California 2017-2018 Regular Session Status: Enacted 2 D cosponsors

AB 237 — Pilot Program for Increased Access to Responsible Small Dollar Loans.

Last action — Chaptered by Secretary of State - Chapter 1016, Statutes of 2018.

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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 January 30, 2017. Enacted.

Prognosis

Likely to advance 82% · 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.

  • 16 sponsors

    1 primary, 15 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (2 D).

  • Cleared a recorded vote

    Passed 10 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, the California Financing Law, generally provides for the licensure and regulation of finance lenders, brokers, and, beginning on January 1, 2019, program administrators, by the Commissioner of Business Oversight. The CFL makes a willful violation of specified provisions a crime. The CFL, until January 1, 2023, establishes the Pilot Program for Increased Access to Responsible Small Dollar Loans (pilot program) , which requires licensees and other entities that wish to participate in the pilot program to file an application and pay a specified fee to the commissioner to participate in the pilot program. The pilot program authorizes a licensee approved by the commissioner to participate in the pilot program to impose specified alternative interest rates and charges, including an administrative fee and delinquency fees, on unsecured loans of at least $300 and less than $2,500, subject to certain requirements. This bill would increase the upper limit on the amount of a permissible loan under the pilot program from $2,500 to $7,500 and make corresponding changes. (2) Under the pilot program, a licensee is prohibited from making a loan if that licensee determines, through its underwriting, that the borrower's total monthly debt service payments exceed 50% of the borrower's monthly gross income. This bill would instead prohibit a licensee from making a loan under these circumstances if the borrower's total monthly debt service payments exceed 50% of the borrower's gross monthly income for a loan of no more than $2,500, or exceed 36% of the borrower's gross monthly income for a loan in excess of $2,500. (3) The pilot program establishes that a loan with a principal balance, upon origination, of at least $1,500 is required to have a term of not less than 180 days. As an alternative to other authorized charges, a licensee approved by the commissioner to participate in the pilot program may contract for and receive charges at an annual simple interest rate not exceeding specified amounts. This bill would additionally require a loan under the pilot program that has a principal balance exceeding $2,500 to have a minimum term of one year and a maximum term of 5 years. The bill would also require licensees to reduce the interest rates on each subsequent loan to the same borrower by a minimum of one percentage point and subject to additional reductions, if specified conditions are satisfied. (4) Under the pilot program, licensees are required to develop and implement policies and procedures designed to respond to questions raised by applicants and borrowers regarding their loans, including those involving finders. Existing law describes a finder as an entity that brings a licensee and a prospective borrower together for the purpose of negotiating a loan contract. This bill would also require licensees to perform reasonable background checks on any finders associated with a licensee's participation in the pilot program. (5) The pilot program authorizes a licensee who is approved to participate in the program to use the services of one or more finders. Existing law defines a "finder" for these purposes as an entity that, at the finder's physical location for business, brings a licensee and a prospective borrower together for the purpose of negotiating a loan contract. This bill would authorize the commissioner to charge a licensee participating in the program an additional fee to offset the commissioner's costs to oversee and examine the activities of that licensee's finder or finders. (6) Existing law requires the Commissioner of Business Oversight to examine each licensee that is accepted into the program at least once every 24 months. This bill would require the commissioner also to examine each finder whose services were used by the licensee at least once every 24 months. (7) Existing law requires the Commissioner of Business Oversight to post reports containing specified information on his or her Internet Web site that summarize utilization of the Pilot Program for Increased Access to Responsible Small Dollar Loans. If more than one licensee is approved to participate in the program, existing law requires that information in the report to be stated in aggregate to avoid identifying data by specific licensee. This bill would require that these reports also contain specified information for each finder whose services were used by a licensee in connection with the loans or loan applications, along with the finder's identity. By increasing the scope of the program, the bill would expand the definition of a crime, thereby imposing a state-mandated local program. (8) 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 1016, Statutes of 2018.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 4:30 p.m.

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0.).

  5. From committee: That the Senate amendments be concurred in. (Ayes 12. Noes 0.) (August 30).

  6. From committee: That the Senate amendments be concurred in, but first be re-referred to Com. on APPR. (Ayes 8. Noes 0.) (August 30). Re-referred to Com. on APPR.

  7. (pending re-refer to Com. on APPR.)

