BILL NUMBER: AB 34	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 18, 2010
	AMENDED IN SENATE  SEPTEMBER 3, 2009
	AMENDED IN SENATE  JULY 23, 2009
	AMENDED IN ASSEMBLY  JUNE 1, 2009
	AMENDED IN ASSEMBLY  APRIL 2, 2009

INTRODUCED BY   Assembly  Member   Nava
  Members   Nava   and Cook 
    (   Principal coauthor: 
 Senator   Calderon   )


                        DECEMBER 1, 2008

    An act to amend Sections 10100, 10140.6, 10150, 10151,
10235.5, and 10236.4 of, to add Article 2.1 (commencing with Section
10166.01) to Chapter 3 of Part 1 of Division 4 of, and to repeal
Section 10131.8 of, the Business and Professions Code, to amend
Sections 22100, 22101, 22101.5, 22102, 22103, 22104, 22106, 22107,
22108, 22109, 22112, 22151, 22152, 22153, 22154, 22155, 22156, 22157,
22159, 22168, 22169, 22170, 22171, 22700, 50002, 50003, 50120,
50121, 50122, 50123, 50124, 50125, 50126, 50128, 50129, 50130, 50200,
50201, 50202, 50204, 50205, 50206, 50208, 50302, 50307, 50310,
50317, 50318, 50320, 50325, 50333, 50401, 50700, and 50701 of, to add
Sections 22012, 22013, 22014, 22105.1, 22105.2, 22105.3, 22105.4,
22109.1, 22109.2, 22109.3, 22109.4, 22109.5, 22109.6, 22172, 22347,
22755, 50002.5, 50003.5, 50003.6, 50209, 50307.2, and 50513 to, to
add Chapter 3.5 (commencing with Section 50140) and Chapter 3.6
(commencing with Section 50150) to Division 20 of, and to repeal
Sections 50601, 50602, and 50705 of, the Financial Code, and to add
Section 18034 to the Health and Safety Code, relating to mortgages,
and declaring the urgency thereof, to take effect immediately.
  An act to add Sections 14201.3 and 14205.5 to the
Penal Code, relating to missing persons. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 34, as amended, Nava.  Real estate, finance lender, and
residential mortgage lender licenses: mortgage loan originators.
  Reports of missing persons: Violent Crime Information
Center.  
   Existing law requires the Attorney General to establish and
maintain a Violent Crime Information Center to assist in the
identification and apprehension of persons responsible for specific
violent crimes and for the disappearance and exploitation of persons,
particularly children and dependent adults. Existing law also
requires the Attorney General to provide information on reports of
missing persons to law enforcement agencies, as provided.  
   This bill would require the Violent Crime Information Center to
release information contained in law enforcement reports concerning
missing persons to nonprofit organizations that are registered with
the Attorney General's office, and that may assist in the search for
the missing person or persons.  
   Existing law imposes certain requirements on law enforcement
agencies with respect to the reporting of missing persons. Under
existing law, if the person reported missing is under 16 years of
age, or there is evidence that the person is at risk, as defined, the
local police, sheriff's department, or the California Highway Patrol
is required to submit the report to the Attorney General's office
within 4 hours after accepting the report.  
   This bill would, notwithstanding any other provision of law, upon
the filing of a report that a person is missing, require the law
enforcement agency receiving the report to, within 2 hours after the
receipt of the report, transmit the report to the Attorney General
for inclusion in the Violent Crime Information Center and the
National Crime Information Center databases. By imposing new duties
on local law enforcement agencies, 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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.  
   (1) Existing law, the Real Estate Law, governs the licensing and
regulation of real estate licensees, as defined, as administered by
the Real Estate Commissioner. Existing law imposes specified
requirements on real estate brokers who solicit borrowers or lenders
or negotiate loans or collect payments or perform services for
borrowers or lenders relative to loans secured by real property. A
willful violation of the Real Estate Law is a crime. 

