California 2017-2018 Regular Session Status: Passed Assembly 1 D cosponsors

AB 3010 — Financial transactions: finance lenders and deferred deposit transactions.

Last action — In committee: Set, second hearing. Hearing canceled at the request of author.

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

This bill died with 2017-2018 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(1) The California Financing Law (CFL) provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Business Oversight. The CFL prohibits anyone from engaging in the business of a finance lender or broker without obtaining a license. A willful violation of the CFL is a crime, except as specified. Under the CFL, a licensee who lends any sum of money is authorized to contract for and receive charges at a maximum rate that does not exceed specified sums on the unpaid principal balance per month, ranging from 212% to 1%, based on the consumer loan amount, as specified. The CFL also authorizes a licensee, as an alternative to these rate charges, to instead contract for and receive charges at the greater of a rate not exceeding 1.6% per month on the unpaid principal balance or a rate not exceeding 56 of 1% per month, plus a specified percentage per month, as established by the Federal Reserve Bank of San Francisco, on advances to member banks under federal law, or if there is no single determinable rate, the closest counterpart of this rate. These provisions do not apply to a loan of a bona fide principal amount of $2,500 or more, as specified. This bill would authorize a licensee under the CFL, as another alternative to the above-described rate charges, to contract for and receive charges of a note rate of interest not to exceed 36%, and a monthly servicing fee of 5% of the originally contracted amount, not to exceed $25 per month, subject to certain conditions, including a prohibition on the total loan charges, including interest and servicing fees, exceeding 50% of the original loan principal. The bill would also prohibit the total required monthly payment from exceeding the greater of 5% of the borrower's verified gross monthly income or 6% of the borrower's verified net monthly income, as specified. These provisions would not apply to certain loans of a bona fide principal amount of $2,500 or more. Additionally, active duty military personnel of the United States Armed Forces and their dependents would be exempted from any monthly maintenance fees. The bill would require a licensee engaged in lending under these provisions to comply with certain written notice, disclosure, collection, loan origination, and related requirements. Because the bill would expand the scope of a crime under the CFL, the bill would impose a state-mandated local program. (2) The California Deferred Deposit Transaction Law provides for the licensure and regulation by the Commissioner of Business Oversight of persons engaged in the business of making or arranging deferred deposit transactions. Existing law, among other things, prohibits a licensee from entering into an agreement for a deferred deposit transaction with a customer during the period of time that an earlier written agreement for a deferred deposit transaction for the same customer is in effect. A knowing and willful violation of the provisions of this law is a crime. This bill would require the commissioner, by July 1, 2019, to develop operate, and maintain an Internet Web site and common database in which a licensee would be required to, by the time period described below, record each deferred deposit transaction for the purpose of preventing violations of the California Deferred Deposit Transaction Law. The bill would require the database to meet certain requirements, including that it allow real-time access to information entered into the database via an Internet connection. The bill would, alternatively, authorize the commissioner to contract with a provider to develop, operate, or maintain the database. The bill would require, on or after July 1, 2019, a licensee to conduct a search on the database before entering into any deferred deposit transaction, and would prohibit the licensee from entering into that transaction if the database reveals the customer has any outstanding deferred deposit transactions. The bill would require the licensee to adhere to generally accepted security safeguards to maintain the confidentiality and security of information transmitted to the database. By expanding the scope of an existing crime, this bill would impose a state-mandated local program. The bill would provide that the information contained in the database is confidential and not subject to public inspection, and the database and its contents are not subject to requests under the California Public Records Act, except as specified. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. 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. In committee: Set, second hearing. Hearing canceled at the request of author.

  2. In committee: Set, first hearing. Testimony taken. Further hearing to be set.

  3. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.I.

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

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

  6. Read third time. Passed. Ordered to the Senate. (Ayes 42. Noes 29. Page 5562.)

  7. Read second time. Ordered to third reading.

  8. From committee: Do pass. (Ayes 12. Noes 4.) (May 25).

  9. In committee: Set, first hearing. Referred to APPR. suspense file.

  10. Re-referred to Com. on APPR.

  11. Read second time and amended.

  12. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (April 17).

  13. From committee: Do pass and re-refer to Com. on P. & C.P. (Ayes 6. Noes 3.) (April 16). Re-referred to Com. on P. & C.P.

  14. (pending re-referral to Com. on P.& C.P.)

  15. Assembly Rule 56 suspended. (Page 4520.)

  16. Re-referred to Com. on B. & F.

  17. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  18. Referred to Coms. on B. & F. and P. & C.P.

  19. From printer. May be heard in committee March 19.

  20. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 10 voted No

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

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"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.

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Votes

AB 3010 LIMÓN Assembly Third Reading

Passed 42 Yea · 29 Nay · 7 Other
Party YeaNayPresentNot Voting
Unaffiliated 312204
Democratic 11202
Republican 0501
Total 422907
% of votes cast 54%37%0%9%
How each member voted (78)
Member Party Vote
Acosta — Nay
Bloom — Yea
Brough — Nay
Kamlager-Dove — Yea
Mathis — Nay
Mullin — Yea
Obernolte — Nay
Santiago — Yea
Steinorth — Nay
Thurmond — Yea
Voepel — Nay
Weber — Yea
Eggman — Yea
Cooper — Not Voting
Cunningham — Nay
Daly — Not Voting
Friedman — Yea
Gloria — Yea
Frazier — Yea
Chau — Yea
Chiu — Yea
Holden — Yea
Jones-Sawyer — Yea
Gray — Yea
Gonzalez Fletcher — Yea
Chu — Yea
Low — Yea
McCarty — Yea
Medina — Yea
Nazarian — Yea
Quirk — Yea
Rendon — Yea
Rodriguez — Yea
Ting — Yea
Wood — Yea
Salas — Nay
Fong — Nay
Burke — Not Voting
Harper — Nay
Rubio — Not Voting
Kiley — Nay
Chávez — Nay
Cooley — Nay
Baker — Nay
Bigelow — Nay
Levine — Yea
Maienschein — Nay
Mayes — Nay
Melendez — Nay
O'Donnell — Nay
Waldron — Nay
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Nay
Mark Stone — Yea
Travis Allen — Nay
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Not Voting
Arambula, Joaquin Democratic Yea
Berman, Marc Democratic Yea
Bonta, Mia Democratic Yea
Caballero, Anna M. Democratic Nay
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gipson, Mike A. Democratic Not Voting
Grayson, Timothy S. Democratic Nay
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Chen, Phillip Republican Nay
Choi, Steven S. Republican Nay
Dahle, Megan Republican Nay
Flora, Heath Republican Nay
Gallagher, James Republican Not Voting
Lackey, Tom Republican Nay

