Bill Text: CA SB1223 | 2009-2010 | Regular Session | Introduced

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

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Bill Title: Escrow agents.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2010-09-30 - In Senate. To unfinished business. (Veto) [SB1223 Detail]

Download: California-2009-SB1223-Introduced.html

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BILL NUMBER: SB 1223	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Calderon

                        FEBRUARY 18, 2010

   An act to add Section 17412 to the Financial Code, relating to
escrow agents.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1223, as introduced, Calderon. Escrow agents: auctions.
   Existing law, the Escrow Law, provides for the licensure and
regulation by the Commissioner of Corporations of persons engaged in
business as escrow agents, unless specifically exempted. A willful
violation of the Escrow Law constitutes a crime.
   This bill would require an escrow agent to return or cause to be
returned all deposits and fees received from a bidder in connection
with an auction sale of real property, upon receipt of escrow
instructions from the auctioneer or auction company directing the
return of all funds placed on deposit by the bidder with that agent,
as specified. Because a willful violation of that provision would
constitute a crime, the 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 no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17412 is added to the Financial Code, to read:
   17412.  An escrow agent shall return or cause to be returned all
deposits and fees received from a bidder in connection with an
auction sale of real property, upon receipt of escrow instructions
from the auctioneer or auction company directing the return of all
funds placed on deposit by the bidder with that agent. An escrow
agent may recognize an auctioneer or auction company as the agent of
the property seller for this purpose.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.