California 2019-2020 Regular Session Status: Passed Senate 1 D cosponsors

SB 472 — Wage-based, work-based, and income-based advances.

Last action — Re-referred to Com. on B. & F. pursuant to Assembly Rule 77.2.

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

This bill died with 2019-2020 Regular Session. It reached “Passed Senate” 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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) Existing law provides for licensure and regulation of various financial institutions by the Commissioner of Business Oversight. Existing law, 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, also known as payday loans, which are transactions whereby a person defers depositing a customer's personal check until a specific date pursuant to a written agreement for a fee or other charge. Existing law, the California Financing Law (CFL) , provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Business Oversight. The act authorizes several exemptions from its provisions. The act also requires specified licensees to make an annual report to the commissioner, as specified. This bill would, beginning July 1, 2020, prohibit a person from engaging in business as a provider, defined as a person engaged in the business of providing wage-based, work-based, or income-based advances without first obtaining a license from the commissioner and would require a provider to comply with certain disclosure requirements. The bill would require a provider to, among other things, deliver funds to a consumer in a manner mutually agreed upon and prohibit the provider from charging certain fees. The bill would require an applicant for a provider license to file with its application financial statements, as specified, that indicate a net worth of at least $250,000. The bill would require a provider to make an annual report to the commissioner containing specified information, including the total number of waged-based, work-based, and income-based advances made and the total number of workers and consumers served. The bill would exempt wage-based, work-based, and income-based advances from specified provisions under state law, including the California Deferred Deposit Transaction Law. This bill would make a person who willfully violates these provisions subject to a fine of not more than $10,000, imprisonment in a county jail for not more than one year, or by both, as specified. The bill would additionally make a provider subject to a civil suit, as specified. By creating a new crime, this bill would create a state-mandated local program. The bill would repeal these provisions on January 1, 2023. (2) The CFL prohibits a licensee from placing an advertisement disseminated primarily in this state unless the licensee discloses the license, in the printed or oral text of the advertisement, under which the advertised loan or assessment contract, as applicable, would be made. This bill would authorize the commissioner to exempt, by rule or order, an advertisement from those requirements if the advertising medium limits the characters of an advertisement or otherwise renders compliance with those requirements impracticable. The bill would also make conforming changes to those provisions. (3) The CFL authorizes the commissioner to order a person engaged in business regulated by the CFL without a license to desist and to refrain from engaging in the business and further continuing that violation. This bill would authorize the commissioner to include a claim for ancillary relief, as specified, in an order to desist or refrain. (4) This bill would provide that the provisions of the CFL are severable until January 1, 2023. (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. Re-referred to Com. on B. & F. pursuant to Assembly Rule 77.2.

  2. Ordered to third reading.

  3. Read third time and amended.

  4. Assembly Rule 69 suspended. (Ayes 54. Noes 14. Page 3066.)

  5. Read second time. Ordered to third reading.

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

  7. From committee: Do pass as amended. (Ayes 18. Noes 0.) (August 30).

  8. August 21 set for first hearing. Placed on APPR. suspense file.

  9. From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.

  10. Re-referred to Com. on APPR. pursuant to Joint Rule 10.5.

  11. Read second time. Ordered to third reading.

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

  13. (Received at desk July 19 pursuant to JR 61(a)(11)).

  14. From committee: Do pass as amended. (Ayes 12. Noes 0.) (July 9).

  15. From committee: Do pass and re-refer to Com. on JUD. (Ayes 10. Noes 0.) (July 8). Re-referred to Com. on JUD.

  16. Assembly Rule 56 suspended.

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

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

  19. Read third time. Passed. (Ayes 35. Noes 0. Page 1028.) Ordered to the Assembly.

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

  21. From committee: Do pass as amended. (Ayes 8. Noes 0. Page 906.) (April 30).

  22. Set for hearing April 30.

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

  24. From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 7. Noes 0. Page 712.) (April 10).

  25. Set for hearing April 10.

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

  27. From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  28. Referred to Com. on RLS.

  29. From printer. May be acted upon on or after March 24.

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

Sponsors

Sponsorship breakdown

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

Sponsors (1)

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

Do pass as amended.

Passed 18 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 5000
Unaffiliated 13000
Total 18000
% of votes cast 100%0%0%0%
How each member voted (18)
Member Party Vote
Bloom — Yea
Fong — Yea
Brough — Yea
Obernolte — Yea
Maienschein — Yea
Bigelow — Yea
Quirk — Yea
Eggman — Yea
Gonzalez — Yea
Diep — Yea
Chau — Yea
Eduardo Garcia — Yea
Wendy Carrillo — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gabriel, Jesse Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Rivas, Robert Democratic Yea

Official roll call →

Do pass as amended.