Official roll call →

Do pass.

Passed 12 Yea · 4 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 9301
Democratic 3000
Republican 0100
Total 12401
% of votes cast 71%24%0%6%
How each member voted (17)
Member Party Vote
Bloom — Yea
Brough — Not Voting
Obernolte — Nay
Eggman — Yea
Gonzalez Fletcher — Yea
Friedman — Yea
Fong — Nay
Bigelow — Nay
Chau — Yea
Nazarian — Yea
Quirk — Yea
Eduardo Garcia — Yea
Wendy Carrillo — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Gallagher, James Republican Nay

Official roll call →

Do pass and be re-referred to the Committee on [Privacy and Consumer Protection]

Passed 6 Yea · 3 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 3101
Democratic 3001
Republican 0200
Total 6302
% of votes cast 55%27%0%18%
How each member voted (11)
Member Party Vote
Acosta — Nay
Weber — Yea
Burke — Not Voting
Gonzalez Fletcher — Yea
Mark Stone — Yea
Berman, Marc Democratic Yea
Calderon, Lisa Democratic Yea
Grayson, Timothy S. Democratic Not Voting
Limón, Monique Democratic Yea
Chen, Phillip Republican Nay
Choi, Steven S. Republican Nay

Official roll call →

Subjects

finance
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Frequently asked questions

What does AB 3010 do?
(1) The California Financing Law (CFL) provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Business Oversight. The CFL prohibits anyone from engaging in the business of a finance lender or broker without obtaining a license. A willful violation of the CFL is a crime, except as specified. Under the CFL, a licensee who lends any sum of money is authorized to contract for and receive charges at a maximum rate that does not exceed specified sums on the unpaid principal balance per month, ranging from 212% to 1%, based on the consumer loan amount, as specified. The CFL also authorizes a licensee, as an alternative to these rate charges, to instead contract for and receive charges at the greater of a rate not exceeding 1.6% per month on the unpaid principal balance or a rate not exceeding 56 of 1% per month, plus a specified percentage per month, as established by the Federal Reserve Bank of San Francisco, on advances to member banks under federal law, or if there is no single determinable rate, the closest counterpart of this rate. These provisions do not apply to a loan of a bona fide principal amount of $2,500 or more, as specified. This bill would authorize a licensee under the CFL, as another alternative to the above-described rate charges, to contract for and receive charges of a note rate of interest not to exceed 36%, and a monthly servicing fee of 5% of the originally contracted amount, not to exceed $25 per month, subject to certain conditions, including a prohibition on the total loan charges, including interest and servicing fees, exceeding 50% of the original loan principal. The bill would also prohibit the total required monthly payment from exceeding the greater of 5% of the borrower's verified gross monthly income or 6% of the borrower's verified net monthly income, as specified. These provisions would not apply to certain loans of a bona fide principal amount of $2,500 or more. Additionally, active duty military personnel of the United States Armed Forces and their dependents would be exempted from any monthly maintenance fees. The bill would require a licensee engaged in lending under these provisions to comply with certain written notice, disclosure, collection, loan origination, and related requirements. Because the bill would expand the scope of a crime under the CFL, the bill would impose a state-mandated local program. (2) The California Deferred Deposit Transaction Law provides for the licensure and regulation by the Commissioner of Business Oversight of persons engaged in the business of making or arranging deferred deposit transactions. Existing law, among other things, prohibits a licensee from entering into an agreement for a deferred deposit transaction with a customer during the period of time that an earlier written agreement for a deferred deposit transaction for the same customer is in effect. A knowing and willful violation of the provisions of this law is a crime. This bill would require the commissioner, by July 1, 2019, to develop operate, and maintain an Internet Web site and common database in which a licensee would be required to, by the time period described below, record each deferred deposit transaction for the purpose of preventing violations of the California Deferred Deposit Transaction Law. The bill would require the database to meet certain requirements, including that it allow real-time access to information entered into the database via an Internet connection. The bill would, alternatively, authorize the commissioner to contract with a provider to develop, operate, or maintain the database. The bill would require, on or after July 1, 2019, a licensee to conduct a search on the database before entering into any deferred deposit transaction, and would prohibit the licensee from entering into that transaction if the database reveals the customer has any outstanding deferred deposit transactions. The bill would require the licensee to adhere to generally accepted security safeguards to maintain the confidentiality and security of information transmitted to the database. By expanding the scope of an existing crime, this bill would impose a state-mandated local program. The bill would provide that the information contained in the database is confidential and not subject to public inspection, and the database and its contents are not subject to requests under the California Public Records Act, except as specified. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. 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 3010?
AB 3010 is sponsored by Limón, Monique (Democratic).
What is the current status of AB 3010?
This bill died with 2017-2018 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 3010?
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