BILL NUMBER: AB 469	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 18, 2013

INTRODUCED BY   Assembly Member Wagner

                        FEBRUARY 19, 2013

   An act to amend  Section   Sections 
17511.1  and 17511.4  of the Business and Professions Code,
relating to advertising.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 469, as amended, Wagner. Telephonic sellers: loan
modifications.
   Existing law provides for the regulation of telephonic sellers,
and requires that a telephonic seller register with the Department of
Justice  and file specified information with the department
 , as specified. Existing law defines "telephonic seller" to
include, among others, a person who represents or implies in a
telephonic solicitation, whether or not initiated by the telephonic
seller, that he or she is offering to make a loan, or to arrange or
assist in arranging a loan or to assist in providing information
 which   that  may lead to the obtaining of
a loan, with a specified exception. Existing law makes it a
misdemeanor to solicit prospects on behalf of a telephonic seller who
is not registered with the department.
   This bill would include in the definition of telephonic sellers a
person who represents or implies in a telephonic solicitation,
whether initiated by the telephonic seller or made in response to
inquiries generated by advertisements on behalf of the telephonic
seller, that he or she is offering to arrange or assist in arranging
the modification of an existing loan, or to assist in providing
information  which   that  may lead to the
obtaining of a loan modification, as specified.  The bill would
require these telephonic sellers to file certain information with the
department,   including the names and addresses of all
persons who, in t   he previous 24 months, obtained loan
modifications for individuals who responded to the seller's
solicitations or representations.  Because  this
  the  bill would expand the scope of a crime, it
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.
   Vote: 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 17511.1 of the Business and Professions Code is
amended to read:
   17511.1.  As used in this article, "telephonic seller" or "seller"
means a person who, on his or her own behalf or through salespersons
or through the use of an automatic dialing-announcing device, as
defined in Section 2871 of the Public Utilities Code, causes a
telephone solicitation or attempted telephone solicitation to occur
 which   that  meets the criteria specified
in subdivision (a), (b), (c), or (d) and who is not exempted by
subdivision (e), as follows:
   (a) A telephone solicitation or attempted telephone solicitation
wherein the telephonic seller initiates telephonic contact with a
prospective purchaser and represents or implies one or more of the
following:
   (1) That a prospective purchaser who buys one or more items will
also receive additional or other items, whether or not of the same
type as purchased, without further cost. For purposes of this
subdivision, "further cost" does not include actual postage or common
carrier delivery charges, if any.
   (2) That a prospective purchaser will receive a prize or gift, if
the person also encourages the prospective purchaser to do either of
the following:
   (A) Purchase or rent any goods or services.
   (B) Pay any money, including, but not limited to, a delivery or
handling charge.
   (3) That a prospective purchaser is able to obtain any item or
service at a price  which   that  the
seller states or implies is below the regular price of the item or
service offered. This paragraph shall not apply to retailers who,
within the previous 12 months, have sold a majority of their goods or
services through in-person sales at retail stores.
   (4) That a prospective purchaser who buys office equipment or
supplies will, because of some unusual event or imminent price
increase, be able to buy these items at prices  which
  that are below those that are usually charged or
will be charged for the items.
   (5) That the seller is a person other than the person he or she
is.
   (6) That the items for sale are manufactured or supplied by a
person other than the actual manufacturer or supplier.
   (7) That the seller is offering to sell the prospective purchaser
any gold, silver, or other metals, including  coins,
  coins;  diamonds, rubies, sapphires, or other
 stones,   stones;  coal or other minerals,
or any interest in oil, gas, or mineral fields, wells, or
exploration sites, or any other investment opportunity of any type
whatsoever.
   (8) That the seller is offering to make a loan, or to arrange or
assist in arranging a loan or modification of an existing loan, or to
assist in providing information  which   that
 may lead to the obtaining of a loan or modification of an
existing loan, unless no payment of any kind is made until the loan
proceeds are disbursed to the borrower.
   (9) That a prospective purchaser will receive a credit card, as
defined in subdivision (a) of Section 1747.02 of the Civil Code, if
the purchaser pays an upfront or preapplication fee for the credit
card to the telephonic seller.
   (b) A solicitation or attempted solicitation  which
  that  is made by telephone in response to
inquiries generated by unrequested notifications sent by the seller
to persons who have not previously purchased goods or services from
the seller or who have not previously requested credit from the
seller, to a prospective purchaser wherein the seller represents or
implies to the recipient of the notification that any of the
following applies to the recipient:
   (1) That the recipient has in any manner been specially selected
to receive the notification or the offer contained in the
notification.
