California 2011-2012 Regular Session Status: Enacted 1 D cosponsors

AB 278 — Mortgages and deeds of trust: foreclosure.

Last action — Chaptered by Secretary of State - Chapter 86, Statutes of 2012.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 08, 2011. Enacted.

Prognosis

Likely to advance 66% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 15 sponsors

    1 primary, 14 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Mixed recorded votes

    7 passed, 1 failed in recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

(1) Existing law, until January 1, 2013, requires a mortgagee, trustee, beneficiary, or authorized agent to contact the borrower prior to filing a notice of default to explore options for the borrower to avoid foreclosure, as specified. Existing law requires a notice of default or, in certain circumstances, a notice of sale, to include a declaration stating that the mortgagee, trustee, beneficiary, or authorized agent has contacted the borrower, or has tried with due diligence to contact the borrower, or that no contact was required for a specified reason. This bill would add mortgage servicers, as defined, to these provisions and would extend the operation of these provisions indefinitely, except that it would delete the requirement with respect to a notice of sale. The bill would, until January 1, 2018, additionally require the borrower, as defined, to be provided with specified information in writing prior to recordation of a notice of default and, in certain circumstances, within 5 business days after recordation. The bill would prohibit a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent from recording a notice of default or, until January 1, 2018, recording a notice of sale or conducting a trustee's sale while a complete first lien loan modification application is pending, under specified conditions. The bill would, until January 1, 2018, establish additional procedures to be followed regarding a first lien loan modification application, the denial of an application, and a borrower's right to appeal a denial. (2) Existing law imposes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust, including, among other things, recording a notice of default and a notice of sale. The bill would, until January 1, 2018, require a written notice to the borrower after the postponement of a foreclosure sale in order to advise the borrower of any new sale date and time, as specified. The bill would provide that an entity shall not record a notice of default or otherwise initiate the foreclosure process unless it is the holder of the beneficial interest under the deed of trust, the original or substituted trustee, or the designated agent of the holder of the beneficial interest, as specified. The bill would prohibit recordation of a notice of default or a notice of sale or the conduct of a trustee's sale if a foreclosure prevention alternative has been approved and certain conditions exist and would, until January 1, 2018, require recordation of a rescission of those notices upon execution of a permanent foreclosure prevention alternative. The bill would, until January 1, 2018, prohibit the collection of application fees and the collection of late fees while a foreclosure prevention alternative is being considered, if certain criteria are met, and would require a subsequent mortgage servicer to honor any previously approved foreclosure prevention alternative. The bill would authorize a borrower to seek an injunction and damages for violations of certain of the provisions described above, except as specified. The bill would authorize the greater of treble actual damages or $50,000 in statutory damages if a violation of certain provisions is found to be intentional or reckless or resulted from willful misconduct, as specified. The bill would authorize the awarding of attorneys' fees for prevailing borrowers, as specified. Violations of these provisions by licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate would also be violations of those respective licensing laws. Because a violation of certain of those licensing laws is a crime, the bill would impose a state-mandated local program. The bill would provide that the requirements imposed on mortgage servicers, and mortgagees, trustees, beneficiaries, and authorized agents, described above are applicable only to mortgages or deeds of trust secured by residential real property not exceeding 4 dwelling units that is owner-occupied, as defined, and, until January 1, 2018, only to those entities who conduct more than 175 foreclosure sales per year or annual reporting period, except as specified. The bill would require, upon request from a borrower who requests a foreclosure prevention alternative, a mortgage servicer who conducts more than 175 foreclosure sales per year or annual reporting period to establish a single point of contact and provide the borrower with one or more direct means of communication with the single point of contact. The bill would specify various responsibilities of the single point of contact. The bill would define single point of contact for these purposes. (3) Existing law prescribes documents that may be recorded or filed in court. This bill would require that a specified declaration, notice of default, notice of sale, deed of trust, assignment of a deed of trust, substitution of trustee, or declaration or affidavit filed in any court relative to a foreclosure proceeding or recorded by or on behalf of a mortgage servicer shall be accurate and complete and supported by competent and reliable evidence. The bill would require that before recording or filing any of those documents, a mortgage servicer shall ensure that it has reviewed competent and reliable evidence to substantiate the borrower's default and the right to foreclose, including the borrower's loan status and loan information. The bill would, until January 1, 2018, provide that any mortgage servicer that engages in multiple and repeated violations of these requirements shall be liable for a civil penalty of up to $7,500 per mortgage or deed of trust, in an action brought by specified state and local government entities, and would also authorize administrative enforcement against licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate. The bill would authorize the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate to adopt regulations applicable to persons and entities under their respective jurisdictions for purposes of the provisions described above. The bill would provide that a violation of those regulations would be enforceable only by the regulating agency. (4)   The bill would state findings and declarations of the Legislature in relation to foreclosures in the state generally, and would state the purposes of the bill. (5) 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

