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Legislative Updates

SUMMARY OF LEGISLATIVE UPDATES FOR 2022

 
AB 1410 (Rodriguez) - Common Interest Developments
  • the Davis-Stirling Common Interest Development Act, regulates common interest developments and associations, as defined. Existing law also regulates governing documents, as defined, and protects certain uses of a homeowner's separate property. That law, among other things, prohibits an association from restricting specified rights of a homeowner. These rights include the right to peacefully assemble, to invite public officials or other speakers to discuss matters of public interest, to distribute literature related to common interest development living, and to rent or lease a separate interest unless the governing document or amendment that restricts a homeowner's right to rent or lease their separate interest existed prior to the homeowner acquiring title to the separate interest.
  • This bill would prohibit the governing documents from prohibiting a member or resident of a common interest development from using social media or other online resources to discuss specified issues even if the content is critical of the association or its governance, including, among other issues, development living and association elections. The bill would additionally prohibit an association from retaliating against a member or a resident for exercising certain rights, including the right to peacefully assemble or to use social media or other online resources to discuss certain issues. 
  • This bill was signed by the Governor on 9/30/2022 and will take effect 1/1/2023.
  • To view bill click HERE
 
AB 1738 (Boerner Horvath) - Building Standards: Installation of Electric Vehicle Charging Stations
  • The California Building Standards Law establishes the California Building Standards Commission within the Department of General Services. Existing law requires the commission to approve and adopt building standards and to codify those standards in the California Building Standards Code.
  • Existing law requires the Department of Housing and Community Development to propose to the commission for consideration mandatory building standards for the installation of future electric vehicle charging infrastructure for parking spaces in multifamily dwellings, as specified. Existing law requires the commission to adopt, approve, codify, and publish mandatory building standards for the installation of electric vehicle charging infrastructure for parking spaces in multifamily dwellings and nonresidential development.
  • This bill would, commencing with the next triennial edition of the California Building Standards Code, require the commission and the Department of Housing and Community Development to research and develop, and authorize the commission and department to propose for adoption, mandatory building standards for the installation of electric vehicle charging stations with low power level 2 or higher electric vehicle chargers in existing multifamily dwellings, hotels, motels, and nonresidential development during certain retrofits, additions, and alterations to existing parking facilities, as specified.
  • This bill was signed by the Governor on 9/28/2022 and will take effect 1/1/2023.
  • To view bill click HERE
 
AB 2174 (CHEN) - Vehicles: Removal from Private Property
  • Existing law authorizes the owner or person in lawful possession of private property to cause the removal of a vehicle parked on the property to a storage facility under specified circumstances, including when signs are posted prohibiting public parking and warning that vehicles will be removed at the owner's expense. Existing law requires the tow truck operator removing the vehicle, if the operator knows or is able to ascertain the name and address of the registered and legal owner of the vehicle, to immediately give, or cause to be given, notice in writing to the registered and legal owner of the fact of the removal and the amount of mileage on the vehicle at the time of the removal, among other things. Existing law makes it a misdemeanor for the towing company to remove or commence the removal of a vehicle from private property without first obtaining the written authorization from the property owner or lessee, or an employee or agent thereof, except as specified, and requires the written authorization to include specified information, including the make, model, vehicle identification number, and license plate number of the removed vehicle.
  • This bill would require the notice of removal to the vehicle's registered and legal owner to include the amount of mileage on the vehicle only if the vehicle has a visible odometer. The bill would, if the vehicle is a shared mobility device or does not have an identifiable make, model, vehicle identification number, or license plate number, require the written authorization of the property owner or lessee to include any identification numbers on the vehicle, including, but not limited to, a quick response (QR) code or serial number. By expanding the scope of an existing crime, the bill would impose a state-mandated local program.
  • This bill was signed by the Governor on 8/29/2022 and will take effect 1/1/2023.
  • To view bill click HERE
 
