Banking development districts.

Existing law provides for various programs and activities in the development of economic opportunities for businesses in the state. The California Small Business Financial Development Corporation Law establishes small business financial development corporations and provides for their regulation by the Business, Transportation and Housing Agency. Existing law, the Banking Law, provides for the regulation of banks by the Department of Financial Institutions. This bill would create a Banking Development District Program, within the department, that would encourage the establishment of banking branches in designated geographic locations where there is an underserved community, as defined. The bill would require the department to provide information on the Banking Development District Program to the Treasurer and would authorize the Treasurer to utilize the Banking Development District Program when promoting the Treasurer's Time Deposit Program. The bill would require the department to adopt rules and regulations for the establishment and maintenance of banking development districts and to evaluate and approve applications for designation of banking development districts. The bill would require the department to develop and provide certain incentives to banks, as defined, located in a banking development district. The bill would also require the department to establish and post on its Internet Web site a performance review process for the program, as specified.