Action History

  1. Chaptered by Secretary of State - Chapter 86, Statutes of 2012.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 2:15 p.m.

  4. Ordered to Engrossing and Enrolling.

  5. Senate adopted Conference Committee report. (Ayes 25. Noes 13. Page 4221.)

  6. Assembly adopts Conference Committee report. (Ayes 54. Noes 26. Page 5549.).

  7. From printer.

  8. From Conference Committee: Be adopted. Assembly (Ayes 2 (Eng and Feuer). Noes 1 (Wagner)). Senate (Ayes 2 (Evans and Calderon). Noes 0.)). To print.

  9. Joint Rule 29.5(a) suspended. (Ayes 37. Noes 0. Page 3498.)

  10. In Senate:

  11. Joint Rule 29.5(a) suspended. (Ayes 72. Noes 0. Page 4808.)

  12. In Assembly:

  13. Senators Evans, Calderon, and Blakeslee appointed to Conference Committee.

  14. Senators Evans, Vargas, and Blakeslee appointed to Conference Committee.

  15. Assembly Members Eng, Feuer, and Wagner appointed to Conference Committee.

  16. Assembly refused to concur in Senate amendments. To Conference Committee. (Ayes 5. Noes 57. Page 4482.)

  17. In Assembly. Concurrence in Senate amendments pending. May be considered on or after April 21 pursuant to Assembly Rule 77.

  18. Read third time. Passed. Ordered to the Assembly. (Ayes 23. Noes 13. Page 3219.).

  19. Read second time. Ordered to third reading.

  20. Ordered to second reading.

  21. From inactive file.

  22. Ordered to inactive file at the request of Senator Price.

  23. Read second time. Ordered to third reading.

  24. Read third time and amended. Ordered to second reading.

  25. Read second time. Ordered to third reading.

  26. From committee: Be placed on second reading file pursuant to Senate Rule 28.8.

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

  28. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (June 21).

  29. Referred to Com. on B., P. & E.D.

  30. In Senate. Read first time. To Com. on RLS. for assignment.

  31. Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1505.)

  32. Read second time. Ordered to third reading.

  33. From committee: Do pass. (Ayes 17. Noes 0.) (May 18).

  34. From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (May 3). Re-referred to Com. on APPR.

  35. In committee: Hearing postponed by committee.

  36. Referred to Com. on B., P. & C.P.

  37. From printer. May be heard in committee March 11.

  38. Read first time. To print.

Sponsors

  • Lisa Calderon · Cosponsor
  • Carter · Cosponsor
  • Mitchell · Cosponsor
  • Corbett · Cosponsor
  • Davis · Cosponsor
  • DeSaulnier · Cosponsor
  • Eng · Primary
  • Evans · Cosponsor
  • Feuer · Cosponsor
  • Hancock · Cosponsor
  • Leno · Cosponsor
  • Pavley · Cosponsor
  • Skinner · Cosponsor
  • Steinberg · Cosponsor
  • V. Manuel Pérez · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 14 co-sponsors · 107 not signed on · 8 voted No

Sponsors (1)

  • Eng

Co-sponsors (14)

Not signed on (107)

107 members have not signed on to this bill.