   This bill would require a real estate license endorsement from the
commissioner in order to engage in the business of a mortgage loan
originator, as defined. The bill would establish penalties if a real
estate licensee fails to obtain a license endorsement before
conducting business as a mortgage loan originator and would authorize
the commissioner to suspend or revoke a real estate license for a
failure to pay these penalties. The bill would require applicants for
a license endorsement as a mortgage loan originator to furnish
specified background information to the Nationwide Mortgage Licensing
System and Registry. The bill would establish standards for issuance
and renewal of a license endorsement to act as a mortgage loan
originator, including satisfying specified educational requirements.
The bill would require these real estate licensees to annually submit
business activities reports, and other reports that may be required,
to the commissioner. The bill would authorize the commissioner to
examine the affairs of real estate brokers, including those that
obtain license endorsement as a mortgage loan originator. The bill
would require the commissioner to report violations of the provisions
regulating real estate brokers and mortgage loan originators to the
Nationwide Mortgage Licensing System and Registry. The bill would
require recipients of a license endorsement as a mortgage loan
originator to use or disclose a specified unique identifier provided
by the Nationwide Mortgage Licensing System and Registry in
advertisements and solicitations of the mortgage loan originator. The
bill would enact other related provisions.  
   (2) Existing law provides for the licensure and regulation of
finance lenders and brokers and residential mortgage lenders and
servicers by the Department of Corporations. A willful violation of
the laws regulating these licensees is a crime.  
   This bill would require the licensure and regulation of mortgage
loan originators, as defined, under the California Finance Lenders
Law and the California Residential Mortgage Lending Act. The bill
would require mortgage loan originators to also be licensed and
registered through the Nationwide Mortgage Licensing System and
Registry. The bill would require applicants for licensure as a
mortgage loan originator to furnish specified background information
to the Nationwide Mortgage Licensing System and Registry and would
require applicants for licensure or license renewal to satisfy
certain requirements, including educational requirements. The bill
would require finance lenders and brokers, and residential mortgage
lenders and servicers, that employ a mortgage loan originator to
maintain a minimum net worth of $250,000. The bill would authorize
the commissioner to require finance lenders and brokers, and
residential mortgage lenders and servicers, that employ a mortgage
loan originator to submit reports of condition to the Nationwide
Mortgage Licensing System and Registry. The bill would authorize the
commissioner to establish relationships or contracts with the
Nationwide Mortgage Licensing System and Registry, as specified, for
the purposes of implementing these provisions of the bill. The bill
would require a mortgage loan originator to use or disclose a
specified unique identifier on all mortgage loan applications,
solicitations, or advertisements. The bill would enact other related
provisions.  
   (3) This bill would provide that no person is required to have a
mortgage loan originator license under the California Finance Lenders
Law or the California Residential Mortgage Lending Act before July
31, 2010, nor a mortgage loan originator license endorsement under
the Real Estate Law, as set forth in the bill, before December 31,
2010.  
   (4) 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.  
   (5) This bill would declare that it is to take effect immediately
as an urgency statute. 
   Vote:  2/3   majority  . Appropriation:
no. Fiscal committee: yes. State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 14201.3 is added to the 
 Penal Code   , to read:  
   14201.3.  The center shall release information contained in law
enforcement reports concerning missing persons to nonprofit
organizations that are registered with the Attorney General's office,
and that may assist in the search for the missing person or persons.

   SEC. 2.    Section 14205.5 is added to the  
Penal Code   , to read:  
   14205.5.  Notwithstanding any other provision of law, upon the
filing of a report that a person is missing, the law enforcement
agency receiving the report shall, within two hours after the receipt
of the report, transmit the report to the Attorney General for
inclusion in the Violent Crime Information Center and the National
Crime Information Center databases. 
   SEC. 3.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.  All matter
omitted in this version of the bill appears in the bill as amended in
the Senate, September 3, 2009. (JR11)