AB 2221 (Quirk-Silva) - Accessory Dwelling Units
  • The Planning and Zoning Law, among other things, provides for the creation of accessory dwelling units by local ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval, in accordance with specified standards and conditions. Existing law requires a local ordinance to require an accessory dwelling unit to be either attached to, or located within, the proposed or existing primary dwelling, as specified, or detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing primary dwelling.
  • This bill would specify that an accessory dwelling unit that is detached from the proposed or existing primary dwelling may include a detached garage.
  • Existing law requires a permitting agency to act on an application to create an accessory dwelling unit or a junior accessory dwelling unit within specified timeframes.
  • This bill would require a permitting agency to approve or deny an application to serve an accessory dwelling unit or a junior accessory dwelling unit within the same timeframes. If a permitting agency denies an application for an accessory dwelling unit or junior accessory dwelling unit, the bill would require a permitting agency to return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant within the same timeframes. The bill would define “permitting agency” for its purposes.
  • Existing law authorizes a local agency to establish minimum and maximum unit size requirements for attached and detached accessory dwelling units, subject to certain exceptions, including that a local agency is prohibited from establishing limits on lot coverage, floor area ratio, open space, and minimum lot size, that do not permit the construction of at least an 800 square foot accessory dwelling unit, as specified.
  • This bill would additionally prohibit a local agency from establishing limits on front setbacks, as described above.
  • This bill was signed by the Governor on 9/28/2022 and will take effect 1/1/2023.
  • To view bill click HERE

 

SB 897(Wieckowski) - Accessory Dwelling Units: Junior Accessory Dwelling Units
  • The Planning and Zoning Law, authorizes a local agency, by ordinance or ministerial approval, to provide for the creation of accessory dwelling units in areas zoned for residential use, as specified. Existing law authorizes a local agency to impose standards on accessory dwelling units that include, but are not limited to, parking, height, setback, landscape, architectural review, and maximum size of a unit.
  • This bill would require that the standards imposed on accessory dwelling units be objective. For purposes of this requirement, the bill would define “objective standard” as a standard that involves no personal or subjective judgment by a public official and is uniformly verifiable, as specified. The bill would also prohibit a local agency from denying an application for a permit to create an accessory dwelling unit due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit.
  • This bill would require a local agency to review and issue a demolition permit for a detached garage that is to be replaced by an accessory dwelling unit at the same time as it reviews and issues the permit for the accessory dwelling unit. The bill would prohibit an applicant from being required to provide written notice or post a placard for the demolition of a detached garage that is to be replaced by an accessory dwelling unit, as specified.
  • Existing law provides that an accessory dwelling unit may either be an attached or detached residential dwelling unit, and prescribes the minimum and maximum unit size requirements, height limitations, and setback requirements that a local agency may establish, including a 16-foot height limitation and a 4-foot side and rear setback requirement. This bill would increase the maximum height limitation that may be imposed by a local agency on an accessory dwelling unit to 18 feet if the accessory dwelling unit is within 1/2 mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined, or if the accessory dwelling unit is detached and on a lot that has an existing multifamily, multistory dwelling, as specified. The bill would increase the maximum height limitation that may be imposed by a local agency on an accessory dwelling unit to 25 feet if the accessory dwelling unit is attached to a primary dwelling, except as specified.
  • Existing law requires an ordinance that provides for the creation of an accessory dwelling unit to require accessory dwelling units to comply with local building code requirements that apply to detached dwellings, as appropriate. Existing law also prohibits an ordinance from requiring an accessory dwelling unit to provide fire sprinklers if they are not required for the primary residence.
  • This bill would provide that the construction of an accessory dwelling unit does not constitute a Group R occupancy change under the local building code, except as specified. The bill would prohibit the construction of an accessory dwelling unit from triggering a requirement that fire sprinklers be installed in the existing primary dwelling.
