BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1446|
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THIRD READING
Bill No: AB 1446
Author: Dababneh (D)
Amended: 6/23/15 in Senate
Vote: 21
SENATE BANKING & F.I. COMMITTEE: 7-0, 6/17/15
AYES: Block, Vidak, Galgiani, Hall, Hueso, Lara, Morrell
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 78-0, 5/14/15 (Consent) - See last page for
vote
SUBJECT: California Finance Lenders Law: violations
SOURCE: Author
DIGEST: This bill 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.
ANALYSIS: Existing law 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 (Financial Code Section 22712).
This bill provides that, whenever, in the opinion of the
AB 1446
Page 2
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.
Comments
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. According to the Department
of Business Oversight (DBO), 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 commissioner already has under other laws DBO administers,
including the Deferred Deposit Transaction Law, Residential
Mortgage Lending Act, and Check Sellers, Bill Payers, and
Proraters Law.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified7/13/15)
None received
OPPOSITION: (Verified7/13/15)
None received
ASSEMBLY FLOOR: 78-0, 5/14/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
AB 1446
Page 3
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Lopez, Low,
Maienschein, Mathis, Mayes, McCarty, Melendez, Mullin,
Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Linder, Medina
Prepared by:Eileen Newhall / B. & F.I. / (916) 651-4102
7/14/15 12:23:09
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