Bill Text: CA AB1284 | 2017-2018 | Regular Session | Amended
Bill Title: California Financing Law: Property Assessed Clean Energy program: program administrators.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2017-10-04 - Chaptered by Secretary of State - Chapter 475, Statutes of 2017. [AB1284 Detail]
Download: California-2017-AB1284-Amended.html
Amended
IN
Senate
September 08, 2017 |
Amended
IN
Senate
September 01, 2017 |
Amended
IN
Senate
August 28, 2017 |
Amended
IN
Senate
August 24, 2017 |
Amended
IN
Senate
June 14, 2017 |
Amended
IN
Assembly
March 21, 2017 |
Assembly Bill | No. 1284 |
Introduced by Assembly Member Dababneh (Coauthor: Assembly Member Calderon) (Coauthor: Senator Skinner) |
February 17, 2017 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 10133.1 of the Business and Professions Code is amended to read:10133.1.
(a) Subdivisions (d) and (e) of Section 10131, Section 10131.1, Article 5 (commencing with Section 10230), and Article 7 (commencing with Section 10240) of this code and Section 1695.13 of the Civil Code do not apply to any of the following:SEC. 2.
Section 10133.1 is added to the Business and Professions Code, to read:10133.1.
(a) Subdivisions (d) and (e) of Section 10131, Section 10131.1, Article 5 (commencing with Section 10230), and Article 7 (commencing with Section 10240) of this code and Section 1695.13 of the Civil Code do not apply to any of the following:SEC. 3.
Section 4061 is added to the Financial Code, to read:4061.
(a) A program administrator shall comply with all requirements of this division that are applicable to a financial institution. Unless the context clearly requires otherwise, whenever the term “financial institution” appears in any code in this division, it shall also be construed to refer to a program administrator. Unless the context clearly requires otherwise, whenever the term “consumer” appears in any code in this division, it shall also be construed to refer to a property owner, as that term is defined in Section 22018.5.SECTION 1.SEC. 4.
The heading of Division 9 (commencing with Section 22000) of the Financial Code is amended to read:DIVISION 9. CALIFORNIA FINANCING LAW
SEC. 2.SEC. 5.
Section 22000 of the Financial Code is amended to read:22000.
This division is known and may be cited as the “California Financing Law.”SEC. 3.SEC. 6.
Section 22001 of the Financial Code is amended to read:22001.
(a) This division shall be liberally construed and applied to promote its underlying purposes and policies, which are:SEC. 4.SEC. 7.
Section 22001 is added to the Financial Code, to read:22001.
(a) This division shall be liberally construed and applied to promote its underlying purposes and policies, which are:SEC. 5.SEC. 8.
Section 22003.5 is added to the Financial Code, to read:22003.5.
(b)This section shall become operative on January 1, 2019.
SEC. 6.SEC. 9.
Section 22007 of the Financial Code is amended to read:22007.
(a) “Licensee” means any finance lender or broker who receives a license in accordance with this division.SEC. 7.SEC. 10.
Section 22007 is added to the Financial Code, to read:22007.
(a) “Licensee” means any finance lender, broker, or program administrator who receives a license in accordance with this division.SEC. 8.SEC. 11.
Section 22010 of the Financial Code is amended to read:22010.
(a) “Finance lender” and “broker” do not include employees regularly employed at the location specified in the license of the finance lender or broker, except that an employee, when acting within the scope of his or her employment, shall be exempt from any other law from which his or her employer is exempt.SEC. 9.SEC. 12.
Section 22010 is added to the Financial Code, to read:22010.
(a) “Finance lender,” “broker,” and “program administrator” do not include employees regularly employed at the location specified in the license of the finance lender, broker, or program administrator, except that an employee, when acting within the scope of his or her employment, shall be exempt from any other law from which his or her employer is exempt.SEC. 10.SEC. 13.
Section 22015 is added to the Financial Code, to read:22015.
(b)This section shall become operative on January 1, 2019.
SEC. 11.SEC. 14.
Section 22016 is added to the Financial Code, to read:22016.
(1)
(2)
(3)
(b)This section shall become operative on January 1, 2019.
SEC. 12.SEC. 15.
Section 22017 is added to the Financial Code, to read:22017.
(a) “PACE solicitor” means a person authorized by a program administrator to solicit a property owner to enter into an assessment contract.(b)“PACE solicitor employee” means an individual employed by a PACE solicitor who solicits a property owner to enter into an assessment contract on behalf of a program administrator.
(A)Does not request any information from the property owner in response to the advertising.
(B)Does not initiate contact with the property owner beyond the advertising material.
(d)This section shall become operative on January 1, 2019.
SEC. 13.SEC. 16.
Section 22018 is added to the Financial Code, to read:22018.
(b)This section shall become operative on January 1,2019.
SEC. 17.
Section 22018.5 is added to the Financial Code, to read:22018.5.
“Property owner” means all property owners of record on the property subject to the PACE assessment.SEC. 14.SEC. 18.
Section 22019 is added to the Financial Code, to read:22019.
(b)This section shall become operative on January 1, 2019.
SEC. 15.SEC. 19.
Section 22020 is added to the Financial Code, to read:22020.