  • Existing law provides that a local agency must ministerially approve an application for a building permit within a residential or mixed-use zone to create not more than 2 accessory dwelling units that are located on a lot that has an existing multifamily dwelling, but are detached from that multifamily dwelling and are subject to a height limitation of 16 feet and a 4-foot side and rear setback requirement. This bill would change the height limitation applicable to an accessory dwelling unit subject to ministerial approval to 18 feet if the accessory dwelling unit is within 1/2 mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined, or if the accessory dwelling unit is detached and on a lot that has an existing multifamily, multistory dwelling, as specified.
  • The bill would change the height limitation applicable to an accessory dwelling unit subject to ministerial approval to 25 feet if the accessory dwelling unit is attached to a primary dwelling, except as specified. The bill, if the existing multifamily dwelling exceeds applicable height requirements or has a rear or side setback of less than 4 feet, would prohibit a local agency from requiring any modification to the existing multifamily dwelling to satisfy these requirements. The bill would prohibit a local agency from rejecting an application for an accessory dwelling unit because the existing multifamily dwelling exceeds applicable height requirements or has a rear or side setback of less than 4 feet.
  • Existing law prohibits a local agency from imposing parking standards on certain accessory dwelling units, including those that are located within 1/2-mile walking distance of public transit. This bill would also prohibit a local agency from imposing any parking standards on an accessory dwelling unit that is included in an application to create a new single-family dwelling unit or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit meets other specified requirements.
  • Existing law, when a local agency has not adopted an ordinance governing accessory dwelling units, requires a permitting agency to act on an application to create an accessory dwelling unit or a junior accessory dwelling unit within specified timeframes. This bill would require a permitting agency to return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant, if the permitting agency denies an application for an accessory dwelling unit or junior accessory dwelling unit.
  • Existing law also provides for the creation of junior accessory dwelling units by local ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval, in accordance with specified standards and conditions. Existing law requires an ordinance that provides for the creation of a junior accessory dwelling unit to, among other things, (A) require that the unit be constructed within the walls of the proposed or existing single-family residence, (B) require that the unit include a separate entrance from the main entrance to the proposed or existing single-family residence, and (C) require owner-occupancy in the single-family residence in which the junior accessory dwelling unit is permitted. This bill would specify that enclosed uses within the proposed or existing single-family residence, such as attached garages, are considered a part of the proposed or existing single-family residence. The bill would require a junior accessory dwelling unit that does not include a separate bathroom to include a separate entrance from the main entrance to the structure, with an interior entry to the main living area. The bill would also prohibit a local agency from denying an application for a permit to create a junior accessory dwelling unit due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the junior accessory dwelling unit.
  • Existing law requires a local agency, in enforcing building standards applicable to accessory dwelling units, to delay enforcement for up to 5 years upon the owner submitting an application requesting the delay on the basis that correcting the violation is not necessary to protect health and safety. This bill would prohibit a local agency from denying a permit for an unpermitted accessory dwelling unit that was constructed before January 1, 2018, because, among other things, the unit is in violation of building standards or state or local standards applicable to accessory dwelling units, unless the local agency makes a finding that correcting the violation is necessary to protect the health and safety of the public or occupants of the structure. This bill would specify that this prohibition does not apply to a building that is deemed substandard under specified provisions of law.
  • Existing law requires the Department of Housing and Community Development to administer various programs intended to promote the development of housing, including the Multifamily Housing Program, pursuant to which the department provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development for specified activities. This bill would state the intent of the Legislature that accessory dwelling unit grant programs provide funding for predevelopment costs and facilitate accountability and oversight, as specified.
  • This bill was signed by the Governor on 9/28/2022 and will take effect 1/1/2023.
  • To view bill click HERE

