WE ARE GOING TO START.
ARE AYE APRIL TWENTY THIRD
HEARING WE HAVE.
.
TWO BILLS TODAY.
WE WILL STAR AS A SUB COMMITTEE
UNTIL WE HAVE QUORUM AND ONCE WE
HAVE QUORUM AND WE WILL. UP
PROCEED AS A REGULAR HEARING SO
TO START UP FOR ABOUT WE HAVE
ASSEMBLYMEMBER AGUIAR-CURRY.
WITH THE I. AB TWENTY SIXTY
THREE
.
GOOD AFTER CHIP GOOD AFTERNOON
CHAIRMAN AND MEMBER.
ASSESSMENTS ARM.
MIA
WITH CUMULATIVE ASSESSMENT
SCORING FROM AT LEAST THREE
HUNDRED AND FIFTY MILLION IN TWO
THOUSAND FOURTEEN. TO OVER TWO
POINT SIX BILLION BY THE END OF
TWO THOUSAND SIXTEEN.
THIS IS A GOOD PROGRAM THAT WE
WANT TO MAKE BETTER BY
PROTECTING CONSUMERS.
RECENT REPORTS INDICATE THAT
DEFAULT RATES ARE RISING AS THE
PACE INDUSTRY CONTINUES TO GROW.
DEFAULTING ON A PACE ASSESSMENT
CAN LEAD TO FORECLOSURE. OR A
COUNTY TAX SALE THE CAUSES
PROPERTY OWNERS TO LOSE THEIR
HOMES.
WELL MAJOR STRIDES HAVE BEEN
TAKEN TO SECURE STATEWIDE
OVERSIGHT BY THE DEPARTMENT OF
BUSINESS OVERSIGHT. AND ENHANCE
CONSUMER PROTECTIONS ABOVE SP
TWO FORTY TWO AND A. B. TWELVE
EIGHTY FOUR LAST YEAR.
WORK WORK NEEDS TO BE DONE.
AB TWELVE EIGHTY FOUR WAS
HASTILY DRAFTED ON THE FINAL
NIGHT OF SESSION AND CONTAIN A
NUMEROUS THAT CONTAIN NUMEROUS
PROVISIONS THAT MEMBERS OF BOTH
HOUSES AGREED WOULD NEED TO BE
CLEANED UP.
WHEN AB TWELVE EIGHTY FOUR WAS
HEARD BY THE SENATE INSISTS
ASSEMBLY POLICY COMMITTEES ON
THE NIGHT OF THE TWO THOUSAND
SEVENTEEN LEGISLATIVE YEAR.
THERE WAS SO MUCH CONSENSUS ON
THE NEED FOR SUCH CLEAN UP THE
LETTER TO THE JOURNAL COMMITTED
TO SUCH AN EFFORT.
THE LETTER SPECIFICALLY SAID I
COMMIT TO WORKING SUPPORTIVE
BELIEVE PAT TO PASS A MEASURE ON
THE ISSUE OF UNDERWRITING RAISED
ON PAGE TEN OF THE ASSEMBLY
LOCAL GOVERNMENT COMMITTEE
ANALYSIS.
AS AB TWENTY SIXTY THREE WILL
MAKE CERTAIN THAT A HOMEOWNERS
ABILITY TO PAY THE ASSESSMENT IS
FULLY VERIFIED BEFORE SIGNING AN
ASSESSMENT. OR HOME IMPROVEMENT
CONTRACT.
AND BEFORE WORK ON THE
IMPROVEMENT ACTUALLY BEGINS.
THE TIMING OF THE VERIFICATION
IS CRUCIAL TO DECREASING THE
NUMBER OF DEFAULTS AND REDUCING
THE RISK OF PROPERTY OWNERS
LOSING THEIR HOMES.
ADDITIONALLY WITH THE RECENT
FIRES THROUGHOUT CALIFORNIA
HOMEOWNERS WHOSE HOMES REDUCED
DESTROYED AND HAD PACE
ASSESSMENTS FOR HOME
IMPROVEMENTS. MAY NOT CARRY
SUGGESTS THE EFFICIENT PROPERTY
INSURANCE TO COVER THE FULL
VALUE OF THE HOME AND THE
SUBSEQUENT IMPROVEMENT.
THESE RESIDENTS MAY BE REQUIRED
TO CONTINUE PAYING FOR AN
IMPROVEMENT THAT NO LONGER
EXISTS.
THIS BILL AIMS TO RECTIFY THAT
SUCH A SITUATION BY REQUIRING
PACE ADMINISTRATORS.
TO COMMUNICATE TO THE PROPERTY
OWNERS.
THAT THEY SHOULD CONTACT THEIR
INSURANCE PROVIDER TO DETERMINE
THE APPROPRIATE AMOUNT OF
INSURANCE TO COVER THE PROPERTY
AND THE IMPROVEMENTS.
AB TWENTY SIXTY THREE PROMOTES
ACCOUNTABILITY FERVENT OVER SITE
IRRESPONSIBLE LENDING WHILE
ENSURING THAT THE PACE PROGRAM
AND ITS PRINCIPLES OF ENERGY YOU
WHEN. OF ENERGY AND WATER
EFFICIENCY CAN BE MAXIMIZE FOR
THE YEARS TO COME.
TODAY WITH ME AND I HAVE KAREN
LANE FROM THE COUNTY TREASURES
AND TAX COLLECTORS AS WELL AS
COURTNEY JENSEN FROM THE CREDIT
UNION LEAGUE IN THE THINGS.
YEAH.
GOOD AFTERNOON MADAM CHAIR
MEMBERS KARAWANG ABOVE THE
CALIFORNIA ASSOCIATION OF COUNTY
TREASURES AND TAX COLLECTORS.
THANK YOU FOR. HAVING US TODAY.
DIDN'T.
CAN I JUST.
WE DO HAVE QUORUM SO WE'RE JUST
GONNA TAKE. ROLE REALLY QUICKLY
AND SALAS QUORUM SO WE CAN
CONTINUE THE HEARING.
LIMON. HERE LIMON HERE CHANT
HERE CHEN HERE.
BURKE COMING UP COSTA SORRY.
BURKE.
CALDERON.
CERVANTES.
CERVANTES HERE CHOI YEAH
CHOI HERE BECAUSE ALMOST
FLETCHER.
GONZALEZ FLETCHER YEAR.
GRAYSON.
STONE.
WEBER.
OKAY.
WE HAVE A MOTION AND A SECOND SO
OF EQUIPMENT OTHER TO I
PROVISIONS OF THE BILL WE THINK
ARE MOST IMPORTANT IS SETTING
RIGHT THE ORDER BY WHICH YOU
WOULD DO ABILITY TO PAY WE'RE
VERY STRONG PROPONENTS OF MAKING
SURE THE UNDERWRITING. IS DONE A
COMPLETE IN THE ABILITY TO PAY
IS VERIFIED PRIOR TO WORK
STARTING UNDER CURRENT LAW YOU
COULD BE INTO A CONTRACTOR FOR A
COUPLE THOUSAND DOLLARS AND THEN
FIGURE OUT THAT YOU CAN'T
ACTUALLY AFFORD IT AND YOU'RE
STILL GOING ON THE HOOK FOR THAT
MONEY. SO WE FEEL THAT THAT THAT
CHANGE IN THIS BILL IS REALLY
IMPORTANT FOR CONSUMER
PROTECTION.
HIGHS PIECE ASSESSMENTS ARE NOT
MORTGAGES BUT THEY LOOK A LOT
LIKE A MORTGAGE AND NOT THEY
SURVIVE THEY AYE IF YOU DON'T
PAY IT YOU CAN LOSE YOUR HOME.
ULTIMATELY AFTER FIVE YEARS OR
TEN YEARS THE PANEL HOW THE
COUNTY HANDLES IT CONCILIAR LOSE
YOUR HOME BUT ACTUALLY A UNLIKE
MORTGAGES THAT ACTUALLY SURVIVES
BANKRUPTCY AND TAX SALE SO IF
THE HOME HAD A PIECE ASSESSMENT
ON IT. AND IT WENT TO TAX BILL
WHOEVER BUYS IT IS STILL GONNA
PICK UP THE REST OF THAT PIECE
ASSESSMENT SO IT IS A VERY
STRONG LEAN. AND WE THINK THE
CONSUMER PROTECTIONS ARE
CRITICAL IN THIS AREA THE SECOND
PART OF THE BILL THAT WE THINK
IS VERY IMPORTANT IS THE
INSURANCE PIECE. UP CINEMA
COUNTY FOR EXAMPLE AT EIGHTY
HOMES BURNED DOWN TO THE GROUND
IN THE FIRES IN THE NORTH BAY.
AND AT THAT HAD PIECE OF
SUBSTANCE ON THEM WE DON'T KNOW
HOW FAR INTO THEIR PACE
ASSESSMENT TIME WHEN THEY WORK.
BUT THEY ARE STILL ON THE HOOK
FOR THAT PROPERTY IMPROVEMENT
REGARDLESS OF WHETHER NOT EXIST
ANYMORE AND WE WE KEEP HEARING
THAT THE HOMEOWNERS OR UNDER
INSURED TO REBUILD THEIR
DWELLINGS LET ALONE THE
IMPROVEMENT. THOSE PROPONENTS OF
THESE IMPROVEMENTS ARE TENS OF
THOUSANDS OF DOLLARS FOR ALL
THOSE REASONS AFTER I'VE
ATTAINED THANK YOU VERY MUCH THE
AUTHOR FOR CARRYING THIS
IMPORTANT ALL.
OTHER WITNESSES IN SUPPORT YES
ABOUT RONALD COLMAN HERE ON
BEHALF OF CLICK THE CALIFORNIA
LOW INCOME CONSUMERS COALITION
WE ARE IN STRONG SUPPORT OF THIS
MEASURE. AB TWENTY SIXTY THREE
WOULD MAKE CERTAIN THAT
HOMEOWNERS ABILITY TO PAY THE
ASSESSMENT IS REVIEWED BEFORE
SIGNING ASSESSMENT OR HOME
IMPROVEMENT CONTRACT AND EQUALLY
IMPORTANT BEFORE ANY WORK ON.
THOSE IMPROVEMENTS ACTUALLY
BEGAN ABILITY TO PAY ANALYSIS
ESSENTIALLY MEANINGLESS IF
CONSUMERS DON'T HAVE A ABILITY
TO PAY DETERMINATION BEFORE
THEY'RE ACTUALLY ENTERED INTO AN
OBLIGATION THIS IS COMMON SENSE
AND STANDARD PRACTICE IN THE
LENDING INDUSTRY TODAY. WHEN
FIRST CHECK THE MAP LATER IS NOT
A RESPONSIBLE WAY TO MOVE THIS
CONVERSATION FORWARD WE
ABSOLUTELY URGE LEGISLATURE HAVE
STRONG CONSUMER PROTECTIONS IN
PLACE THANK YOU AND WE ARE YOUR
SUPPORT. THANK YOU.
