Bill Text: CA SB1087 | 2017-2018 | Regular Session | Amended
Bill Title: PACE program: program administrators.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2018-09-27 - Chaptered by Secretary of State. Chapter 798, Statutes of 2018. [SB1087 Detail]
Download: California-2017-SB1087-Amended.html
Amended
IN
Assembly
August 20, 2018 |
Amended
IN
Assembly
June 12, 2018 |
Amended
IN
Senate
May 25, 2018 |
Senate Bill | No. 1087 |
Introduced by Senator Roth |
February 12, 2018 |
LEGISLATIVE COUNSEL'S DIGEST
(5)The CFL, beginning January 1, 2019, requires a program administrator to prohibit a PACE solicitor or PACE solicitor agent from engaging in specified acts, including violations of specified statutes concerning home improvement contracts. The CFL provides that a program administrator is subject to the enforcement authority of the commissioner for a violation of specified laws by a PACE solicitor or PACE solicitor agent.
This bill would
provide that each PACE solicitor or PACE solicitor agent would be subject to the enforcement authority of the commissioner for any violations of specified statutes, except if 2 requirements are met.
(6)
(7)
(8)
(9)
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 22105 of the Financial Code, as added by Section22105.
(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 or program administration 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. 2.
Section 22680 of the Financial Code is amended to read:22680.
(a) A program administrator shall establish and maintain a process for enrolling PACE solicitors. That process shall include both of the following:SEC. 3.
Section 22681 of the Financial Code is amended to read:22681.
A program administrator shall establish and maintain a training program for PACE solicitor agents that is acceptable to the commissioner.SEC. 4.
Section 22682 of the Financial Code is amended to read:22682.
(a) A program administrator shall, in the manner prescribed by the commissioner, timely notify the commissioner of each PACE solicitor and PACE solicitor agent enrolled by the program administrator.SEC. 5.
Section 22684 of the Financial Code is amended to read: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:SEC. 6.
Section 22685 of the Financial Code is amended to read:22685.
(a) A program administrator shall derive market value using one of the following:(3)For paragraph (2), program administrators shall conform to the requirements of Section 1639e
of Title 15 of the United States Code, regarding appraisal independence requirements. A program administrator shall not use an appraisal provided by a property owner to satisfy the requirements of paragraph (2).
SEC. 7.
Section 22687 of the Financial Code is amended to read: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:SEC. 8.
Section 22688 of the Financial Code is amended to read:22688.
A program administrator shall be subject to all provisions of the California Financial Information Privacy Act (Division 1.4 (commencing with Section 4050)) that are applicable to financial institutions.SEC. 9.
Section 22689 of the Financial Code is amended to read:22689.
(a) A program administrator shall not permit a PACE solicitor to do any of the following:(d)Each PACE solicitor and PACE solicitor agent shall be subject to the enforcement authority of the commissioner for any violation of any provision of this division, Section 5898.16 or 5898.17 of the Streets and Highways Code, or Chapter 29.1 (commencing with Section 5900) of Part 3 of Division 7 of the Streets and Highways Code, if such provision, by its terms, applies to a PACE solicitor or PACE solicitor agent.
(e)Notwithstanding subdivision (d), no PACE solicitor or
PACE solicitor agent shall be subject to the enforcement authority of the commissioner for a violation of a provision of this division if either of the following are met:
(1)Such provision, by its terms, applies to a program administrator.
(2)Such violation constitutes a violation of the Contractors’ State License Law Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code and any regulations,
rules, or orders thereunder.
SEC. 10.
Section 22690 of the Financial Code is amended to read:22690.
(a) A program administrator is subject to an inspection, examination, or investigation in accordance with Section 22701.(E)The commissioner shall make publicly available the identity of any PACE solicitor or PACE solicitor agent, or both, who has agreed to, or been required to, discontinue engaging in the business of soliciting property owners to enter into assessment contracts, in accordance with Section 22690.5.
(F)