Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2149

Introduced by Assembly Member Bonilla

February 17, 2016

begin delete An act to amend Section 22380 of the Financial Code, relating to consumer loans. end delete begin insert An act to add Part 13.5 (commencing with Section 31001) to Division 2 of the Revenue and Taxation Code, relating to medical marijuana. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2149, as amended, Bonilla. begin delete Consumer loans: Pilot Program for Increased Access to Responsible Small Dollar Loans. end delete begin insert State Board of Equalization: state agencies: collection of cash payments: medical marijuana end insert begin insert -related businesses. end insert

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Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, allows the use of marijuana for medical purposes. The Medical Marijuana Regulation and Safety Act provides for the licensure and regulation of commercial medical marijuana activity by various state entities, as specified. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.

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This bill would authorize the State Board of Equalization to collect cash payments from medical marijuana-related businesses for other state agencies, including the Department of Consumer Affairs and the Employment Development Department, if that state agency has entered into an agreement with the board. The bill would require the agreement to include specified provisions including that the board be reimbursed for the administrative costs of the collection, as specified, from the fund for which collection was authorized, upon appropriation by the Legislature.

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The bill would require the board to administer and collect the payments in accordance with the Fee Collection Procedures Law. By expanding the application of the Fee Collection Procedures Law, the violation of which is a crime, this bill would impose a state-mandated local program.

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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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Existing law, the California Finance Lenders Law, provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Business Oversight and makes a willful violation of its provisions a crime. Existing law, until January 1, 2018, establishes the Pilot Program for Increased Access to Responsible Small Dollar Loans for the purpose of allowing greater access for responsible installment loans in principal amounts of at least $300 and less than $2,500. Existing law, on or before January 1, 2017, requires the commissioner to post a report on his or her Internet Web site containing specified information including a recommendation whether the program should be continued after January 1, 2018.

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This bill would require, on or before January 1, 2018, the commissioner to also post a report that provides the number of borrowers who were students and obtained loans for specified purposes.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Part 13.5 (commencing with Section 31001) is
added to the end insert begin insert Revenue and Taxation Code end insert begin insert , to read: end insert

begin insert

 

PART  begin insert 13.5. end insert   Medical Marijuana State Payment
Collection Law

 

begin insert 31001. end insert   

This part shall be known, and may be cited, as the
Medical Marijuana State Payment Collection Law.

begin insert 31002. end insert   

(a) For purposes of this part, the references in the Fee
Collection Procedures Law to “fee” shall include any fee, fine,
penalty, or other charge required to be paid by a person that is a
medical marijuana-related business, and references to “feepayer”
shall include a person required to pay those fees.

(b) “State agency,” as used in this part, includes, but is not
limited to, the following:

(1) Department of Consumer Affairs.

(2) Department of Food and Agriculture.

(3) Department of Public Health.

(4) Employment Development Department.

(5) State Water Resources Control Board.

(6) Franchise Tax Board.

begin insert 31003. end insert   

(a) The board may enter into an agreement with a state
agency to collect cash payments for any fee, fine, penalty, or other
charge payable to the state agency by a person that is a medical
marijuana-related business in accordance with provisions of this
part.

(b) The board shall collect fees, fines, penalties, and other
charges if the board enters into an agreement with a state agency
to make those collections. The agreement shall include the
following:

(1) A provision that the board be reimbursed for the
administrative costs of the collection from the fund for which cash
payments are collected, upon appropriation of the Legislature.

(2) A provision that the board transmit the collected moneys to
the Treasurer to be deposited in the State Treasury to the credit
of the fund for which collection was authorized.

(3) A provision that describes the administrative costs the board
will incur in carrying out the collection and administration, which
costs shall not exceed ten percent of the moneys collected.

(4) A savings clause that provides the board the authority to
collect and to make refunds after the sunset date if a sunset date
exists.

(5) A provision that sets forth the due date for payment of the
fee, fine, penalty, or other charge and return by the feepayer.

(c) The board shall administer and collect the payments
authorized by an agreement made pursuant to this part pursuant
to the Fee Collection Procedures Law (Part 30 (commencing with
Section 55001)), except that Article 1.1 (commencing with Section
55050) of Chapter 3 of that part shall not apply.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert begin insert

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.

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begin delete

SECTION 1.  

Section 22380 of the Financial Code is amended
to read:

22380.  

(a) (1) On or before July 1, 2015, and again, on or
before January 1, 2017, the commissioner shall post a report on
his or her Internet Web site summarizing utilization of the Pilot
Program for Increased Access to Responsible Small Dollar Loans.
The report required to be submitted on or before July 1, 2015, shall
additionally include the information required by former Section
22361, summarizing utilization of the Pilot Program for Affordable
Credit-Building Opportunities, which was created by Chapter 640
of the Statutes of 2010.

(2) On or before January 1, 2018, the commissioner shall post
a report on the same Internet Web site that provides the number
of borrowers who were students and obtained a loan for school
textbooks, materials, and electronics, along with the time period
to which the report corresponds.

(b) The information disclosed to the commissioner for the
commissioner’s use in preparing the report described in this section
is exempted from any requirement of public disclosure by
paragraph (2) of subdivision (d) of Section 6254 of the Government
Code.

(c) If there is more than one licensee approved to participate in
the program under this article, the report required pursuant to
subdivision (a) shall state information in aggregate so as not to
identify data by specific licensee.