   (2) That the recipient will receive a prize or gift if the
recipient calls the seller.
   (3) That if the recipient buys one or more items from the seller,
the recipient will also receive additional or other items, whether or
not of the same type as purchased, without further cost or at a cost
 which   that  the seller states or
implies is less than the regular price of  such 
 these  items.
   However, this subdivision does not apply to the solicitation of
sales by a catalog seller who periodically issues and delivers
catalogs to potential purchasers by mail or by other means. This
exception only applies if the catalog includes a written description
or illustration and the sales price of each item of merchandise
offered for sale, includes at least 24 full pages of written material
or illustrations, is distributed in more than one state, and has an
annual circulation of not less than 250,000 customers.
   (c) A solicitation or attempted solicitation  which
  that  is made by telephone in response to
inquiries generated by advertisements on behalf of the telephonic
seller wherein it is represented or implied that the seller is
offering to sell to the prospective purchaser any gold, silver, or
other metals, including  coins,   coins; 
diamonds, rubies, sapphires, or other  stones,  
stones;  coal or other minerals, or any interest in oil, gas,
or mineral fields, wells, or exploration sites, or any other
investment opportunity of any type whatsoever.
   (d) A solicitation or attempted solicitation  which
  that  is made by telephone in response to
inquiries generated by advertisements on behalf of the telephonic
seller wherein it is represented or implied that the seller is
offering to make a loan or to arrange or assist in arranging a loan
or modification of an existing loan, or to assist in providing
information  which   that  may lead to the
obtaining of a loan or modification of an existing loan, unless no
payment of any kind is made until the loan proceeds are disbursed to
the borrower.
   (e) For purposes of this article, "telephonic seller" or "seller"
does not include any of the following:
   (1) A person offering or selling a security qualified under
Section 25110, 25120, or 25130 of the Corporations Code or exempt
from qualification under Chapter 1 (commencing with Section 25100) of
Part 2 of Division 1 of Title 4 of the Corporations Code. The fact
that a notice claiming an exemption under the Corporate Securities
Law of 1968 is filed with the Department of Corporations does not
create an exemption under this paragraph.
   (2) A person licensed pursuant to Part 1 (commencing with Section
10000) of Division 4, when the solicited transaction is governed by
that law.
   (3) A person licensed pursuant to Chapter 9 (commencing with
Section 7000) of Division 3, when the solicited transaction is
governed by that law.
   (4) A person licensed or certificated pursuant to Part 2
(commencing with Section 680) of Division 1 of the Insurance Code,
including a person licensed pursuant to Chapter 5 (commencing with
Section 1621) thereof, when the solicited transaction is governed by
that law.
   (5) A person offering or selling a franchise registered pursuant
to Section 31110 of the Corporations Code or exempt from registration
under Chapter 1 (commencing with Section 31100) of Part 2 of
Division 5 of Title 4 of the Corporations Code. The fact that a
notice claiming an exemption under the Franchise Investment Law is
filed with the Department of Corporations does not create an
exemption under this paragraph.
   (6) A person soliciting the sale of a seller assisted marketing
plan, as defined in Title 2.7 (commencing with Section 1812.200) of
Part 4 of Division 3 of the Civil Code, who has filed with the
Attorney General the documents required by Section 1812.203 of the
Civil Code.
   (7) A person primarily soliciting the sale of a newspaper of
general circulation, as defined in Article 1 (commencing with Section
6000) of Chapter 1 of Division 7 of Title 1 of the Government Code,
a magazine, or membership in a book or record club whose program
operates in conformity with the requirements of Section 1584.5 of the
Civil Code.
   (8) A person soliciting business from prospective purchasers who
have previously purchased from the business enterprise for which the
person is calling.
   (9) A person soliciting without the intent to complete and who
does not complete the sales presentation during the telephone
solicitation but completes the sales presentation at a later
face-to-face meeting between the solicitor and the prospective
purchaser. However, if a seller, directly following a telephone
solicitation, causes an individual whose primary purpose it is to go
to the prospective purchaser to collect the payment or deliver any
item purchased, this exemption does not apply.
   (10) Any supervised financial institution or parent, subsidiary,
or subsidiary of parent thereof. As used in this paragraph,
"supervised financial institution" means any commercial bank, trust
company, savings and loan association, credit union, industrial loan
company, personal property broker, consumer finance lender,
commercial finance lender, or insurer, provided that the institution
is subject to supervision by an official or agency of this state or
of the United States.
   (11) A person soliciting the sale of a preneed funeral arrangement
regulated by Article 9 (commencing with Section 7735) of Chapter 12
of Division 3.
   (12) A person licensed pursuant to Chapter 19 (commencing with
Section 9600) of Division 3 when acting pursuant to that licensure.
   (13) A person soliciting the sale of services provided by a cable
television system licensed or franchised pursuant to Section 53066 of
the Government Code or any other authority.
   (14) A person or an affiliate of a person whose business is
regulated by the Public Utilities Commission.
   (15) A person soliciting the sale of a commodity pursuant to Part
2 (commencing with Section 58601) of Division 21 of the Food and
Agricultural Code, if the solicitation neither intends to, nor
actually results in, a sale  which   that 
costs the purchaser in excess of one hundred dollars ($100).
   (16) An issuer or subsidiary of an issuer that has a security
listed on a national securities exchange or designated as a national
market system security on an interdealer quotation system by the
National Association of Securities Dealers, Inc., if the exchange or
interdealer quotation system has been certified by rule or order of
the Commissioner of Corporations under subdivision (o) of Section
25100 of the Corporations Code. A subsidiary of an issuer that
qualifies for exemption under this paragraph is not itself exempt
unless not less than 60 percent of the voting power of its shares is
owned by the qualifying issuer or issuers.
   (17) A person soliciting exclusively the sale of telephone
answering services to be provided by that person or that person's
employer.
   (18) A person soliciting a transaction regulated by the Commodity
Futures Trading Commission if the person is registered or temporarily
licensed for this activity with the Commodity Futures Trading
Commission under the Commodity Exchange Act (7 U.S.C. Sec. 1 et
seq.), and the registration or license has not expired or been
suspended or revoked.
   (19) A person who sells coins or bullion at a price  which
  that  is not more than 25 percent more than the
price at which the seller is concurrently buying the same coins or
bullion, if: (A) the seller has had a retail location in California
from which he or she has been selling coins or bullion to the public
in person for at least three years; (B) the telephonic solicitations
are not the person's primary business and sales made telephonically
make up less than 20 percent of the person's total retail sales; and
(C) the person claiming an exemption pursuant to this subdivision
complies with Section 17511.3, as applicable, and subdivision (p) of
Section 17511.4.
   (20) A person licensed pursuant to Chapter 14 (commencing with
Section 1800) of Division 1 of the Financial Code to receive money
for transmittal to foreign countries if the license has not expired
or been suspended or revoked.
   (21) A person licensed as a residential mortgage lender or
servicer pursuant to Division 20 (commencing with Section 50000) of
the Financial Code, when acting under the authority of that license.
   (22) A corporation that meets all of the following conditions:
   (A) It has been exempt from taxation under Section 23701e of the
Revenue and Taxation Code for a minimum of 10 years.
   (B) It has maintained its principal purpose for a minimum of 10
years.
   (C) It has been incorporated in the state for a minimum of 25
years.
   (f) In any civil proceeding alleging a violation of this article,
the burden of proving an exemption or an exception from a definition
is upon the person claiming it, and in any criminal proceeding
alleging a violation of this article, the burden of producing
evidence to support a defense based upon an exemption or an exception
from a definition is upon the person claiming it.
   (g) Compliance with this article does not satisfy nor substitute
for any requirements for license, registration, or regulation
mandated by other laws.
   SEC. 2.    Section 17511.4 of the   Business
and Professions Code   is amended to read: 
   17511.4.  Each filing pursuant to Section 17511.3 shall contain
the following information:
   (a) The name or names of the seller, including the name under
which the seller is doing or intends to do business, if different
from the name of the seller, and the name of any parent or affiliated
organization (1) that will engage in business transactions with
purchasers relating to sales solicited by the seller or (2) that
accepts responsibility for statements made by, or acts of, the seller
relating to sales solicited by the seller.
   (b) The seller's business form and place of organization and, if
the seller is a corporation, a copy of its articles of incorporation
and bylaws and amendments thereto, or, if a partnership, a copy of
the partnership agreement, or if operating under a fictitious
business name, the location where the fictitious name has been
registered. All the same information shall be included for any parent
or affiliated organization disclosed pursuant to subdivision (a).