 

SUMMARY OF LEGISLATIVE UPDATES FOR 2021

 
AB 502 (Davies) - Election Requirement   
  • The Davis-Stirling Common Interest Development Act governs the formation and operation of common interest developments and generally provides for the election and removal of directors of the board by secret ballot. Existing law provides for director nominees to be considered elected by acclamation if the number of director nominees is not more than the number of vacancies to be elected, the association includes 6,000 or more units, the association provides individual notice of the election at least 30 days before the close of the nominations, and the association permits all candidates to run if nominated, except as specified.
  • This bill would delete the requirement that the association includes 6,000 or more units and allow election by acclamation for all associations when the number of candidates is equal or less than the number of vacant seats. 
  • This bill was signed by the Governor on 10/5/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
AB 611 (Silva) - Safe at Home Program Homeowners' Associations   
  • The act authorizes the association of a common interest development to withhold or redact information from association records in specified instances, including, but not limited to, when the release of the information is reasonably likely to compromise the privacy of an individual member of the association.
  • Existing law establishes an address confidentiality program for victims of domestic violence, sexual assault, stalking, human trafficking, or elder or dependent adult abuse, commonly known as the Safe at Home program, under which an adult person, or a guardian on behalf of a minor or an incapacitated person, states that they are a victim of domestic violence, sexual assault, stalking, human trafficking, or elder or dependent adult abuse, and designates the Secretary of State as the agent for service of process and receipt of mail. Under existing law, when the Secretary of State certifies the person as a program participant, the person's actual address is confidential.
  • This bill would, upon request of a participant in the Safe at Home program, require the association of a common interest development to accept and use the address designated by the Secretary of State as the Safe at Home participant's substitute address for association communications and to withhold or redact information that would reveal the name, community property address, or email address of the Safe at Home participant in specified communications of the association.
  • This bill was signed by the Governor on 8/31/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
AB 1101 (Irwin) - Funds: Insurance  
  • Existing law, the Davis-Stirling Common Interest Development Act, regulates common interest developments and requires a managing agent, at the written request of the board of directors of the association, to deposit funds the managing agent receives on behalf of the association into a bank, savings association, or credit union in the state if specified requirements are met.
  • This bill would require the bank, savings association, or credit union to be insured by the Federal Deposit Insurance Corporation, National Credit Union Administration Insurance Fund, or the Securities Investor Protection Corporation.
  • Existing law prohibits transfers of greater than $10,000 or 5% of an association's total combined reserve and operating account deposits, whichever is lower, without written approval from the board.
  • This bill would instead prohibit transfers of $10,000 or greater without prior written approval from the board.
  • Existing law requires the association to maintain fidelity bond coverage for its directors, officers, and employees, and requires the fidelity bond coverage to also include computer fraud and funds transfer fraud and, if the association uses a managing agent or management company, coverage for dishonest acts by that person or entity and its employees.
  • This bill would specifically require the association to maintain crime insurance, employee dishonesty coverage, and fidelity bond coverage, or their equivalent, for the association and the association's managing agent or management company and would require the protection against computer and funds transfer fraud to be in an equal amount.
  • This bill was signed by the Governor on 9/23/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
AB 1466 (McCarty) - Real Property: Discriminatory Restrictions   
  • Existing law requires a county recorder, title insurance company, escrow company, real estate broker, real estate agent, or association that delivers a copy of a declaration, governing document, or deed, to place a cover page or stamp on the first page of the previously recorded document stating that if the document contains any restriction that unlawfully discriminates based on any of the characteristics specified above, that document is void.
  • This bill would require a title company, escrow company, real estate broker, real estate agent, or association that delivers a copy of a declaration, governing document, or deed to a person who holds an ownership interest of record in property to also provide a Restrictive Covenant Modification form with specified procedural information.
  • This bill would additionally authorize a title company, escrow company, county recorder, real estate broker, real estate agent, or other person to record a Restrictive Covenant Modification. The bill, beginning July 1, 2022, would require a title company, escrow company, real estate broker, or real estate agent that has actual knowledge of a declaration, governing document, or deed that is being directly delivered to a person who holds or is acquiring an ownership interest in property and includes a possible unlawfully restrictive covenant to notify the person of the existence of that covenant and their ability to have it removed through the restrictive covenant modification process. The bill would, beginning July 1, 2022, and upon request before the close of escrow, require the title company or escrow company that is directly involved in the pending transaction to assist in the preparation of a Restrictive Covenant Modification, as specified.
  • This bill was signed by the Governor on 8/28/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
