Government finance: deposits.
Vote required
Two Thirds
Fiscal committee
No
Appropriation
No
Current location
Banking and Finance
Take action
Record your position on this measure.
Create an account to record your position, submit testimony, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates a ‘Community Reinvestment Account’ within the Local Agency Investment Fund, aiming to boost small business lending, first-time homeownership, and affordable housing in underserved communities. It requires the Treasurer to transfer up to $4 billion from the Pooled Money Investment Account to this new account. The bill also modifies collateral requirements for institutions receiving deposits from this account, prioritizing letters of credit from the Federal Home Loan Bank of San Francisco and establishing performance standards for eligible lenders, including a minimum 50% allocation for affordable housing. Quarterly performance reports will be required from recipient institutions.
Key provisions
- Creates a ‘Community Reinvestment Account’ within the Local Agency Investment Fund.
- Requires the Treasurer to transfer $4 billion from the Pooled Money Investment Account to the Community Reinvestment Account.
- Establishes performance standards for institutions receiving deposits, including verified small business lending in underserved areas and first-time homebuyer lending.
- Modifies collateral requirements, prioritizing letters of credit from the Federal Home Loan Bank of San Francisco.
- Requires at least 50% of deposits to be used for affordable housing lending.
- Institutions must submit quarterly, non-identifying performance reports to the Treasurer.
- Allows for tiered risk controls and loan guarantees to support lending activities.
- Specifies eligible lending activities, including support for diverse small businesses and disaster recovery loans.
Bill text
Read the latest version inline or switch to a previous version.
Text extraction is in progress. View the official source.
Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours