QUORUM JUST YET- BUT WE ARE
GOING TO GO AHEAD AND START AS
A SUB COMMITTEE WHILE WE WAIT
TO- FOR OTHER MEMBERS SAID TO
COME I WANT TO WELCOME EVERYONE
TO OUR FIRST HEARING OF THE
TWENTY TWENTY LEGISLATIVE YEAR
AND WE'RE GOING TO START OFF
TODAY- WITH A SOME MEMBER
HAWKING AND I'M GLAD I'M-
SENDING. AB FIFTEEN FIFTY ONE.
THE MELENDEZ AS CO AUTHOR OF AB
FIFTEEN FIFTY ONE. AB FIFTEEN
FIFTY ONE PROPOSES TO THE
PROPERTY. WELL KNOWN AS PAYS
FINANCING. PAYS FINANCING WAS
INITIALLY ESTABLISHED IN TWO
THOUSAND EIGHT AS A WAY TO HELP
HOMEOWNERS FINANCE
ENVIRONMENTALLY FRIENDLY HOME
IMPROVEMENT PROJECTS
UNFORTUNATELY AT THE TIME OF.
ITS ADOPTION THERE WERE VERY
FEW CONSUMER PROTECTIONS PLACED
IN THE PROGRAM AS A RESULT THE
LEGISLATURE HAS HAD TO ADOPT
CONSUMER WERE. PROTECTIONS
AFTER THE FACT LEAVING
CONSUMERS VULNERABLE TO FRAUD.
TWO YEARS AGO THE LEGISLATURE
PASSED AB TWENTY SIXTY THREE
WHICH INCREASED ACCOUNTABILITY
OVERSIGHT AND RESPONSIBLE
LENDING. DESPITE THE
LEGISLATURE'S EFFORTS TO
IMPROVE ACCOUNTABILITY THERE
CONTINUE TO BE REPORTS FROM
HOMEOWNERS HOMEOWNERS WHO
SIGNED CONTRACTS BUT ARE
UNAWARE OF THE IMPACT THE PEACE
ASSESSMENT WOULD HAVE ON THEIR
TAX BILL. AND THE ABILITY TO
REFINANCE OR SELL THEIR HOMES
HOMEOWNERS MAY EVEN BE UNAWARE
THAT THEY COULD LOSE THEIR
HOMES IF THEY FAILED TO PAY
PAYS ASSESSMENT. MANY
HOMEOWNERS DON'T REALIZE THAT
DEFAULTING ON THIS ASSESSMENT
COULD PUT THEM IN DANGER OF
LOSING THEIR HOMES. AB FIFTEEN
FIFTY ONE PROPOSES THREE
CHANGES TO THIS PROGRAM
INTENDED TO PROVIDE ADDITIONAL
CONSUMER PROTECTION. FIRST IT
REQUIRES PIECE CONTRACTORS TO
PROVIDE CONSUMERS WITH A HARD
COPY OF THE CONTRACT PRIOR TO
WORK COMMENCING. RECENTLY THE
LA CITY ATTORNEY FILED A
LAWSUIT AGAINST THE PACE
CONTRACTOR TH CONTRACTOR WAS
ACCUSED OF DEFRAUDING LOW
INCOME RESIDENTS BY USING THEIR
LAPTOPS AND CELL PHONES TO
ACCESS ONLINE APPLICATIONS AND
ONLY FLASHING LIMITED SNIPPETS
OF INFORMATION OUT THERE
VICTIMS FROM THEIR SCREENS.
REQUIRING A HARD COPY PAPER
DISCLOSURE FORM WILL PROVIDE
CONSUMERS WITH INFORMATION
ABOUT THE CONDITIONS OF THE
FINANCING AND WILL ENSURE THAT
HOMEOWNERS GET THE INFORMATION
AND BOTH ELECTRONIC AND HARD
COPY FORM. CERTAINLY A HARD
COPY WILL ALLOW THE PROPERTY
OWNER TO READILY SHARE THE
DOCUMENT WITH TRUSTED RELATIVES
AND FRIENDS. THIS DISCLOSURE
SHOULD BE WELCOMED BY THE PACE
PROVIDERS WHO ARE FOLLOWING THE
RULES AS A WILL HELP TO ENSURE
THAT THE HOMEOWNER UNDERSTANDS
THE CONTRACT. SECOND THIS BILL
PROHIBITS PACE ADMINISTRATORS
FROM CHARGING CONSUMERS A
PENALTY FOR PAYING OFF THEIR
ASSESSMENT EARLY. THERE ARE
FIVE PIECE ADMINISTRATORS THAT
OFFER FINANCING IN CALIFORNIA.
MOST OF THEM HAVE ELIMINATED
THE EARLY PAYOFF PENALTY BUT
THIS BILL WILL PUT THAT
PRACTICE TO END FOR GOOD. THE
EARLY PAYOFF PENALTY SIMPLY
INCREASES THE COST OF FINANCING
AND IS NOT A STANDARD PRACTICE
USED BY TRADITIONAL LENDING
INSTITUTION. IT ALSO ROBS
HOMEOWNER HOME OWNERS OF HARD
EARNED EQUITY IN THEIR HOME
WHEN THEY ARE SELLING OR
REFINANCING PROPERTIES. FINALLY
THIS BILL WILL PROHIBIT PACE
ADMINISTRATORS FROM CONTRACTING
WITH HOMEOWNERS WHO HAVE WHO
HAVE REVERSE MORTGAGES. PACE
HOME IMPROVEMENT QUALIFY AS
SUPER LEADS AGAINST RESIDENTS
HOMES OFTEN BANKS ARE UNAWARE
THAT RESIDENTS IN REVERSE
MORTGAGES ARE TAKING ON THESE
FINANCIAL OBLIGATIONS. BECAUSE
SUPERMAN'S TAKE PRIORITY AND
MUST BE PAID OFF BEFORE A HOME
CAN BE SOLD RESIDENTS MAY
FURTHER LOSE EQUITY IN THEIR
HOMES AND FIND THEMSELVES AND
THAT. IN OCTOBER THE MINISTRY-
IS ANNOUNCED THEY WOULD
VOLUNTEER PLEASE STOP
CONTRACTING WITH HOMEOWNERS
WITH REVERSE MORTGAGES THIS
BILL WILL ENSURE THAT THAT
PRACTICE IS ENDED. IT IS MY
HOPE THAT THIS BILL WILL BRING
US ONE STEP CLOSER TO THE GOAL
OF HOMEOWNERS WHO ENTER INTO
PACE ASSESSMENT CONTRACTS.
