Bill Text: CA SB472 | 2019-2020 | Regular Session | Amended
Bill Title: Wage-based, work-based, and income-based advances.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2019-09-06 - Re-referred to Com. on B. & F. pursuant to Assembly Rule 77.2. [SB472 Detail]
Download: California-2019-SB472-Amended.html
Amended
IN
Assembly
September 06, 2019 |
Amended
IN
Assembly
September 03, 2019 |
Amended
IN
Assembly
August 15, 2019 |
Amended
IN
Assembly
August 13, 2019 |
Amended
IN
Senate
May 07, 2019 |
Amended
IN
Senate
April 11, 2019 |
Amended
IN
Senate
March 27, 2019 |
Introduced by Senator Caballero |
February 21, 2019 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
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. 2.
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. 3.
Section 22007 of the Financial Code is amended to read:22007.
(a) “Licensee” means any finance lender, broker, provider, or program administrator who receives a license in accordance with this division.SEC. 4.
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. 5.
Section 22018.5 is added to the Financial Code, to read:22018.5.
(a) “Provider” has the same meaning as defined in Section 22481, unless the context clearly indicates otherwise.SEC. 6.
Section 22100.3 is added to the Financial Code, to read:22100.3.
(a) A person shall not engage in the business of a provider without first obtaining a license to do so from the commissioner.SEC. 7.
Section 22101 of the Financial Code is amended to read:22101.
(a) An application for a license as a finance lender, broker, program administrator, or provider 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. 8.
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. 9.
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, broker, program administrator, or provider 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 the person’s own recognizance pending trial or appeal.SEC. 10.
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 the person’s own recognizance pending trial or appeal.SEC. 11.
Section 22102 of the Financial Code is amended to read:22102.
(a) A finance lender, broker, program administrator, or provider 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 Multistate Licensing System and Registry.SEC. 12.
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 Multistate Licensing System and Registry.SEC. 13.
Section 22103 of the Financial Code is amended to read:22103.
(a) At the time of filing the application for a finance lender, broker, program administrator, provider, 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. 14.
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. 15.
Section 22104.5 is added to the Financial Code, to read:22104.5.
(a) An applicant for a provider license shall file with its application the following:SEC. 16.
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 licensable activities under this division, 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 licensable activities under this division. 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 licensable activities 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. 17.
Section 22105.2 of the Financial Code is amended to read:22105.2.
(a) The commissioner is authorized to establish relationships or contracts with the NationwideSEC. 17.SEC. 18.
Section 22106 of the Financial Code is amended to read:22106.
(a) The finance lender, broker, program administrator, or provider 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 a license, which may be in an electronic format, 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, program administrator, or provider.SEC. 18.SEC. 19.
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. 19.SEC. 20.
Section 22107 of the Financial Code is amended to read:22107.
(a) Each finance lender, broker, program administrator, or provider 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. 20.SEC. 21.
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. 21.SEC. 22.
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, broker, program administrator, or provider license for any of the following reasons:SEC. 22.SEC. 23.
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. 23.SEC. 24.
Section 22112.5 is added to the Financial Code, to read:A provider shall at all times comply with all of the following:
(a)Maintain a minimum net worth, excluding assets that exist to satisfy the requirements of subdivision (b), (c), or (d) of at least two hundred fifty thousand dollars ($250,000) as determined by generally accepted accounting standards.
(b)Comply with one of the following:
(1)Maintain a fidelity bond or bonds in an amount not less than one-sixth of the total wage-based and work-based advances that it made in the final six calendar months of the immediately preceding calendar year, rounded to the
nearest ten thousand dollars ($10,000), or two hundred fifty thousand dollars ($250,000), whichever is greater, executed by an insurer authorized to do business in this state or an eligible surplus line insurer pursuant to Section 1765.1 of the Insurance Code. Upon the request of a provider, the commissioner may reduce the amount of the fidelity bond required by this paragraph upon a finding that the greater amount required by this subdivision is not necessary for the protection of worker payroll funds.