MADAM CHAIR MEMBERS COURT AGENTS
ON THE CALIFORNIA CREDIT UNION
LEAGUE ALSO IN SUPPORT.
THANK YOU.
ANY OTHER WITNESSES IN SUPPORT.
UNION ALSO IN STRONG SUPPORT
THANK YOU.
BUT IF YOU'RE UP ON THE DS FROM
THE CENTER FOR RESPONSIBLE
LENDING ALSO IN SUPPORT.
SEE NO OTHER WITNESSES IN
SUPPORT ANY WITNESSES IN
OPPOSITION
.
WELL GOOD AFTERNOON MADAM CHAIR
AND MEMBERS OF THE COMMITTEE MY
NAME IS CHRIS ROGERS I'M HERE
REPRESENTING BY GREEN ENERGY
FUND.
WHY GREEN IS ONE OF THE NATION'S
LARGEST PAYS PROVIDERS AND
RESIDENTIAL COMMERCIAL AND MULTI
FAMILY PROPERTIES FOR CONTEXT?
WHY GREEN HAS COMPLETED MORE
THAN TWENTY FIVE THOUSAND
PROJECTS ON PROPERTIES IN
CALIFORNIA ALONE?
IT'S RESULTED IN NINE HUNDRED
AND SIXTY TWO THOUSAND METRIC
TONS OF CO TWO ABATED. AND IT'S
HELP SAVE ENOUGH ENERGY TO
ACTUALLY OUT RUN SEVEN HUNDRED
AND NINETY TWO THOUSAND HOMES
FOR ONE YEAR IN CALIFORNIA.
SINCE THE PASSAGE OF THE FIRST
PACE LEGISLATION IN TWO THOUSAND
EIGHT WHY GREEN ENERGY FUND HAS
WORK COLLABORATIVELY WITH THE
LEGISLATURE TO ENACT SOME OF THE
MOST COMPREHENSIVE CONSUMER
PROTECTIONS.
IN PAYS FINANCING IN THE COUNTRY
THIS COMMITTEE MIGHT REMEMBER AB
TWENTY SIX NINETY THREE FROM
TWENTY SIXTEEN. AS WELL AS S. B.
TWO FORTY TWO SEVEN AB TWELVE
EIGHTY FOUR WHICH WE ARE
AMENDING TODAY IN THIS COMMITTEE
AS WELL.
UP WE AS AN INDUSTRY ARE
COMMITTED TO MEETING THE PRIMARY
GOAL SET FORTH BY THE
LEGISLATURE AND REINFORCED OVER
THE LAST DECADE. AND THAT'S TO
ENSURE THE APPROPRIATE BALANCE
BETWEEN. ACCESS TO AFFORDABLE
AND BROAD CONSUMER FINANCING AS
WELL AS CONSUMER PROTECTIONS.
WHAT WE ARE RESPECTFULLY ASKING
TODAY IS FOR YOU TO CONSIDER
FURTHER REFINEMENTS TO AB TWENTY
SIXTY THREE THAT WILL ADDRESS
NECESSARY TECHNICAL CHANGES?
WHILE HOLDING OFF ON FURTHER
SUBSTANTIVE SHIFTS IN PACE
POLICY UNTIL AT A MINIMUM WE
FINISHED IMPLEMENTING THE LAWS
OF THE BEEN PASSED IN TWENTY
SIXTEEN. AND TWENTY SEVENTEEN.
THE BILL IS SPECIFICALLY THIS
BILL WOULD MOVE THE TIMING OF
THE ABILITY TO PAY DETERMINATION
AND IF AB TWENTY SIXTY THREE
PASSED AS IT'S WRITTEN IT WOULD
MOVE IT UP PRIOR TO THE
EXECUTION OF THE HOME
IMPROVEMENT CONTRACT.
THIS IS NOT ACTUALLY A TECHNICAL
CHANGE WHEN IT COMES TO PACE IT
WOULD TREAT PACE AS A MORTGAGE
PRODUCTS WHICH YOU HEARD IS NOT
THE INTENT OF SPACE FINANCING.
WE WOULD LIKE PAYS TO BE
ADMINISTERED THE WAY THAT IT'S
DESIGNED AS AN ALTERNATIVE
SOURCE OF CONSUMER FINANCING.
UNDER THE STATE LAW A CONSUMER
MAY CHOOSE WITH IT WITHIN THREE
DAYS TO CANCEL THEIR PACE
ASSESSMENT. AND MAY CHOOSE AN
ALTERNATIVE FORM OF FINANCING
FROM PACE TO MAKE IMPROVEMENTS
TO THEIR HOME.
CANCELING PASTE IS NOT
NECESSARILY MEAN THAT THE
HOMEOWNER NEEDS TO CANCEL THEIR
HOME IMPROVEMENT CONTRACT AT THE
TWO SHOULD BE CONSIDERED
CONSIDERED INDEPENDENTLY OF ONE
ANOTHER.
FURTHER WHILE THE PROPONENTS OF
THE CHANGE ARGUE THAT WE'RE
PUTTING THE CART BEFORE THE
HORSE.
IN REALITY WE ARE WE AS PROGRAM
ADMINISTRATORS DO A HIGH LEVEL
ANALYSIS TO DETERMINE THE
PROPERTY OWNERS ABILITY TO PAY
RIGHT AWAY. THE MORE CUMBERSOME
VERIFICATION PROCESS OF THAT
ABILITY TO PAY TAKES PLACE
DURING UNDERWRITING IF THERE'S A
DIFFERENCE BETWEEN THAT TOP
LEVEL ANALYSIS AND THE ACTUAL
VERIFICATION THAT VERIFIED
AMOUNT OF AN ABILITY TO REPAY.
UNDER AB TWELVE EIGHTY FOUR WE
ARE ON THE HOOK FOR THE
DIFFERENCE.
SO THE LAW THAT YOU HELPED WRITE
AND PASSED LAST YEAR SHIFTED
THAT ADDITIONAL LIABILITY ONTO
THE PACE ADMINISTRATORS AWAY
FROM THE HOMEOWNERS. AYE IN THE
EXECUTION OF AB TWELVE EIGHTY
FOUR.
WE HOPE TO CONTINUE TO WORK WITH
THE AUTHOR AND COMMITTEE STAFF
TO ADDRESS THIS ISSUE AYE AND
LOOK FORWARD TO THAT THE.
COMING MONTHS THANK YOU SO MUCH.
GOOD AFTERNOON MADAM CHAIR AND
MEMBERS CASSIE GILSON ON BEHALF
OF RENOVATE AMERICA. RELATE
AMERICA'S A SAN DIEGO BASED
COMPANY THEY'RE THE LARGEST
PROVIDER OF PACE FINANCING MAY
WORK WITH OVER FOUR HUNDRED AND
FORTY LOCAL GOVERNMENT CITIES
AND COUNTIES AROUND THE STATE.
I AM I THINK IT'S IMPORTANT TO
RECOGNIZE WHY PACE EXISTS IN THE
FIRST PLACE WHICH IS THAT. I'M
LOCAL GOVERNMENTS RECOGNIZED
THAT MORE THAN SEVENTY PERCENT
OF THE HOMES IN CALIFORNIA WERE
BUILT BEFORE NINETEEN EIGHTY AND
ARE TERRIBLY INEFFICIENT AND
THAT MEANS WE'RE RUNNING ENTIRE
POWER PLANTS. SIMPLY TO HEAT AND
COOL THE OUTSIDE SO THEY CHOSE
TO USE THEIR LOCAL GOVERNMENT
BONDING AUTHORITY TO HELP PEOPLE
WHEN THEY MAKE IMPROVEMENTS TO
THEIR HOME MAKE THE ENERGY AND
WATER EFFICIENT CHOICES.
YOU HEARD SOME OF THE STATISTICS
I'M I'LL JUST TO ADD TO THOSE.
THE AMOUNT OF CO TWO THAT WE'VE
SAVED ANNUALLY IS THE EQUIVALENT
OF OVER FIVE MILLION ACRES OF
FOREST LAND. I'M FOUR POINT
EIGHT MILLION TONNES WHICH IS
LIKE NINE HUNDRED AND THIRTY TWO
THOUSAND CARS OFF THE ROAD FOR A
YEAR SOUL SPARE YOU THE REST OF
THE LAUNDRY LET'S BUT IT'S QUITE
SIGNIFICANT. I'M ENVIRONMENTAL
BENEFITS AND WE APPRECIATE THAT
ASSEMBLY WOMEN'S LEADERSHIP TO
ADVANCE THE PROGRAM BRAG
RECOGNIZE ITS BENEFITS AND WORK
WITH US TO MAKE IT STRONGER. AND
I DO THINK IT'S IMPORTANT TRY TO
AVOID SOME OF THE HYPERBOLE THAT
COMES UP IN THE CONTEXT OF
DISCUSSING PACE.
SO RENOVATE AS THE LARGEST
PROVIDER THERE HAS NEVER BEEN A
SINGLE FORECLOSURE IN OUR
PROGRAM WE ALSO ENJOY A GREATER
THAN NINETY EIGHT POINT SEVEN ON
TIME REPAYMENT RATE. SO IT'S NOT
TO SAY THAT I WHICH SHOULDN'T BE
HAVING THIS DISCUSSION AND THAT
CONSUMER PROTECTION SHOULD BE
PARAMOUNT BUT WE HAVE TO TALK
ABOUT WHAT THE FACTS ARE ON THE
GROUND.
THANKS TO THE LEADERSHIP OF THE
ASSEMBLY MEN ASSEMBLY WOMAN AND
MANY OF YOU WE HAVE SET UP THESE
THREE BILLS OVER THE PAST YEAR
WHICH CREATE A COMPREHENSIVE
LIST OF DISCLOSURES. A PACKAGE
OF FAR REACHING CONSUMER
PROTECTIONS WHICH MEANS THAT NO
ONE CAN ENTER INTO A PACE
ASSESSMENT WITHOUT ACTUALLY
GETTING ON THE PHONE WITH A REAL
LIVE PERSON AND HAVING THEM WALK
THROUGH. ON THE COMPONENTS OF.
THE ASSESSMENT AND ASK SPECIFIC
QUESTIONS TO MAKE SURE THEY
UNDERSTAND IT A DB O. READ LEAST
LAST WEEK.
ITS DRAFT REGULATIONS IN THIS
AREA I'M SO WE REALLY HAVE. MADE
IMPORTANT STRIDES WE VERY MUCH
LOOK FORWARD TO WORKING WITH THE
ASSEMBLY WOMEN TO MAKE SURE THAT
PEACE CAN CONTINUE TO PROVIDE
THE ENVIRONMENTAL BENEFITS WHILE
THE SAME TIME.