(b)This section shall become operative on January 1, 2019.
SEC. 16.SEC. 20.
Section 22068 is added to the Financial Code, to read:22068.
(a) The exemptions and exclusions in this article are not applicable to a person engaged in business as a program administrator or a PACE solicitor.SEC. 17.SEC. 21.
Section 22100.5 is added to the Financial Code, to read:22100.5.
(a) A person shall not engage in the business of a program administrator without obtaining a license from the commissioner.SEC. 18.SEC. 22.
Section 22101 of the Financial Code is amended to read:22101.
(a) An application for a license as a finance lender or broker under this division shall be in the form and contain the information that the commissioner may by rule or order require and shall be filed upon payment of the fee specified in Section 22103.SEC. 19.SEC. 23.
Section 22101 is added to the Financial Code, to read:22101.
(a) An application for a license as a finance lender, broker, or program administrator under this division shall be in the form and contain the information that the commissioner may by rule or order require and shall be filed upon payment of the fee specified in Section 22103.SEC. 20.SEC. 24.
Section 22101.5 of the Financial Code is amended to read:22101.5.
(a) The commissioner shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all finance lender and broker license candidates, as defined by subdivision (a) of Section 22101, for purposes of obtaining information as to the existence and content of a record of state or federal convictions, state or federal arrests, and information as to the existence and content of a record of state or federal arrests for which the Department of Justice establishes that the person is free on bail or on his or her own recognizance pending trial or appeal.SEC. 21.SEC. 25.
Section 22101.5 is added to the Financial Code, to read:22101.5.
(a) The commissioner shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all finance lender, broker, or program administrator license candidates, as defined by subdivision (a) of Section 22101, for purposes of obtaining information as to the existence and content of a record of state or federal convictions, state or federal arrests, and information as to the existence and content of a record of state or federal arrests for which the Department of Justice establishes that the person is free on bail or on his or her own recognizance pending trial or appeal.SEC. 22.SEC. 26.
Section 22102 of the Financial Code is amended to read:22102.
(a) A finance lender or broker licensee seeking to engage in business at a new location shall submit an application for a branch office license to the commissioner at least 10 days before engaging in business at a new location and pay the fee required by Section 22103. The commissioner may require an applicant seeking to engage in business at a new location to submit its application, or parts thereof, through the Nationwide Mortgage Licensing System and Registry.SEC. 23.SEC. 27.
Section 22102 is added to the Financial Code, to read:22102.
(a) A finance lender, broker, or program administrator licensee seeking to engage in business at a new location shall submit an application for a branch office license to the commissioner at least 10 days before engaging in business at a new location and pay the fee required by Section 22103. The commissioner may require an applicant seeking to engage in business at a new location to submit its application, or parts thereof, through the Nationwide Mortgage Licensing System and Registry.SEC. 24.SEC. 28.
Section 22103 of the Financial Code is amended to read:22103.
(a) At the time of filing the application for a finance lender, broker, or branch office license, the applicant shall pay to the commissioner the sum of one hundred dollars ($100) as a fee for investigating the application, plus the cost of fingerprint processing and the criminal history record check under Section 22101.5, and two hundred dollars ($200) as an application fee. The investigation fee, including the amount for the criminal history record check, and the application fee are not refundable if an application is denied or withdrawn.SEC. 25.SEC. 29.
Section 22103 is added to the Financial Code, to read:22103.
(a) At the time of filing the application for a finance lender, broker, program administrator, or branch office license, the applicant shall pay to the commissioner the sum of one hundred dollars ($100) as a fee for investigating the application, plus the cost of fingerprint processing and the criminal history record check under Section 22101.5, and two hundred dollars ($200) as an application fee. The investigation fee, including the amount for the criminal history record check, and the application fee are not refundable if an application is denied or withdrawn.SEC. 26.SEC. 30.
Section 22104 of the Financial Code is amended to read:22104.
(a) The applicant shall file with the application for a finance lender or broker license financial statements prepared in accordance with generally accepted accounting principles and acceptable to the commissioner that indicate a net worth of at least twenty-five thousand dollars ($25,000). Except as provided in subdivisions (b) and (c), a licensee shall maintain a net worth of at least twenty-five thousand dollars ($25,000) at all times.SEC. 27.SEC. 31.
Section 22104 is added to the Financial Code, to read:22104.
(a) The applicant shall file with the application for a finance lender, broker, or program administrator license financial statements prepared in accordance with generally accepted accounting principles and acceptable to the commissioner that indicate a net worth of at least twenty-five thousand dollars ($25,000). Except as provided in subdivisions (b) and (c), a licensee shall maintain a net worth of at least twenty-five thousand dollars ($25,000) at all times.SEC. 28.SEC. 32.
Section 22105 of the Financial Code is amended to read:22105.
