Bill Text: CA AB1384 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Local educational agencies: liability for COVID-19-related injuries.

Spectrum: Moderate Partisan Bill (Democrat 13-3)

Status: (Engrossed - Dead) 2020-07-29 - From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. [AB1384 Detail]

Download: California-2019-AB1384-Amended.html

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Amended  IN  Senate  June 29, 2020

Amended  IN  Senate  May 28, 2019

Amended  IN  Assembly  March 25, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 1384

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Introduced by Assembly Member O’Donnell
(Principal coauthor: Senator Rubio)
(Coauthors: Assembly Members Boerner Horvath, Daly, Irwin, Low, Quirk-Silva, Blanca Rubio, and Smith)
(Coauthors: Senators Allen, Dodd, and Hill)

February 22, 2019

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An act to amend Section 4970 of the Financial Code, relating to lending. An act to add Article 3 (commencing with Section 32315) to Chapter 3 of Part 19 of Division 1 of Title 1 of the Education Code, relating to local educational agencies.

LEGISLATIVE COUNSEL'S DIGEST

AB 1384, as amended, O’Donnell. Consumer loans: definition. Local educational agencies: liability for COVID-19-related injuries.

Existing law establishes a system of public elementary and secondary schools in the state, and authorizes local educational agencies throughout the state to operate schools and provide instruction to pupils in kindergarten and grades 1 to 12, inclusive.

Existing law provides that no monetary liability and no cause of action arises against specified entities for certain conduct, including, except for specified damages, for a hospital for any action taken upon the recommendation of its medical staff, or against any other person or organization for any action taken, or restriction imposed, which is required to be reported, if that action or restriction is reported, as specified.

This bill would require the governing board of a local educational agency, as defined, or its designee, to establish policies and procedures for operating programs and facilities in a manner consistent with applicable federal, state, and local legal and regulatory COVID-19-related requirements and that takes into consideration COVID-19-related guidelines from federal, state, and local government entities and public health agencies. The bill would exempt a local educational agency, and its officers or employees, that meet these requirements from monetary liability and damages for injury relating to COVID-19 infection, any condition in existence because of the COVID-19 pandemic, or any act or omission by the local educational agency, its officers, or its employees in response to the COVID-19 pandemic, as provided.

By imposing new duties on local educational agencies, this bill would impose a state-mandated local program.

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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law defines and regulates consumer loans in various ways, including with reference to covered loans. Existing law defines a covered loan as a consumer loan for which the loan’s origination balance does not exceed the conforming loan limit for a single family first mortgage, as established by a specified entity, and that meets specified conditions regarding the loan’s annual percentage rate or the total points and fees payable will exceed a specified amount of the total loan. In this context, a consumer loan is defined as a consumer credit transaction secured by real property that is located in this state, improved by a one-to-four residential unit, and used, or intended to be used, as the consumer’s principal dwelling. Existing law excepts from this definition reverse mortgages, open lines of credit, as defined, bridge loans, and a consumer credit transaction secured by rental property or second homes.

This bill, for the purposes of the provisions described above, would define a “consumer credit transaction” as a loan made to, or an obligation incurred by, a natural person in which the money loaned, the property delivered, or service rendered is primarily for personal, family, or household purposes.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 The Legislature finds and declares all of the following:

(a) All of California’s public school pupils deserve and need safe and supportive school environments in which to learn.

(b) The COVID-19 pandemic has required significant changes impacting public schools throughout the state and nationwide, including the temporary closings of school facilities to limit contact and achieve social distancing.

(c) Because of the uncertainty and fluidity of the COVID-19 pandemic and response thereto, federal, state, county, and local regulations and orders and public health guidelines have changed and developed over time.

(d) Creating safe learning environments in a manner that gives due consideration to current COVID-19 regulations, orders, and guidelines is critical for our state and its residents.

(e) Subjecting public schools to costly litigation and liability exposure by reopening and operating during the COVID-19 pandemic would divert scarce public resources from providing pupils with educational instruction, meals, and other essential resources.

SEC. 2.

 Article 3 (commencing with Section 32315) is added to Chapter 3 of Part 19 of Division 1 of Title 1 of the Education Code, to read:

Article  3. Liability for COVID-19-Related Injuries

32315.

 (a) As used in this section, the following definitions apply:

(1) “COVID-19 pandemic” means the outbreak and spread of a respiratory illness that is commonly referred to as COVID-19, and that is the subject of Governor Gavin Newsom’s Proclamation of a State of Emergency on March 4, 2020, for as long as the state of emergency remains in effect, or for the duration of any subsequent state of emergency relating to COVID-19 that is proclaimed.

(2) “Local educational agency” means a school district, a county office of education, a school operated by a school district or a county office of education, a charter school, the California Schools for the Deaf, or the California School for the Blind.

(b) During the COVID-19 pandemic, a governing board of a local educational agency, or its designee, shall establish policies and procedures for operating programs and facilities in a manner consistent with applicable federal, state, and local legal and regulatory COVID-19-related requirements and that takes into consideration COVID-19-related guidelines from federal, state, and local government entities and public health agencies.