(2)Deposit an amount of cash or securities or irrevocable letters of credit in an amount not less than one-sixth of the total wage-based and work-based advances that it made in the final six calendar months of the immediately preceding calendar year, rounded to the nearest ten thousand dollars ($10,000), or two hundred fifty thousand
dollars ($250,000), whichever is greater, in an insured escrow account at a depository institution of the provider’s choice. Interest on the amount described in this paragraph shall accrue to the provider. Funds placed on deposit pursuant to this paragraph may be withdrawn pursuant only to a court order, an order of the commissioner, or as otherwise specified by the commissioner by rule.
(c)A provider that has custody of worker payroll funds through a custodial account or otherwise shall maintain a fidelity bond or bonds in an amount of not less than one-sixth of the average amount of worker payroll funds received monthly in a custodial account during the final six months of the immediately preceding calendar year, rounded to the nearest ten thousand dollars ($10,000), or the amount specified in paragraph (1) of subdivision (b),
whichever is greater. Upon the request of a provider, the commissioner may reduce the amount of the fidelity bond required by this subdivision upon a finding that the greater amount required by this subdivision is not necessary for the protection of worker payroll funds.
(d)Comply with one of the following:
(1)Maintain a policy of errors and omissions insurance in an amount not less than one-sixth of the total wage-based and work-based advances that it made in the final six calendar months of the immediately preceding calendar year, rounded to the nearest ten thousand dollars ($10,000), or two hundred fifty thousand dollars ($250,000), whichever is greater, executed by an insurer authorized to do business in this state or an eligible surplus line insurer pursuant to Section
1765.1 of the Insurance Code. Upon the request of a provider, the commissioner may reduce the amount of the fidelity bond required by this subdivision upon a finding that the greater amount required by this subdivision is not necessary for the protection of worker payroll funds.
(2)Deposit an amount of cash or securities or irrevocable letters of credit in an amount not less than one-sixth of the total wage-based and work-based advances that it made in the final six calendar months of the immediately preceding calendar year, rounded to the nearest ten thousand dollars ($10,000), or two hundred fifty thousand dollars ($250,000), whichever is greater, in an insured escrow account at a depository institution of the provider’s choice. Interest on the amount described in this paragraph shall accrue to the provider. Funds placed on deposit pursuant
to this paragraph may be withdrawn pursuant only to a court order, an order of the commissioner, or as otherwise specified by the commissioner by rule.
(e)The requirements of subdivisions (a) to (d), inclusive, are independent of one another, and an action taken to satisfy one of those subdivisions shall not be construed to satisfy the requirements of any other requirement of this section.
(f)In an application for licensure, and in the annual report described in Section 22486, a person who engages in business as a provider shall submit proof satisfactory to the commissioner that the person is satisfying the requirements of subdivisions (a) to (d), inclusive.
(g)(1)
22112.5.
(a) Except as provided in(2)
(h)A person claiming to have sustained damage from a provider’s violation of this division may file a claim on the bonds, deposits, or letters of credit described in this section to recover the damages subject to the terms and conditions of the bonds, deposits, or letters of credit.
(i)
SEC. 24.SEC. 25.
Section 22151 of the Financial Code is amended to read:22151.
(a) A finance lender license, broker license, program administrator license, provider 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. In the alternative, the commissioner may authorize a licensee that does not routinely conduct business at a physical location to post its license in another location, including, but not limited to, its internet website or within an application downloaded to a mobile or other electronic device.SEC. 25.SEC. 26.
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. 26.SEC. 27.
Section 22152 of the Financial Code is amended to read:22152.
(a) A finance lender, broker, program administrator, or provider 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. 27.SEC. 28.
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. 28.SEC. 29.
Section 22153 of the Financial Code is amended to read:22153.
(a) If a finance lender, broker, program administrator, or provider 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 Multistate Licensing System and Registry.SEC. 29.SEC. 30.
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 Multistate Licensing System and Registry.SEC. 30.SEC. 31.
Section 22154 of the Financial Code is amended to read:22154.
(a) A licensee shall not conduct the business licensed 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 Multistate Licensing System and Registry.SEC. 31.SEC. 32.
Section 22155 of the Financial Code is amended to read:22155.
