Article 1.1. The California Community Development Financial Institution Tax Credit Program of California Insurance Code >> Division 3. >> Chapter 2. >> Article 1.1.
The Legislature finds and declares all of the following:
(a) There are specialized financial institutions in California
that are specifically dedicated to, and whose core purpose is to,
provide financial products and services to people and communities
underserved by traditional financial markets and to support renewable
energy projects, energy efficiency improvements, economic
development, and affordable housing in these communities. These
community development financial institutions or CDFIs seek to bridge
the growing gap that exists between the financial products and
services, renewable energy generation, energy efficiency
improvements, economic development, and affordable housing available
to the economic mainstream and those offered to low-income people and
communities, as well as the nonprofit institutions that serve them.
In addition, they serve a critical role in addressing issues of
poverty and access to credit in economically disadvantaged
communities by providing services, including, but not limited to,
credit counseling to consumers, financial literacy training, home
ownership counseling, entrepreneurial education, and technical
assistance to small business owners.
(b) These mission-driven financial institutions require additional
capital in order to expand their ability to provide financial
products and services, and to promote needed renewable energy
generation projects, energy efficiency improvements, economic
development, and affordable housing for low-income individuals and
communities, and the businesses and nonprofit agencies that serve
them. For example, some offer responsible alternatives to high-cost
check-cashing services and payday lenders that have moved into
low-income communities. Others help finance small businesses,
affordable housing, and community services and facilities that, in
turn, help stabilize low-income neighborhoods and alleviate poverty.
(c) In carrying out their mission, funding community development
is given priority over providing high returns to investors.
(d) It is the intent of the Legislature to provide an incentive in
the form of California tax credits to attract much needed additional
private capital investments that would not otherwise be available to
CDFIs without the benefit of such incentive. It is the expectation
of the Legislature that CDFIs will leverage these new investment
dollars for the direct benefit of economically disadvantaged
communities and low-income people in California.
(a) The department, California Organized Investment
Network (COIN), or any successor thereof, shall require the CDFIs
receiving tax credit investments pursuant to Sections 12209,
17053.57, and 23657 of the Revenue and Taxation Code to submit
reports to the department, COIN, or any successor thereof, on their
use of the program and may specify by notice to those CDFIs the form,
content, and manner of the reports.
(b) Biennially the department, COIN, or any successor thereof,
shall include in the report required by Section 12922, information on
the CDFI tax credit program based on the reports submitted by the
CDFIs pursuant to subdivision (a).
(c) On or before December 31, 2010, the Legislative Analyst shall
prepare an analysis, based upon data provided by the Franchise Tax
Board, the Department of Insurance, and COIN, to the Legislative
Analyst on or before September 30, 2010, of the tax credit
investments provided for in Sections 12209, 17053.57, and 23657 of
the Revenue and Taxation Code, including, but not limited to, the
credits' fiscal impact, what programs, projects, and other uses were
funded or carried out by the CDFIs that were supported in whole or in
part by the tax credit investments, and the resulting benefits to
economically disadvantaged communities and low income people in
California.
(a) The commissioner may establish and appoint a
California Organized Investment Network Advisory Board.
(b) For purposes of this section, all of the following shall
apply:
(1) "Commissioner" means the Insurance Commissioner of this state.
(2) "Board" means the California Organized Investment Network
Advisory Board.
(3) "Licensed attorney" means an attorney who resides in this
state who has successfully passed the California bar examination and
has been admitted to practice in this state or has otherwise been
licensed to practice law in this state by the State Bar of
California.
(c) The board shall include the commissioner, or his or her
designee, three executives in the insurance investment industry, and
one volunteer from each of the following categories:
(1) A licensed attorney practicing insurance law.
(2) A member of the public, appointed by the Speaker of the
Assembly.
(3) A member of the public, appointed by the Senate Committee on
Rules.
(4) A member of a consumer advocacy group.
(5) An affordable housing practitioner.
(6) A local economic development practitioner.
(7) A member of a financial institution or a community development
financial institution.
(8) A representative with experience seeking investments for low-
to moderate-income or rural communities.
(d) The board shall elect, from among its members, a chair.
(e) The term of each member shall be for two years.
(f) The board shall have all of the following powers and duties:
(1) To advise the California Organized Investment Network, or any
successor thereof, on the best methods to increase the level of
insurance industry capital in safe and sound investments while
providing fair returns to investors and social benefits to
underserved communities.
(2) To meet a minimum of three or more times per year, or as
deemed necessary by the commissioner.
(3) To facilitate contacts among executives at insurance
companies, community-based organizations, and community development
financial institutions.
(4) To recommend programmatic guidelines, but not specific
allocations of the tax credit amount, to the California Organized
Investment Network program.
(g) The members of the board shall not receive compensation from
the state for their services under this section but, when called to
attend a meeting of the board, may be reimbursed for their actual and
necessary expenses incurred in connection with the meeting.
(h) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.