Banking development districts.

Existing law, the Banking Law, provides for the regulation of banks by the Department of Business Oversight. Existing law establishes the Bank on California Program within the department as a voluntary collaborative initiative that assists underserved Californians in opening a bank or credit union account. Existing law, which is known as the Time Deposit Program, requires the Treasurer, if possible, to deposit state money into an eligible bank. Existing law defines eligible bank to mean a bank selected by the Treasurer that meets certain requirements, including that it received an overall rating of not less than satisfactory in its most recent evaluation by the appropriate federal financial supervisory agency of the bank's record of meeting the credit needs of the state's communities, including low- and moderate-income neighborhoods. This bill would create the Banking Development District Program within the department, and would establish a process for a local agency, in conjunction with a bank, to submit an application to the department to establish a banking development district, in accordance with certain requirements. The bill would require the department to provide information on the Banking Development District Program to the Treasurer, and would specify that the Treasurer may 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 the designation of banking development districts in accordance with certain requirements. The bill would require the department to develop and provide certain incentives to banks located in a banking development district, and would authorize the department to work with local agencies and economic development officials to develop additional local incentives for participating banks. The bill would also require the department to establish and post on its internet website a performance review process for the program, as specified.