Banking/Finance/Trade

• Corporations/Securities
• Financial Institutions
• International Trade and Investment
• Loans/Lending/Credit
• Mortgages
• Miscellaneous

Note: * Denotes Urgency or Tax Levy Legislation.

Corporations/Securities

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SB 121 (Evans-D) Corporations: political activities: shareholder disclosure

Requires corporations to notify their shareholders at least 24 hours before making political contributions or expenditures, as defined, and to annually summarize and report to their shareholders on the political contributions and expenditures they made during the prior year, as specified.
(Failed passage in Senate Banking and Financial Institutions Committee; reconsideration granted)

SB 248 (Wyland-R) Professional corporations: medical corporations

Extends the maximum term of office of a medical corporation director to seven years, if the medical corporation has more than 200 shareholders.
(In Senate Banking and Financial Institutions Committee)

SB 538 (Hill-D) Corporate Securities Law: enforcement

Enacts several changes to the Corporate Securities Law of 1968 to augment the Securities Law enforcement resources of the Department of Corporations and streamlines the process by which the Department may collect judgments from securities licensees found to have violated the Securities Laws.
Chapter 335, Statutes of 2013

AB 201 (Holden-D) Small business financial development corporations: Internet

Requires the Office of Small Business Advocate to post on its Internet Web site information on the programs administered through the statewide network of small business financial development corporations.
Chapter 529, Statutes of 2013

AB 434 (Hagman-R) Preferred shares: rights and preferences distributions

Provides that a distribution to a corporation's shareholders may be made without regard to the preferential dividends arrears amount or any preferential rights amount, or both.
Chapter 38, Statutes of 2013

AB 457 (Torres-D) Shareholders: corporate reorganizations

Eliminates the 10-day waiting period that currently applies for corporate reorganizations in which shareholders have the right, under dissenters' rights, to demand payment of cash for their shares.
Chapter 109, Statutes of 2013

AB 491 (Torres-D) Corporations: bylaws: emergency

Authorizes a corporation, nonprofit public benefit corporation, nonprofit mutual benefit corporation, or nonprofit religious corporation to take actions in anticipation of or during an emergency, as defined, and to adopt bylaws to manage and conduct ordinary business affairs of the corporation effective only in an emergency.
Chapter 255, Statutes of 2013

AB 554 (Mullin-D) Corporate disclosure fees: Secretary of State

Changes accounting procedures for the Secretary of State's Business Fees Fund, and establishes a new account for deposit of a portion of funds from the existing corporate disclosure fee.
Chapter 364, Statutes of 2013

AB 713 (Wagner-R) Corporate Securities Law: broker-dealers

Adds to the persons and entities excluded from the definition of a broker-dealer (Corporate Securities Law of 1968), an individual who is a "finder," as defined, that satisfied specified requirements, including, among other things, filing an initial statement of information with the Department of Business Oversight and paying a filing fee.
(In Assembly Banking and Finance Committee)

AB 783 (Daly-D) Securities transactions: qualification requirements

Exempts from qualification offerings or sales of securities using a general solicitation or general advertising, provided the transaction meets specified requirements, including a requirement that the sales are made to accredited investors and the aggregate offering price of securities, as defined by reference to Regulation D under the Securities Act of 1933, does not exceed $1 million, less the aggregate offering price for all securities sold within 12 months, as specified.
(In Assembly Banking and Finance Committee)

AB 786 (Dickinson-D) Money transmissions: eligible securities

Makes numerous changes to the Money Transmission Act (MTA), including, among others, granting a limited exemption for payroll processing firms; reducing minimum net worth requirements; authorizing the Commissioner of the Department of Financial Institutions to grant partial exemptions from the MTA; revising what constitutes an eligible security for purposes of the MTA; and requiring the issuance of specified regulations by the Commissioner.
Chapter 533, Statutes of 2013

AB 856 (Hagman-R) Securities: sale or issue: exemptions

Adds "nonpreferred voting securities," as defined, to the list of securities exempt from qualification requirements, as specified.
(In Assembly Banking and Finance Committee)