ESTABLISHING CALIFORNIA'S
LEADERSHIP ON CONSUMER
PROTECTIONS AND JUST MAKING SURE
THAT WE DON'T. GO TOO FAR AND
UNDERMINE.
THE THE VERY PREMISE OF THE
PROGRAM IN THE MARKETPLACE THANK
YOU.
THANK YOU ANY OTHER WITNESSES IN
OPPOSITION.
SYLVIA SOLELY SHAUN BEHALF OF
ADVANCED ENERGY ECONOMY IN
OPPOSITION.
MARGARET LET'S NOT HAVEEVER NEW
FINANCIAL I APPRECIATE THE
AUTHOR BRINGS BEFORE BEEN THE
ANALYSIS BY THEIR COMMITTEE HAVE
CONCUR WITH THE PREVIOUS
TESTIMONY I JUST ADD WOULD ALSO
SOME OF THIS PROGRAM IS ALSO
HELP SAVE TEN BILLION GALLONS OF
WATER SO.
LET'S FIX IT AND THAT NOT BRING
AN END TO IT THINK.
MEMBERS ANY QUESTIONS OR
COMMENTS.
WE HAVE A MOTION BY CHEN AND A
SECOND BY HELD AROUND.
DOCTOR TRY.
THANK YOU FOR YOUR PRESENTATION
ARE ARE LOOKING AT THE.
.
I CANNOT DIAGRAM OF FOR A TIDY
UP PROCESS IN THEIR CURRENT LAW
AND THE PROCESS SO.
AT THE WATER BE IMPLEMENTED IF
THIS PASSES SO. IT MAKES SENSE.
TO ASSESS ABILITY TO REPAY
BEFORE THE.
PAYS SO CONTRACT IS SET
EXECUTED.
BUT THE I WONDER.
WHY?
IT HAS TO BE.
LEGISLATIVE.
IF THIS IS A WARM OUR
COMMONSENSE SIR.
WHY ANYONE NOT WOULD GO INTO
CONTRACTOR?
IF FUTURE ARTISTS SELL THAT TO
ME.
I WOULDN'T WHAT A KIND OF A
FINANCIAL OBLIGATION OR GO INTO.
BOB BEFORE I SIGN UP BUT SO IS
MET THE TEST OF OUR. MY PAYMENT
ABILITY BY YOU END UP BY ME
CONSUMER ALREADY BEING TAKEN
PLACE.
BUT THE.
THE LAW HAS TO TELL YOU. THAT
YOU HAVE TO ASSESS THE ABILITY.
WHAT I UNDERSTAND THAT OF THAT
THE PEACE PROGRAM IS THAT THAT
THAT WOULD BE OR DON'T LOAN?
BOB PAY MONTH OR BE LUMPED.
IN TWO.
THOUGHT THE IRAQ ATTACKS
YOU GOT PAY RIGHT IT AND I SO SO
SO I WOULDN'T KNOW WHAT
ADDITIONAL TAX OUT HAVE TO PAY.
I THINK THE IDEA AND AND THE
AUTHOR AND PROPONENTS COULD
SPEAK FURTHER TO THIS BUT THE
IDEA WAS TO MAKE SURE THAT NOT
EVERYONE IS PERHAPS AS
INTELLIGENT AS YOU WHEN.
THE OPTIONS FOR PACE ARE PUT
BEFORE THEM AND SO THE
LEGISLATURE IN THE PACKAGE OF
BILLS THAT WE'VE DONE IN THE
ASSEMBLY WOMAN HAS HAVE
LEADERSHIP ON THIS IN THE SOLAR
BANANA PACES WHILE. I'M TO MAKE
SURE THAT ALL HOMEOWNERS WHO ARE
ENTERING INTO PACE ASSESSMENTS
ARE AWARE OF ALL OF THE
COMPONENTS OF IT SO THEY
UNDERSTAND THAT THIS IS AN
OBLIGATION THAT IS GOING ON
THEIR TAX BILL.
AND THAT THEIR HOUSE IS
COLLATERAL FOR IT BEHIND AND SO
THAT'S WHY TO ME THAT CONFIRM
TERMS CALL SO THAT BEFORE YOU'RE
ABLE TO ENTER INTO THE CONTRACT.
YOU HAVE TO GET ON THE PHONE
WITH A REAL LIVE PERSON AND WALK
THROUGH STATUTORY QUESTIONS TO
MAKE SURE YOU UNDERSTAND IT IS
JUST A GOOD.
SERVE MOTHERHOOD AND APPLE PIE
CONSUMER PROTECTION TO MAKE SURE
THAT HOMEOWNERS UNDERSTAND THE
CHOICE THAT THEY'RE MAKING WHEN
THEY CHOOSE TO.
UNDERTAKE A PROJECT THAT
QUALIFIES FOR PACE AND CAN
IMPROVE THE WATER ENERGY
EFFICIENCY OF THEIR HOME NAMIBIA
I CAN ASK DO AUTHOR ASSEMBLYMAN
NOT AGAIN COREY. A I UNDERSTAND
THE INTENT OF THOUGH APPEAR IT
TO PROTECT THE CONSUMER.
BY ASSESSING BY MOVING THAT
PROCESS TO. ASSESS THE ABILITY
IN THE ADVANCE.
WHAT CRITERIA?
ARE ARE YOU SUGGESTING HOW WOULD
SHE ASSESSED MEAN WHETHER I CAN
REPAY MY DEBT ONE NOT THE IS IT
GONNA BE MY CREDIT RATING WHAT
WILL IT BE MY CASH RESERVES SO.
YEAH YEAH ASSEMBLY MEMBER IF I
COULD IN IN TWELVE EIGHTY FOUR
LAST YEAR IT LAID OUT IN THE
ENTIRE PROCESS OF THINGS THAT
NEED TO BE ACCOUNTED FOR
INCLUDING THINGS LIKE ALIMONY.
AND WHAT YOU ARE REASONABLE
HOUSE BASIC EXPENSES WERE GOING
TO BE. WHAT REALLY WHAT WHAT
WE'RE TALKING ABOUT IN THIS BILL
IS AT NOBODY'S DISAGREEING WITH
THE NEED TO DETERMINE WHETHER
SOMEBODY CAN? ACTUALLY PAY THEIR
PACE ASSESSMENT IN ADDITION TO
THE ADDITIONAL COSTS THAT THEY
HAVE WHAT WE'RE TALKING ABOUT IS
WHEN THE VERIFICATION PROCESS
WHICH CAN BE VERY CUMBERSOME
HAPPENS.
IT IN THE PACE ASSESSMENT.
THE IT AGAIN AT AS AS THE LAWS
WRITTEN IT IS ON US AS WELL TO
DETERMINE TO MAKE SURE SOMEBODY
HAS THE ABILITY TO REPAY. AS AN
ADMINISTRATOR THAT WE'RE ON THE
HOOK IF THEY CAN'T BUT ONCE THEY
ENTER INTO THAT THE CONTRACT.
A.
WE'VE LAID OUT STEP BY STEP THE
THINGS THAT NEED TO BE ACCOUNTED
FOR IN LAW THAT'S ALREADY STATE
LAW.
AND I WOULD JUST ADD QUICKLY
THAT. THE ABILITY TO PAY
DETERMINATION WILL BE CONCLUDED
BEFORE THE ASSESSMENT IS
RECORDED AGAINST THE HOME SO NO
ONE WILL HAVE A RECORD THAT
PIECE ASSESSMENT RECORDED
AGAINST THEIR HOME. PRIOR TO
THAT ABILITY TO PAY
DETERMINATION BEING COMPLETED
BUT THAT THE B. FRANKA.
CONTRACTOR YOU WOULD BE MORE
ANXIOUS TO SELL THAT TO PRODUCT
TO ME RATHER THAN.
YOU'RE NOT GONNA WORRY ABOUT TO
MY ABILITY TO WEATHER INTO MY
HOUSE A BEFORE RULES TO ENACT A
SO YOU'LL BE IMPOSING ON ME OR
HAD THIS OKAY BYE BYE. IN THE
LATER I FIND OUT AND THAT AND
THAT IS ALSO WHAT THE ORPHALI
SAID TRYING TO REVERSE A MAKE
SURE THAT I UNDERSTAND I HAVE
THE ABILITY TO PAY WHAT EXTRA
AMOUNT TO OUR HAVE TO PAY ALONG
WITH THE TAX.
RIGHT I THINK THAT'S RIGHT AND I
THINK YOU KNOW THAT THE AUTHOR
COMMITTED TO WORKING WITH US
AROUND THE LANGUAGE I'M AROUND
UNDERWRITING AND SO WE LOOK
FORWARD TO DOING THAT WITH HER
GOING FORWARD.
YEAH I THINK YOU'RE RIGHT I
THINK THAT THAT THE CONTRACTOR.
IS NOT THE ONE WHO HAS A
RESPONSIBILITY TO DETERMINE
WHETHER THE HOMEOWNER HAS THE
ABILITY TO PAY THE ASSESSMENT
THAT'S ON THE PROGRAM
ADMINISTRATORS. AT SO THAT'S
ANYTHING NOTHING CAN BE EXECUTED
ON OUR END UNTIL THEY GO THROUGH
THAT VERIFICATION PROCESS AND
THROUGH THE CONSUMER PROTECTIONS
THAT WE LAID OUT THE CONFIRM
TERMS CALLS. BECAUSE WE HAVE A
RESPONSIBILITY TO ENSURE THAT
THAT HOMEOWNER CAN PAY SO THAT'S
WHY I'M WONDERING.
IF AUTHOR WHAT THE SPECIFIC A
WAYS SO YOU AND I MAKE SURE THAT
I WOULD HAVE LET BILLY TO TO
PAY.
THE FULL I SIGNED UP MY COUNTRY.
MADAM CHAIR MAY I ADD THAT THE
DEL IS. TOTALLY FOR IT.
IS INSTITUTED SOME ABILITY TO
PAY THE TERMINATION THAT. WHICH
I THINK IS VERY SIMILAR TO A
MORTGAGE EVEN THOUGH AT THIS
MORTGAGE. IT'S AND I THINK THERE
ISN'T TIME TO. A VERIFY THAT
THEY CAN PAY THE PROBLEM THAT
OBJECTION THAT THE OPPOSITION
HAS RIGHT NOW IS THAT THEY WANT.
THEY ARE THE CONTRACTORS THEY
WANT TO CONTINUE TO ALLOW THE
CONTRACTORS TO BEGIN WORK ON THE
HOME. BEFORE THE FULL ABILITY TO
DETERMINE TO OF ABILITY TO REPAY
HAS BEEN TURMAN SO WHAT COULD
HAPPEN TO THE HOMEOWNER. IS THAT
THEY MAY ABANDONED PAYS
FINANCING BUT THEIR SLOGAN BE ON
THE HOOK FOR WHATEVER WORK. GETS
DONE ON THE HOUSE
AND SO THAT IS THE CONCERN THAT.
