California 2015-2016 Regular Session Status: Enacted

SB 235 — Small dollar loans: finder duties and compensation.

Last action — Chaptered by Secretary of State. Chapter 505, 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 17, 2015. Enacted.

Prognosis

Likely to advance 74% · 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.

  • 3 sponsors

    1 primary, 2 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 8 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 and makes a willful violation of its provisions a crime. Existing law establishes, until January 1, 2018, the Pilot Program for Increased Access to Responsible Small Dollar Loans for the purpose of allowing greater access for responsible installment loans in principal amounts of at least $300 and less than $2,500 administered by the commissioner. Existing law authorizes a licensee in the program to use the services of finders, as defined, to bring licensees and prospective borrowers together, at the finder's place of business, for the purpose of negotiating loan contracts, subject to a written agreement meeting specified requirements. This bill would expand the services that a finder, licensed or regulated under prescribed provisions of law, is authorized to perform to include, among other things, disbursement of loan proceeds to, and receipt of loan payments from, the borrower. This bill would require the licensee 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 establishes a maximum finder's fee of $45 per loan for the first 40 loans originated at the finder's location per month, and $40 per loan for loans thereafter during that month. This bill would delete those maximums and would authorize payment of finder compensation for certain services pursuant to a schedule that is mutually agreed to by the licensee and the finder, not to exceed $65 per loan, plus $2 per payment received by the finder on behalf of the licensee for the duration of the loan when the finder receives borrower loan payments on the licensee's behalf, as specified. The bill would require, if a loan applicant has questions that the finder is not permitted to answer, the finder to assist an applicant in making direct contact with the lender before the loan is consummated, and would require the licensee to ensure that a loan is not consummated until the licensee completes a 2-way communication, as defined, with the applicant. The bill would require a licensee to provide the commissioner with prescribed information relating to each finder, including, but not limited to, the finder's delinquency rate and default rate, and would authorize the commissioner to take prescribed action against a finder upon determination that it would be warranted by reported data, including, but not limited to, disqualifying the finder from providing services under the pilot program. Because a willful violation of these provisions would be a crime, this 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 505, Statutes of 2015.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 10 a.m.

  4. Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2376.) Ordered to engrossing and enrolling.

  5. Ordered to special consent calendar.

  6. In Senate. Concurrence in Assembly amendments pending.

  7. Read third time. Passed. (Ayes 78. Noes 0. Page 2636.) Ordered to the Senate.

  8. Read second time. Ordered to consent calendar.

  9. From committee: Do pass. Ordered to consent calendar. (Ayes 17. Noes 0.) (August 19).

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

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

  12. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (July 14).

  13. (Corrected July 16).

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

  15. From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 11. Noes 0.) (July 6).

  16. June 22 set for first hearing canceled at the request of author.

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

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

  19. Read third time. Passed. (Ayes 39. Noes 0. Page 1063.) Ordered to the Assembly.

  20. Read second time. Ordered to third reading.

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

  22. Set for hearing May 18.

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

  24. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0. Page 818.) (April 28).

  25. Set for hearing April 28.

  26. From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 0. Page 617.) (April 15). Re-referred to Com. on JUD.

  27. Set for hearing April 15.

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

  29. From printer. May be acted upon on or after March 20.

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

Sponsors

  • Block · Primary
  • Chiu · Cosponsor
  • Hill · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 2 co-sponsors · 119 not signed on

Sponsors (1)

  • Block

Co-sponsors (2)

  • Chiu
  • Hill

Not signed on (119)

119 members have not signed on to this bill.

Show all 119 →

"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

Special Consent #9

Passed 40 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 37000
Democratic 3000
Total 40000
% of votes cast 100%0%0%0%
How each member voted (40)
Member Party Vote
Anderson — Yea
Bates — Yea
Block — Yea
Hertzberg — Yea
Lara — Yea
Moorlach — Yea
Galgiani — Yea
Hill — Yea
Cannella — Yea
Leno — Yea
Allen — Yea
Mitchell — Yea
De León — Yea
Pan — Yea
Runner — Yea
Hall — Yea
Hancock — Yea
Hernandez — Yea
Hueso — Yea
Huff — Yea
Beall — Yea
Leyva — Yea
Liu — Yea
Mendoza — Yea
Monning — Yea
Morrell — Yea
Nielsen — Yea
Pavley — Yea
Roth — 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 235 Block Consent Calendar Second Day