(a) Upon the filing of an application pursuant to Section 22101 and the payment of the fees, the commissioner shall investigate the applicant and its general partners and persons owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or any person responsible for the conduct of the applicant’s lending activities in this state, if the applicant is a partnership. If the applicant is a corporation, trust, limited liability company, or association, including an unincorporated organization, the commissioner shall investigate the applicant, its principal officers, directors, managing members, and persons owning or controlling, directly or indirectly, 10 percent or more of the outstanding equity securities or any person responsible for the conduct of the applicant’s lending activities in this state. Upon the filing of an application pursuant to Section 22102 and the payment of the fees, the commissioner shall investigate the person responsible for the lending activity of the licensee at the new location described in the application. The investigation may be limited to information that was not included in prior applications filed pursuant to this division. If the commissioner determines that the applicant has satisfied this division and does not find facts constituting reasons for denial under Section 22109, the commissioner shall issue and deliver a license to the applicant.SEC. 29.SEC. 33.
Section 22105 is added to the Financial Code, to read:22105.
(a) Upon the filing of an application pursuant to Section 22101 and the payment of the fees, the commissioner shall investigate the applicant and its general partners and persons owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or any person responsible for the conduct of the applicant’s lending activities in this state, if the applicant is a partnership. If the applicant is a corporation, trust, limited liability company, or association, including an unincorporated organization, the commissioner shall investigate the applicant, its principal officers, directors, managing members, and persons owning or controlling, directly or indirectly, 10 percent or more of the outstanding equity securities or any person responsible for the conduct of the applicant’s lending activities or for administering PACE programs for the applicant in this state. Upon the filing of an application pursuant to Section 22102 and the payment of the fees, the commissioner shall investigate the person responsible for the lending activity of the licensee, or for administering one or more PACE programs for the licensee, at the new location described in the application. The investigation may be limited to information that was not included in prior applications filed pursuant to this division. If the commissioner determines that the applicant has satisfied this division and does not find facts constituting reasons for denial under Section 22109, the commissioner shall issue and deliver a license to the applicant.SEC. 30.SEC. 34.
Section 22105.3 of the Financial Code is amended to read:22105.3.
(a) Except as otherwise provided in Section 1512 of the SAFE Act, the requirements under any federal or state law regarding the privacy or confidentiality of any information or material provided to the Nationwide Mortgage Licensing System and Registry, and any privilege arising under federal or state law, including the rules of any federal or state court, with respect to that information or material, shall continue to apply to the information or material after the information or material has been disclosed to the Nationwide Mortgage Licensing System and Registry. The information and material may be shared with all state and federal regulatory officials with mortgage industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal or state law.SEC. 31.SEC. 35.
Section 22105.3 is added to the Financial Code, to read:22105.3.
(a) Except as otherwise provided in Section 1512 of the SAFE Act, the requirements under any federal or state law regarding the privacy or confidentiality of any information or material provided to the Nationwide Mortgage Licensing System and Registry, and any privilege arising under federal or state law, including the rules of any federal or state court, with respect to that information or material, shall continue to apply to the information or material after the information or material has been disclosed to the Nationwide Mortgage Licensing System and Registry. The information and material may be shared with all state and federal regulatory officials with applicable oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal or state law.SEC. 32.SEC. 36.
Section 22106 of the Financial Code is amended to read:22106.
(a) The finance lender or broker license shall state the name of the licensee, and if the licensee is a partnership, the names of its general partners, and if a corporation or an association, the date and place of its incorporation or organization, and the address of the licensee’s principal business location. On the approval and licensing of a location pursuant to Section 22101 or 22102, the commissioner shall issue an original license endorsed to show the address of the authorized location and, if applicable, the name of the subsidiary corporation licensed to operate the location. The license shall state whether the licensee is licensed as a finance lender or a broker.SEC. 33.SEC. 37.
Section 22106 is added to the Financial Code, to read:22106.
(a) The finance lender, broker, or program administrator license shall state the name of the licensee, and if the licensee is a partnership, the names of its general partners, and if a corporation or an association, the date and place of its incorporation or organization, and the address of the licensee’s principal business location. On the approval and licensing of a location pursuant to Section 22101 or 22102, the commissioner shall issue an original license endorsed to show the address of the authorized location and, if applicable, the name of the subsidiary corporation licensed to operate the location. The license shall state whether the licensee is licensed as a finance lender, broker, or program administrator.SEC. 34.SEC. 38.
Section 22107 of the Financial Code is amended to read:22107.
(a) Each finance lender and broker licensee shall pay to the commissioner its pro rata share of all costs and expenses, including the costs and expenses associated with the licensing of mortgage loan originators it employs, reasonably incurred in the administration of this division, as estimated by the commissioner, for the ensuing year and any deficit actually incurred or anticipated in the administration of the program in the year in which the assessment is made. The pro rata share shall be the proportion that a licensee’s gross income bears to the aggregate gross income of all licensees as shown by the annual financial reports to the commissioner, for the costs and expenses remaining after the amount assessed pursuant to subdivision (c).SEC. 35.SEC. 39.
Section 22107 is added to the Financial Code, to read:22107.
(a) Each finance lender, broker, or program administrator licensee shall pay to the commissioner its pro rata share of all costs and expenses, including the costs and expenses associated with the licensing of mortgage loan originators it employs, reasonably incurred in the administration of this division, as estimated by the commissioner, for the ensuing year and any deficit actually incurred or anticipated in the administration of the program in the year in which the assessment is made. The pro rata share shall be the proportion that a licensee’s gross income bears to the aggregate gross income of all licensees as shown by the annual financial reports to the commissioner, for the costs and expenses remaining after the amount assessed pursuant to subdivision (c).SEC. 36.SEC. 40.
