Nondiscrimination.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill, known as the California Fair Lending Examination Act, establishes a new framework for ensuring fair lending practices within California’s financial institutions. It creates the California Community Reinvestment Act, requiring covered financial institutions – including banks and credit unions – to meet the financial needs of low- and moderate-income communities and communities of color. The bill also mandates that the Department of Financial Protection and Innovation conduct regular examinations of these institutions, assess their performance, and impose penalties for non-compliance, while maintaining confidentiality of examination findings.
Key provisions
- Establishes the California Community Reinvestment Act, requiring financial institutions to serve underserved communities.
- Mandates regular (at least every four years) examinations of banks, credit unions, and licensees by the Department of Financial Protection and Innovation.
- Requires the Department to assign ratings to financial institutions based on their community service record.
- Authorizes the Department to impose financial penalties on institutions failing to meet community service obligations.
- Creates the Community Reinvestment Fund within the State Treasury to support related programs.
- Prohibits disclosure of examination findings to parties other than the institution, law enforcement, or regulatory agencies.
- Expands the definition of violations under the Banking Law, California Credit Union Law, and California Residential Mortgage Lending Act to include nondiscrimination violations.
Bill text
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