SACRAMENTO, Calif. - Two months after it was first introduced in the state Assembly, the California Credit Union League is sounding the death knell to a bill introduced by state Assemblyman Lou Papan (D-19), chairman, Assembly Banking Committee that would expand the state's Community Reinvestment Act requirements and apply to any financial services firm-including credit unions-operating in the state. Assembly Bill 2806 would require the commissioner of financial institutions and any other state officer or agency responsible for regulating a financial institutions "to establish state standards that a financial institution would be required to satisfy as a condition ...for receiving public money investments or deposits or participating in public agency contracts for financial services...; prohibit any financial institution from being eligible to receive public money investments or deposits or participate in public agency contracts for financial services...unless the institution achieves and maintains at least a `high satisfactory' record of meeting community credit needs under the federal Community Reinvestment Act...or the state standards." The bill would also require the commissioner of the Department of Financial Institutions to adopt CRA-like guidelines for any financial that does not have CRA requirements. Bob Arnould, vice president state legislative affairs, California Credit Union League said the league "expects Papan's bill to have a short life span. It is breathing hard." At press time, the hearing of the bill in the Assembly Banking and Finance Committee was pushed back to April 24 from April 10. If A.B. 2806 does not clear the committee, it is considered dead for the year. -
ekingoff@cutimes.com