(c) (1) There shall be no monetary liability on the part of, and no cause of action for damage shall arise against, a local educational agency, or its officers or employees, that meets the requirements of subdivision (b) for injury relating to COVID-19 infection, any condition in existence because of the COVID-19 pandemic, or any act or omission by the local educational agency, its officers, or its employees in response to the COVID-19 pandemic, including, but not limited to, claims for injury, death, emotional distress, economic loss, or violation of civil liberties, notwithstanding any law that might impose that liability, including, but not limited to, any provision contained in Division 3.6 (commencing with Section 810) of Title 1 of the Government Code, and Section 1708 of, and subdivision (a) of Section 1714 of, the Civil Code.

(2) This subdivision shall apply to a cause of action for injury alleged to have been sustained during the COVID-19 pandemic or during the 12 months following the end of any state of emergency relating to COVID-19.

(3) This subdivision shall not apply to employee claims for injuries sustained in the course and scope of employment pursuant to Division 4 (commencing with Section 3200) of the Labor Code.

SEC. 3.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SECTION 1.Section 4970 of the Financial Code is amended to read:

4970.

For purposes of this division:

(a)“Annual percentage rate” means the annual percentage rate for the loan calculated according to the provisions of the federal Truth in Lending Act and the regulations adopted thereunder by the Consumer Financial Protection Bureau.

(b)“Covered loan” means a consumer loan in which the original principal balance of the loan does not exceed the most current conforming loan limit for a single-family first mortgage loan established by the Federal National Mortgage Association in the case of a mortgage or deed of trust, and where one of the following conditions are met:

(1)For a mortgage or deed of trust, the annual percentage rate at consummation of the transaction will exceed by more than eight percentage points the yield on Treasury securities having comparable periods of maturity on the 15th day of the month immediately preceding the month in which the application for the extension of credit is received by the creditor.

(2)The total points and fees payable by the consumer at or before closing for a mortgage or deed of trust will exceed 6 percent of the total loan amount.

(c)“Points and fees” shall include the following:

(1)All items required to be disclosed as finance charges under Sections 1026.4(a) and 1026.4(b) of Title 12 of the Code of Federal Regulations, including the Official Staff Commentary, as amended from time to time, except interest.

(2)All compensation and fees paid to mortgage brokers in connection with the loan transaction.

(3)All items listed in Section 1026.4(c)(7) of Title 12 of the Code of Federal Regulations, only if the person originating the covered loan receives direct compensation in connection with the charge.

(d)“Consumer loan” means a consumer credit transaction that is secured by real property located in this state used, or intended to be used or occupied, as the principal dwelling of the consumer that is improved by a one-to-four residential unit. “Consumer loan” does not include a reverse mortgage, an open line of credit as defined in Part 1026 of Title 12 of the Code of Federal Regulations (Regulation Z), or a consumer credit transaction that is secured by rental property or second homes. “Consumer loan” does not include a bridge loan. For purposes of this division, a bridge loan is any temporary loan, having a maturity of one year or less, for the purpose of acquisition or construction of a dwelling intended to become the consumer’s principal dwelling.

(e)“Consumer credit transaction” means a loan made to, or an obligation incurred by, a natural person in which the money loaned, the property delivered, or service rendered under the loan or obligation is primarily for personal, family, or household purposes.

(f)“Original principal balance” means the total initial amount the consumer is obligated to repay on the loan.

(g)“Licensing agency” shall mean the Bureau of Real Estate for licensed real estate brokers, the Department of Business Oversight for licensed residential mortgage lenders, licensed finance lenders and brokers, and the commercial and industrial banks and savings associations and credit unions organized in this state.

(h)“Licensed person” means a real estate broker licensed under the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code), a finance lender or broker licensed under the California Finance Lenders Law (Division 9 (commencing with Section 22000)), a residential mortgage lender licensed under the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000)), a commercial or industrial bank organized under the Banking Law (Division 1.1 (commencing with Section 1000)), a savings association organized under the Savings Association Law (Division 2 (commencing with Section 5000)), and a credit union organized under the California Credit Union Law (Division 5 (commencing with Section 14000)). This division shall not be construed to prevent any enforcement by a governmental entity against any person who originates a loan and who is exempt or excluded from licensure by all of the licensing agencies, based on a violation of any provision of this division. This division shall not be construed to prevent the Bureau of Real Estate from enforcing this division against a licensed salesperson employed by a licensed real estate broker as if that salesperson were a licensed person under this division. A licensed person includes any person engaged in the practice of consumer lending, as defined in this division, for which a license is required under any other provision of law, but whose license is invalid, suspended or revoked, or where no license has been obtained.

(i)“Originate” means to arrange, negotiate, or make a consumer loan.

(j)“Servicer” has the same meaning provided in Section 6 (i)(2) of the Real Estate Settlement Procedures Act of 1974.