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
Baker — Yea
Bloom — Yea
Brough — Yea
Brown — Yea
Levine — Yea
Low — Yea
Mullin — Yea
Nazarian — Yea
Olsen — Yea
Perea — Yea
Quirk — Yea
Santiago — Yea
Ting — Yea
Williams — Not Voting
Eggman — Yea
Daly — Yea
Chau — Yea
Chu — Yea
Cooper — Yea
Salas — Yea
Harper — Yea
Linder — Yea
Mayes — Yea
McCarty — Yea
O'Donnell — Yea
Obernolte — Yea
Rendon — Yea
Rodriguez — Yea
Weber — Yea
Wilk — Yea
Frazier — Not Voting
Gordon — Yea
Burke — Yea
Holden — Yea
Jones-Sawyer — Yea
Gray — Yea
Kim — Yea
Atkins — Yea
Campos — Yea
Bonilla — Yea
Lopez — Yea
Maienschein — Yea
Chang — Yea
Chiu — Yea
Mathis — Yea
Chávez — Yea
Cooley — Yea
Bigelow — Yea
Dababneh — Yea
Dodd — Yea
Medina — Yea
Melendez — Yea
Ridley-Thomas — Yea
Steinorth — Yea
Thurmond — Yea
Wagner — Yea
Waldron — Yea
Wood — Yea
Gatto — Yea
Gomez — 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. To Consent Calendar.

Passed 17 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 2000
Unaffiliated 13000
Republican 2000
Total 17000
% of votes cast 100%0%0%0%
How each member voted (17)
Member Party Vote
Wagner — Yea
Eggman — Yea
Chang — Yea
Daly — Yea
Holden — Yea
Bigelow — Yea
Bloom — Yea
Quirk — Yea
Rendon — Yea
Weber — Yea
Wood — 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 39 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 36000
Democratic 3000
Total 39000
% of votes cast 100%0%0%0%
How each member voted (39)
Member Party Vote
Anderson — Yea
Bates — Yea
Hancock — Yea
Hertzberg — Yea
Huff — Yea
Leno — Yea
Liu — Yea
Mendoza — Yea
Morrell — Yea
Vidak — Yea
Wieckowski — Yea
Cannella — Yea
Allen — Yea
Mitchell — Yea
De León — Yea
Runner — Yea
Hernandez — Yea
Beall — Yea
Block — Yea
Hill — Yea
Hueso — Yea
Lara — Yea
Leyva — Yea
Monning — Yea
Moorlach — Yea
Nielsen — Yea
Pan — Yea
Pavley — Yea
Roth — Yea
Wolk — Yea
Fuller — Yea
Galgiani — Yea
Hall — 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 →

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 235 do?
Existing law, the California Finance Lenders Law, provides for the licensure and regulation of finance lenders by the Commissioner of Business Oversight and makes a willful violation of its provisions a crime. Existing law establishes, until January 1, 2018, the Pilot Program for Increased Access to Responsible Small Dollar Loans for the purpose of allowing greater access for responsible installment loans in principal amounts of at least $300 and less than $2,500 administered by the commissioner. Existing law authorizes a licensee in the program to use the services of finders, as defined, to bring licensees and prospective borrowers together, at the finder's place of business, for the purpose of negotiating loan contracts, subject to a written agreement meeting specified requirements. This bill would expand the services that a finder, licensed or regulated under prescribed provisions of law, is authorized to perform to include, among other things, disbursement of loan proceeds to, and receipt of loan payments from, the borrower. This bill would require the licensee 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 establishes a maximum finder's fee of $45 per loan for the first 40 loans originated at the finder's location per month, and $40 per loan for loans thereafter during that month. This bill would delete those maximums and would authorize payment of finder compensation for certain services pursuant to a schedule that is mutually agreed to by the licensee and the finder, not to exceed $65 per loan, plus $2 per payment received by the finder on behalf of the licensee for the duration of the loan when the finder receives borrower loan payments on the licensee's behalf, as specified. The bill would require, if a loan applicant has questions that the finder is not permitted to answer, the finder to assist an applicant in making direct contact with the lender before the loan is consummated, and would require the licensee to ensure that a loan is not consummated until the licensee completes a 2-way communication, as defined, with the applicant. The bill would require a licensee to provide the commissioner with prescribed information relating to each finder, including, but not limited to, the finder's delinquency rate and default rate, and would authorize the commissioner to take prescribed action against a finder upon determination that it would be warranted by reported data, including, but not limited to, disqualifying the finder from providing services under the pilot program. Because a willful violation of these provisions would be a crime, this 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 235?
SB 235 is sponsored by Block, Chiu, and Hill.
What is the current status of SB 235?
This bill has been enacted into law. Introduced February 17, 2015. Enacted.
Where can I track SB 235?
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