(a) A finance lender, broker, mortgage loan originator, program administrator, or provider licensee shall not transact the business licensed under 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, program administrator, broker, provider or mortgage loan originator licensee may transact the business licensed under 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. 32.SEC. 33.
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 administer any PACE program 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, program administrator, 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. 33.SEC. 34.
Section 22156 of the Financial Code is amended to read:22156.
(a) Finance lender, broker, program administrator, provider, 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. 34.SEC. 35.
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. 35.SEC. 36.
Section 22157 of the Financial Code is amended to read:22157.
(a) Finance lender, broker, provider, 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 licensable transaction recorded therein.SEC. 36.SEC. 37.
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. 37.SEC. 38.
Section 22159 of the Financial Code is amended to read:22159.
(a) Each finance lender, broker, provider, 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. 38.SEC. 39.
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. 39.SEC. 40.
Section 22161 of the Financial Code is amended to read:22161.
A person subject to this division shall not do any of the following:SEC. 40.SEC. 41.
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. 41.SEC. 42.
Section 22162 of the Financial Code is amended to read:22162.
(a) ASEC. 42.SEC. 43.
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, workers, or property owners.SEC. 43.SEC. 44.
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. 44.SEC. 45.
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, orSEC. 45.SEC. 46.
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, orSEC. 46.SEC. 47.
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 the person’s qualifications or experience.SEC. 47.SEC. 48.
Section 22168 is added to the Financial Code, 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 the person’s qualifications or experience.SEC. 48.SEC. 49.
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, program administrator, provider, or any other person, if the commissioner finds either of the following:SEC. 49.SEC. 50.
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, or any other person, if the commissioner finds either of the following:SEC. 50.SEC. 51.
Chapter 2.5 (commencing with Section 22480) is added to Division 9 of the Financial Code, to read:
CHAPTER
2.5. Wage-Based and Work-Based Wage-Based, Work-Based, and Income-Based Advances
22480.
(a) It is the intent of the Legislature that this22481.
For purposes of this chapter, the following definitions shall apply:(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
22482.
(a) Division 1.2 (commencing with Section 2000) and Division 10 (commencing with Section 23000) shall not apply to providing a licensed provider making a wage-based advance or a work-based advance to a22483.
A provider shall comply with all of the following requirements:(2)
(3)A worker shall not be held liable for a failed repayment of a wage-based or work-based advance if the obligor fails to meet its payroll obligation to the provider or to the worker.
(2)For purposes of complying with paragraph (1), a provider shall not rely only on the amount of wages or compensation previously paid to the worker by an obligor,
representations made by the worker, or a combination of these methods.
22484.
(a) A provider may offer wage-based or work-based advances through any of the following:(B)The contract between a provider and obligor may allow the provider to offer services separate from wage-based or work-based advances and to charge workers separately for those services. The obligor shall not profit from the charges to workers for those services. A provider shall not condition the availability of a wage-based or work-based advance on a worker’s willingness to purchase a separate service.
(C)
(D)A provider may contract with a worker to provide services that are separate from and unrelated to wage-based or work-based advances and may charge separately for those separate and unrelated services. However, a provider shall not condition the availability of a wage-based or work-based advance on a worker’s willingness to purchase a separate or unrelated service.
(E)
(F)
(b)
(c)
22484.5.
(a) A provider may offer income-based advances through a contractual arrangement with a consumer that permits the provider to be repaid directly by the consumer via a means mutually acceptable to the consumer and provider. All of the following conditions shall apply to a contractual arrangement described in this subdivision:22485.
(a) A provider shall develop and implement policies and procedures to(3)For purposes of this subdivision, “receipt of a complaint from a worker” includes receiving a review from a worker that is linked to the provider’s mobile application on a mobile application platform, including, but not limited to, a platform offered by an online or mobile device-accessible application store or comparable medium of which the provider should reasonably be aware.
22486.
A provider’s annual report submitted to comply with Section 22159 shall include the following information related to(a)
(b)
(c)
(d)The total number of workers served.
(e)The average and standard deviation of the number of wage-based or work-based advances per worker.
(f)
(g)
(h)
(i)
(j)The total dollar amount of payments received from workers.
(k)
(l)
(m)
(n)