Show all 107 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passed 25 Yea · 13 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 231202
Democratic 2000
Republican 0100
Total 251302
% of votes cast 63%33%0%5%
How each member voted (40)
Member Party Vote
Yee — Yea
Wyland — Nay
Lowenthal — Yea
De León — Yea
Negrete McLeod — Yea
Rubio — Yea
Evans — Yea
Cannella — Nay
Fuller — Nay
Hancock — Yea
Harman — Nay
Dutton — Nay
Runner — Not Voting
Huff — Nay
Anderson — Nay
Blakeslee — Nay
Kehoe — Yea
Leno — Yea
Liu — Yea
Price — Yea
Simitian — Yea
Vargas — Yea
Walters — Nay
Wolk — Yea
Wright — Yea
Alquist — Yea
Hernandez — Yea
Lieu — Yea
Pavley — Yea
Steinberg — Yea
Corbett — Yea
Emmerson — Not Voting
Correa — Yea
DeSaulnier — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
La Malfa — Nay
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

Passed 54 Yea · 26 Nay
Party YeaNayPresentNot Voting
Unaffiliated 532400
Republican 0200
Democratic 1000
Total 542600
% of votes cast 68%33%0%0%
How each member voted (80)
Member Party Vote
Gordon — Yea
Hagman — Nay
Eng — Yea
Butler — Yea
Feuer — Yea
Fuentes — Yea
Furutani — Yea
Gatto — Yea
Hill — Yea
Huber — Yea
Fong — Yea
Allen — Yea
Cedillo — Yea
Perea — Yea
Skinner — Yea
Swanson — Yea
Portantino — Yea
John A. Pérez — Yea
Mitchell — Yea
Galgiani — Yea
Fletcher — Yea
Garrick — Nay
Gorell — Nay
Campos — Yea
Bonilla — Yea
Atkins — Yea
Halderman — Nay
Hall — Yea
Hayashi — Yea
Huffman — Yea
Jeffries — Yea
Lara — Yea
Logue — Nay
Ammiano — Yea
Beall — Yea
Chesbro — Yea
Conway — Nay
Cook — Nay
Davis — Yea
Donnelly — Nay
Mendoza — Yea
Miller — Nay
Monning — Yea
Morrell — Nay
Nielsen — Nay
Norby — Nay
Pan — Yea
Silva — Nay
Solorio — Yea
Torres — Yea
Valadao — Nay
Wieckowski — Yea
Achadjian — Nay
Alejo — Yea
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Harkey — Nay
Hueso — Yea
Knight — Nay
Ma — Yea
Mansoor — Nay
Nestande — Nay
Olsen — Nay
Smyth — Nay
Wagner — Nay
Williams — Yea
Carter — Yea
Dickinson — Yea
Yamada — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
Bonnie Lowenthal — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Calderon, Lisa Democratic Yea
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay

Official roll call →

Failed 5 Yea · 57 Nay · 18 Other
Party YeaNayPresentNot Voting
Republican 0200
Unaffiliated 555017
Democratic 0001
Total 557018
% of votes cast 6%71%0%23%
How each member voted (80)
Member Party Vote
Butler — Yea
Furutani — Not Voting
Fong — Nay
Campos — Nay
Allen — Nay
Galgiani — Nay
Gatto — Nay
Gordon — Nay
Carter — Nay
Portantino — Nay
John A. Pérez — Nay
Mitchell — Nay
Gorell — Nay
Hagman — Nay
Cedillo — Not Voting
Hall — Nay
Bonilla — Nay
Atkins — Nay
Hayashi — Nay
Hill — Nay
Hueso — Nay
Huffman — Nay
Fletcher — Not Voting
Knight — Not Voting
Lara — Nay
Ammiano — Nay
Beall — Nay
Chesbro — Nay
Cook — Not Voting
Davis — Not Voting
Dickinson — Nay
Donnelly — Nay
Mendoza — Not Voting
Miller — Nay
Monning — Nay
Morrell — Nay
Nestande — Not Voting
Norby — Nay
Pan — Nay
Perea — Nay
Skinner — Nay
Smyth — Not Voting
Swanson — Nay
Torres — Nay
Wieckowski — Nay
Williams — Nay
Halderman — Not Voting
Conway — Not Voting
Nielsen — Not Voting
Achadjian — Nay
Alejo — Nay
Block — Nay
Blumenfield — Nay
Bradford — Nay
Brownley — Not Voting
Buchanan — Nay
Harkey — Nay
Huber — Nay
Jeffries — Nay
Logue — Yea
Ma — Nay
Mansoor — Nay
Olsen — Not Voting
Silva — Not Voting
Solorio — Yea
Valadao — Not Voting
Wagner — Nay
Eng — Nay
Feuer — Yea
Fuentes — Yea
Garrick — Not Voting
Yamada — Nay
Beth Gaines — Nay
Bill Berryhill — Nay
Bonnie Lowenthal — Nay
Roger Hernández — Nay
V. Manuel Pérez — Nay
Calderon, Lisa Democratic Not Voting
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay

