California 2015-2016 Regular Session Status: Enacted

SB 197 — Finance lenders: commercial loan: referral.

Last action — Chaptered by Secretary of State. Chapter 761, Statutes of 2015.

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

This bill has been enacted into law. Introduced February 10, 2015. Enacted.

Prognosis

Likely to advance 70% · 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.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 7 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

Existing law, the California Finance Lenders Law, provides for the licensure and regulation of finance lenders by the Commissioner of Business Oversight. Existing law makes a willful violation of the law by any person a crime. Existing law defines a finance lender as any person who is engaged in the business of making consumer loans or commercial loans. Existing law defines a commercial loan as a loan of a principal amount of $5,000 or more, or any loan under an open-end credit program, whether secured by either real or personal property, or both, or unsecured, the proceeds of which are intended by the borrower for use primarily for purposes other than personal, family, or household. This bill would authorize a licensed finance lender to compensate an unlicensed person in connection with the referral, as defined, of one or more prospective borrowers to the licensee for a commercial loan if certain requirements are met. These requirements would include, among other things, that the referral leads to the consummation of a commercial loan, the loan contract provides for an annual percentage rate that does not exceed a certain percentage, the licensed finance lender obtains documentation from the prospective borrower documenting the borrower's commercial status, and that the licensee maintains records of compensation paid to an unlicensed person, as specified. The bill would make a licensee paying compensation to an unlicensed person in connection with a referral liable for any misrepresentation made to a borrower in connection with that loan made to that borrower by that licensee. The bill would authorize the commissioner to adopt regulations imposing conditions on this referral activity, as specified. The bill would also require a licensed finance lender who receives an application for a commercial loan from a prospective borrower who has been referred by an unlicensed person to provide a specified statement to the borrower regarding the referral arrangement. The bill would prohibit any person receiving compensation in connection with a referral that leads to the consummation of a commercial loan from engaging in specified acts and would authorize the commissioner to order this person to desist and refrain from engaging in the business or further violating those provisions governing such referral. By creating new requirements, the willful violation of which would be 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.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 761, Statutes of 2015.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 10:45 p.m.

  4. Assembly amendments concurred in. (Ayes 39. Noes 0. Page 2659.) Ordered to engrossing and enrolling.

  5. From committee: That the Assembly amendments be concurred in. (Ayes 7. Noes 0.)

  6. Set for hearing September 8.

  7. From committee: Be re-referred to Com. on B. & F.I. pursuant to Senate Rule 29.10(d). (Ayes 5. Noes 0. Page 2442.) Re-referred to Com. on B. & F.I.

  8. Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(d).

  9. In Senate. Concurrence in Assembly amendments pending.

  10. Read third time. Passed. (Ayes 78. Noes 0. Page 2786.) Ordered to the Senate.

  11. Read second time. Ordered to third reading.

  12. Read second time and amended. Ordered to second reading.

  13. From committee: Do pass as amended. (Ayes 10. Noes 0.) (August 27).

  14. Re-referred to Com. on B. & F. pursuant to Assembly Rule 77.2.

  15. Ordered to third reading.

  16. Read third time and amended.

  17. Ordered to third reading.

  18. From consent calendar on motion of Assembly Member Holden.

  19. Read second time. Ordered to consent calendar.

  20. From committee: Do pass. Ordered to consent calendar. (Ayes 16. Noes 0.) (July 15).

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

  22. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (June 22).

  23. From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.

  24. Referred to Com. on B. & F.

  25. In Assembly. Read first time. Held at Desk.

  26. Read third time. Passed. (Ayes 36. Noes 0. Page 1020.) Ordered to the Assembly.

  27. Read second time. Ordered to third reading.

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

  29. Set for hearing May 11.

  30. From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0. Page 813.) (April 29). Re-referred to Com. on APPR.

  31. From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.

  32. Set for hearing April 29.

  33. Referred to Com. on B. & F.I.

  34. From printer. May be acted upon on or after March 13.

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

Sponsors

  • Block · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Block

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"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

Unfinished Business SB197 Block Concurrence

Passed 39 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 36001
Democratic 3000
Total 39001
% of votes cast 98%0%0%3%
How each member voted (40)
Member Party Vote
Anderson — Yea
Hueso — Yea
Leno — Yea
Mendoza — Yea
Monning — Yea
Roth — Yea
Cannella — Yea
Galgiani — Yea
Allen — Yea
Hall — Yea
De León — Yea
Runner — Yea
Hancock — Yea
Mitchell — Not Voting
Hernandez — Yea
Hertzberg — Yea
Bates — Yea
Beall — Yea
Block — Yea
Hill — Yea
Huff — Yea
Lara — Yea
Leyva — Yea
Liu — Yea
Moorlach — Yea
Morrell — Yea
Nielsen — Yea
Pan — Yea
Pavley — Yea
Vidak — Yea
Wieckowski — Yea
Wolk — Yea
Fuller — Yea
Glazer — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Mark Stone — Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Yea