AB 1584 (Assembly Housing Committee) - Housing Omnibus  
  • The Davis-Stirling Common Interest Development Act prohibits a common interest development from adopting or enforcing a provision in a governing document, or amendment to a governing document, that restricts the rental or lease of separate interests within a common interest to less than 25 percent of the separate interests. The act requires a common interest development to comply with the prohibition on rental restrictions regardless of whether the common interest development has revised its governing documents to comply with the act and requires a common interest development to amend its governing documents no later than December 31, 2021.
  • This bill would allow common interest development board, without approval of the members, to amend any declaration or other governing document no later than July 1, 2022, that includes a prohibited restrictive covenant, as provided. The bill would require a board to provide general notice of the amendment at least 28 days before approving the amendment and would require any decision on the amendment to be made at a board meeting, after consideration of any comments made by association members.
  • This bill was signed by the Governor on 9/28/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
SB 9 (Atkins) - Housing Omnibus  
  • The Davis-Stirling Common Interest Development Act prohibits a common interest development from adopting or enforcing a provision in a governing document, or amendment to a governing document, that restricts the rental or lease of separate interests within a common interest to less than 25 percent of the separate interests. The act requires a common interest development to comply with the prohibition on rental restrictions regardless of whether the common interest development has revised its governing documents to comply with the act and requires a common interest development to amend its governing documents no later than December 31, 2021.
  • This bill would allow the common interest development board to amend any declaration or other governing document to be in compliance with AB 3182 without the approval of the members.  This bill would also extend the deadline to amend the documents to July 1, 2022.
  • This bill was signed by the Governor on 9/16/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
SB 10 (Wiener) - Planning and Zoning: Housing Development: Density  
  • Existing law requires an attached housing development to be a permitted use, not subject to a conditional use permit, on any parcel zoned for multifamily housing if at least certain percentages of the units are available at affordable housing costs to very low income, lower income, and moderate-income households for at least 30 years and if the project meets specified conditions relating to location and being subject to a discretionary decision other than a conditional use permit.
  • Existing law provides for various incentives intended to facilitate and expedite the construction of affordable housing.
  • This bill would, notwithstanding any local restrictions on adopting zoning ordinances, authorize a local government to adopt an ordinance to zone any parcel for up to 10 units of residential density per parcel, at a height specified in the ordinance, if the parcel is located in a transit-rich area or an urban infill site, as those terms are defined. The bill would prohibit a local government from adopting an ordinance pursuant to these provisions on or after January 1, 2029.
  • The bill would specify that an ordinance adopted under these provisions, and any resolution to amend the jurisdiction's General Plan, ordinance, or other local regulation adopted to be consistent with that ordinance, is not a project for purposes of the California Environmental Quality Act. 
  • The bill would prohibit an ordinance adopted under these provisions from superceding a local restriction enacted or approved by a local initiative that designates publicly owned land as open-space land or for park or recreational purposes.
  • The bill would impose specified requirements on a zoning ordinance adopted under these provisions, including a requirement that the zoning ordinance clearly demarcate the areas that are subject to the ordinance and that the legislative body make a finding that the ordinance is consistent with the city or county's obligation to affirmatively further fair housing. 
  • This bill was signed by the Governor on 9/16/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
SB 60 (Glazer) - Residential Short-term Rental Ordinances: Health or Safety Infractions: Maximum Fines
  • Existing law authorizes the legislative body of a city or a county to make, by ordinance, any violation of an ordinance subject to an administrative fine or penalty and limits the maximum fine or penalty amounts for infractions, to $100 for the first violation, $200 for a 2nd violation of the same ordinance within one year of the first violation, and $500 for each additional violation of the same ordinance within one year of the first violation. Existing law also sets specific monetary limits on the fines that may be imposed by city or county authorities for any violation of local building and safety codes that is an infraction, as prescribed. Existing law requires a city or county levying fines pursuant to these provisions to establish a process for granting a hardship waiver in certain cases.
  • This bill would, notwithstanding those provisions and with certain exceptions, raise the maximum fines for violation of an ordinance relating to a residential short-term rental, as defined, that is an infraction and poses a threat to health or safety, to $1,500 for a first violation, $3,000 for a 2nd violation of the same ordinance within one year, and $5,000 for each additional violation of the same ordinance within one year of the first violation. The bill would make these violations subject to the process for granting a hardship waiver.
  • This bill authorized local governments to increase penalties for individuals who violate short-term rental ordinances and create health or safety issues.
  • This bill was signed by the Governor on 9/24/2021 and take effect immediately as an urgency statute.
  • To view bill click HERE
 