Official roll call →

Passed 23 Yea · 13 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 211204
Democratic 2000
Republican 0100
Total 231304
% of votes cast 58%33%0%10%
How each member voted (40)
Member Party Vote
Yee — Yea
Hancock — Yea
Hernandez — Yea
Lowenthal — Yea
De León — Yea
Kehoe — Yea
Simitian — Yea
Wolk — Yea
Wright — Yea
Negrete McLeod — Yea
Rubio — Yea
Cannella — Nay
Evans — Yea
Runner — Not Voting
Fuller — Nay
Dutton — Not Voting
Huff — Nay
Anderson — Nay
Liu — Not Voting
Vargas — Yea
Walters — Nay
Alquist — Yea
Blakeslee — Nay
Harman — Nay
Leno — Yea
Lieu — Not Voting
Pavley — Yea
Price — Yea
Steinberg — Yea
Wyland — Nay
Corbett — Yea
Emmerson — Nay
Correa — Yea
DeSaulnier — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
La Malfa — Nay
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

Passed 78 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 75002
Democratic 1000
Republican 2000
Total 78002
% of votes cast 98%0%0%3%
How each member voted (80)
Member Party Vote
Gorell — Not Voting
Butler — Yea
Hagman — Yea
Hill — Yea
Hueso — Yea
Jeffries — Yea
John A. Pérez — Yea
Mitchell — Yea
Atkins — Yea
Carter — Yea
Chesbro — Yea
Dickinson — Yea
Pan — Yea
Wagner — Yea
Yamada — Yea
Feuer — Yea
Furutani — Yea
Campos — Yea
Galgiani — Yea
Gatto — Yea
Cedillo — Yea
Portantino — Yea
Gordon — Yea
Allen — Yea
Halderman — Yea
Hall — Yea
Bonilla — Yea
Hayashi — Yea
Fong — Yea
Fletcher — Yea
Conway — Yea
Huffman — Yea
Logue — Yea
Mendoza — Yea
Alejo — Yea
Beall — Yea
Block — Yea
Cook — Not Voting
Davis — Yea
Donnelly — Yea
Monning — Yea
Morrell — Yea
Nestande — Yea
Norby — Yea
Silva — Yea
Skinner — Yea
Solorio — Yea
Swanson — Yea
Valadao — Yea
Wieckowski — Yea
Achadjian — Yea
Ammiano — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Harkey — Yea
Huber — Yea
Knight — Yea
Lara — Yea
Ma — Yea
Mansoor — Yea
Miller — Yea
Nielsen — Yea
Olsen — Yea
Perea — Yea
Smyth — Yea
Torres — Yea
Williams — Yea
Eng — Yea
Fuentes — Yea
Garrick — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Bonnie Lowenthal — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Calderon, Lisa Democratic Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass.

Passed 17 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 16000
Democratic 1000
Total 17000
% of votes cast 100%0%0%0%
How each member voted (17)
Member Party Vote
Campos — Yea
Fuentes — Yea
Gatto — Yea
Hall — Yea
Harkey — Yea
Hill — Yea
Mitchell — Yea
Davis — Yea
Lara — Yea
Donnelly — Yea
Blumenfield — Yea
Bradford — Yea
Nielsen — Yea
Smyth — Yea
Solorio — Yea
Wagner — Yea
Calderon, Lisa Democratic Yea