   (c) The complete street address or addresses of all locations,
designating the principal location from which the telephonic seller
will be conducting business. If the principal business location of
the seller is not in this state, then the seller shall also designate
which of its locations within this state is its main location in the
state.
   (d) A listing of all telephone numbers to be used by the seller
and the address where each telephone using each of these telephone
numbers is located.
   (e) The name of, and the office held by, the seller's officers,
directors, trustees, general and limited partners, sole proprietor,
and owners, as the case may be, and the names of those persons who
have management responsibilities in connection with the seller's
business activities.
   (f) The complete address of the principal residence, the date of
birth, and the driver's license number and state of issuance of each
of the persons whose names are disclosed pursuant to subdivision (e).

   (g) The name and principal residence address of each person the
telephonic seller leaves in charge at each location from which the
seller does business in this state, as defined in subdivision (a) of
Section 17511.3, and the business location  which 
 that  each of these persons is or will be in charge of.
   (h) A statement, meeting the requirements of this subdivision, as
to both the seller, whether a corporation, partnership, firm,
association, joint venture, or any other type of business entity (and
whether identified pursuant to subdivision (e) or (g) or not), and
as to any person identified pursuant to subdivision (e) or (g) who:
   (1) Has been convicted of a felony or misdemeanor involving an
alleged violation of this article, or fraud, theft, embezzlement,
fraudulent conversion, or misappropriation of property. For purposes
of this paragraph, a plea of nolo contendere is a conviction.
   (2) Has had entered against him or her a final judgment or order
in a civil or administrative action, including a stipulated judgment
or order, if the complaint or petition in the civil or administrative
action alleged acts constituting a violation of this article, fraud,
theft, embezzlement, fraudulent conversion, or misappropriation of
property, the use of untrue or misleading representations in an
attempt to sell or dispose of real or personal property, or the use
of unfair, unlawful, or deceptive business practices.
   (3) Is subject to any currently effective injunction or
restrictive court order relating to business activity as the result
of an action brought by a federal, state, or local public agency or
unit thereof, including, but not limited to, an action affecting any
vocational license.
   (4) Has at any time during the previous seven tax years been the
subject of an order for relief in bankruptcy, been reorganized due to
insolvency, or been a principal, director, officer, trustee, general
or limited partner, or had management responsibilities of any other
corporation, partnership, joint venture, or business entity, that has
been the subject of an order for relief in bankruptcy during or
within one year after the period that the person held that position.
   For purposes of paragraphs (1), (2), and (3), the statement
required by this subdivision shall identify the seller or person, the
court or administrative agency rendering the conviction, judgment,
or order, the docket number of the matter, the date of the
conviction, judgment, or order, and the name of the governmental
agency, if any, that brought the action resulting in the conviction,
judgment, or order. For purposes of paragraph (4), the statement
required by this subdivision shall include the name and location of
the seller or person that has been the subject of an order for relief
in bankruptcy, or reorganized due to insolvency, and shall include
the date thereof, the court  which   that 
exercised jurisdiction, and the docket number of the matter.
   (i) A list of the names, principal residence addresses, the date
of birth, and the driver's license number and state of issuance
thereof, of salespersons who solicit on behalf of the telephonic
seller and the names the salespersons use while so soliciting. No
salesperson shall use the same name as used by any other salesperson
soliciting for the telephonic seller and no telephonic seller shall
permit a salesperson to use the same name as used by any other
salesperson soliciting for the telephonic seller.
   (j) A description of the items the seller is offering for sale and
a copy of all sales scripts the telephonic seller requires
salespersons to use when soliciting prospective purchasers, or if no
sales script is required to be used, a statement to that effect.
   (k) A copy of all sales information and literature (including, but
not limited to, scripts, outlines, instructions, and information
regarding how to conduct telephonic sales, sample introductions,
sample closings, product information, and contest or premium-award
information) provided by the telephonic seller to salespersons or of
which the seller informs salespersons, and a copy of all written
materials the seller sends to any prospective or actual purchaser.
   (  l  ) If the telephonic seller represents or implies,
or directs salespersons to represent or imply, to purchasers that the
purchaser will receive certain specific items (including a
certificate of any type  which   that  the
purchaser must redeem to obtain the item described in the
certificate) or one or more items from among designated items,
whether the items are denominated as gifts, premiums, bonuses,
prizes, or otherwise, the filing shall include the following:
   (1) A list of the items offered.
