BILL NUMBER: SB 1371 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 28, 2016
INTRODUCED BY Senator Galgiani
FEBRUARY 19, 2016
An act to add Section 19329 to the Education Code,
relating to the State Library. An act to amend Section
22315 of the Financial Code, relating to consumer loans.
LEGISLATIVE COUNSEL'S DIGEST
SB 1371, as amended, Galgiani. State Library: online
homework assistance. Credit disability insurance:
premium payments.
The California Finance Lenders Law generally 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. The law authorizes a licensee to offer credit
disability insurance under specified conditions and requires
premiums to be made available on a monthly or annual premium basis.
This bill would instead authorize credit disability insurance to
be offered on a monthly, annual, or single premium basis. The bill
would require, when a monthly premium is offered, the premium rate
charged per month to not exceed a pro rata relationship to the annual
or single premium.
Under existing law, there is in the State Department of Education
a division known as the California State Library. The State Librarian
is authorized to give advisory, consultive, and technical assistance
with respect to public libraries to librarians and library
authorities and assist all other authorities, state and local, in
assuming their full responsibility for library services. The
department is authorized to contract with counties, cities, or
districts within this state, agencies of the state, and agencies of
the United States Government for the purpose of providing library
services and to establish and operate library service centers.
This bill would, subject to an appropriation of funds for that
purpose, require the State Librarian to enter into a contract with an
entity to establish and maintain a program of online homework
assistance through the public libraries in the state. The program
would be required to be made available free of charge to all pupils
in the state.
Vote: majority. Appropriation: no. Fiscal committee: yes
no . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 22315 of the
Financial Code is amended to read:
22315. (a) Credit disability insurance written pursuant to
Section 22314 shall not provide indemnity against the risk that the
borrower will become disabled for a period of less than 14 days. The
insurance may provide indemnity for any single period of continuous
disability of 14 days or longer, after which the risk may become
compensable. The insurance may be offered with retroactive coverage
to an earlier date based upon the disability having continued for a
period stated in the policy, but if insurance with retroactive
coverage is offered, it shall also be offered without retroactive
coverage, and the premium rate for each coverage shall be separately
stated in writing to the borrower.
(b) If insurance with retroactive coverage is provided, the
coverage shall provide for a prorated payment based upon the fraction
of the month during which the insured is disabled, provided that the
insured is continuously disabled during the waiting period set forth
in the policy. If insurance without retroactive coverage is
provided, the coverage shall provide for a prorated payment based
upon the fraction of the month during which the insured is disabled,
after first excluding the elimination period set forth in the policy.
For the purpose of this subdivision, a month is any period of 30
consecutive days.
(c) Credit disability insurance, if made available by a licensee,
shall be available on a monthly monthly,
annual, or annual single premium
basis, and basis. When a monthly premium is
offered, the premium by the rate
charged per month shall not exceed a pro rata relationship to
the annual or single premium. Credit disability insurance
need not be offered for a period less than the term of the loan to
which it is applicable, and no credit disability insurance shall be
written for a period in excess of the term of the loan to which it is
applicable.
(d) The monthly disability benefit payable with respect to an
open-end loan shall not exceed the monthly payment computed pursuant
to Section 22453 on the outstanding balance at the time disability is
incurred.
This section does not apply to any loan of a bona fide principal
amount of ten thousand dollars ($10,000) or more, as determined in
accordance with Section 22251.
SECTION 1. Section 19329 is added to the
Education Code, to read:
19329. Subject to an appropriation of funds for this purpose in
the annual Budget Act or other statute, the State Librarian shall
enter into a contract with an entity to establish and maintain a
program of online homework assistance through the public libraries in
the state. The program shall be made available free of charge to all
pupils in the state.
SEC. 2. Subject to an appropriation of funds in
the annual Budget Act or other statute or the availability of other
funds, the sum of three million dollars ($3,000,000) shall be granted
annually to the State Librarian for purposes of establishing and
maintaining a program of online homework assistance, as set forth in
Section 19329 of the Education Code.