Section 22109 of the Financial Code is amended to read:22109.
(a) Upon reasonable notice and opportunity to be heard, the commissioner may deny the application for a finance lender or broker license for any of the following reasons:SEC. 37.SEC. 41.
Section 22109 is added to the Financial Code, to read:22109.
(a) Upon reasonable notice and opportunity to be heard, the commissioner may deny the application for a finance lender, broker, or program administrator license for any of the following reasons:SEC. 38.SEC. 42.
Section 22151 of the Financial Code is amended to read:22151.
(a) A finance lender license, broker license, and the license of every mortgage loan originator employed by a lender or finance broker, along with any currently effective order of the commissioner approving a different name pursuant to Section 22155, shall be conspicuously posted in the place of business authorized by the license.SEC. 39.SEC. 43.
Section 22151 is added to the Financial Code, to read:22151.
(a) A finance lender license, broker license, program administrator license, and the license of every mortgage loan originator employed by a lender or finance broker, along with any currently effective order of the commissioner approving a different name pursuant to Section 22155, shall be conspicuously posted in the place of business authorized by the license.SEC. 40.SEC. 44.
Section 22152 of the Financial Code is amended to read:22152.
(a) A finance lender or broker licensee shall maintain only one place of business under a duplicate or original license issued pursuant to Section 22101 or 22102. The commissioner may issue more than one license to the same licensee upon compliance with all the provisions of this division governing an original issuance of a license.SEC. 41.SEC. 45.
Section 22152 is added to the Financial Code, to read:22152.
(a) A finance lender, broker, or program administrator licensee shall maintain only one place of business under a duplicate or original license issued pursuant to Section 22101 or 22102. The commissioner may issue more than one license to the same licensee upon compliance with all the provisions of this division governing an original issuance of a license.SEC. 42.SEC. 46.
Section 22153 of the Financial Code is amended to read:22153.
(a) If a finance lender or broker licensee seeks to change its place of business to a street address other than that designated in its license, the licensee shall provide notice to the commissioner at least 10 days before the change. The commissioner shall notify the licensee within 10 days if the commissioner disapproves the change, and if the commissioner does not notify the licensee of disapproval within 10 days, the change in address shall be deemed approved. The commissioner may require an applicant to submit its application to change its place of business through the Nationwide Mortgage Licensing System and Registry.SEC. 43.SEC. 47.
Section 22153 is added to the Financial Code, to read:22153.
(a) If a finance lender, broker, or program administrator licensee seeks to change its place of business to a street address other than that designated in its license, the licensee shall provide notice to the commissioner at least 10 days before the change. The commissioner shall notify the licensee within 10 days if the commissioner disapproves the change, and if the commissioner does not notify the licensee of disapproval within 10 days, the change in address shall be deemed approved. The commissioner may require an applicant to submit its application to change its place of business through the Nationwide Mortgage Licensing System and Registry.SEC. 44.SEC. 48.
Section 22154 of the Financial Code is amended to read:22154.
(a) A licensee shall not conduct the business of making loans under this division within any office, room, or place of business in which any other business is solicited or engaged in, or in association or conjunction therewith, except as is authorized in writing by the commissioner upon the commissioner’s finding that the character of the other business is such that the granting of the authority would not facilitate evasions of this division or of the rules and regulations made pursuant to this division. An authorization, once granted, remains in effect until revoked by the commissioner. The commissioner may authorize the other business through the Nationwide Mortgage Licensing System and Registry.SEC. 45.SEC. 49.
Section 22154 is added to the Financial Code, to read:22154.
(a) A licensee shall not conduct the business of making loans or administering a PACE program under this division within any office, room, or place of business in which any other business is solicited or engaged in, or in association or conjunction therewith, except as is authorized in writing by the commissioner upon the commissioner’s finding that the character of the other business is such that the granting of the authority would not facilitate evasions of this division or of the rules and regulations made pursuant to this division. An authorization, once granted, remains in effect until revoked by the commissioner. The commissioner may authorize the other business through the Nationwide Mortgage Licensing System and Registry.SEC. 46.SEC. 50.
Section 22155 of the Financial Code is amended to read:22155.
(a) A finance lender, broker, or mortgage loan originator licensee shall not transact the business licensed or make any loan provided for by this division under any other name or at any other place of business than that named in the license except pursuant to a currently effective written order of the commissioner authorizing the other name or other place of business. The commissioner’s order, while effective, shall be deemed to amend the original license issued pursuant to Section 22105 or 22109.1. Notwithstanding any provision of this section, a licensee may make any loan and engage in any other business provided for by this division, other than the business described in subdivision (b) of Section 22154, at a place other than the licensed location under either of the following conditions:SEC. 47.SEC. 51.
Section 22155 is added to the Financial Code, to read:22155.
