California Bankers Association's List of Sponsored Legislation; Bills Initiate Parity in DFI, Lessen Burdens on Beneficiaries of Investment and Trust Funds.

Business & Finance Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--Feb. 28, 2002

The California Bankers Association (CBA) today announced its sponsorship of the following pieces of legislation:

-- SB 1271 (Ackerman) - This measure permits the use of a Transfer on Death
designation for investment accounts so that customers may avoid the expense and
delay of probating such assets upon the death of the account-holder. If passed,
this legislation would eliminate the cost and inconvenience of the probate
process that many families experience. This legislation will be heard in the
Senate Judiciary Committee on March 12.

-- SB 1877 (Johnson) - This measure would repeal the sunset on the provision of
law that allows CBA's health trust to negotiate with health insurers for
reimbursement for administrative services provided. This will allow CBA, and
other qualified associations acting on behalf of their members, to lower health
care costs for its small-employer organizations.

-- AB 2126 (Robert Pacheco) - Amending existing law, this proposed legislation
would adjust the time frame in which financial institutions must give initial
notice to trust fund beneficiaries when the trust fund is in a bank-affiliated
mutual fund. In addition, this measure would permit the initial notice to be
given by a fund prospectus or other written description of the fees and charges
of the investment. These proposed changes would provide greater flexibility in
the timing of the notice to be given and promotes accurate disclosure of fees
and rates to be charged.

-- AB 2871 (Goldberg) - This measure would create an advisory committee in the
Department of Finance, which would create structural parity with the credit
unions. The advisory committee would meet quarterly with the Department on
banking issues and would be comprised of industry leaders from state-chartered
banks.

In addition to the three pieces of legislation highlighted above, CBA will provide lobbying support to AB 1893 (Papan), which seeks parity for state-chartered banks by allowing them to extend the limits for loans secured with segregated deposits, much as federally-chartered banks currently do. This measure would create greater competition between state-chartered and federally-chartered banks.

About CBA

Established more than 110 years ago, the California Bankers Association (CBA) is one of the largest state banking trade associations in the country. CBA leads the way in developing relevant educational and legislative solutions to some of California's more pressing financial and banking issues, including financial privacy, predatory lending, usage fees, and financial elder abuse. CBA's membership includes more than 300 of California's commercial, industrial and community banks and savings associations.

For further information, visit www.calbankers.com or contact Anissa Yates at 916/441-7377.