BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 469
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 469 (Wagner) - As Introduced:  February 19, 2013 

          Policy Committee:                              Business and  
          Professions  Vote:                            11 - 0 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill expands the definition of telephonic seller to include  
          a person making a telephone solicitation to arrange or assist in  
          the arrangement of a loan modification, for purposes of an  
          existing law that mandates the registration and regulates the  
          practices of telephonic sellers. 

           FISCAL EFFECT  

          1)There are no significant costs associated with this  
            legislation.

          2)Any local government costs resulting from the mandate in this  
            measure would not be state-reimbursable because the mandate  
            only involves the definition of a crime or penalty for  
            conviction of a crime. 

           COMMENTS  

           Purpose  . This bill is intended to regulate individuals making  
          telephone solicitations related to loan modifications. By adding  
          loan modification to the definition of a telephonic seller, this  
          bill would apply existing law requiring registration and  
          regulation of telephonic sellers to those solicitations. The  
          author hopes that this change will give consumers stronger  
          protections and more robust remedies against unscrupulous sales  
          practices. 

          The author notes, "While it is currently illegal to collect  
          upfront fees for loan modification services, the scams have  
          continued unabated."  He intends for this bill to provide an  








                                                                  AB 469
                                                                  Page  2

          additional tool to law enforcement to shut down the most  
          insidious loan modification scams, those that, through the  
          operation of boiler rooms, prey on massive numbers of distressed  
          homeowners, often specifically targeting non-English speakers  
          and other vulnerable groups.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081