(a) A finance lender, broker, mortgage loan originator, or program administrator licensee shall not transact the business licensed or make any loan or assessment contract provided for by this division under any other name or at any other place of business than that named in the license except pursuant to a currently effective written order of the commissioner authorizing the other name or other place of business. The commissioner’s order, while effective, shall be deemed to amend the original license issued pursuant to Section 22105 or 22109.1. Notwithstanding any provision of this section, a finance lender, broker, or mortgage loan originator licensee may make any loan and engage in any other business provided for by this division, other than the business described in subdivision (b) of Section 22154, at a place other than the licensed location under either of the following conditions:SEC. 48.SEC. 52.
Section 22156 of the Financial Code is amended to read:22156.
(a) Finance lender, broker, and mortgage loan originator licensees shall keep and use in their business, books, accounts, and records which will enable the commissioner to determine if the licensee is complying with the provisions of this division and with the rules and regulations made by the commissioner. On any loan secured by real property in which loan proceeds were disbursed to an independent escrowholder, the licensee shall retain records and documents as set forth by rules of the commissioner adopted pursuant to Section 22150. Upon request of the commissioner, licensees shall file an authorization for disclosure to the commissioner of financial records of the licensed business pursuant to Section 7473 of the Government Code.SEC. 49.SEC. 53.
Section 22156 is added to the Financial Code, to read:22156.
(a) Finance lender, broker, program administrator, and mortgage loan originator licensees shall keep and use in their business, books, accounts, and records which will enable the commissioner to determine if the licensee is complying with the provisions of this division and with the rules and regulations made by the commissioner. On any loan secured by real property in which loan proceeds were disbursed to an independent escrowholder, the licensee shall retain records and documents as set forth by rules of the commissioner adopted pursuant to Section 22150. Upon request of the commissioner, licensees shall file an authorization for disclosure to the commissioner of financial records of the licensed business pursuant to Section 7473 of the Government Code.SEC. 50.SEC. 54.
Section 22157 of the Financial Code is amended to read:22157.
(a) Finance lender, broker, and mortgage loan originator licensees shall preserve their books, accounts, and records, including cards used in the card system, if any, for at least three years after making the final entry on any loan recorded therein.SEC. 51.SEC. 55.
Section 22157 is added to the Financial Code, to read:22157.
(a) Finance lender, broker, and mortgage loan originator licensees shall preserve their books, accounts, and records, if any, for at least three years after making the final entry on any loan recorded therein.SEC. 52.SEC. 56.
Section 22159 of the Financial Code is amended to read:22159.
(a) Each finance lender and broker licensee shall file an annual report with the commissioner, on or before the 15th day of March, giving the relevant information that the commissioner reasonably requires concerning the business and operations conducted by the licensee within the state during the preceding calendar year for each licensed place of business. The individual annual reports filed pursuant to this section shall be made available to the public for inspection except, upon request in the annual report to the commissioner, the balance sheet contained in the annual report of a sole proprietor or any other nonpublicly traded person. “Nonpublicly traded person” for purposes of this section means persons with securities owned by 35 or fewer individuals. The report shall be made under oath and in the form prescribed by the commissioner.SEC. 53.SEC. 57.
Section 22159 is added to the Financial Code, to read:22159.
(a) Each finance lender, broker, and program administrator licensee shall file an annual report with the commissioner, on or before March 15th, giving the relevant information that the commissioner reasonably requires concerning the business and operations conducted by the licensee or authorized by the program administrator licensee within the state during the preceding calendar year for each licensed place of business. The individual annual reports filed pursuant to this section shall be made available to the public for inspection except, upon request in the annual report to the commissioner, the balance sheet contained in the annual report of a sole proprietor or any other nonpublicly traded person. “Nonpublicly traded person” for purposes of this section means persons with securities owned by 35 or fewer individuals. The report shall be made under oath and in the form prescribed by the commissioner.SEC. 54.SEC. 58.
Section 22161 of the Financial Code is amended to read:22161.
(a) A person subject to this division shall not do any of the following:SEC. 55.SEC. 59.
Section 22161 is added to the Financial Code, to read:22161.
(a) A person subject to this division shall not do any of the following:SEC. 56.SEC. 60.
Section 22162 of the Financial Code is amended to read:22162.
(a) A licensee shall not place an advertisement disseminated primarily in this state for a loan unless the licensee discloses in the printed text of the advertisement, or in the oral text in the case of a radio or television advertisement, the license under which the loan would be made or arranged.SEC. 57.SEC. 61.
Section 22162 is added to the Financial Code, to read:22162.
(a) A finance lender, broker, or mortgage loan originator licensee shall not place an advertisement disseminated primarily in this state for a loan unless the licensee discloses in the printed text of the advertisement, or in the oral text in the case of a radio or television advertisement, the license under which the loan would beSEC. 58.SEC. 62.
Section 22163 of the Financial Code is amended to read:22163.
(a) The commissioner may require that rates of charge, if stated by a licensee, be stated fully and clearly in the manner that the commissioner deems necessary to prevent misunderstanding by prospective borrowers.SEC. 59.SEC. 63.
Section 22163 is added to the Financial Code, to read:22163.
(a) The commissioner may require that rates of charge, if stated by a licensee, be stated fully and clearly in the manner that the commissioner deems necessary to prevent misunderstanding by prospective borrowers or property owners.SEC. 60.SEC. 64.
Section 22164 of the Financial Code is amended to read:22164.
