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 23, 2018 |
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
This bill would require the commissioner to, in relation to specified types of demands issued in accordance with the process described above that involve a violation of a specified provision prohibiting the making of materially false or misleading statements and related acts by a PACE solicitor or PACE solicitor agent, to release the identity of that PACE solicitor or PACE solicitor agent in response to a public records request made pursuant to the California Public Records Act. The bill would remove the provision that authorizes the commissioner to make publicly available the identity
of any PACE solicitor or PACE solicitor agent who has agreed to, or been required to, discontinue engaging in business as a consequence of an investigation. The bill would require that any order addressing unsafe or injurious behavior by a PACE solicitor or PACE solicitor agent, or both, be effective immediately, but would provide that any other order issued under this process be effective once final in accordance with certain requirements.
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 Section 32 of Chapter 475 of the Statutes of 2017, 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 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: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: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.(D)Notwithstanding paragraph (2) of subdivision (d) of Section 6254 of the Government Code, the commissioner shall, for any demand made pursuant to clause (i) or (ii) of subparagraph (C) that involves a
violation of Section 22161 by a PACE solicitor or PACE solicitor agent, release the identity of that solicitor or solicitor agent and the nature of that demand in response to a public records request made pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).
(E)If the program administrator, PACE solicitor, or PACE solicitor agent, or any combination thereof, do not agree to the commissioner’s demand issued under subparagraph (C), or otherwise reach a mutually agreeable resolution with the commissioner within a reasonable period, the commissioner may proceed under paragraph (2).
(A)
(B)
SEC. 11.
Section 22690.5 is added to the Financial Code, to read:22690.5.
(a) The department shall maintain, on its Internet Web site,(b)The department may delay the implementation of subdivision (a) if the department determines that it is unable to comply with subdivision (a) within existing resources. In that case, the department shall notify the appropriate policy and budget subcommittees of the Legislature regarding its intention to delay implementation of subdivision (a) and shall include in that notification an estimate of the resources it would require to enable it to comply with subdivision (a). The department shall post the notification described in the previous sentence on its
Internet Web site.