BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1446| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 **** END ****