   (2) The value or worth of each item described to prospective
purchasers and the basis for the valuation.
   (3) The price paid by the telephonic seller to its supplier for
each of these items and the name, address, and telephone number of
each item's supplier.
   (4) If the purchaser is to receive fewer than all of the items
described by the seller, the filing shall include the following:
   (A) The manner in which the telephonic seller decides which item
or items a particular prospective purchaser is to receive.
   (B) The odds a single prospective purchaser has of receiving each
described item.
   (C) The name and address of each recipient who has, during the
preceding 12 months (or if the seller has not been in business that
long, during the period the telephonic seller has been in business)
received the item having the greatest value and the item with the
smallest odds of being received.
   (5) All rules, regulations, terms, and conditions a prospective
purchaser must meet in order to receive the item.
   (m) If the telephonic seller is offering to sell any metal, stone,
or mineral, the filing shall include the following:
   (1) The name, address, and telephone number of each of the seller'
s suppliers and a description of each metal, stone, or mineral
provided by the supplier.
   (2) If possession of any metal, stone, or mineral is to be
retained by the seller or will not be transferred to the purchaser
until the purchaser has paid in full, the filing shall include the
following:
   (A) The address of each location where the metal, stone, or
mineral will be kept.
   (B) If not kept on premises owned by the seller or at an address
or addresses set forth in compliance with subdivision (c), the name
of the owner of the business at which the metal, stone, or mineral
will be kept.
   (C) A copy of any contract or other document  which
  that  evidences the seller's right to store the
metal, stone, or mineral at the address or addresses designated
pursuant to subparagraph (A).
   (3) If the seller is not selling the metal, stone, or mineral from
its own inventory, but instead purchases the metal, stone, or
mineral to fill orders taken from purchasers, the filing shall
include copies of all contracts or other documents evidencing the
seller's ability to call upon suppliers to fill the seller's orders.
   (4) If the seller represents to purchasers that the seller has
insurance or a surety bond of any type relating to a purchaser's
purchase of any metal, stone, or mineral from the seller, the filing
shall include a complete copy of all these insurance policies and
bonds.
   (5) If the seller makes any representation as to the earning or
profit potential of purchases of any metal, stone, or mineral, the
filing shall include data to substantiate the claims made. If the
representation relates to previous sales made by the seller or a
related entity, substantiating data shall be based on the experiences
of at least 50 percent of the persons who have purchased the
particular metal, stone, or mineral from the seller or related entity
during the preceding six months (or if the seller or related entity
has not been in business that long, during the period the seller or
related entity has been in business) and shall include the raw data
upon which the representation is based, including, but not limited
to, all of the following:
   (A) The length of time the seller or related entity has been
selling the particular metal, stone, or mineral being offered.
   (B) The number of purchasers thereof from the seller or related
entity known to the seller or related entity to have made at least
the same earnings or profit as those represented.
   (C) The percentage that the number disclosed pursuant to
subparagraph (B) represents of the total number of purchasers from
the seller or related entity of the particular metal, stone, or
mineral.
   (n) If the telephonic seller is offering to sell an interest in
oil, gas, or mineral fields, wells, or exploration sites, the filing
shall include disclosure of the following:
   (1) The seller's ownership interest, if any, in each field, well,
or site being offered for sale.
   (2) The total number of interests to be sold in each field, well,
or site being offered for sale.
   (3) If, in selling an interest in any particular field, well, or
site, reference is made to an investigation of these fields, wells,
or sites by the seller or anyone else, the filing shall include the
following:
   (A) The name, business address, telephone number, and professional
credentials of the person or persons who made the investigation.
   (B) A copy of the report and other documents relating to the
investigation prepared by the person or persons.
   (4) If the seller makes any representation as to the earning or
profit potential of purchases of any interest in these fields, wells,
or sites, the filing shall include data to substantiate the claims
made. If the representation relates to previous sales made by the
seller or a related entity, the substantiating data shall be based on
the experiences of at least 50 percent of the purchasers of the
particular interests from the seller or the related entity during the
preceding six months (or if the seller has not been in business that
long, during the period the seller or related entity has been in
business) and shall include the raw data upon which the
representation is based, including, but not limited to, all of the
following:
   (A) The length of time the seller or related entity has been
selling the particular interests in the fields, wells, or sites being
offered.
   (B) The number of purchasers of the particular interests from the
seller or related entity known to the seller to have made, at least
the same earnings as those represented.
