BILL NUMBER: AB 2149 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 17, 2016
INTRODUCED BY Assembly Member Bonilla
FEBRUARY 17, 2016
An act to amend Section 22380 of the Financial Code,
relating to consumer loans. An act to add Part 13.5
(commencing with Section 31001) to Division 2 of the Revenue and
Taxation Code, relating to medical marijuana.
LEGISLATIVE COUNSEL'S DIGEST
AB 2149, as amended, Bonilla. Consumer loans: Pilot
Program for Increased Access to Responsible Small Dollar Loans.
State Board of Equalization: state agencies:
collection of cash payments: medical marijuana -related
businesses.
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.
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.
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.
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.
This bill would provide that no reimbursement is required by this
act for a specified reason.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 13.5 (commencing with Section
31001) is added to the Revenue and Taxation Code
, to read:
PART 13.5. Medical Marijuana State Payment Collection Law
31001. This part shall be known, and may be cited, as the Medical
Marijuana State Payment Collection Law.
31002. (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.
31003. (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.
SEC. 2. 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.
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.