  8. Assembly Rule 56 suspended. (Page 6959.)

  9. (Com. on B. & F.)

  10. Joint Rule 62(a), file notice suspended. (Page 6959.)

  11. Re-referred to Coms. on B. & F. and APPR. pursuant to Assembly Rule 77.2.

  12. In Assembly. Concurrence in Senate amendments pending.

  13. Read third time. Passed. Ordered to the Assembly. (Ayes 33. Noes 0. Page 5942.).

  14. Read second time. Ordered to third reading.

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

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

  17. From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 16).

  18. In committee: Referred to APPR. suspense file.

  19. Measure version as amended on July 3 corrected.

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

  21. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 26).

  22. From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (June 20). Re-referred to Com. on JUD.

  23. Re-referred to Coms. on B. & F.I. and JUD.

  24. Re-referred to Com. on RLS.

  25. Withdrawn from committee.

  26. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HUMAN S.

  27. In committee: Set, first hearing. Hearing canceled at the request of author.

  28. Referred to Com. on HUMAN S.

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

  30. Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 1811.)

  31. Read second time. Ordered to third reading.

  32. From committee: Do pass. (Ayes 17. Noes 0.) (May 26).

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

  34. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 25). Re-referred to Com. on APPR.

  35. Re-referred to Com. on HUM. S.

  36. From committee chair, with author's amendments: Amend, and re-refer to Com. on HUM. S. Read second time and amended.

  37. Re-referred to Com. on HUM. S.

  38. From committee chair, with author's amendments: Amend, and re-refer to Com. on HUM. S. Read second time and amended.

  39. Re-referred to Com. on HUM. S.

  40. From committee chair, with author's amendments: Amend, and re-refer to Com. on HUM. S. Read second time and amended.

  41. Referred to Com. on HUM. S.

  42. From printer. May be heard in committee March 2.

  43. Read first time. To print.

Sponsors

  • Cooper · Cosponsor
  • Cunningham · Cosponsor
  • Hueso · Cosponsor
  • Sharon Quirk-Silva · Cosponsor
  • Gonzalez Fletcher · Primary
  • Hill · Cosponsor
  • Anderson · Cosponsor
  • Dodd · Cosponsor
  • Hertzberg · Cosponsor
  • Jones-Sawyer · Cosponsor
  • Quirk · Cosponsor
  • Roth · Cosponsor
  • Skinner · Cosponsor
  • Weber · Cosponsor
  • Wilk · Cosponsor
  • Robert Rivas · Cosponsor

Sponsorship breakdown

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1 sponsors · 15 co-sponsors · 106 not signed on

Sponsors (1)

  • Gonzalez Fletcher

Co-sponsors (15)

Not signed on (106)

106 members have not signed on to this bill.

Show all 106 →

"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

AB 237 GONZALEZ FLETCHER Concurrence in Senate Amendments

Passed 75 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 56002
Democratic 13003
Republican 6000
Total 75005
% of votes cast 94%0%0%6%
How each member voted (80)
Member Party Vote
Acosta — Yea
Baker — Yea
Bigelow — Yea
Bloom — Yea
Brough — Not Voting
Harper — Yea
Jones-Sawyer — Yea
Kiley — Yea
Low — Yea
Maienschein — Yea
Mathis — Yea
Nazarian — Yea
Santiago — Yea
Weber — Yea
Eggman — Yea
Gray — Yea
Chau — Yea
Chu — Yea
Frazier — Yea
Mayes — Yea
Medina — Yea
Gonzalez Fletcher — Yea
Melendez — Yea
Mullin — Yea
Quirk — Yea
Rodriguez — Yea
Thurmond — Yea
Fong — Yea
Salas — Yea
Ting — Yea
Voepel — Yea
Wood — Yea
Rubio — Yea
Friedman — Yea
Rivas — Yea
Burke — Not Voting
Holden — Yea
Kamlager-Dove — Yea
Levine — Yea
Chiu — Yea
Chávez — Yea
Cooley — Yea
McCarty — Yea
O'Donnell — Yea
Obernolte — Yea
Rendon — Yea
Steinorth — Yea
Waldron — Yea
Cooper — Yea
Cunningham — Yea
Daly — Yea
Gloria — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Mark Stone — Yea
Travis Allen — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Berman, Marc Democratic Yea
Bonta, Mia Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Not Voting
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Not Voting
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Not Voting
Quirk-Silva, Sharon Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

With recommendation: That Senate amendments be concurred in.