(a) If any person engaged in the business regulated by this division refers in any advertising to rates of interest, charges, or cost of loans, the commissioner shall require that the rates, charges, or costs are stated fully and clearly in the manner that he or she deems necessary to give adequate information to prospective borrowers. If the rates or costs advertised do not apply to loans of all classes made or negotiated by the person, this fact shall be clearly indicated in the advertisement.SEC. 61.SEC. 65.
Section 22164 is added to the Financial Code, to read:22164.
(a) If any person engaged in the business regulated by this division refers in any advertising to rates of interest, charges, or cost of loans or assessment contracts, the commissioner shall require that the rates, charges, or costs are stated fully and clearly in the manner that he or she deems necessary to give adequate information to prospective borrowers or property owners. If the rates or costs advertised do not apply to loans or assessment contracts of all classes made or negotiated by the person, this fact shall be clearly indicated in the advertisement.SEC. 62.SEC. 66.
Section 22168 of the Financial Code is amended to read:22168.
(a) The commissioner may, after appropriate notice and opportunity for hearing, suspend for a period not to exceed 12 months or bar a person from any position of employment with a licensee if the commissioner finds that the person has willfully used or claimed without authority a designation or certification of special education, practice, or skill that the person has not attained, or willfully held out to the public a confusingly similar designation or certification for the purpose of misleading the public regarding his or her qualifications or experience.SEC. 63.SEC. 67.
Section 22168 is added to the Financial Code, to read:22168.
(a)(2)The commissioner may, after appropriate notice and opportunity for hearing, suspend for a period not to exceed 12 months or bar a person from engaging in business as a PACE solicitor for a program administrator licensee or as a PACE solicitor employee for a PACE solicitor if the commissioner finds that the person has willfully used or claimed without authority a designation or certification of special education, practice, or skill that the person has not attained, or willfully held out to the public a confusingly similar designation or certification for the purpose of misleading the public regarding his or her qualifications or experience.
SEC. 64.SEC. 68.
Section 22169 of the Financial Code is amended to read:22169.
(a) The commissioner may, after appropriate notice and opportunity for hearing, by order, censure or suspend for a period not exceeding 12 months, or bar a person, including a mortgage loan originator, from any position of employment with, or management or control of, any finance lender, broker, or any other person, if the commissioner finds either of the following:SEC. 65.SEC. 69.
Section 22169 is added to the Financial Code, to read:22169.
(a) The commissioner may, after appropriate notice and opportunity for hearing, by order, censure or suspend for a period not exceeding 12 months, or bar a person, including a mortgage loan originator, from any position of employment with, or management or control of, any finance lender, broker, program administrator,(b)The commissioner may, after appropriate notice and opportunity for hearing, by order, censure or suspend for a period not exceeding 12 months, or bar a PACE solicitor or PACE solicitor employee from soliciting property owners to enter into assessment contracts on behalf of any program administrator, for any reason set forth in subdivision (a).
(c)
(d)
(e)
(f)
SEC. 70.
Section 22252 is added to the Financial Code, to read:22252.
This chapter does not apply to a program administrator or a PACE solicitor.SEC. 71.
Section 22552 is added to the Financial Code, to read:22552.
This chapter does not apply to a program administrator or a PACE solicitor.SEC. 66.SEC. 72.
Chapter 3.5 (commencing with Section 22680) is added to Division 9 of the Financial Code, to read:CHAPTER 3.5. Program Administrators
(a)A program administrator shall be subject to the enforcement authority of the commissioner for any violations of this chapter to the extent those violations have been committed directly or indirectly by the program administrator or directly by a PACE solicitor that has been authorized by the program administrator to solicit property owners to enter into assessment contracts.(b)A program administrator shall not permit a PACE solicitor
to do any of the following:(1)Solicit a property owner to enter into an assessment contract with a program administrator unless the PACE solicitor and the program administrator comply with the requirements of this chapter and any rules adopted by the commissioner.(2)Engage in any act in violation of a law related to a PACE program.(3)Offer an assessment contract with terms, conditions, or disclosures that do not comply with the law.(4)Offer an assessment contract that omits terms, conditions, or disclosures required by law.22680.
(a) A program administrator shall establish and maintain a process for enrolling PACE solicitors, which shall include both of the following:
(d)A program administrator shall enroll a PACE solicitor to become authorized to solicit property owners to enter into an assessment
contract
in accordance with this
section. The program administrator shall establish and maintain a comprehensive enrollment process. That enrollment process shall include all of the following:
(1)An investigation of the background of each PACE solicitor to be authorized by the program administrator to solicit a property owner to enter into an assessment contract. A program administrator may rely on a background check conducted by the Contractors’ State License Board to comply with this paragraph.
(2)A review of readily and publicly available information regarding each PACE solicitor.
(3)An introductory training of each PACE solicitor that generally addresses the topics listed in paragraph (3) of subdivision (f). This
training shall occur before a PACE solicitor is authorized to solicit a property owner. The introductory training shall include a test that measures the PACE solicitor’s knowledge and comprehension, but shall not be subject to any minimum duration requirements.