SB 391 (Min) - Common Interest Developments: Emergency powers and procedures
  • Existing law governs the management and operation of common interest developments. Existing law defines a board meeting as a congregation, as provided, or a teleconference, as provided. Existing law requires, among other things, a board meeting held by teleconference to identify at least one physical location so that members of the association may attend, except as provided.
  • This bill would establish alternative teleconferencing procedures for a board meeting or a meeting of the members if gathering in person is unsafe or impossible because the common interest development is in an area affected by a federal, state, or local emergency. The bill would also make a conforming change.
  • This bill was signed by the Governor on 9/23/2021 and take effect immediately as an urgency statute.
  • To view bill click HERE
 
SB 392 (Archuleta) - Common Interest Developments: Emergency powers and procedures
  • Existing law requires an association to deliver documents to members of a common interest development, if those documents are required to be delivered by individual delivery or notice, by either first-class mail, postage prepaid, registered or certified mail, express mail, or overnight delivery by an express service carrier or by email, facsimile, or other electronic means, if the recipient has consented, in writing or by email, to receive documents by that electronic means.
  • This bill would instead require, on and after January 1, 2023, an association to deliver those documents in accordance with the preferred delivery method specified by the member or, if the member has not provided a preferred delivery method, by traditional mail, as described above.
  • The act requires an owner of a separate interest to annually provide certain written notice to the association, including the address or addresses to which notices from the association are to be delivered, an alternate or secondary address, and the address of the owner's legal representative, if any. The act requires the association to solicit that notice, as provided.
  • This bill would instead require a member to provide the member's preferred delivery method for receiving notices and an alternate or secondary delivery method for receiving notices, and would require the association to include the options of receiving notice by mail, by a valid email address, or both. The bill would require a member to provide a valid email address, if available, of the owner's legal representative, if any, and would define the term “valid email address.” The bill would require an association to include certain items in the required solicitation of notice described above, including that the member does not have to provide an email address to the association.
  • This bill would include posting the notice on the association's internet website among the authorized delivery methods if this method is so designated by the association in its annual policy statement.
  • The act prohibits association records, and any information from them, from being sold, used for a commercial purpose, or used for any other purpose not reasonably related to a member's interest as a member.
  • This bill would prohibit an association or its managing agent from transmitting a member's personal information to a third party without the consent of the member unless required to do so by law, as specified.
  • This bill would also make conforming and nonsubstantive changes.
  • This bill was signed by the Governor on 10/7/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
SB 432 (Wieckowski) - Common Interest Developments
  • Existing law provides for nomination by acclamation in an election of members of the board of directors of the association if certain conditions are satisfied, including that the association permits all candidates to run if nominated. However, an association is authorized to disqualify a person from nomination under certain circumstances, including if the person has been a member of the association for less than one year.
  • This bill would revise and recast common interest development election procedures, including, among other things, limiting certain noticing provisions to the elections of directors and to recall elections, requiring an association to maintain association election materials, as defined, for one year after the date of the election, and specifying that the candidate list is required to include the name and address of individuals nominated as a candidate for election to the board of directors.
  • The bill would include among the permissible reasons for disqualifying a person from nomination if the person has served the maximum number of terms or sequential terms allowed by the association.
  • This bill would require the additional persons to be appointed and overseen by the inspectors of election to also satisfy the criteria of who may be an independent third party.
  • This bill would provide that the changes proposed in Section 1 of this bill, amending Section 5100 of the Civil Code, would take effect only if AB 502 is not enacted, or if AB 502 is enacted but does not add Section 5103 to the Civil Code, as specified.
  • This bill was signed by the Governor on 10/7/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
SB 908 (Wiekowski) - Debt Collectors: Licensing and Regulation: Debt Collection Licensing Act
  • Existing law, the Rosenthal Fair Debt Collection Practices Act, prohibits debt collectors from engaging in unfair or deceptive acts or practices in the collection of consumer debts and defines “consumer debt” and “consumer credit” for purposes of that act.
  • This bill would include placing a telephone call without disclosing the caller's identity, as specified, and sending digital or written communications that do not display the license number of the debt collector in at least 12-point type as prohibited debt collection practices.
  • Existing law establishes the Department of Business Oversight headed by the Commissioner of Business Oversight, who, among other things, generally provides for licensure and regulation of persons who are engaged in various consumer financial businesses.
  • This bill would enact the Debt Collection Licensing Act which would, beginning on January 1, 2022, provide for licensure, regulation, and oversight of debt collectors by the commissioner, define terms for its purposes, and make other conforming changes. The bill would prohibit a person from engaging in the business of debt collecting in this state without a license and would also require the person to comply with reporting, examination, and other oversight by the commissioner. 
  • The bill would require a person applying for a license to, among other things, pay an application fee, sign the application under penalty of perjury, and submit to a criminal background check by the Department of Justice. By expanding the scope of the crime of perjury this bill would impose a state-mandated local program.
  • This bill would require each licensee to, among other things, file reports with the commissioner under oath, maintain a surety bond, and pay to the commissioner its pro rata share of all costs and expenses reasonably incurred in the administration of these provisions, as estimated by the commissioner. The bill would authorize the commissioner to enforce these provisions by, among other things, adopting regulations, performing investigations, suspending a license, issuing orders and claims for relief, and enforcing the provisions, as specified.
  • This bill was signed by the Governor on 9/25/2020 and will take effect 1/1/2022.
  • To view bill click HERE
 
Legislative Updates from the California Legislative Information Website

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