Bill Text: CA SB976 | 2011-2012 | Regular Session | Amended

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

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Bill Title: Finance lenders: exemptions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-14 - Chaptered by Secretary of State. Chapter 328, Statutes of 2012. [SB976 Detail]

Download: California-2011-SB976-Amended.html

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BILL NUMBER: SB 976	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 5, 2012
	AMENDED IN SENATE  APRIL 12, 2012

INTRODUCED BY   Senator Vargas

                        JANUARY 19, 2012

   An act to amend Section 22050 of the Financial Code, relating to
finance lenders.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 976, as amended, Vargas. Finance lenders: exemptions.
   Existing law, the California Finance Lenders Law, provides for the
licensure and regulation of finance lenders and brokers by the
Department of Financial Institutions. Existing law exempts specified
entities from the provisions of the California Finance Lenders Law.
   This bill would add  certified development companies
  community advantage lenders  , as defined, to the
list of entities exempted from the provisions of this law.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 22050 of the Financial Code is amended to read:

   22050.  (a) This division does not apply to any person doing
business under any law of any state or of the United States relating
to banks, trust companies, savings and loan associations, insurance
premium finance agencies, credit unions, small business investment
companies,  certified development companies  
community advantage lenders  , California business and
industrial development corporations, or licensed pawnbrokers.

   "Certified development company" means a development company
participating in the program under Title V of the federal Small
Business Investment Act of 1958 (15 U.S.C. Sec. 695 et seq.).
 
   "Community advantage lender" means an entity authorized by the
United States Small Business Administration to deliver community
advantage loans. 
   (b) This division does not apply to a check casher who holds a
valid permit issued pursuant to Section 1789.37 of the Civil Code
when acting under the authority of that permit, and shall not apply
to a person holding a valid license issued pursuant to Section 23005
of the Financial Code when acting under the authority of that
license.
   (c) This division does not apply to a college or university making
a loan for the purpose of permitting a person to pursue a program or
course of study leading to a degree or certificate.
   (d) This division does not apply to a broker-dealer acting
pursuant to a certificate then in effect and issued pursuant to
Section 25211 of the Corporations Code.
   (e) This division does not apply to any person who makes no more
than one loan in a 12-month period as long as that loan is a
commercial loan as defined in Section 22502.
   (f) This division does not apply to any public corporation as
defined in Section 67510 of the Government Code, any public entity
other than the state as defined in Section 811.2 of the Government
Code, or any agency of any one or more of the foregoing, when making
any loan so long as the public corporation, public entity, or agency
of any one or more of the foregoing complies with all applicable
federal and state laws and regulations.