AB 1091 (Skinner-D) California Finance Lenders Law: exemption

Exempts, from the California Finance Lenders Law, California business and industrial development corporations when acting under federal law or other state authority, licensed pawnbrokers when acting under the authority of that license, and persons making five or fewer commercial loans in a 12-month period as long as the loans are incidental to the business of the person relying on the exemption.
Chapter 243, Statutes of 2013

AB 1255 (Pan-D) Corporations: consumer cooperatives

Authorizes a consumer cooperative corporation to (1) provide for preferred memberships and/or non-voting memberships in its articles of incorporation or bylaws; (2) divide a membership class into one or more series; and (3) authorize the board of directors to fix the rights, privileges, preferences, restrictions, and conditions attaching to any wholly unissued class or series of memberships.
Chapter 538, Statutes of 2013

Financial Institutions

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SB 537 (Senate Banking And Financial Institutions Committee) Federal deposit insurance

Updates state law to reflect changes in minimum levels of federal deposit insurance limits, and makes technical and clarifying changes to several sections of the Financial Code administered by the Department of Financial Institutions.
Chapter 334, Statutes of 2013

SB 798 (De León-D) California Green Infrastructure Bank Act

Enacts the California Green Infrastructure Bank Act and establishes the California Green Infrastructure Bank making it responsible for administering the Act; specifies that the Bank may direct the State Treasurer to invest the monies in investment agreements with corporations, financial institutions, or national associations within the U.S. that are rated by a nationally recognized rating service within the top three rating categories of the service; and provides that the Bank may direct the State Treasurer to deposit monies in interest-bearing accounts in state or national banks or other financial institutions having principal offices in California.
(In Senate Governance and Finance Committee)

AB 279 (Dickinson-D) Depository institutions: local agencies

Expands the ways in which local governments may invest their surplus funds, by authorizing local agencies to invest up to 30% of their surplus funds in deposits at depository institutions that use a private sector entity to help place local agency deposits.
Chapter 228, Statutes of 2013

AB 385 (Dickinson-D) Bank on California Program

Houses the Bank on California Program within the Department of Business Oversight and establishes a quarterly reporting system for participating banks. Requires participating financial institutions to comply with specific administrative obligations.
(In Senate Appropriations Committee)

AB 978 (Blumenfield-D) Financial institutions: Iran sanctions

Requires the Commissioner of the Department of Financial Institutions to examine a licensee which maintains a correspondent account or payable-through account for compliance with the federal Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, associated federal regulations, and any related presidential executive orders.
Chapter 139, Statutes of 2013

AB 1162 (Frazier-D) Student financial aid: debit cards

Requires the Board of Governors of the California Community Colleges and the Trustees of the California State University, and requests the Regents of the University of California and the governing bodies of accredited private postsecondary educational institutions, to adopt policies to be used to negotiate contracts with banks and other financial institutions for the disbursement of students' financial aid awards and other refunds onto debit cards, prepaid cards, or preloaded cards, as specified.
(Failed passage in Senate Banking and Financial Institutions Committee; reconsideration granted)

AB 1206 (Morrell-R) Federal home loan bank: letter of credit

Revises, until 1/1/19, the reference to letters of credit issued by the Federal Home Loan Bank of San Francisco, which may be received as security for demand and time deposits, to refer instead to a letter of credit issued by a federal home loan bank.
(In Assembly Banking and Finance Committee)

AB 1247* (Medina-D) Financial institutions: loan guarantees

Expands the list of eligible financial institutions and entities that a small business financial development corporation may offer a loan guarantee, to include credit unions, community development financial institutions, and microlenders.
Chapter 537, Statutes of 2013

AB 1282 (Bonta-D) Financial institutions: credit unions

Modifies the formula used to calculate assessments paid annually by state-chartered credit unions to the Department of Financial Institutions.
Chapter 115, Statutes of 2013

International Trade and Investment

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SB 592* (Lieu-D) Trade promotion of California ports

Requires the Director of the Governor's Office of Business and Economic Development to provide a port trade promotion strategy to the Legislature by 12/1/14, and convene a statewide business partnership for port trade promotion.
(In Assembly Appropriations Committee)

SJR 16 (Emmerson-R) Transatlantic Trade and Investment Partnership

Urges the President and the U.S. Senate to negotiate and ratify, respectively, the Transatlantic Trade and Investment Partnership agreement with the European Union.
(In Assembly Jobs, Economic Development and the Economy Committee)
A similar bill was SR 20 (Emmerson-R) which was adopted by the Senate.