Official roll call →

SB 197 Block Senate Third Reading By DABABNEH

Passed 78 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 69002
Democratic 4000
Republican 5000
Total 78002
% of votes cast 98%0%0%3%
How each member voted (80)
Member Party Vote
Achadjian — Yea
Alejo — Yea
Bloom — Yea
Brough — Not Voting
Brown — Yea
Levine — Yea
Mathis — Yea
Obernolte — Yea
Quirk — Yea
Thurmond — Yea
Waldron — Yea
Weber — Yea
Eggman — Yea
Cooley — Yea
Chau — Yea
Chu — Yea
Salas — Yea
Cooper — Yea
Linder — Yea
Low — Yea
Mayes — Yea
Nazarian — Yea
O'Donnell — Yea
Gatto — Yea
Burke — Yea
Harper — Not Voting
Gray — Yea
Holden — Yea
Jones-Sawyer — Yea
Atkins — Yea
Campos — Yea
Bonilla — Yea
Kim — Yea
Lopez — Yea
Chang — Yea
Maienschein — Yea
McCarty — Yea
Baker — Yea
Bigelow — Yea
Chiu — Yea
Chávez — Yea
Dababneh — Yea
Daly — Yea
Dodd — Yea
Medina — Yea
Melendez — Yea
Mullin — Yea
Ridley-Thomas — Yea
Santiago — Yea
Steinorth — Yea
Ting — Yea
Wagner — Yea
Wood — Yea
Olsen — Yea
Perea — Yea
Rendon — Yea
Rodriguez — Yea
Wilk — Yea
Williams — Yea
Frazier — Yea
Gomez — Yea
Gordon — Yea
Hadley — Yea
Beth Gaines — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
Travis Allen — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Irwin, Jacqui Democratic Yea
Dahle, Megan Republican Yea
Gallagher, James Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass as amended.

Passed 10 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 10002
Total 10002
% of votes cast 83%0%0%17%
How each member voted (12)
Member Party Vote
Achadjian — Yea
Brown — Yea
Ridley-Thomas — Yea
Gatto — Yea
Chau — Yea
Hadley — Yea
Dababneh — Yea
Kim — Yea
Low — Not Voting
Perea — Yea
Mark Stone — Yea
Travis Allen — Not Voting

Official roll call →

Do pass. To Consent Calendar.

Passed 16 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 12001
Democratic 2000
Republican 2000
Total 16001
% of votes cast 94%0%0%6%
How each member voted (17)
Member Party Vote
Bloom — Yea
Holden — Not Voting
Wood — Yea
Eggman — Yea
Bigelow — Yea
Quirk — Yea
Rendon — Yea
Wagner — Yea
Weber — Yea
Chang — Yea
Daly — Yea
Gomez — Yea
Eduardo Garcia — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gallagher, James Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

3rd Reading

Passed 36 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 33003
Democratic 3000
Total 36003
% of votes cast 92%0%0%8%
How each member voted (39)
Member Party Vote
Anderson — Yea
Bates — Yea
Huff — Yea
Leyva — Yea
Liu — Yea
Monning — Yea
Nielsen — Yea
Hill — Yea
Cannella — Yea
Allen — Yea
Mitchell — Yea
Pan — Yea
De León — Yea
Runner — Yea
Hall — Not Voting
Hancock — Yea
Hernandez — Yea
Hertzberg — Yea
Beall — Yea
Block — Yea
Hueso — Yea
Lara — Yea
Leno — Yea
Mendoza — Yea
Moorlach — Yea
Morrell — Yea
Pavley — Not Voting
Roth — Yea
Vidak — Yea
Wieckowski — Yea
Wolk — Yea
Fuller — Yea
Galgiani — Yea
Beth Gaines — Yea
Bill Berryhill — Not Voting
Mark Stone — Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Yea

Official roll call →

Subjects

finance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 197 do?
Existing law, the California Finance Lenders Law, provides for the licensure and regulation of finance lenders by the Commissioner of Business Oversight. Existing law makes a willful violation of the law by any person a crime. Existing law defines a finance lender as any person who is engaged in the business of making consumer loans or commercial loans. Existing law defines a commercial loan as a loan of a principal amount of $5,000 or more, or any loan under an open-end credit program, whether secured by either real or personal property, or both, or unsecured, the proceeds of which are intended by the borrower for use primarily for purposes other than personal, family, or household. This bill would authorize a licensed finance lender to compensate an unlicensed person in connection with the referral, as defined, of one or more prospective borrowers to the licensee for a commercial loan if certain requirements are met. These requirements would include, among other things, that the referral leads to the consummation of a commercial loan, the loan contract provides for an annual percentage rate that does not exceed a certain percentage, the licensed finance lender obtains documentation from the prospective borrower documenting the borrower's commercial status, and that the licensee maintains records of compensation paid to an unlicensed person, as specified. The bill would make a licensee paying compensation to an unlicensed person in connection with a referral liable for any misrepresentation made to a borrower in connection with that loan made to that borrower by that licensee. The bill would authorize the commissioner to adopt regulations imposing conditions on this referral activity, as specified. The bill would also require a licensed finance lender who receives an application for a commercial loan from a prospective borrower who has been referred by an unlicensed person to provide a specified statement to the borrower regarding the referral arrangement. The bill would prohibit any person receiving compensation in connection with a referral that leads to the consummation of a commercial loan from engaging in specified acts and would authorize the commissioner to order this person to desist and refrain from engaging in the business or further violating those provisions governing such referral. By creating new requirements, the willful violation of which would be 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.
Who sponsors SB 197?
SB 197 is sponsored by Block.
What is the current status of SB 197?
This bill has been enacted into law. Introduced February 10, 2015. Enacted.
Where can I track SB 197?
Track SB 197 free on One Click Politics — get push/email alerts when it moves.

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