   (C) The percentage the number disclosed pursuant to subparagraph
(B) represents of the total number of purchasers of the particular
interests from the seller or related entity.
   (o) The name and address of the telephonic seller's agent in this
state, other than the Attorney General, authorized to receive service
of process in this state.
   (p) If a person, based on paragraph (19) of subdivision (c) of
Section 17511.1, claims an exemption from having to file the
information required by subdivisions (a) to (o), inclusive, the
person shall file, on a form provided by the Attorney General, the
following information:
   (1) The name or names of the person claiming the exemption,
including the name under which the person is doing or intends to do
business.
   (2) The person's business form, and place of organization, whether
corporate or otherwise; or, if operating under a fictitious business
name, the location where the fictitious name has been registered.
   (3) The complete street address of the person's retail locations,
and telephone numbers located therein and a statement as to how long
the person has been selling at retail from each location.

         (4) A copy of the person's currently valid business license.

   (5) A statement reflecting the dollar amount of the person's total
retail sales during the 12 months preceding the filing.
   (6) A statement reflecting the dollar amount of the person's sales
made telephonically during the 12 months preceding the filing.
   The filing shall be verified by a declaration signed under penalty
of perjury by each principal of the person claiming the exemption.
The declaration shall specify the date and location of signing.
   If a person filing pursuant to subdivision (p) makes any
representation to a prospective purchaser as to the historical
movements or changes in the price or value of any coin or bullion,
the person shall maintain in its records sufficient data to
substantiate each representation. This data shall be retained in the
person's records for a period of at least three years after the last
date on which a representation is made and shall be made available
for inspection upon request by any governmental agency at each of its
business locations.
   (q) If the telephonic seller represents or implies, or directs
salespersons to represent or imply, that the telephonic seller can,
or may be able to, make a loan or arrange or assist in arranging a
loan or to assist in providing information  which 
 that  may lead to the obtaining of a loan, the filing shall
include the following:
   (1) The names and addresses of all persons who, in the previous 24
months, lent money to those who responded to the seller's
solicitations or lent money to the telephonic seller for the seller
to lend to those who responded to the seller's representations that
it could make a loan or arrange or assist in arranging a loan or
could assist in providing information  which  
that  could lead to the obtaining of a loan.
   (2) The names and addresses of all persons who, in the previous 24
months, lent money to those who responded to the solicitations of
the seller's predecessor or the seller's officers, owners, or those
persons having present management responsibilities or to companies
with which they were associated, that they could make a loan or
arrange or assist in arranging a loan or could assist in providing
information  which   that  could lead to
the obtaining of a loan or lent money to the seller's predecessor or
the seller's officers, owners, or those persons having present
management responsibilities or to companies with which they were
associated for them to lend to those who responded to these
representations.
   (3) The names and addresses of all persons who have informed the
telephonic seller that they may be able to lend money, within the
next 12 months from the date of this registration, to persons
solicited by the seller or to the telephonic seller for the seller to
lend to those who respond to the seller's representations that it
can make a loan or arrange or assist in arranging a loan or can
assist in providing information  which   that
 can lead to the obtaining of a loan.
   (4) Copies of all contracts between the seller and lenders or
prospective lenders who may lend money: (A) to the seller to lend to
individuals who, in connection with the seller's business activities,
respond to the seller's representations that it can make a loan or
arrange or assist in arranging a loan or can assist in providing
information  which   that  can lead to the
obtaining of a loan; or (B) directly to persons to whom the seller
may represent that it can arrange or assist in providing information
 which   that  can lead to the obtaining of
a loan. 
   (r) If the telephonic seller represents or implies, or directs
salespersons to represent or imply, that the telephonic seller can,
or may be able to, modify an existing loan or arrange or assist in
arranging a loan modification or to assist in providing information
that may lead to the obtaining of a loan modification, the filing
shall include the following:  
   (1) The names and addresses of all persons who, in the previous 24
months, obtained loan modifications for those who responded to the
seller's solicitations or representations that it could modify an
existing loan or arrange for or assist in arranging for a loan
modification or could assist in providing information that could lead
to the modification of an existing loan.  
   (2) The names and addresses of all persons who, in the previous 24
months, obtained loan modifications for those who responded to the
solicitations or representations of the seller's predecessor that it
could modify an existing loan or arrange for or assist in arranging
for a loan modification or could assist in providing information that
could lead to the modification of an existing loan. 
   SEC. 2.   SEC. 3.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.