BILL ANALYSIS Ó
SENATE COMMITTEE ON
BANKING AND FINANCIAL INSTITUTIONS
Senator Marty Block, Chair
2015 - 2016 Regular
Bill No: AB 1446 Hearing Date: June 17,
2015
-----------------------------------------------------------------
|Author: |Dababneh |
|-----------+-----------------------------------------------------|
|Version: |April 20, 2015 Amended |
-----------------------------------------------------------------
-----------------------------------------------------------------
|Urgency: |No |Fiscal: |Yes |
-----------------------------------------------------------------
-----------------------------------------------------------------
|Consultant:|Eileen Newhall |
| | |
-----------------------------------------------------------------
Subject: California Finance Lenders Law: violations.
SUMMARY Clarifies that the Commissioner of Business Oversight
(commissioner) is authorized to issue a desist and refrain order
under the California Finance Lenders Law (CFLL) for a violation
of an order or regulation adopted under that law.
DESCRIPTION
1. Provides that, whenever, in the opinion of the
commissioner, any person is engaged in business as a broker,
finance lender, or mortgage loan originator without a
license from the commissioner, or any licensee violates any
provision of the CFLL, any provision of an order, or any
regulation adopted pursuant to the CFLL, the commissioner
may order that person or licensee to desist and refrain from
engaging in the business or further continuing that
violation. (The bill would add the italicized authority).
EXISTING LAW
2. Provides that, whenever, in the opinion of the
commissioner, any person is engaged in business as a broker,
finance lender, or mortgage loan originator without a
license from the commissioner, or any licensee violates any
provision of the CFLL, the commissioner may order that
person or licensee to desist and refrain from engaging in
the business or continuing that violation.
AB 1446 (Dababneh) Page 2
of ?
3. Further provides that a desist and refrain order is
rescinded, if, within 30 days after that order is served, a
written request for a hearing is filed, and no hearing is
held within 30 days thereafter.
COMMENTS
1. Purpose: AB 1446 is intended to give the commissioner the
authority to issue a desist and refrain order to persons who
violate an order or regulation issued under the CFLL.
2. Background and Discussion: According to the Department of
Business Oversight (the Department), there have been
instances when the commissioner could not issue a desist and
refrain order under the CFLL for a violation of a regulation
or order issued pursuant to that law, because the statute
does not allow for it. The authority being sought in AB
1446 is similar to authority the Department already has
under other laws it administers, including the Deferred
Deposit Transaction Law, Residential Mortgage Lending Act,
and Check Sellers, Bill Payers, and Proraters Law.
3. Summary of Arguments in Support: None received.
4. Summary of Arguments in Opposition: None received.
5. Amendments:
a. The author plans to offer the following technical
and clarifying amendment in Committee:
Page 4, line 20, strike "Section 22013" and insert: this
division
LIST OF REGISTERED SUPPORT/OPPOSITION
Support
None received
Opposition
AB 1446 (Dababneh) Page 3
of ?
None received
-- END --