YOU KNOW THAT'S WHAT TWENTY
SIXTY THREE IF IT'S PARTLY
COUNTRY DOES ADDRESS IS MAKE
SURE THAT.
IT GOES IN ORDER BECAUSE IT
SHOULDN'T BE TREATED LIKE IT'S
AN IMPULSE BUY THE REGISTER THIS
IS SOMETHING THAT SECURED BY OUR
HOME AND WE WANT TO MAKE SURE
THAT. ON IT YOU DON'T HAVE YOU
CAN BE QUICK BUT YOU DON'T HAVE
TO HURRY.
WHEN HIS BILL IS ADOPTED A CAN I
CALL AFTER THEN YOU MISS.
JUDGE THE MY ABILITY TO TO PAY
WHEN I GO ALL BANKRUPT.
SO LET ME I I'LL ACTUALLY TO SAY
IF YOU WILL NEVER HAVE THE PACE
ASSESSMENT RECORDED AGAINST YOUR
HOME FOR AN AMOUNT THAT EXCEEDS
YOUR ABILITY TO PAY AND THAT'S
WHAT WE THAT'S WHAT WE.
I.
PROHIBITED WHAT WORK I THINK THE
CONVERSATION WE'RE HAVING HERE.
IS.
.
BEING OBLIGATED TO THE
UNDERLYING HOME IMPROVEMENT
CONTRACT.
AND THE WAY THAT THE BILLS THAT
WE PASSED LAST YEAR.
DICTATE THAT THE PACE
ADMINISTRATOR IS RESPONSIBLE FOR
ANY DIFFERENCE BETWEEN THE
CONCLUSION OF AN ABILITY TO PAY
DETERMINATION. AND WHAT WAS
ORIGINALLY.
CONCLUDED SO WE DO THE ABILITY
TO PAY DETERMINATION AND THEN WE
HAVE TO GO BACK AND VERIFY THOSE
DOCUMENTS SO IF YOU'RE MY
HOMEOWNER AND I THINK HOW MUCH
YOU MAKE EVERY YEAR AND GIVE YOU
KNOW EXPLAIN TO ME WHAT YOUR
FINANCIAL SITUATION AS. THAT'S
HOW WE MAKE OUR INITIAL INITIAL
ABILITY TO PAY AND DETERMINATION
THAT WE HAVE TO GO BACK BY
STATUTE AND VERIFY ALL OF THOSE
THINGS.
SO I'M THERE WILL NEVER BE A
SITUATION WHICH A HOMEOWNERS ON
THE HOOK FOR AN AMOUNT THAT
EXCEEDS THEIR ABILITY TO PAY
YEAH IN ASSEMBLY MEMBER IF I
COULD JUST READ TO YOU IT'S AS
IF THERE'S A DIFFERENCE BETWEEN
THE DETERMINATION OF THE
PROPERTY OWNERS ABILITY TO PAY
THE. ANNUAL PACE OBLIGATION OF
THE ACTUAL AMOUNT FINANCE FOR
THE PROPERTY OWNER AND THE
PROPERTY OWNER IS OBLIGATED ON
THE UNDERLYING HOME IMPROVEMENT
CONTRACT.
PROGRAM ADMINISTRATOR THAT'S US
SHALL BE RESPONSIBLE FOR THE
DIFFERENCE.
THAT'S STATE LAW.
THAT'S CURRENT LAW.
AND I THINK THAT'S WHAT WE WANT
ALL WANT TO HAVE.
CONTINUING CONVERSATIONS TO.
WHAT SHASTA SO SAME ASSESSMENT
OR TAKE PLACE ABOUT THE WHICH
ONE WOULD BE DONE BEFORE BEFORE
THE CONTRACT OR WHAT THE
APPELLATE REVIEW ASSESSED FIRST
EPISODE AS TO WHAT THE AUTHOR'S
INTENT IT'S WHITE?
MONNING THANK YOU DOCTOR CHOI
AGAIN THANK YOU MEMBERS ANY
OTHER COMMENTS OR QUESTIONS.
SO THANK YOU FOR BRINGING THIS
FORWARD TO AND I KNOW THAT THEIR
SO ONGOING CONVERSATIONS AND IT
SOUNDS LIKE THERE IS A SHARED
INTERESTS.
AROUND THE GENERAL GOAL OF
PROTECTING CONSUMERS OF ENSURING
THAT WE STILL OFFER. AND THIS
PRODUCT BUT ALSO YOU KNOW SOME
CONVERSATIONS ABOUT THE TIMING
OF THE.
OF THE PROCESS AND ELEMENTS OF
THE PROCESS AND THIS BILL DOES
HAVE A MOTION TO PASS TO THE
COMMITTEE ON APPROPRIATIONS.
BUT AS I REMEMBER A CAREFREE
WOULD YOU LIKE TO CLOSE I WOULD.
JUST ONE REMINDER AND THIS IS A
GOOD PROGRAM AND THERE ARE GOOD
PLAYERS IN THIS WE WANNA MAKE IT
EVEN BETTER FOR AND PROTECT OUR
CONSUMERS.
AND LASTLY I JUST WANT TO JUST
SHARELITTLE MOMENT IS THAT ON
FRIDAY ABOUT THREE FORTY FIVE I
WAS AT MY RESIDENTS I PICK UP
THE PHONE AND I WAS SOMEBODY
TRYING TO SELL ME A PACE LOAN.
I JUST THOUGHT OF IT OF SO WITH
THAT I ASK FOR YOUR AYE VOTE.
I THINK YOU.
WILL CALL THE ROLL.
AB TWENTY SIXTY THREE MOTION DO
PASSED COMMITTEE ON
APPROPRIATIONS.
WE WANT AYE LIMON AYE CHEN.
CHEN CHI ACOSTA.
BURKE.
CALDERON.
CERVANTES.
SAMANTHA'S AYE CHOI AYE CHOI AYE
GONZALEZ FLETCHER.
GONZALEZ FLETCHER AYE GRAYSON.
STONE.
WEBER.
THE BILL HAS FIVE VOTES THAT WE
WILL HOLD THAT THE ROLE OPEN FOR
OTHER MEMBERS.
ALRIGHT NEXT FOR A TAKE ON A. B.
THIRTY TWO OR SEVEN AND I'M
GOING TO PASS A TOUR VICE CHAIR
THANK YOU. THANK YOU AUNT
MEMBERS A. B. THIRTY TWO A SEVEN
WILL PROVIDE IMPORTANT CONSUMER
PROTECTIONS FOR THE THOUSANDS OF
CONSUMERS SURVEYED BY THE
FINANCE BROKERS LICENSE UNDER
THE CALIFORNIA FINANCE THE LAW.
UNDER EXISTING LAW THE
DEFINITION OF BROKER IS VAGUE
AND CIRCULAR LEADING TO
CONFUSION FROM LENDERS ABOUT
WHICH ENTITIES THEY CAN PARTNER
WITH WHEN ARRANGING LOANS.
FURTHER THE DEFINITION OF
PROGRAM EXISTING LAW WAS
FORMULATED LONG BEFORE THE RISE
OF THE INTERNET AND EVOLUTION OF
ONLINE LEAD GENERATION.
SO OUR LINE NEEDS TO BE UPDATED
WITH THIS ONLINE ACTIVITY IN
MIND.
LEAD GENERATORS PROVIDE VALUABLE
MARKETING SERVICES TO A WIDE
RANGE OF INDUSTRIES HOWEVER MANY
ONLINE THE GENERATORS THAT SERVE
THE LENDING INDUSTRY PROVIDE
MORE THAN JUST MARKETING
SERVICES.
THESE ENTITIES ACT AS BROKERS
WHEN THEY BRING BARS AND LENDERS
TOGETHER IS TO ARRANGE A LOAN
BASED ON SENSITIVE DATA PROVIDED
BY A PROSPECT
A BAR.
THIS BILL WILL ALLOW ONLINE THE
GENERATORS TO CONTINUE TO
OPERATE IN CALIFORNIA BUT THEY
WILL BE REQUIRED TO BE LICENSED
BY THE DEPARTMENT OF BUSINESS
OVERSIGHT. AS THE STATE'S
FINANCIAL REGULAR HERE REGULATOR
THE DB ó IS CHARGED WITH
REGULATING HOW BROKERS INTERACT
WITH THE CONSUMERS TO ENSURE
THAT BROKERS DO NOT ENGAGE IN
UNFAIR OR DECEPTIVE PRACTICES TO
STEER CONSUMERS INTO LOANS. THAT
THEY DO NOT THAT DO NOT MEET
THEIR NEEDS
I AM WORKING WITH THE LENDERS
AND THE LEE GENERATORS TO ENSURE
THAT THIS BILL APPROPRIATELY
ADDRESSES. THE CONSUMER
PROTECTION CONCERNS IN OUR
LENDING MARKETS WITHOUT PLACING
UNNECESSARY BURDENS ON THE
BUSINESS THAT WERE ON THE
BUSINESS THAT WORK IN THIS AREA.
THE BILL HAS THE SUPPORT OF THE
PART IN A BUSINESS OVERSIGHT AND
A COALITION OF CONSUMER
ADVOCATES WHO ARE HERE TODAY TO
VOICE THEIR SUPPORT.
I WOULD LIKE TO TURN MY TIME
OVER TO SUZANNE MARTIN DEL BUT
THE CONSUMERS UNION TO TESTIFY
AND SUPPORT THE.
THANK YOU CHAIR MEMBERS SUZANNE
MARTIN DOWN HALF OF CONSUMERS
UNION IN STRONG SUPPORT OF THIS
MEASURE WE THINK THIS IS A
REALLY NECESSARY IN COMMONSENSE
A STEP FORWARD TO UPDATE AND
CLARIFY WHAT IS APART UNDER
EXISTING LAW WHEN. LENDERS
FINANCE LENDERS USE COMPENSATED
THIRD PARTIES WHETHER BRICK AND
MORTAR OR ONLINE TO HELP
FACILITATE LOANS.
AS WE'VE SEEN IN MANY CONTEXTS
WHEN YOU HAVE THIRD PARTIES WHO
ARE BEING COMPENSATED TO MARKET
AND FACILITATE LOANS SOMETIMES
INCENTIVES ARE NOT ALWAYS
ALIGNED.
WITH CONSUMERS AND WE CERTAINLY
DON'T WANT TO SEE.
IF THIRD PARTIES PUSHING PEOPLE
INTO LOANS THAT DO NOT MEET
THEIR NEEDS THEREFORE WE WANT TO
MAKE VERY CLEAR WHO I'M FALLS
UNDER THAT DEFINITION OF BROKER
AND THEREFORE DOES NEED TO SEEK.