Official roll call →

Subjects

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Frequently asked questions

What does AB 278 do?
(1) Existing law, until January 1, 2013, requires a mortgagee, trustee, beneficiary, or authorized agent to contact the borrower prior to filing a notice of default to explore options for the borrower to avoid foreclosure, as specified. Existing law requires a notice of default or, in certain circumstances, a notice of sale, to include a declaration stating that the mortgagee, trustee, beneficiary, or authorized agent has contacted the borrower, or has tried with due diligence to contact the borrower, or that no contact was required for a specified reason. This bill would add mortgage servicers, as defined, to these provisions and would extend the operation of these provisions indefinitely, except that it would delete the requirement with respect to a notice of sale. The bill would, until January 1, 2018, additionally require the borrower, as defined, to be provided with specified information in writing prior to recordation of a notice of default and, in certain circumstances, within 5 business days after recordation. The bill would prohibit a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent from recording a notice of default or, until January 1, 2018, recording a notice of sale or conducting a trustee's sale while a complete first lien loan modification application is pending, under specified conditions. The bill would, until January 1, 2018, establish additional procedures to be followed regarding a first lien loan modification application, the denial of an application, and a borrower's right to appeal a denial. (2) Existing law imposes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust, including, among other things, recording a notice of default and a notice of sale. The bill would, until January 1, 2018, require a written notice to the borrower after the postponement of a foreclosure sale in order to advise the borrower of any new sale date and time, as specified. The bill would provide that an entity shall not record a notice of default or otherwise initiate the foreclosure process unless it is the holder of the beneficial interest under the deed of trust, the original or substituted trustee, or the designated agent of the holder of the beneficial interest, as specified. The bill would prohibit recordation of a notice of default or a notice of sale or the conduct of a trustee's sale if a foreclosure prevention alternative has been approved and certain conditions exist and would, until January 1, 2018, require recordation of a rescission of those notices upon execution of a permanent foreclosure prevention alternative. The bill would, until January 1, 2018, prohibit the collection of application fees and the collection of late fees while a foreclosure prevention alternative is being considered, if certain criteria are met, and would require a subsequent mortgage servicer to honor any previously approved foreclosure prevention alternative. The bill would authorize a borrower to seek an injunction and damages for violations of certain of the provisions described above, except as specified. The bill would authorize the greater of treble actual damages or $50,000 in statutory damages if a violation of certain provisions is found to be intentional or reckless or resulted from willful misconduct, as specified. The bill would authorize the awarding of attorneys' fees for prevailing borrowers, as specified. Violations of these provisions by licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate would also be violations of those respective licensing laws. Because a violation of certain of those licensing laws is a crime, the bill would impose a state-mandated local program. The bill would provide that the requirements imposed on mortgage servicers, and mortgagees, trustees, beneficiaries, and authorized agents, described above are applicable only to mortgages or deeds of trust secured by residential real property not exceeding 4 dwelling units that is owner-occupied, as defined, and, until January 1, 2018, only to those entities who conduct more than 175 foreclosure sales per year or annual reporting period, except as specified. The bill would require, upon request from a borrower who requests a foreclosure prevention alternative, a mortgage servicer who conducts more than 175 foreclosure sales per year or annual reporting period to establish a single point of contact and provide the borrower with one or more direct means of communication with the single point of contact. The bill would specify various responsibilities of the single point of contact. The bill would define single point of contact for these purposes. (3) Existing law prescribes documents that may be recorded or filed in court. This bill would require that a specified declaration, notice of default, notice of sale, deed of trust, assignment of a deed of trust, substitution of trustee, or declaration or affidavit filed in any court relative to a foreclosure proceeding or recorded by or on behalf of a mortgage servicer shall be accurate and complete and supported by competent and reliable evidence. The bill would require that before recording or filing any of those documents, a mortgage servicer shall ensure that it has reviewed competent and reliable evidence to substantiate the borrower's default and the right to foreclose, including the borrower's loan status and loan information. The bill would, until January 1, 2018, provide that any mortgage servicer that engages in multiple and repeated violations of these requirements shall be liable for a civil penalty of up to $7,500 per mortgage or deed of trust, in an action brought by specified state and local government entities, and would also authorize administrative enforcement against licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate. The bill would authorize the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate to adopt regulations applicable to persons and entities under their respective jurisdictions for purposes of the provisions described above. The bill would provide that a violation of those regulations would be enforceable only by the regulating agency. (4)   The bill would state findings and declarations of the Legislature in relation to foreclosures in the state generally, and would state the purposes of the bill. (5) 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.
Who sponsors AB 278?
AB 278 is sponsored by Calderon, Lisa (Democratic), Carter, Mitchell, Corbett, Davis, DeSaulnier, Eng, Evans, Feuer, Hancock, Leno, Pavley, Skinner, Steinberg, and V. Manuel Pérez.
What is the current status of AB 278?
This bill has been enacted into law. Introduced February 08, 2011. Enacted.
Where can I track AB 278?
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