(d) The report required pursuant to paragraph (1) of subdivision
(a) shall specify the time period to which the report corresponds,
and shall include, but not be limited to, the following for that time
period:

(1) The number of entities that applied to participate in the
program.

(2) The number of entities accepted to participate in the program.

(3) The reason or reasons for rejecting applications for
participation, if applicable. This information shall be provided in
a manner that does not identify the entity or entities rejected.

(4) The number of program loan applications received by lenders
participating in the program, the number of loans made pursuant
to the program, the total amount loaned, the distribution of loan
lengths upon origination, and the distribution of interest rates and
principal amounts upon origination among those loans.

(5) The number of borrowers who obtained more than one
program loan and the distribution of the number of loans per
borrower.

(6) Of the number of borrowers who obtained more than one
program loan, the percentage of those borrowers whose credit
scores increased between successive loans, based on information
from at least one major credit bureau, and the average size of the
increase.

(7) The income distribution of borrowers upon loan origination,
including the number of borrowers who obtained at least one
program loan and who resided in a low-to-moderate-income census
tract at the time of their loan application.

(8) The number of borrowers who obtained loans for the
following purposes, based on borrower responses at the time of
their loan applications indicating the primary purpose for which
the loan was obtained:

(A) Medical.

(B) Other emergency.

(C) Vehicle repair.

(D) Vehicle purchase.

(E) To pay bills.

(F) To consolidate debt.

(G) To build or repair credit history.

(H) To finance a purchase of goods or services other than a
vehicle.

(I) For other than personal, family, or household purposes.

(J) Other.

(9) The number of borrowers who self-report that they had a
bank account at the time of their loan application, the number of
borrowers who self-report that they had a bank account and used
check-cashing services, and the number of borrowers who
self-report that they did not have a bank account at the time of
their loan application.

(10) With respect to refinance loans, the report shall specifically
include the following information:

(A) The number and percentage of borrowers who applied for
a refinance loan.

(B) Of those borrowers who applied for a refinance loan, the
number and percentage of borrowers who obtained a refinance
loan.

(C) Of those borrowers who obtained a refinance loan:

(i) The percentage of borrowers who refinanced once.

(ii) The percentage of borrowers who refinanced twice.

(iii) The percentage of borrowers who refinanced more than
twice.

(D) Of those borrowers who obtained a refinance loan, the
average percentage of principal paid down before obtaining a
refinance loan.

(E) Of those borrowers who obtained a refinance loan, the
average amount of additional principal extended.

(F) Of those borrowers who obtained a refinance loan, the
average number of late payments made on the loan that was
refinanced.

(11) The number and type of finders used by licensees and the
relative performance of loans consummated by finders compared
to the performance of loans consummated without a finder.

(12) The number and percentage of borrowers who obtained
one or more program loans on which late fees were assessed, the
total amount of late fees assessed, and the average late fee assessed
by dollar amount and as a percentage of the principal amount
loaned.

(13) (A) The performance of loans under this article, as reflected
by all of the following:

(i) The number and percentage of pilot program borrowers who
experienced at least one delinquency lasting between seven and
29 days, and the distribution of principal loan amounts
corresponding to those delinquencies.

(ii) The number and percentage of pilot program borrowers who
experienced at least one delinquency lasting between 30 and 59
days, and the distribution of principal loan amounts corresponding
to those delinquencies.

(iii) The number and percentage of pilot program borrowers
who experienced at least one delinquency lasting 60 days or more,
and the distribution of principal loan amounts corresponding to
those delinquencies.

(iv) The number and percentage of pilot program borrowers
who experienced at least one delinquency of greater than seven
days and who did not subsequently bring their loan current.

(v) Among loans that were ever delinquent for seven days or
more, the average number of times borrowers experienced a
delinquency of seven days or more.

(B) To the extent data are readily available to the commissioner,
the commissioner shall include in his or her report comparable
delinquency data for unsecured loans made by persons licensed
under Chapter 2 (commencing with Section 22365) of Division 9
in principal amounts between two thousand five hundred dollars
($2,500) and four thousand nine hundred ninety-nine dollars
($4,999), and in principal amounts between five thousand dollars
($5,000) and nine thousand nine hundred ninety-nine dollars
($9,999), and for unsecured extensions of credit made by
state-chartered banks and credit unions under the commissioner’s
jurisdiction, in principal amounts between two thousand five
hundred dollars ($2,500) and four thousand nine hundred
ninety-nine dollars ($4,999), and in principal amounts between
five thousand dollars ($5,000) and nine thousand nine hundred
ninety-nine dollars ($9,999).

(14) The number and types of violations of this article by finders,
which were documented by the commissioner.

(15) The number and types of violations of this article by
licensees, which were documented by the commissioner.

(16) The number of times that the commissioner disqualified a
finder from performing services, barred a finder from performing
services at one or more specific locations of the finder, terminated
a written agreement between a finder and a licensee, or imposed
an administrative penalty.

(17) The number of complaints received by the commissioner
about a licensee or a finder, and the nature of those complaints.

(18) Recommendations for improving the program.

(19) Recommendations regarding whether the program should
be continued after January 1, 2018.

(e) The commissioner shall conduct a random sample survey
of borrowers who have participated in the program to obtain
information regarding the borrowers’ experience and licensees’
compliance with this article. The results of this survey shall be
included in the report required by this section.

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