ADDITIONAL.
SUPERVISION HAVE FROM THAT FROM
THE DBF MORE FINANCIAL REGULATOR
I'M SO WE SEE THIS IS VERY
COMMON SIDES ON THE CALIFORNIA
FINANCING LAWS VERY COMPLEX AND
CERTAINLY HAS AREAS THAT MANY
AREAS THAT NEED TO BE UPDATED
BUT WE THINK THIS IS A REALLY
IMPORTANT MEASURE. AND ALSO
ENSURES THAT THERE IS NO DOUBT
ABOUT.
DE BECAUSE ABILITY TO USE ITS
IMPORTANT SUPERVISORY REGULATORY
ENFORCEMENT TOOLS TO PROTECT
CONSUMERS IN OUR STATE FOR THE
SO FOR THESE REASONS BASED ON
THE SUPPORT REQUEST AYE BUT.
OTHER WITNESSES IN SUPPORT.
RONALD COLMAN HERE ON BEHALF OF
CLICK THE CALIFORNIA LOW INCOME
CONSUMER COALITION ALSO HERE IN
STRONG SUPPORT AND BANKS THE
AUTHOR FOR HER LEADERSHIP THANK
YOU.
DRESSING UP ON VIDEOS FROM THE
CENTER FOR RESPONSIBLE LENDING
ALSO IN SUPPORT.
CHAIRMAN.
MEMBERS MY COMMUTE TIME BEHALF
OPPORTUNE IN SUPPORT OF THE
BILL.
IF YOU ENGAGE IN LENDING A
BROKEN ACTIVISM CALIFORNIA YOU
SHOULD HAVE A PROPER LICENSE AND
PROPER REGULATION THANK YOU.
DO WE HAVE ANY WITNESSES IN
OPPOSITION.
MISTER VICE CHAIR MEMBER SCOTT
GOVERNMENT HAVE CALIFORNIA
FINANCIAL SERVICES ASSOCIATION
WE ACTUALLY HAVE AN OPPOSE MUST
AMENDED LETTER ON FILE. I
BELIEVE THE ANALYSIS OF THE
RECOMMENDATIONS CONTAINED IN
THAT. ADDRESS THE VAST MAJORITY
OF OUR CONCERNS WE APPRECIATE
THE WORK OF THE AUTHOR AND HER
STAFF WE THINK THIS IS HEADING
IN THE RIGHT DIRECTION WE WE DO
AGREE THAT REFORMS ARE
NECESSARY.
AND WE LOOK FORWARD TO KEEPING.
THEM WORKING THEM THANK YOU
THINK.
NAME'S JASON ROBERT I'LL HURT
HIM AND GENERAL COUNSEL FOR A
COMPANY CALLED LONG CALL
CALIFORNIA WE'VE HELD OUR CFL IN
DETAIL LICENSES SINCE TWO
THOUSAND THIRTEEN TWO THOUSAND
FOURTEEN.
RESPECTIVELY WE ACT AS A LEAD
GENERATOR SO WE HAVE.
INTIMATE KNOWLEDGE AND HOW THIS
PROCESS WORKS IN CALIFORNIA. IT
IT IS NOT A SIMPLE PROCESS AND
IT IS A. VERY VERY CRITICAL THAT
LEAD GENERATION EXISTS IN
CALIFORNIA TO PROTECT CALIFORNIA
CONSUMERS.
SO WE.
WE DO AGREE THAT THIS IS
NECESSARY LEGISLATION AND AYE I
CLAWED THROUGH MY FATHER'S
CLOSET.
TO FIND A NECKTIE FROM THE
FIFTIES
IN HONOR OF THE BROKER
DEFINITION WHICH
WAS PASSED IN THE FIFTIES.
AND IT'S ANTIQUATED AND IT DOES
NOT RESPECT WHAT WE DO AS AN
ONLINE THE GENERATOR DOESN'T
RESPECT.
TECHNOLOGY TODAY THAT IS HELPING
CONSUMERS FIND APPROPRIATE
LENDERS BUT JUST WANT TO TOUCH
ON A COUPLE OF THOSE THINGS
BECAUSE.
WHAT WE DO HAS TO BE RESPECTED
AND WE DON'T WANT TO MAKE
SITUATIONS WORSE FOR CONSUMERS
IN CALIFORNIA?
A GOOD LEAD GENERATORS.
THAT THEIR LENDERS VERY
CAREFULLY GOODLY GENERATORS AND
MAKE SURE THAT THEY'RE NOT OVER
PROMISING AND UNDER DELIVERING.
GOODLY GENERATORS WILL NOT TELL
YOU I'M GONNA FIND YOU THE BEST
RATES THE BEST TERMS THE BEST
LOAN THE LOAN THAT'S RIGHT FOR
YOU. BECAUSE LEAD GENERATION IS
IS REALLY A CONSUMER AGNOSTIC
ACTIVITY.
THIS IS PART OF THE FUNDAMENTAL
ISSUES THAT WE HAVE WITH THE
LEGISLATION AS DRAFTED. IT
CONFLATES LEAD GENERATION AND
BROKERING.
BROKERING AS EVERYBODY KNOWS OF
THAT DEALT WITH THE MORTGAGE
BROKER OR ANY OTHER TYPE OF
BROKER BROKERING INVOLVES
ACTIVITIES. THAT ARE DEEPER THAN
JUST BRINGING TWO PARTIES
TOGETHER
BROKERS WILL FIGHT FOR YOU OR
THEY SHOULD BROKERS WILL SAY LET
ME FIND THE LOAN THAT IS RIGHT
FOR YOU LET ME SHOP AROUND AND
GET THE BEST RATES AND THE BEST
TERMS.
LET ME COLLECT DOCUMENTS VERIFY
EVERYTHING GET YOUR SIGNATURES
THERE'S A LOT OF ACTIVITIES THAT
A BROKER WILL DO. THAT A LEAD
GENERATOR DOESN'T DO.
SO JUST TWEAKING THE DEFINITION
OF BROKER.
TO ENCOMPASS LEAD GENERATORS
DOES NOT RESPECTED THE IMPORTANT
ROLE THAT WE PLAY.
BADLY GENERATORS ARE OUT THERE.
AND WE HAVE TO UNDERSTAND THAT
AND I HAVE PAGE AFTER PAGE AFTER
PAGE OF EXAMPLES OF WHAT BADLY
GENERATORS DO AND THE HARM THAT
THEY BRING TO CALIFORNIA
CONSUMERS.
SO LET ME SEE MONEY STEP BACK
AND AND TO STATE SOMETHING
THAT'S PROBABLY OBVIOUS.
CONSUMERS START THEIR SEARCH
MORE OFTEN THAN NOT ONLINE WHEN
THEY'RE LOOKING FOR A FINANCIAL
SOLUTION.
AND CONSUMERS WANT. AN IMMEDIATE
ANSWER TO THEIR FINANCIAL NEEDS
THAT'S WHY ONLINE LEAD
GENERATION EXIST AND THAT'S ALSO
WHY IT'S DANGEROUS.
SO YOU CAN EITHER HAPPEN UPON A
GOODLY GENERATOR WHO'S NOT GOING
TO MAKE MISREPRESENTATIONS TO
YOU WHO'S GOING TO MAKE SURE
THAT THEY KEEP THEIR PROMISES TO
YOU. PROTECT YOUR DATA LIKE IT
IS A SACRED OBLIGATION AND ONLY
WORK WITH LENDERS THEY HAVE
ADDED THOSE OF THE GOOD GUYS.
THE BAD GUYS ARE OUT THERE AND
HEAR A COMPLAINT AFTER COMPLAINT
I HAVE A THOUSAND OF THESE
LITERALLY.
HERE'S A COMPLAINT FROM A PERSON
ONLINE THAT SAID.
THEY CLAIMED TO BE CASH NOT U.
S. SAY THEY SENATE BEEN APPROVED
FOR A LOAN THEY ASKED ME TO
PURCHASE GOOGLE PLAY CARDS.
FOR TWO HUNDRED DOLLARS TO
IMPROVE MY CREDIT SCORE.
I'M READING QUOTING BY THE WAY
BEING A DUMB* I DID THEN THE
AMOUNT WENT UP LONG STORY SHORT
I'M AN IDIOT AND I JUST DON'T
WANT ANYONE SO FAR FOR THEIR
STEM.
HERE'S ANOTHER WHEN THEY ASKED
ME TO GO TO WALMART BUY GIFT
CARDS AND READ NUMBERS.%
TO THEM ON THE BACK OF THE CARDS
TO REBUILD MY CREDIT I NEED
THESE TYPES OF THINGS GO ON AND
ON AND ON. SO MY POINT IS
WITH SOME GOES ONLINE LOOKING
FOR CONSUMER FINANCE ESPECIALLY
SHORT TERM EMERGENCY CREDIT.
WE HOPE THEY FIND SOMEONE LIKE
US WHO IS VERY CONSCIENTIOUS OF
THE MARKETING MESSAGES THAT WE
GIVE VERY CONSCIENTIOUS OF THE
DATA SECURITY OBLIGATIONS THAT
WE HAVE. AND WE STE CONNECT THEM
WITH GOOD LENDERS.
OR THEY CAN FIND THE BAD GUYS.
SO WHAT WE REALLY NEED TO DO IS
TAKE A STEP BACK AND SAY WHAT IS
LEAD GENERATION WHAT IS
BROKERING.
AND LET'S CRAFT LEGISLATION THAT
RESPECTS.
BUT THESE ARE DIFFERENT
ACTIVITIES.
THE IN THE LANGUAGE AND A. B.
THIRTY TWO A SEVEN AS IT'S
DRAFTED RIGHT NOW WANTS TO MAKE
LEAD GENERATORS COVERED AS
BROKERS BY SIMPLY SAYING IF YOU
TRANSMIT CONFIDENTIAL
INFORMATION. YOU ARE A BROKER.
AND CONFIDENTIAL INFORMATION
IS DEFINED AS SENSITIVE
NONPUBLIC INFORMATION.
THOSE TERMS ARE NOT DEFINED.
TRANSFERRING A LEAD QUOTE
UNQUOTE IS NOT DEFINED
TRANSFERRING A REFERRAL THANK
YOU VERY ONE NOT DIVIDED WRAPPED
UP.
I CAN.
TYPE DAVID CANTON ON BEHALF THAT
ABOUT MIDDLE POMBO OF UPPER LAKE
TRIBE.
UNDER THE DODD FRANK ACT TRIBES
ARE ALLOWED TO PARTICIPATE IN
BOTH LENDING AND. ONLINE LEAD
GENERATION.
