, which concluded:

• Many bank employees will not plan sufficiently to cover long-term care costs – which, in California, average $80,000 per year for a private nursing home.

• Many bank employees are already directly impacted by long-term care issues, such as caring for a parent or grandparent.

• Most bank executives agree that long-term care insurance is an appropriate addition to a package of executive benefits for senior level employees and/or directors.

Facilitated a relationship with DealerTrack, which acquired VINtek, a strategic partner since 2010. DealerTrack is a leading supplier of services and technology for the retail automotive industry. VINtek will be a complementary addition providing DealerTrack with electronic motor vehicle lien and title services not currently included in their portfolio. Banks that currently use VINtek will continue business as usual with no changes. CBA will be working with DealerTrack regarding future business alliance options.