(4)A written agreement between the program administrator and PACE solicitor that sets forth the authorization and obligations of the PACE solicitor as a condition of the PACE solicitor’s enrollment with the program administrator.
(e)A program administrator shall not enroll a PACE solicitor if the program administrator obtains information demonstrating any of the following:
(f)The program administrator shall provide each PACE solicitor with training related to the solicitation of assessment contracts in accordance with the following:
(1)A program administrator shall require each PACE solicitor that solicits property owners for assessment contracts to complete six hours of education provided by the program
administrator within three months of completing the program administrator’s enrollment process.
(2)The commissioner shall, at the time of licensure of a program administrator, approve the education described in this subdivision that will be offered by the program administrator. After the program administrator is licensed, the commissioner may approve any revisions to the education described in this subdivision during an examination, or at any time by submitting a request to the program administrator. If the commissioner so requests, the program administrator shall not provide the education until it has been approved by the commissioner.
(3)The education shall include all of the following topics:
(A)PACE programs and assessment contracts.
(B)Ethics.
(C)Fraud prevention.
(D)Consumer protection.
(E)Nondiscrimination.
(F)PACE disclosures.
(G)Senior financial abuse.
(4)The program administrator shall develop and administer a test that measures the PACE solicitor’s knowledge and comprehension in the areas of PACE programs and assessments, ethics, fraud prevention, consumer protection, fair lending, PACE disclosures, and senior financial abuse.
(g)A program administrator shall establish and implement a process for canceling the enrollment of a PACE solicitor who fails to maintain the minimum qualifications required by this section, or who violates any provision of this division.
(h)A program administrator shall establish and maintain a process to promote and evaluate compliance of PACE solicitors with the requirements of this chapter. That process shall include the following:
(1)A risk-based, commercially reasonable procedure to monitor and test the compliance of active PACE solicitors with the requirements of subdivision (b).
(2)A procedure to regularly monitor the status or license or registration
of PACE solicitors licensed by or registered with the Contractors’ State License Board.
(3)A periodic review of the solicitation activities of PACE solicitors enrolled with the program administrator that are actively engaging in solicitation activities, to be conducted at least once every two years. If a PACE solicitor is retained or owned by another PACE solicitor that is also enrolled with the program administrator, the program administrator shall not subject the PACE solicitor to a separate periodic review.
(4)A procedures manual setting forth the procedures for a PACE solicitor to follow when soliciting a property owner to enter into an assessment contract.
22681.
A program administrator shall establish and maintain a training program for PACE solicitor agents, which is acceptable to the commissioner.22681.22682.
(a) A program administrator shall, in the manner prescribed by the commissioner, notify the commissioner of each PACE solicitor and PACE solicitor agent enrolled by the program22682.22683.
A program administrator shall develop and implement policies and procedures for responding to questions and addressing complaints as soon as reasonably practicable.A violation of Chapter 29 (commencing with Section 5898.10) or Chapter 29.1 (commencing with Section 5900) of Part 3 of Division 7 of the Streets and Highways Code by a program administrator shall constitute a violation of this division.
22684.
A program administrator shall not submit, present, or otherwise approve for recordation by a public agency an assessment contract unless the following criteria are satisfied:22685.
(a) A program administrator shall derive market value using one of the following:22686.
A program administrator shall not approve for funding, and recordation by a public agency, an assessment contract unless the program administrator makes a reasonable good faith determination that the property owner has a reasonable ability to pay the annual payment obligations for the PACE assessment.22687.
(a) A program administrator shall determine, prior to funding, and recordation by a public agency of the assessment contract that the property owner has a reasonable ability to pay the annual payment obligations for the PACE assessment based on the property owner income, assets, and current debt obligations. The determination process shall be based on the following factors:22688.
A program administrator shall comply with requirements regarding the duty to safeguard nonpublic personal information imposed by the California Financial Information Privacy Act (Division 1.4 (commencing with Section 4050)).22689.
(a) A program administrator shall not permit a PACE solicitor to do any of the following:22690.
(a) A program administrator is subject to an inspection, examination, or investigation in accordance with Section 22701.22691.
The commissioner may by such rules as he or she deems necessary or appropriate in the public interest or for the protection of property owners, either unconditionally or upon specified terms and conditions or for specified periods, exempt any class of persons specified in such rules from the provisions of Section 22680, Section 22681, and Section 22682.22692.
This chapter does not apply to a finance lender, mortgage loan originator, or broker licensee.22684.22693.
(a) A violation of this chapter by any person is not subject to the criminal penalties established pursuant to Sections 22753 and 22780.This
22694.
Except as provided in Sections 22684, 22685, 22686, 22687, 22693, this chapter shall become operative on January 1, 2019.SEC. 67.SEC. 73.
Section 22700 of the Financial Code is amended to read:22700.
(a) Finance lender and broker licenses issued under this division shall remain in effect until they are surrendered, revoked, or suspended.SEC. 68.SEC. 74.
Section 22700 is added to the Financial Code, to read:22700.
(a) Finance lender, broker, and program administrator licenses issued under this division shall remain in effect until they are surrendered, revoked, or suspended.SEC. 69.SEC. 75.
Section 22701 of the Financial Code is amended to read:22701.