THE BILL CURRENTLY DOES NOT
HAVE AN ON RAMP FOR TRIBES WE
JUST WANT TO ENSURE THAT THERE'S
LANGUAGE IN THERE WHICH WOULD
ALLOW TRIED WHICH HER. OF
FEDERALLY ALLOWED TO PARTICIPATE
THIS ARE NOT PARTICIPATE IN
CALIFORNIA NOT CUT OUT HAVE BEEN
SPEAKING WITH COMMITTEE STAFF I
THINK WEEK WE WILL GET THERE AS
WE MOVE OUT OF COMMITTEE.
THE OTHER ONE IS NOT POSITION
MARGARET LATCHING ON BEHALF OF
NERD LA WE'RE NOT OPPOSED WE ARE
WORKING WITH THE AUTHOR AND HER
STAFF WE APPRECIATE HER TACKLING
THIS DIFFICULT ISSUE. OF WANNA
MAKE SURE THAT THE LAW IS
UPDATED TO REFLECT THE ONLINE
MARKETPLACE THAT EXISTS TODAY
AND THAT IT'S NARROWLY CRAFTED
OTHER SOME COUPLE OF. EDITIONS
OF INCLUDING BUT NOT LIMITED TO
BUT THAT I BELIEVE THE COMMITTEE
IS ADDRESSING SO WE APPRECIATE
NARROWING THE BILL AND WHY
CONTINUE TO MAKE SURE THAT. WE
DO ADDRESS THE ONLINE
MARKETPLACE TODAY AS IT EXISTS
AND DOESN'T JUST REPRESENT THE
LAW DOESN'T JUST REPRESENT A
BRICK AND MORTAR WORLD THAT
WE'VE MOVED BEYOND THANK YOU.
SALINAS POLICE SHAUN BEHALF OF
THE CALIFORNIA FINANCIAL SERVICE
PROVIDERS WE ALSO WOULD
CURRENTLY DO NOT HAVE A POSITION
ON THE BILL WE DO HAVE SOME
CONCERNS BUT WE LOOK FORWARD TO
WORKING WITH THE AUTHOR AND
OTHER STAKEHOLDERS ON REFINING
SOME OF THE DEFINITIONS IN THE
BILL GOING FORWARD. THINKING.
SCOTT REAL WITH THE EQUIPMENT
LEASING AND FINANCE ASSOCIATION
THANK YOU FOR HAVING US.
WE APPLAUD THE AUTHOR HER
DESIRE TO PROTECT CONSUMER
INTEREST IN CALIFORNIA.
EQUIPMENT LEASING AND FINANCE
ASSOCIATION DOES NOT DO ANY
CONSUMER TRANSACTIONS WE JUST DO
BUSINESS TO BUSINESS
TRANSACTIONS.
DID ABOUT A HUNDRED AND THIRTY
THREE BILLION DOLLARS WORTH OF
THE SCENE OF CASH OUT FINANCING
CAPITAL EQUIPMENT HERE IN
CALIFORNIA LAST YEAR.
A WE HAVE A POSITION ABOUT A OF
OPPOSITION AS DRAFTED. NAM
CANNOT THINK THE AUTHOR AND HER
BOSS STAFF ENOUGH FOR LISTENING
TO OUR CONCERNS AND LOOK FORWARD
TO WORKING WITH THEM MUCH
PLEASE.
THEN WOULD BE PLEASED TO REMOVE
THAT OPPOSITION THANK YOU. ANY
OTHER WITNESS IN OPPOSITION.
AND DO YOU HAVE ANY QUESTIONS
FROM THE COMMITTEE MEMBERS.
IF THERE'S NO QUESTIONS MANAGE
YOUR ACTION.
THAT IS WHAT PLEASE.
AGAIN THIS IS.
.
I GUESS INTENDED TO UNPROTECTED
CONSUMERS SARAH.
ARE I HIT I AM TRYING TO
UNDERSTAND.
HOW MUCH?
THIS BILL ORDER ACTUALLY
PROTECTING HOW CONSUMERS IE I
HAD THE RECENT EXPERIENCE.
THAT TERM.
WHEN ALSO SEARCHING.
SOMETHING ELSE.
ESTA POPPED UP POPPED UP ED THE
SAID THAT THAT DO YOU NEED THEM
AND I DO NEED TO.
REFINANCE YOUR OWN OR DO YOU
NEED TO REFINANCE YOUR. MORTGAGE
OUT WE HAVE FOR FIFTEEN YEARS SO
THREE POINT SOMETHING IN A VERY
ATTRACTIVE FOR. AND THEY SAID
THE LENDINGTREE.
AND AND LENDING TREE I HEARD
ABOUT IT THE LAPTOP WERE AYE I
GET THE IMPRESSION I REPLIED THE
ONE QUESTION AFTER ANOTHER.
COLLECTED A LOT OF INFORMATION
WITH MY NAME AND ADDRESS SO WHAT
ABOUT THE LOW FIT. ALL PERSONAL
INFORMATION.
AND AS SOON AS I WAS.
IT AS A SAN.
JUST A PHONE COSTS. MEANING
RIGHT AWAY.
WELL MY GOD WHAT DID I DO.
IT WAS SO NOW I KNOW THAT WAS TO
LEAD THE GENERATOR.
SO WHAT'S THE MATTER LAND.
SO.
I I I I YOU THOUGHT THAT YOU
KNOW.
I WAS SO IGNORANT.
AND THAT THERE HAS TO BE
SOMETHING DONE.
OUR. AND IF THERE'S ANY
DISTINCTION. IF I HAD KNOWN.
THAT COMPANY WAS SET TRYING TO.
THE INTO DO SUCH A GOOD LENDERS.
SAYING SOMETHING ENOUGHT TO
IDENTIFY.
THEMSELVES ARE AND INFORM THE
CONSUMER SO IT WOULD HAVE BEEN.
GOOD THAT.
SO IN THIS CASE ESSENTIAL
OPPOSING.
OKAY ARE IN MY CASE YOU
CAN UNDERSTAND THAT WHAT'S THAT
THE OFFICER TRYING TO DO.
SO THAT'S THE ONE AREA MAY BE
YOU KNOW.
A HOW WE CAN. NOW A.
WHY YOU ARE A POOR SEEN?
IN A TOOL THAT THE ASPECT THAT
BILL WOULD FACE A.
ASSEMBLYMEMBER IMANI SO TRY TO
PROTECT THEIR CONSUMERS SAID
THAT'S ONE QUESTION MAYBE YOU
CAN ANSWER IT AND THEN I HAVE
SOME FUND WHAT QUESTIONS
SURE I'D BE HAPPY TO THANK YOU
DOCTOR CHOI.
DO WE ARE NOT OPPOSED TO THE
CONCEPT OF REGULATION OR
LEGISLATION THAT'S WHY WE HAVE
OUR LICENSE IN CALIFORNIA ONE OF
VERY FEW LEE GENERATORS THAT
DOES HOLD THOSE LICENSES.
WE JUST WANT TO MAKE SURE PEOPLE
ARE CLEAR ON THE DISTINCTION
BECAUSE AS YOU KNOW IT WILL
LENDING TREE IS A LEAD
GENERATOR.
IT OPERATES DIFFERENTLY THAN THE
WAY WE OPERATE.
BUT CONSUMERS DO NEED TO
UNDERSTAND THE DISTINCTION THEY
NEED TO KNOW IF THEY'RE WORKING
WITH THE. THAT BROKER IS
ADVOCATING FOR THEM
IF THEY'RE WORKING WITH A LEAD
GENERATOR.
THIS IS A MARKETPLACE WHERE YOU
MAY OR MAY NOT BE CONNECTED WITH
THE LENDER THAT YOU WANT.
THERE'S A DIFFERENCE IN HOW LEE
GENERATORS AND BROKERS ARE
TRADITIONALLY COMPENSATED.
THERE'S A DIFFERENCE IN THE
TYPES OF DISCLOSURES THAT THEY
MAKE SO OUR OPPOSITION IS NOT TO
THE CONCEPT OF CONSUMER
PROTECTION WE BELIEVE THAT THAT
IS NECESSARY. OUR OPPOSITION IS
JUST TO SAY RESPECT THE
DIFFERENCES AND LET'S MAKE SURE.
WE DON'T.
MAKE THE DEFINITIONAL PROBLEMS
WITH THE BROKER LANGUAGE NOW
WORSE
LET'S JUST SPLIT THE TWO AND
SAID THIS IS WHAT WE GENERATIONS
THIS IS WHAT BROKERING AS. THERE
ARE DIFFERENT.
THE OBLIGATIONS AND THERE ARE
DIFFERENT DISCLOSURES THAT WOULD
BE NECESSARY THEY'RE SENIOR
DISTRICT TRYING TO.
ANDY GENERATORS.
TO BE LICENSED AND. BROKERS
CORRECT.
OKAY SO THAT.
WOULD PROTECT THE CONSUMERS
MORE.
IT IT ONLY PROTECTS CONSUMERS
MORE IF THE LEAD GENERATION
COMMUNITY IN CALIFORNIA SAYS YES
WE UNDERSTAND WE NEED TO BE
LICENSED AND WERE WILLING TO DO
IT. BECAUSE IF THE LEAD
GENERATORS PULL OUT THEY IF THEY
SAY WE'RE NOT BROKERS.
AND THEY EITHER DON'T
PARTICIPATE OR THE EXIT THE
MARKET THEN CONSUMERS WILL BE
EXPOSED TO THE BADLY GENERATORS
AND THAT'S WHAT WE WANT TO
PREVENT.
THE MORE PEOPLE THAT PARTICIPATE
THE MORE PEOPLE THAT ARE
LICENSED. IN THIS INDUSTRY THE
MORE CONSUMER PROTECTION WE HAVE
BUT WE DON'T WANT TO PUSH THEM
OUT BECAUSE IT'S NOT RIGHT.
IT DOESN'T FIT THE WAY THEY DO
BUSINESS YES SINCE YOU.
ASSUME PROTECTOR LEAD GENERATOR
SO.
THE LENDERS.
ARM.
THE DAILY ADVERTISER THEIR OWN
PRODUCT AGO WAS FARGO BANK
AMERICA WHATEVER MIGHT.
A.
BOTH.
BY USING YOU.
AND MY NOT PAYING MORE PICASA.
THEY WOULD PAY YOU.
MELISSA I.
GO INTO OUR IN A CONTRACT WITH
THAT MIGHT THAT THAT IS AN
EXCELLENT QUESTION. THAT WE ARE
A PART OF A LENDERS MARKETING
BUDGET AND NINE NINETY NINE
PERCENT OF THE TIME WE ACTUALLY
HELP LENDERS REDUCE THEIR
MARKETING EXPENSE.