SR 20 (Emmerson-R) Transatlantic Trade and Investment Partnership

Urges the President and the U.S. Senate to negotiate and ratify, respectively, the Transatlantic Trade and Investment Partnership agreement with the European Union.
Adopted by the Senate
A similar bill is SJR 16 (Emmerson-R) which is in Assembly Jobs, Economic Development and the Economy Committee.

AB 337 (Allen-R) Ports of entry: international trade and investment strategy

Requires the strategy for international trade and investment, provided by the Director of the Governor's Office of Business and Economic Development, to include an evaluation of the ports of entry to the state and their capacity for handling international trade, including industrial and postconsumer secondary material, originating from or destined for other states.
(In Assembly Jobs, Economic Development and the Economy Committee)

AB 412 (Allen-R) Global markets: international trade

Requires the Director of the Governor's Office of Business and Economic Development to complete a study, on or before 10/1/15, of the potential roles for the state in global markets. Requires the Director to update the study on or before 10/1/18, and every five years thereafter.
(In Assembly Appropriations Committee)

AB 1067 (Medina-D) Foreign investment: EB-5 Program

Establishes the California Foreign Investment Program within the Governor's Office of Business and Economic Development as the lead entity for overseeing the state's participation in the U.S. Citizenship Immigration Services' EB-5 Investment Program.
Chapter 535, Statutes of 2013

AB 1088 (Muratsuchi-D) Japan: overseas trade office

Requires the Governor's Office of Business and Economic Development, no later than 1/1/16, to establish under its jurisdiction an overseas trade office in Tokyo, Japan.
(In Assembly Jobs, Economic Development and the Economy Committee)

AB 1166 (Blumenfield-D) Israel: trade and economic development

Establishes the California and Israel Trade and Economic Development Act of 2013 to facilitate greater economic development and job creation opportunities for this state. Directs the Governor's Office of Business and Economic Development to formalize an economic relationship between California and Israel.
(In Assembly Jobs, Economic Development and the Economy Committee)

AJR 4 (Hueso-D) United States-Mexico border

Urges the federal government, including the Department of Homeland Security and the General Services Administration, to fund necessary improvements at the San Ysidro, Calexico, and Otay Mesa Ports of Entry.
Resolution Chapter 24, Statutes of 2013

AJR 12 (Gatto-D) Foreign minimum wage

Calls upon the President and the U.S. Trade Representative to include raising foreign minimum wages in future treaties, trade agreements, and other international protocols. Calls upon the U.S. Senate to decline to ratify these agreements that fail to include these provisions.
Resolution Chapter 152, Statutes of 2013

Loans/Lending/Credit

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SB 318 (Hill-D) Consumer loans: small dollar loans: refinance

Establishes, until 1/1/18, the Pilot Program for Increased Access to Responsible Small Dollar Loans under the California Finance Lenders Law; abolishes the Pilot Program for Affordable Credit-Building Opportunities; defines the term "refinance;" and specifies refinance loan requirements.
Chapter 467, Statutes of 2013

SB 526 (Calderon-D) Lending practices: unlicensed activity report

Requires the Department of Corporations to include, in its annual report to the Legislature, data on unlicensed activity relating to deferred deposit transactions or installment loans that are being conducted over the Internet.
(In Senate Appropriations Committee)

AB 122 (Rendon-D) Financing: nonresidential building energy retrofit

Establishes the Nonresidential Building Energy Retrofit Financing Act of 2012. Requires the California Energy Commission to establish, by 7/1/14, the Nonresidential Building Energy Retrofit Financing Program to provide financial assistance through revenue bonds for owners of eligible buildings to implement energy efficiency improvements and renewable energy generation.
(In Assembly Appropriations Committee)