(a) For the purpose of discovering violations of this division or securing information required by him or her in the administration and enforcement of this division, the commissioner may at any time investigate the loans and business, and examine the books, accounts, records, and files used in the business, of every person engaged in the business of a finance lender or broker, whether the person acts or claims to act as principal or agent, or under or without the authority of this division. For the purpose of examination, the commissioner and his or her representatives shall have free access to the offices and places of business, books, accounts, papers, records, files, safes, and vaults of all these persons.SEC. 70.SEC. 76.
Section 22701 is added to the Financial Code, to read:22701.
(a) For the purpose of discovering violations of this division or securing information required by him or her in the administration and enforcement of this division, the commissioner may at any time investigate the loans, assessment contracts, and business, and examine the books, accounts, records, and files used in the business, of every person engaged in the business of a finance lender, broker,SEC. 71.SEC. 77.
Section 22706 of the Financial Code is amended to read:22706.
(a) The commissioner may require the attendance of witnesses and examine under oath all persons whose testimony he or she requires relative to loans or business regulated by this division or to the subject matter of any examination, investigation, or hearing.SEC. 72.SEC. 78.
Section 22706 is added to the Financial Code, to read:22706.
(a) The commissioner may require the attendance of witnesses and examine under oath all persons whose testimony he or she requires relative to loans, assessment contracts, or business regulated by this division or to the subject matter of any examination, investigation, or hearing.SEC. 73.SEC. 79.
Section 22712 of the Financial Code is amended to read:22712.
(a) Whenever, in the opinion of the commissioner, any person is engaged in business as a broker or finance lender, or a mortgage loan originator, as defined in this division, without a license from the commissioner, or any licensee violates any provision of this division, any provision of an order, or any regulation adopted pursuant to this division, the commissioner may order that person or licensee to desist and to refrain from engaging in the business or further continuing that violation. If, within 30 days after the order is served, a written request for a hearing is filed and no hearing is held within 30 days thereafter, the order is rescinded. For purposes of this section, “licensee” includes a mortgage loan originator.SEC. 74.SEC. 80.
Section 22712 is added to the Financial Code, to read:22712.
(a) Whenever, in the opinion of the commissioner, any person is engaged in business as a finance lender, broker, program administrator, or a mortgage loan originator, as defined in this division, without a license from the commissioner, or any licenseeSEC. 75.SEC. 81.
Section 22714 of the Financial Code is amended to read:22714.
(a) The commissioner shall suspend or revoke any license, upon notice and reasonable opportunity to be heard, if the commissioner finds any of the following:SEC. 76.SEC. 82.
Section 22714 is added to the Financial Code, to read:22714.
(a) The commissioner shall suspend or revoke any license, upon notice and reasonable opportunity to be heard, if the commissioner finds any of the following:SEC. 77.SEC. 83.
Section 22716 of the Financial Code is amended to read:22716.
(a) The revocation, suspension, expiration, or surrender of any license does not impair or affect the obligation of any preexisting lawful contract between the licensee and any borrower.SEC. 78.SEC. 84.
Section 22716 is added to the Financial Code, to read:22716.
(a) The revocation, suspension, expiration, or surrender of any license does not impair or affect the obligation of any preexisting lawful contract between the licensee and any borrower or propertySEC. 79.SEC. 85.
Section 22753 of the Financial Code is amended to read:22753.
(a)(b)This section shall
remain in effect only until January 1, 2019, and as of that date is repealed.
(a)Except as provided in Section 22684, any person who willfully violates any provision of this division or who willfully violates any rule or order adopted pursuant to this division, shall, upon conviction, be punished by a fine of not more than ten thousand dollars ($10,000), by imprisonment in a county jail for not more than one year or pursuant to subdivision (h) of Section 1170 of the Penal Code, or by both that fine and imprisonment. However, no person may be imprisoned for the violation of any rule or order unless he or she had knowledge of the rule or order. Conviction under this section shall not preclude the commissioner from exercising the authority in Section 22713.
(b)This section shall become operative on January 1, 2019.
SEC. 86.
Section 22758 is added to the Financial Code, to read:22758.
This article does not apply to a program administrator or a PACE solicitor.SEC. 81.SEC. 87.
Section 22780 of the Financial Code is amended to read:22780.
(b)This section
shall remain in effect only until January 1, 2019, and as of that date is repealed.
(a)Except as provided in Section 22684, any person who willfully violates any provision of this division, or who willfully violates any rule or order adopted pursuant to this division, shall, upon conviction, be punished by a fine of not more than ten thousand dollars ($10,000), by imprisonment in a county jail for not more than one year or pursuant to subdivision (h) of Section 1170 of the Penal Code, or by both that fine and imprisonment. However, no person may be imprisoned for the violation of any rule or order unless he or she had knowledge of the rule or order. Conviction under this section shall not preclude the commissioner from exercising the authority provided in Section 22713.
(b)This section shall become operative on January 1, 2019.
SEC. 88.
This act does not impose any additional obligations on, nor does it expand or any way affect the authority of the Commissioner of Business Oversight over, a finance lender, mortgage loan originator, or broker licensee under the California Financing Law.This act shall become operative on January 1, 2019. However, notwithstanding the delayed operation of the act, the