SO THE BOTTOM THE BOTTOM LINE IS
COST OF ACQUISITION FOR A NEW
CUSTOMER. YOU'RE GONNA PAY TO
BRING THAT CUSTOMER IN IF YOU DO
YOUR OWN MARKETING YOU CAN PAY
BRING THAT CUSTOMER AND IF YOU
USE A LEAD GENERATOR. THE ONLY
REASON WE EXIST THE ONLY REASON
PEOPLE DO BUSINESS WITH US IS
BECAUSE WE USUALLY ALMOST ALWAYS
LOWER THEIR COST OF ACQUISITION.
BECAUSE OF. WE KNOW MARKETING
THEY KNOW LENDING.
SO WE SPECIALIZE IN WHAT WE DO
THEY SPECIALIZE IN WHAT THEY DO
SO THEY ACTUALLY SAVE MONEY
USING US BUT THEY DO NOT EVER
NOR DO WE. PASS THAT COST
DIRECTLY ON TO THE CONSUMER WE
NEVER CHARGE THE CONSUMER AND
YOU WILL NEVER SEE. A LINE ITEM
FOR LEAD GENERATION LIKE YOU
MIGHT SEE A BROKER'S FEES.
I KIND OF AGREE WITH THAT THAT I
I WAS A SHOPPING FOR MY YET NOW
AIRLINE TICKET.
IF YOU GO TO THE AIRLINE ITSELF.
THIS OF COURSE IS MORE.
BUT BUT THE LIKE US SOME OF THE
CAR THEIR CORE EXPEDIA THAT
SUPER HIM AND I WENT. AND THEIR
VILLAGES SO SO I THINK THAT'S A
LEAD TO GENERATE YEAH I.
I I SEE
OKAY MAYBE YOU ONE MORE QUESTION
NOW.
.
WHAT KIND OF A CONSUMER
PROTECTION DO WE CURRENTLY HAVE
OVER THE CURRENT LAW SO FOR THE?
IT GOOD TO THE GENEROUS AND THE
BAD.
THE GENEROUS A HOW CAN WE.
DISCOURAGED BY
BAD THE GENERATOR SAID NOT TO
ACT AS SUCH.
YOU KNOW.
AT.
IT'S JUST JUST LIKE ALMOST A
CHEATED INTO THAT THAT I DIDN'T
KNOW. WHO ARE SAID DID WITHOUT I
THOUGHT ALSO DEALING WITH THE
LENDER?
SO AND THEN AND THE DIGGING INTO
MY PERSONAL INFORMATION. I HAVE
NO IDEA. WHAT THEY HAVE DONE
WITH MY PERSONAL INFORMATION?
THE THE. THE GOOD NEWS FOR THAT
POINT IS THE FEDERAL REGULATORS
BOTH THE FTC AND THE CFPB USE
THERE YOU TAP AUTHORITY WHICH
PROHIBITS UNFAIR DECEPTIVE AND
ABUSIVE ACTS OR PRACTICES.
THEY HAVE.
SHOULD SHUT DOWN OR PENALIZED
SOME WE GENERATORS FOR MAKING
MISREPRESENTATIONS OF THEIR
MARKETING.
CALIFORNIA HAS BUSINESS AND
PROFESSIONS CODE SEVENTEEN TWO
HUNDRED WHICH SIMILARLY
PROHIBITS ON UNTRUTHFUL
MARKETING.
I HAVE AND THE.
FINANCE CODES
TEAM.
SIXTY ONE TWENTY ONE I BELIEVE
ALSO PROHIBITS DECEPTIVE
MARKETING SO THERE ARE STATUTES
ON THE BOOKS THAT CAN BE USED
RIGHT NOW TO RAIN AND THE BADLY
GENERATORS. AND FROM ME YORK
CURRENTLY ASSESSING THAT THE
CURRENT LAWS ARE REGULATING
DEGENERES.
CURRENT LAWS ARE THERE BUT I
DON'T THINK THEY'RE BEING USED
AND THAT'S NOT ON A CD SO THERE
ARE LAWS THERE BUT THERE IS NOT
A REGULATOR FOR IT.
THIS WOULD BE THE ATTORNEY
GENERAL OR OR A CITY ATTORNEY OR
COUNTY ATTORNEY THAT WOULD HAVE
TO BRING. A.
VIOLATIONS UNDER.
FINANCIAL CODE SIXTEEN ONE
TWENTY ONE OR THE BUSINESS AND
PROFESSIONS CODE OR YOU CAN HAVE
A PRIVATE CAUSE OF ACTION. WHICH
WE SUPPORT THEY SHOULD BE.
UTILIZED IF THERE'S A WAY TO
BRING THE DDO.
INTO THE ENFORCEMENT PICTURE
THAT'S FANTASTIC
BUT AGAIN WE WANT THE CONSUMER
PROTECTION WE JUST WANTED TO
FIND. WITH RESPECT TO THE TWO
DIFFRACTED EASE THAT'S ALL I'M
WILLING TO WORK TOGETHER
COMPROMISED TO COME UP WITH
BETTER OVER WORKING TOGETHER
YEAH NO WERE ABSOLUTELY WORKING
TOGETHER I MEAN AND I THINK AS
MR. I'M ROMMEL JUST MENTIONED
IT'S LIKE IT'S NEW SPACE RIGHT
IT'S COMPLICATED SO IT'S HAVING
A DISCUSSION ABOUT. WHAT THE NEW
SPACE LOOKS LIKE WHAT THE ONLINE
WORLD AYE LOOKS LIKE AND ALSO
MAKING SURE THAT WHAT'S IN
STATUTE?
DOES DEFINE WHAT THE WORLD OF
OF LENDING ONLINE AND BUT THAT
ALSO DISTINGUISHES ON WHAT A
MARKETING PRACTICES VERSUS A
BROKER PRACTICE AND I THINK THAT
THAT'S REALLY IMPORTANT. ON THAT
IN THE SPAMMING YOU YOU YOU
QUITE HONESTLY GAVE AN EXAMPLE
TO.
WHY THIS IS NEEDED KANKAN
COUNSELOR DID YOU MAKE ANY
PROPOSED SOURCE OF TO AMEND THE
HER BILL? YES WE WE'VE BEEN
WORKING WITH.
THE CHAIRWOMAN AND HER STAFF
VERY CLOSELY WE HAVE WORKED ON
SOME ALTERNATIVE LANGUAGE HIS
EACH ISSUE EXCEPT YOU AMENDMENTS
IT I THINK IN THE IN THE
COMMITTEES.
IN THE ANALYSIS FROM FROM THE
STAFF THERE ARE A COUPLE OF
RECOMMENDATIONS THAT DON'T QUITE
FIT TOGETHER THINK THE FIRST ONE
IS TO. CHANGE THE DEFINITION OF
BROKER TO MAKE IT MORE CLEAR.
AND THE LAST ONE I BELIEVE IT'S
POINT NUMBER NINE IN THE
RECOMMENDATIONS IS TO SPLIT THE
DEFINITIONS.
SO THEY KIND OF ARE ARE LOOKING
AT BOTH OPTION
THIS AND I THINK SPLITTING THE
DEFINITIONS IS THE BETTER WAY TO
IT TO PROCEED.
S. USE IS NOT THERE YET IT'S NOT
THERE YET.
MISS BURKE.
NO I JUST WANT TO MAKE SURE I
UNDERSTAND SO ARE ARE WE WORKING
TOWARDS A DEFINITION FOR LEAD
GENERATION GENERATOR SEPARATE
FROM A BROKER OR.
WHERE ARE WE PLANNING I JUST
WANNA GET IDEA WERE PLAYING
ONLINE BECAUSE THEY ARE TWO VERY
DIFFERENT THINGS I MEAN?
I AM A BROKER SO I A LEAD
GENERATOR IS IS JUST ESSENTIALLY
AN ADVERTISER AND I REALIZED ERA
IT ACCESS TO SENSITIVE
INFORMATION AND I WANT THAT
PROTECTED JUST LIKE ANYBODY ELSE
ANYONE IN THEIR RIGHT MIND.
HOWEVER EIGHT I AM CURIOUS ARE
WE MOVING TOWARDS A SEPARATE
DEFINITION FOR A LEAD GENERATOR
AND A SEPARATE DEFINITION FOR A
BROKER AND IS THAT PLANNING ON
BEING A DIFFERENT KIND OF
LICENSE. UNDER A BROKER'S
LICENSE OR WHAT IS THAT AND WHAT
DO YOU SEE AS THE ANGLE SO WE'RE
WORKING WITH DB O. TO ACTUALLY
ESTABLISH THIS I THINK THAT
THERE IS A SPACE TO LOOK AT
THESE AS DIFFERENT THINGS BUT I
WOULD SAY JUST WHAT. YOU KNOW
BACK TO WHAT WAS SPENT WITH BEEN
DISCUSSED IS THERE IS A VERY
DIFFERENT DIFFERENT IN PRACTICE
I MEAN ONE YOU KNOW GIVING OUT A
LOT OF THE GENERAL CAN'T ABOUT.
AND I THINK THAT THAT'S THAT'S
THE GOAL TO MAKE SURE THAT WE
DEFINE THESE IN A WAY AND THAT I
YOU KNOW. ESSENTIALLY CFL
LENDERS WOULD HAVE TO WORK WITH
SOME KIND OF YOU KNOW LICENSED
BROKER AND THAT'S WHAT WE HOPE
THE BILL WITH THE.
AB I AM I AM BUT I JUST WANNA
MAKE SURE I UNDERSTAND THE
FRIGHT BECAUSE I BEFORE I.
BECAUSE I WAS LEANING TOWARDS
NOT VOTING BUT IF YOU'RE
ACTUALLY MOVING TOWARDS. THE
ACTUAL DEFINITION THAT SEPARATE
FOR A LEAD GENERATOR THAT'S A
THAT'S A DIFFERENT CONVERSATION
AND OBVIOUSLY REGULATING THEM IS
IS FAIR AND NECESSARY ON BECAUSE
OF WHAT THEY'RE.
HAVE ACCESS TO SOME JUST DON'T
TRY TO FIGURE OUT IS. IS THE
GOAL TO HAVE.
S. SEPARATE KIND OF.
DEFINITION OF THEM UNDER A
BROKER'S LIFE LIKE UNDER A
BROKER'S LICENSE OR WILL THEY
STILL IN YOUR PURVIEW BE LICENSE
AS A PROCREATING THOUGH THEY'RE
NOT DOING BROKER ACTIVITIES.
RIGHT SO WE ARE WORKING TOWARDS
A BETTER DEFINITION OF BOTH BUT
WE ARE ALSO WAITING FOR THE
OPPOSITION TO CARVE OUT EXACTLY
WHAT THAT LOOKS LIKE.
MISTER CALDERON.
BOB MONTH THANK EVERYBODY FOR
BEING HERE AND FOR THE TESTIMONY
IN FOR THE AUTHOR'S WORK ON THIS
BILL.