Passed 12 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 10003
Democratic 1002
Republican 1000
Total 12005
% of votes cast 71%0%0%29%
How each member voted (17)
Member Party Vote
Bigelow — Yea
Bloom — Yea
Brough — Not Voting
Obernolte — Yea
Eggman — Yea
Friedman — Yea
Fong — Yea
Gonzalez Fletcher — Yea
Nazarian — Not Voting
Chau — Yea
Quirk — Yea
Eduardo Garcia — Not Voting
Wendy Carrillo — Yea
Bonta, Mia Democratic Not Voting
Calderon, Lisa Democratic Yea
Reyes, Eloise Gómez Democratic Not Voting
Gallagher, James Republican Yea

Official roll call →

3rd Reading AB237 Gonzalez Fletcher et al. By Hueso

Passed 33 Yea · 0 Nay · 7 Other
Party YeaNayPresentNot Voting
Unaffiliated 29006
Democratic 4001
Total 33007
% of votes cast 83%0%0%18%
How each member voted (40)
Member Party Vote
Anderson — Yea
Bates — Not Voting
Hernandez — Yea
Hueso — Yea
Leyva — Yea
Moorlach — Not Voting
Nielsen — Not Voting
Skinner — Yea
Wieckowski — Not Voting
Cannella — Yea
Fuller — Yea
Allen — Yea
Mitchell — Yea
Galgiani — Yea
Atkins — Yea
Portantino — Yea
Glazer — Yea
Hertzberg — Yea
Hill — Yea
De León — Yea
Chang — Yea
Delgado — Yea
Dodd — Yea
Beall — Not Voting
Bradford — Yea
Lara — Yea
Monning — Yea
Morrell — Yea
Pan — Yea
Roth — Yea
Vidak — Yea
Wilk — Yea
Beth Gaines — Yea
Bill Berryhill — Not Voting
Mark Stone — Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Not Voting
Stern, Henry I. Democratic Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Do pass as amended

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 6000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Bates — Yea
Beall — Yea
Bradford — Yea
Hill — Yea
Nielsen — Yea
Portantino — Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 6000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Bates — Yea
Bradford — Yea
Hill — Yea
Portantino — Yea
Beall — Yea
Nielsen — Yea
Wiener, Scott D. Democratic Yea

Official roll call →

AB 237 GONZALEZ FLETCHER Assembly Third Reading

Passed 77 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 55002
Democratic 16000
Republican 6001
Total 77003
% of votes cast 96%0%0%4%
How each member voted (80)
Member Party Vote
Acosta — Yea
Baker — Yea
Bloom — Yea
Brough — Yea
Jones-Sawyer — Yea
Mathis — Yea
Quirk — Yea
Santiago — Yea
Ting — Yea
Wood — Yea
Gonzalez Fletcher — Yea
Gloria — Yea
Holden — Yea
Burke — Yea
Salas — Yea
Gray — Yea
Kiley — Yea
Bocanegra — Yea
Levine — Yea
Rubio — Yea
Chu — Yea
Cooley — Yea
Low — Yea
Mayes — Yea
McCarty — Yea
Medina — Yea
Melendez — Yea
Mullin — Yea
Nazarian — Yea
Obernolte — Yea
Rendon — Yea
Ridley-Thomas — Yea
Rodriguez — Yea
Thurmond — Yea
Voepel — Yea
Weber — Yea
Gomez — Yea
Harper — Yea
Maienschein — Yea
O'Donnell — Yea
Steinorth — Yea
Bigelow — Yea
Chau — Not Voting
Chiu — Yea
Chávez — Yea
Cooper — Yea
Waldron — Yea
Eggman — Not Voting
Cunningham — Yea
Dababneh — Yea
Daly — Yea
Frazier — Yea
Friedman — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Mark Stone — Yea
Travis Allen — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Berman, Marc Democratic Yea
Bonta, Mia Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Fong, Mike Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
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 Yea
Choi, Steven S. Republican Not Voting
Dahle, Megan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea
Patterson, Joe Republican Yea

Official roll call →

Do pass.

