SB 33 — Commercial financing: disclosures.

Summary

Existing law requires a provider who extends a specific offer of commercial financing to a recipient, as defined, to disclose specified information relating to that transaction to the recipient and to obtain the recipient's signature on that disclosure before consummating the commercial financing transaction. Existing law, until January 1, 2024, requires a provider to disclose the total cost of financing expressed as an annualized rate. Existing law authorizes a provider who offers financing that is factoring or asset-based lending, in lieu of the disclosure described above, to provide an alternative disclosure that may be based on an example of a transaction that could occur under the general agreement for a given amount of accounts receivables and that meets specified requirements. Existing law, until January 1, 2024, requires that alternative disclosure to disclose the total cost of financing expressed as an annualized rate. Existing law requires the Commissioner of Financial Protection and Innovation to adopt regulations governing these disclosure requirements and requires those regulations to include specified information and determinations, including, among other things, the appropriate method to express the annualized rate and the types of fees and charges to be included in the calculation. Existing law makes providers subject to examination and enforcement by the commissioner under the California Financing Law (CFL) for any violation of these provisions or of any rule or order adopted pursuant to these provisions, as specified. The CFL authorizes the commissioner to bring an action to enjoin, as specified, against a person who, in the commissioner's estimation, has violated or is about to violate the CFL and authorizes the imposition of civil penalties to that effect. A willful violation of the CFL is a crime, except as specified. This bill would require providers to continue to include in the disclosures and alternative disclosures the total cost of financing expressed as an annualized rate, as described above, indefinitely. By expanding the scope of an existing crime with regard to willful violations of the CFL, this bill would impose a state-mandated local program. The bill would make conforming changes to the provisions describing the regulations adopted by the commissioner governing these disclosure requirements. 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.

Bill Text

• Chaptered 10/07/23 - Chaptered Current pdf October 07, 2023
• Enrolled 09/18/23 - Enrolled pdf September 18, 2023
• Amended 09/05/23 - Amended Assembly pdf September 05, 2023
• Amended 06/21/23 - Amended Assembly pdf June 21, 2023
• Introduced 12/05/22 - Introduced pdf December 05, 2022
• SB33 View text html

Action History

1. October 07, 2023

   Chaptered by Secretary of State. Chapter 376, Statutes of 2023.

2. October 07, 2023

   Approved by the Governor.

3. September 21, 2023

   Enrolled and presented to the Governor at 4 p.m.

4. September 14, 2023

   Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2840.) Ordered to engrossing and enrolling.

5. September 13, 2023

   In Senate. Concurrence in Assembly amendments pending.

6. September 13, 2023

   Read third time. Passed. (Ayes 80. Noes 0. Page 3350.) Ordered to the Senate.

7. September 05, 2023

   Ordered to third reading.

8. September 05, 2023

   Read third time and amended.

9. August 17, 2023

   Read second time. Ordered to third reading.

10. August 16, 2023

    From committee: Do pass. (Ayes 16. Noes 0.) (August 16).

11. June 21, 2023

    Read second time and amended. Re-referred to Com. on APPR.

12. June 20, 2023

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (June 20).

13. June 13, 2023

    From committee: Do pass and re-refer to Com. on JUD. (Ayes 11. Noes 0.) (June 12). Re-referred to Com. on JUD.

14. May 18, 2023

    Referred to Coms. on B. & F. and JUD.

15. May 11, 2023

    In Assembly. Read first time. Held at Desk.

16. May 11, 2023

    Read third time. Passed. (Ayes 39. Noes 0. Page 1050.) Ordered to the Assembly.

17. May 02, 2023

    Read second time. Ordered to third reading.

18. May 01, 2023

    From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

19. April 21, 2023

    Set for hearing May 1.

20. April 20, 2023

    April 24 hearing postponed by committee.

21. April 14, 2023

    Set for hearing April 24.

22. April 12, 2023

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0. Page 685.) (April 11). Re-referred to Com. on APPR.

23. April 03, 2023

    Set for hearing April 11.

24. March 29, 2023

    From committee: Do pass and re-refer to Com. on JUD. (Ayes 6. Noes 0. Page 569.) (March 29). Re-referred to Com. on JUD.

25. February 28, 2023

    Set for hearing March 29.

26. January 18, 2023

    Referred to Coms. on B. & F.I. and JUD.

27. December 06, 2022

    From printer. May be acted upon on or after January 5.

28. December 05, 2022

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

• Glazer · Primary

Votes

Subjects