Passed 12 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 8000
Democratic 3000
Republican 1000
Total 12000
% of votes cast 100%0%0%0%
How each member voted (12)
Member Party Vote
Kiley — Yea
Obernolte — Yea
Chiu — Yea
Maienschein — Yea
Holden — Yea
Gonzalez — Yea
Chau — Yea
Mark Stone — Yea
Kalra, Ash Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Gallagher, James Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on [Judiciary]

Passed 10 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 2002
Democratic 6000
Republican 2000
Total 10002
% of votes cast 83%0%0%17%
How each member voted (12)
Member Party Vote
Weber — Yea
Burke — Not Voting
Melendez — Not Voting
Mark Stone — Yea
Bauer-Kahan, Rebecca Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Grayson, Timothy S. Democratic Yea
Limón, Monique Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea

Official roll call →

3rd Reading

Passed 35 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 25002
Democratic 8001
Republican 2000
Total 35003
% of votes cast 92%0%0%8%
How each member voted (38)
Member Party Vote
Rubio — Yea
Wieckowski — Yea
Mitchell — Yea
Bradford — Yea
Wilk — Yea
Beall — Yea
Atkins — Yea
Hill — Yea
Roth — Yea
Morrell — Yea
Hueso — Yea
Leyva — Yea
Dodd — Yea
Moorlach — Yea
Skinner — Yea
Allen — Yea
Galgiani — Yea
Hertzberg — Yea
Portantino — Yea
Bates — Yea
Glazer — Yea
Nielsen — Yea
Chang — Yea
Pan — Yea
Borgeas — Not Voting
Monning — Not Voting
Mark Stone — Yea
Archuleta, Bob Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Not Voting
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Subjects

finance
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Frequently asked questions

What does SB 472 do?
(1) Existing law provides for licensure and regulation of various financial institutions by the Commissioner of Business Oversight. Existing law, 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, also known as payday loans, which are transactions whereby a person defers depositing a customer's personal check until a specific date pursuant to a written agreement for a fee or other charge. Existing law, the California Financing Law (CFL) , provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Business Oversight. The act authorizes several exemptions from its provisions. The act also requires specified licensees to make an annual report to the commissioner, as specified. This bill would, beginning July 1, 2020, prohibit a person from engaging in business as a provider, defined as a person engaged in the business of providing wage-based, work-based, or income-based advances without first obtaining a license from the commissioner and would require a provider to comply with certain disclosure requirements. The bill would require a provider to, among other things, deliver funds to a consumer in a manner mutually agreed upon and prohibit the provider from charging certain fees. The bill would require an applicant for a provider license to file with its application financial statements, as specified, that indicate a net worth of at least $250,000. The bill would require a provider to make an annual report to the commissioner containing specified information, including the total number of waged-based, work-based, and income-based advances made and the total number of workers and consumers served. The bill would exempt wage-based, work-based, and income-based advances from specified provisions under state law, including the California Deferred Deposit Transaction Law. This bill would make a person who willfully violates these provisions subject to a fine of not more than $10,000, imprisonment in a county jail for not more than one year, or by both, as specified. The bill would additionally make a provider subject to a civil suit, as specified. By creating a new crime, this bill would create a state-mandated local program. The bill would repeal these provisions on January 1, 2023. (2) The CFL prohibits a licensee from placing an advertisement disseminated primarily in this state unless the licensee discloses the license, in the printed or oral text of the advertisement, under which the advertised loan or assessment contract, as applicable, would be made. This bill would authorize the commissioner to exempt, by rule or order, an advertisement from those requirements if the advertising medium limits the characters of an advertisement or otherwise renders compliance with those requirements impracticable. The bill would also make conforming changes to those provisions. (3) The CFL authorizes the commissioner to order a person engaged in business regulated by the CFL without a license to desist and to refrain from engaging in the business and further continuing that violation. This bill would authorize the commissioner to include a claim for ancillary relief, as specified, in an order to desist or refrain. (4) This bill would provide that the provisions of the CFL are severable until January 1, 2023. (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 SB 472?
SB 472 is sponsored by Caballero, Anna M. (Democratic).
What is the current status of SB 472?
This bill died with 2019-2020 Regular Session. It reached “Passed Senate” 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 SB 472?
Track SB 472 free on One Click Politics — get push/email alerts when it moves.

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