Passed 17 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 11000
Democratic 5000
Republican 1000
Total 17000
% of votes cast 100%0%0%0%
How each member voted (17)
Member Party Vote
Bigelow — Yea
Bloom — Yea
Brough — Yea
Obernolte — Yea
Gonzalez Fletcher — Yea
McCarty — Yea
Gray — Yea
Bocanegra — Yea
Quirk — Yea
Friedman — Yea
Eduardo Garcia — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Fong, Mike Democratic Yea
Muratsuchi, Al Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Gallagher, James Republican Yea

Official roll call →

Subjects

finance housing labor
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Frequently asked questions

What does AB 237 do?
(1) Existing law, the California Financing Law, generally provides for the licensure and regulation of finance lenders, brokers, and, beginning on January 1, 2019, program administrators, by the Commissioner of Business Oversight. The CFL makes a willful violation of specified provisions a crime. The CFL, until January 1, 2023, establishes the Pilot Program for Increased Access to Responsible Small Dollar Loans (pilot program) , which requires licensees and other entities that wish to participate in the pilot program to file an application and pay a specified fee to the commissioner to participate in the pilot program. The pilot program authorizes a licensee approved by the commissioner to participate in the pilot program to impose specified alternative interest rates and charges, including an administrative fee and delinquency fees, on unsecured loans of at least $300 and less than $2,500, subject to certain requirements. This bill would increase the upper limit on the amount of a permissible loan under the pilot program from $2,500 to $7,500 and make corresponding changes. (2) Under the pilot program, a licensee is prohibited from making a loan if that licensee determines, through its underwriting, that the borrower's total monthly debt service payments exceed 50% of the borrower's monthly gross income. This bill would instead prohibit a licensee from making a loan under these circumstances if the borrower's total monthly debt service payments exceed 50% of the borrower's gross monthly income for a loan of no more than $2,500, or exceed 36% of the borrower's gross monthly income for a loan in excess of $2,500. (3) The pilot program establishes that a loan with a principal balance, upon origination, of at least $1,500 is required to have a term of not less than 180 days. As an alternative to other authorized charges, a licensee approved by the commissioner to participate in the pilot program may contract for and receive charges at an annual simple interest rate not exceeding specified amounts. This bill would additionally require a loan under the pilot program that has a principal balance exceeding $2,500 to have a minimum term of one year and a maximum term of 5 years. The bill would also require licensees to reduce the interest rates on each subsequent loan to the same borrower by a minimum of one percentage point and subject to additional reductions, if specified conditions are satisfied. (4) Under the pilot program, licensees are required to develop and implement policies and procedures designed to respond to questions raised by applicants and borrowers regarding their loans, including those involving finders. Existing law describes a finder as an entity that brings a licensee and a prospective borrower together for the purpose of negotiating a loan contract. This bill would also require licensees to perform reasonable background checks on any finders associated with a licensee's participation in the pilot program. (5) The pilot program authorizes a licensee who is approved to participate in the program to use the services of one or more finders. Existing law defines a "finder" for these purposes as an entity that, at the finder's physical location for business, brings a licensee and a prospective borrower together for the purpose of negotiating a loan contract. This bill would authorize the commissioner to charge a licensee participating in the program an additional fee to offset the commissioner's costs to oversee and examine the activities of that licensee's finder or finders. (6) Existing law requires the Commissioner of Business Oversight to examine each licensee that is accepted into the program at least once every 24 months. This bill would require the commissioner also to examine each finder whose services were used by the licensee at least once every 24 months. (7) Existing law requires the Commissioner of Business Oversight to post reports containing specified information on his or her Internet Web site that summarize utilization of the Pilot Program for Increased Access to Responsible Small Dollar Loans. If more than one licensee is approved to participate in the program, existing law requires that information in the report to be stated in aggregate to avoid identifying data by specific licensee. This bill would require that these reports also contain specified information for each finder whose services were used by a licensee in connection with the loans or loan applications, along with the finder's identity. By increasing the scope of the program, the bill would expand the definition of a crime, thereby imposing a state-mandated local program. (8) 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 237?
AB 237 is sponsored by Cooper, Cunningham, Hueso, Quirk-Silva, Sharon (Democratic), Gonzalez Fletcher, Hill, Anderson, Dodd, Hertzberg, Jones-Sawyer, Quirk, Roth, Skinner, Weber, Wilk, and Rivas, Robert (Democratic).
What is the current status of AB 237?
This bill has been enacted into law. Introduced January 30, 2017. Enacted.
Where can I track AB 237?
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