AB 129 (Dickinson-D) Finance lenders: credit-building

Extends, until 1/1/16, the Pilot Program for Affordable Credit-Building Opportunities for the purpose of increasing the availability of credit-building opportunities to underbanked individuals seeking low-dollar-value loans. Changes the date for the Deputy Commissioner of Business Oversight to report to the legislative committees to 1/1/15, summarizing utilization of the Pilot Program.
(In Assembly Banking and Finance Committee)

AB 469 (Wagner-R) Loan modifications: telephonic sellers

Redefines "telephonic seller" to include a person making a telephone solicitation to arrange or assist in the arrangement of a loan modification, and thus requires that those who attempt to arrange or assist in the arrangement of a loan modification must comply with the law that regulates telephonic sellers and requires that they register with the Department of Justice and provide information to the Department, as specified.
(In Senate Banking and Financial Institutions Committee)

AB 553 (Medina-D) Reverse mortgages: notifications

Prohibits a lender from taking a reverse mortgage application or assessing any fees until seven days from the date of loan counseling, as specified; deletes the requirement that the lender provide a written checklist and, instead, prohibits a lender from taking a reverse mortgage application unless the applicant has received from the lender a specified reverse mortgage worksheet guide; requires that the worksheet contain certain issues that the borrower is advised to consider and discuss with the counselor; and requires the counselor and the prospective borrower to sign the worksheet, as specified.
(In Assembly Banking and Finance Committee)

AB 844 (Dickinson-D) Credit and debit cards: transactions: personal information

Updates provisions of the Song-Beverly Credit Card Act of 1971, related to the protection of personal identification information, to reflect the increasing use of debit cards to purchase goods and services and the increasing use of the Internet as a venue for use of both credit cards and debit cards to purchase goods and services.
(In Senate Banking and Financial Institutions Committee)

AB 1091 (Skinner-D) Lenders: finance and mortgage

Authorizes the Commissioner of the Department of Corporations to issue citations and levy fines for violations of the California Finance Lenders Law (CFLL) and California Residential Mortgage Lending Act, as specified; prohibits specified acts by CFLL licensees; and revises the de minimis exemption for commercial finance lenders within the CFLL.
Chapter 243, Statutes of 2013

AB 1162 (Frazier-D) Debit cards: student financial aid

Requires the Board of Governors of the California Community Colleges and the Trustees of the California State University, and requests the Regents of the University of California and the governing bodies of accredited private postsecondary educational institutions to adopt policies to be used to negotiate contracts with banks and other financial institutions for the disbursement of students' financial aid awards and other refunds onto debit cards, prepaid cards, or preloaded cards, as specified.
(Failed passage in Senate Banking and Financial Institutions Committee; reconsideration granted)

AB 1220 (Skinner-D) Consumer credit reporting: adverse action

Makes it unlawful for a consumer credit reporting agency to prohibit, or to dissuade or attempt to dissuade, a user of a consumer credit report furnished by the credit reporting agency from providing a copy of the consumer's credit report to the consumer, upon the consumer's request, if the user has taken adverse action against the consumer based upon the report. Authorizes the Attorney General, among others, to bring a civil action, for a civil penalty not to exceed $5,000, against any credit reporting agency for a violation of these provisions.
Chapter 433, Statutes of 2013

AB 1300 (Roger Hernández-D) Credit cards: oral disclosures

Requires a credit card issuer on or near the campus of an institution of higher education or at an event sponsored by, or related to, an institution of higher education to orally disclose certain information to a first-time credit cardholder between 18 and 26 years of age.
(In Assembly Banking and Finance Committee)

AJR 11 (Wieckowski-D) Bankruptcy: student loan debt

Urges the Congress and the President of the U.S. to support and pass legislation that allows private student loan debt to be dischargeable in a bankruptcy case filed under Chapter 7 or Chapter 13 of the Bankruptcy Code.
Resolution Chapter 110, Statutes of 2013

Mortgages

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SB 179 (Roth-D) Mortgage loan originators

Exempts from the definition of "mortgage loan originator" an individual who originates five or fewer residential mortgage loans secured by a manufactured home or mobilehome, as defined, in any 12-consecutive-month period.
(In Senate Banking and Financial Institutions Committee)