YOU KNOW. LEE GENERATOR GOING
GOOGLE I NEED OF SMALL LOAN
LATIMES FIRST THING THAT POPS UP
AS A LEAD GENERATOR LA TIMES IN
OF THE STATE. BEST LOAN.
YOU KNOW IT IT AND SO I I THINK
WAS REALLY IMPORTANT FOR THE
STATE TO DO IS TO IDENTIFY A
REGULATORY BODY THAT HAVE
ABSOLUTELY HAS TO HAPPEN.
BECAUSE THAT IT LEAVES OUT
WITHOUT ONE IT LEADS TO
POTENTIAL OR.
.
THE MORE.
PREVALENCE OF UNSCRUPULOUS WAYS
OF BEING ABLE TO TRACK BUSINESS
TO OUR OUTSIDE DIFFERENT LENDERS
THROUGH THE LEAD GENERATOR. AND.
YOU KNOW WE WANT TO MAKE SURE
THAT OBVIOUSLY PEOPLE'S
INFORMATION AND IS PROTECTED
ESPECIALLY. ARE IMPORTANT
PERSONAL INFORMATION ABOUT WE
ALSO WANT TO MAKE SURE THAT.
THERE AS A STATE WE ARE PAYING
ATTENTION TO WHO IS.
OPERATING AS A LEAD GENERATOR
AND THE WAY IN WHICH THEY'RE.
THERE THE SERVICING WHOEVER AND
THEY'RE BEING PAID BY.
ARE AND AND THAT'S WHY I THINK
IT'S IMPORTANT TO MOVE FORWARD
ON YOUR RAN.
I'D MADAM CHAIR ON THE
DEFINITION.
.
BECAUSE IT WOULD BE UNFAIR TO
SAY WE WILL.
A DEFINITION OF A BROKER YOU
HAVE TO MAKE SURE YOU'RE YOU'RE
TRYING TO FIGHT FOR THE BEST.
A POSSIBLE DEAL FOR WOULD BE
YOUR CLIENT IS WHICH IS SUPPOSED
TO BE THE INDIVIDUAL.
BUT I THINK.
THE THE PIECE IN THIS BILL ALONE
ABOUT ESTABLISHING.
A REGULATORY AGENCY IS I BELIEVE
THE MOST IMPORTANT PIECE I THINK
DEFINITIONS ARE REALLY A LOT OF
TIMES YOU CAN SOLVE DEFINITION
BY ADDING A COM OR PERIOD. AT
OUT YOU KNOW SEVEN SOME MY BILL
SO. YOU KNOW OR MAYBE A ADDING
AN AND OR OR SO I DON'T THINK
IT'S A THAT'S A HARD HURDLE TO
OVERCOME SEEMS PRETTY
REASONABLE.
ABOUT WE HAVE TO AS A STATE TO
SALVAGE A REGULATORY BODY TO
OVERSEE THIS AND TO MANAGE IT SO
I WOULD ENCOURAGE THE AUTHOR TO
CONTINUE TO WORK ON THE
DEFINITIONAL. ISSUES HERE UP BUT
THEN ALSO ENCOURAGE THE
OPPOSITION TO UNDERSTAND THE
IMPORTANCE OF THE VALUE AND THE
STATE INTEREST IN IDENTIFYING A
STATE AGENCY TO REGULATE THE
INDUSTRY.
AND HOW BY VERIFIED BUSINESSES
LIKE YOURSELF YOU KNOW MAYBE
CREATE A PROGRAM WHERE YOU GET
THE PATH AT A VERIFIED CHECKING
VERIFIED.
YOU KNOW WORD ON YOUR WEBSITE
TO MAKE SURE PEOPLE AREN'T BEING
DUPED BY. OTHERS BAD ACTORS.
YOU NOW YEAH YOU MAY FIND A WAY
TO BE ABLE TO DO THAT AYE THAT
CERTAIN THAT WOULD MAKE PEOPLE
UNDERSTAND ARE NO WITHOUT A
DOUBT THAT THEY ARE OPERATING
WITH A LICENSED.
BUSINESS WITH THE STATE THAT HAS
ARE ACTING IN IN IN THE BEST WAY
POSSIBLE BUT I THINK THAT THIS
BILL IS REALLY IMPORTANT.
JUST ALONE TO ESTABLISH.
A REGULATORY AGENCY SO. I AM
GONNA BE VOTING FOR THE BILL I
MOVE THE BILL HAS ALREADY BEEN
BEEN MOVED AND ENCOURAGES
SECONDS AND.
THANK YOU FOR YOUR WORK.
THE BILL HAS BEEN REVISED
CALDERON.
MADAM CHAIR DO YOU HAVE A
QUESTION I TRULY APPRECIATE A
YOU BRING THIS BILL THWARTED
YOU'D THINK THAT THE. DEFINITION
OF BROKERS WHO IS OVERLY BROAD.
BUT IN TERMS OF READING THIS
BILL IT DOES ALSO SEEMED THAT.
UNDER THIS CURRENT LANGUAGE THAT
LEGIONARIES STILL BE CLASSIFIED
UNDER BROKERS BUT IT ALSO SEEMS
THAT THERE IS DISTINCTLY
DIFFERENT RESPONSIBILITIES OF
THESE BOTH DIFFERENT.
OPPOSITIONS IF YOU WILL.
BUT THAT IS THE CASE.
WHY ISN'T THERE A SUPPER
DEFINITION FOR BOTH AND IF IT'S
GOING TO BE A SEPARATE
DEFINITION?
WILL IT BE SOMETHING UP REQUIRED
TO BE A CHANGE IN THE STATUTE.
WELL I THINK THAT THAT'S WHAT
WE'RE TRYING TO WORK ON ACTUALLY
THERE'S BEEN A LOT OF
CONVERSATION ON WHAT THAT BROKER
DEFINITION IS NOW AND WHAT A
SEPARATE DEFINITION WOULD LOOK
LIKE. ON IT'S ACTUALLY NO I MEAN
IT'S NOT AS EASY AS.
COME UP WITH WORDS AND PUT THEM
TOGETHER IT'S REALLY
UNDERSTANDING THE PRACTICE THAT
GOES BEHIND AS I AM TO COME UP
TOGETHER SO I JUST WANT TO BE
CLEAR THAT LIKE IT'S ACTUALLY
BEEN. A MUCH MORE THOROUGH IN
DEPTH CONVERSATION.
BECAUSE IT WE CAN COME UP WITH
DEFINITIONS JUST YOU KNOW BY.
LOOKING AT THE IN AND IN
DICTIONARY WITH THESE THINGS
MEAN BUT IT'S REALLY
UNDERSTANDING WHAT THE PRACTICE
HAS BECOME NOW AND THAT'S WHAT I
THINK YOU HEARD BOTH SUPPORTERS
AND OPPOSITION SAYING THAT
THAT'S WHAT WE'RE WORKING ON.
AND TO COME UP WITH A DEFINITION
NOT JUST THAT DEFINES IT BUT
THAT MATCHES WHAT IS HAPPENING.
ANY OTHER QUESTIONS FROM THE
COMMITTEE.
ANNOUNCING NON.
THERE'S MISTER.
DOCTOR CHOI.
NOT BASED UPON YOUR YOUR
EXPLANATION IF YOU AGREE UPON
DEFINITION WHAT THE DEGENERATE
WHICH GENERATORS ARE. WHAT
BROKERS ARE WHAT I HEARD IN THE
BEGINNING WESTERN? BROKERS SELL
OUT WILL YOU DO OR THE
TRANSACTION DETEST FOLLOW UP.
THE GENERATOR'S ONLY
INTRODUCING.
SO AS WRONG ANSWER DEGENERATE RA
SAID TO THE A JOB BUT NOT TO THE
POOL WORRYING THEN WE MAY NOT
NEED THAT THOUGH. OVERSIGHT.
THE LICENSING REQUIREMENTS.
MIGHT.
AYE AYE WITHIN FAIRNESS TO
CONSUMERS AND WITH RESPECT
EVERYTHING THAT THAT HAS BEEN
SAID IN THE COMMITTEE HERE WE
SEE THERE STILL SHOULD BE SOME
OVERSIGHT OVERTLY GENERATORS.
BECAUSE ADAM PART OF THE
SCENARIO DOCTOR CHOI IS THAT.
LEE GENERATORS MAKE AN
INTRODUCTION AND IT'S USUALLY
LEFT BETWEEN. THE POTENTIAL
BORROWER AND THE LENDER THERE'S
NOT USUALLY A BROKER INVOLVED AS
WELL AS A LEAD GENERATOR IN THE
IN THE SMALL DARK CONSUMER SPACE
PARTICULARLY. SO FROM THAT
PERSPECTIVE THE LAWS THAT ARE
ALREADY THERE THAT PROHIBIT
UNFAIR DECEPTIVE MISLEADING
ADVERTISING HAT DOES NEED TO BE
ENFORCED AND AND WE FULLY.
SUPPORT ENFORCING THAT.
SO THERE SHOULD BE SOME
ENFORCEMENT MECHANISM FOR THAT
AND WE AGREE.
ANY OTHER QUESTIONS.
AS SOON KNOW MADAM CHAIR WAS
LIKE CLOTHES I RESPECTFULLY ASK
RENOVO.
AND IT'S BEEN.
MOOD BY MISTER CALDERON
SECONDED BY MISTER STONE.
MADAM SECRETARY PLEASE CALL THE
ROLL.
AB THIRTY TILL SEVEN.
ON APPROPRIATIONS
LIMON AYE LAMONT AYE CHEN.
CHEN NOT VOTING ACOSTA.
ACOSTA NO BURKE.
BURKE AYE CALDERON.
CALDERON AYE CERVANTES.
CERVANTES AYE CHOI.
AS IS NO.
CHOI NO GONZALEZ FLETCHER.
GONZALEZ FLETCHER AYE GRAYSON.
GRAYSON AYE STONE.
STONE AYE WEBER.
WEBER I.
IF YOU MEASURE BILLS OUT
.
AND WITH.
WE ONLY HAVE ONE.
AND.
WE'RE ADDING VOTES FOR THE FIRST
BILL AB TWENTY SIXTY THREE WILL
CALL THE ROLL.
AB TWENTY SIXTY THREE MOTION DO
PASSED COMMITTEE ON
APPROPRIATIONS ACOSTA AYE AYE
COST AYE BURKE.
BURKE I.
CALDERON.
CALDERON I.
GRAYSON.
GRAYSON AYE STONE.
STONE I.
WEBER.
WEBER I.
AB TWENTY SIXTY THREE GETS OUT
WITH AN ELEVEN.
ZERO VOTES.
AND A. B. THIRTY TWO OF SEVEN
GETS OUT WITH AN EIGHT TO VOTE.
WITH THAT WE ADJOURN THE HEARING