AB 801: Nondiscrimination.

Existing law establishes the Department of Financial Protection and Innovation, which is under the direction of the Commissioner of Financial Protection and Innovation. Existing law makes the department responsible for administering various laws relating to financial institutions, including the Banking Law, the California Credit Union Law (CCUL), and the California Residential Mortgage Lending Act (CRMLA), a willful violation of which is punishable as a misdemeanor.

This bill, the California Fair Lending Examination Act, would require, under the Banking Law, the CCUL, and the CRMLA, the commissioner to, at least once every 4 years, examine, as prescribed, the books and records of any entity subject to the commissioners examination authority under those laws for compliance with any applicable nondiscrimination law, as specified, and would require the commissioner to provide a written statement of the findings of that examination, issue a copy of that statement to the subjects principals, officers, or directors, and take appropriate steps to ensure correction of any violations of applicable nondiscrimination laws. The bill would prohibit disclosure of that statement to anyone other than the bank, subject entity, law enforcement officials, or other state or federal regulatory agencies for further investigation and enforcement.

This bill would make a violation of an applicable nondiscrimination law a violation of the Banking Law, the CCUL, or the CRMLA, as applicable, and would authorize the commissioner to examine the banks applicable entitys officers, directors, employees, or agents under oath regarding the banks operations.

By expanding the scope of the crimes of perjury and of violating the CRMLA, this bill would impose a state-mandated local program.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.