SB 310 (Calderon-D) Mortgages: foreclosure notices: title companies

Exempts a title company from liability if it records a notice of default or notice of sale in violation of the Homeowners' Bill of Rights, if it is acting in good faith and in the normal course of its business activities at the request of a trustee, substitute trustee, or beneficiary.
Chapter 251, Statutes of 2013

AB 553 (Medina-D) Reverse mortgages: notifications

Prohibits a lender from taking a reverse mortgage application or assessing any fees until seven days from the date of loan counseling, as specified; makes specified changes to the disclosure notice; deletes the requirement that the lender provide a written checklist and, instead, prohibits a lender from taking a reverse mortgage application unless the applicant has received from the lender a specified reverse mortgage worksheet guide; requires that the worksheet contain certain issues that the borrower is advised to consider and discuss with the counselor; and requires the counselor and the prospective borrower to sign the worksheet, as specified.
(In Assembly Banking and Finance Committee)

AB 1072 (Wagner-R) Mortgage loan modifications: unlawful activities

Creates an alternate felony/misdemeanor offense for violating existing provisions of law related to unlawful activities in conjunction with a mortgage loan modification. Authorizes a violation of these sections to be punishable as either a misdemeanor, or a felony punishable by imprisonment in the county jail.
(Failed passage in Assembly Public Safety Committee; reconsideration granted)

Miscellaneous

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SB 139 (Hill-D) Exchange facilitators

Deletes the 1/1/14 sunset date on provisions of state law that regulate persons engaging in business as exchange facilitators, as defined, and continues these provisions indefinitely.
Chapter 45, Statutes of 2013

SB 515 (Jackson-D) Deferred deposit transactions

Makes several changes to the California Deferred Deposit Transaction Law, such as increasing the minimum length of deferred deposit transactions; requiring deferred deposit licensees to underwrite deferred deposit transactions and offer installment plans, as specified; capping the maximum number of deferred deposit transactions per customer at four per year; and requiring the Commissioner of the Department of Corporations to develop and implement a database to help enforce the law.
(Failed passage in Senate Banking and Financial Institutions Committee; reconsideration granted)

SB 537 (Senate Banking And Financial Institutions Committee) Financial Code

Makes technical and clarifying changes within the Financial Code administered by the Department of Financial Institutions; updates state law to reflect changes in minimum levels of federal deposit insurance limits; deletes references to obsolete code sections; corrects incorrect code section references; restores code section references that were inadvertently deleted; and adds clarifying language and definitions.
Chapter 334, Statutes of 2013

AB 367 (Brown-D) Limited liability companies: filings

Requires a limited liability company to annually file the specified informational form (disclosing information regarding the company) with the Secretary of State and revises the applicable filing period for limited liability companies.
(In Assembly Banking and Finance Committee)

AB 495 (Campos-D) Community investment

Establishes the California Community Investment Initiative within the Governor's Office of Business and Economic Development. Requires, among other things, the Initiative to create a database of low-income neighborhoods, compile and maintain an inventory of California public sector funding resources and financing mechanisms, coordinate public sector financial investment and public programs to assist low-income communities to become business, development, and investment ready, develop criteria for triple bottom-line equity funds, establish overall triple bottom-line goals and standardized metrics for economic, social, and environmental outcomes to be accepted by eligible equity funds, and survey counties and cities to identify and inventory local governments that want to partner with triple bottom-line equity funds to invest in low-income neighborhoods.
(In Assembly Banking and Finance Committee)

AB 1396 (Assembly Banking And Finance Committee) Department of Financial Services

Changes the name of the proposed Department of Business Oversight to the Department of Financial Services and transfers duties from the Department of Financial Institutions and the Department of Corporations to the Department of Financial Services.
(In Senate Governmental Organization Committee)

ACR 73 (Roger Hernández-D) Commercial banking: speculative authority

Urges the President and the Congress of the U.S. to enact federal legislation to protect the public interest by reviving the separation between commercial banking and speculative activity embodied in the Glass-Steagall Act.
(In Assembly Banking and Finance Committee)

Index (in Measure Order)

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Note: * Denotes Urgency or Tax Levy Legislation.