BILL ANALYSIS �
AB 1950
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CONCURRENCE IN SENATE AMENDMENTS
AB 1950 (Davis)
As Amended August 6, 2012
Majority vote
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|ASSEMBLY: |56-22|(May 30, 2012) |SENATE: |38-0 |(August 22, |
| | | | | |2012) |
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Original Committee Reference: PUB. S.
SUMMARY : Modifies provisions related to mortgage fraud
enforcement.
The Senate amendments make technical non-substantive changes.
EXISTING LAW :
1)States that prosecution for a misdemeanor must be commenced
within one year of the commission of the offense.
2)States that the prosecution for a felony not punishable by
death or life imprisonment, or for the embezzlement of public
money, must be commenced within three years, unless the
offense carries a sentence of eight years or more.
3)States that the prosecution for a felony punishable by
imprisonment of eight years or more, but not punishable by
death or life imprisonment, or for the embezzlement of public
money, must be commenced within six years.
4)States that the prosecution for a felony punishable by death,
life in prison, or for the embezzlement of public money, may
be commenced at any time.
5)States that the statute of limitations may be tolled for
specified offenses.
AS PASSED BY THE ASSEMBLY , this bill modified provisions related
to mortgage fraud enforcement. Specifically, this bill:
1)Removed the sunset date on prohibitions against unlawful
mortgage loan modification or loan forbearance, as specified.
AB 1950
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2)Stated that it is unlawful for any person to engage in the
business, act in the capacity of, advertise or assume to act
as a mortgage loan originator within this state without being
so licensed or without having obtained a license endorsement.
3)Extended the statute of limitations for misdemeanor crimes
related to mortgage fraud, as specified, from one year to
three years after discovery of the offense, or within three
years after the completion of the offense, whichever is later.
FISCAL EFFECT : According to the Senate Appropriations
Committee:
1)Ongoing court costs for increased misdemeanor filings
potentially in excess of $100,000 (General Fund) per year,
offset to a degree by fine revenue.
2)Potential non-reimbursable local enforcement and incarceration
costs, offset to a degree by fine revenue.
3)While the impact of this bill independently on local jails
could be minor, the cumulative effect of increasing the number
of misdemeanors filed could create General Fund cost pressure
on capital outlay, staffing, programming, the courts, and
other resources in the context of recently enacted 2011 Public
Safety Realignment.
COMMENTS : According to the author, "Because of the complicated
nature of the mortgage crisis, it is often a while before
misconduct is discovered, at which point there is little to no
time left in the statute of limitations for the Attorney General
to investigate. Furthermore, due to the inevitable budget cuts,
there is a need to insulate the Attorney General's Mortgage
Fraud Strike Force."
Please see the policy committee analysis for a full discussion
of this bill.
Analysis Prepared by : Milena Blake / PUB. S. / (916) 319-3744
AB 1950
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FN:
0005121