DOING SO WITH FULL KNOWLEDGE OF
THEIR ACTIONS AND MAKING PACE A
BETTER PRODUCT FOR CONSUMERS
WITHOUT A TYPICAL FEES. THANK
YOU. THANK YOU. OTHER WITNESSES
IN SUPPORT. THANK YOU GOOD
AFTERNOON MADAM CHAIR AND
MEMBERS MY NAME IS ANNA BACH
AND I'M HERE ON BEHALF OF THE
CALIFORNIA ASSOCIATION OF
REALTORS- THE ASSEMBLY MEMBER
ALREADY DID A GREAT JOB OF AN
OVERVIEW OF WHAT THIS BILL
DOES- TO INTO THE MICROPHONE
JUST A LITTLE CLOSER TO. SHORE
PAYS PROGRAMS ARE UNIQUE FORM
OF FINANCING SANCTIONED BY
LOCAL GOVERNMENTS THAT ALLOW
PROPERTY OWNERS TO FINANCE
WATER AND ENERGY EFFICIENCY OR
HOME HARDENING EFFORTS WITH A
FEW NOTABLE EXCEPTIONS.
FINANCING IS ADMINISTERED BY
FOR PROFIT PRIVATE ENTERPRISE.
YOU PROBABLY HEARD FROM THE
BILL'S OPPONENTS THAT REALTORS
JUST HATE PACE. WELL LET ME SET
THE RECORD STRAIGHT STRAIGHT
TODAY REALTORS DO NOT HATE PAYS
FINANCING. WHAT REALTORS HATE.
IS HEARING FROM HOMEOWNERS.
THAT THEY WORK WITH TIME AND
TIME AGAIN. THAT THEY DID NOT
UNDERSTAND THE IMPLICATIONS OF
THEIR PACE ASSESSMENTS. THE
MOST NOTABLE PART OF THIS BILL
IS THE REQUIREMENT THAT A HARD
COPY OF THE DISCLOSURE BE GIVEN
TO POTENTIAL CUSTOMERS. IN
PRACTICE PACE ASSESSMENT SALES
ARE USUALLY DONE IN PERSON.
DOOR TO DOOR SALES VIA THE USE
OF ELECTRONIC TABLET SUCH AS AN
IPAD. NO MATTER HOW YOU LOOK AT
IT. THERE IS AN INHERENT
CONFLICT OF INTEREST WITH IN
THE PACE BUSINESS MODEL BECAUSE
PACE ADMINISTRATOR COMPANIES
RELY ON THE CONTRACTORS WHO
WILL BE INSTALLING THE PRODUCT
TO SIGN CUSTOMERS UP FOR THE
FINANCING. HOMEOWNERS ROUTINELY
ELECTRONICALLY SIGN CONTRACTS
THAT OBLIGATE THEMSELVES. TO
TWENTY THIRTY FORTY FIFTY SIXTY
THOUSAND DOLLARS A MORE. OF
ENCUMBRANCE ON THEIR PROPERTIES
AT HIGH INTEREST RATES OF SIX
AND A HALF TO EIGHT AND A HALF
PERCENT WITH A COPY SIMPLY
GOING TO THEIR EMAIL ADDRESSES
A HARD COPY INSTEAD OF AN EMAIL
DISCLOSURE. WILL INCREASE THE
CHANCES THAT A HOMEOWNER WILL
READ THE DISCLOSURE THOROUGHLY
AND LEARN ABOUT THE NUANCES OF
THE FINANCING PRODUCT THAT THEY
ARE CONSIDERING AND PERHAPS
EQUALLY IMPORTANT. A DOCUMENT
IN HAND THAT THEY CAN EASILY
REVIEW AND DISCUSS WITH FRIENDS
RELATIVES OR FINANCIAL
COUNSELORS DURING THE THREE DAY
RIGHT EVERY SCISSION PERIOD FOR
THESE REASONS WE REQUEST I
ABOUT THANK YOU THANK YOU. FOR
YOUR TIME AND ASSEMBLY MEMBER
AT OF. MY NAME IS LOU THIS THIS
MEDINA FROM FRESNO CALIFORNIA
COMMUNITY ORGANIZER AND TWO
YEARS AGO I EMBARKED IN A
COMMUNITY THAT WAS VULNERABLE
AND THAT WAS DEFINITELY WANTING
TO SAY THE VARMINT BY TAKING ON
SOLAR LOANS. SO LOANS ARE THE
WAY THEY GOT INTRODUCED INTO
PACE LOANS BASIL'S PRESENTED TO
THEM BY CONTRACTORS WHEN THE
COMMUNITY IS NOT AFFLUENT AND
DOESN'T HAVE AN EDUCATION OR
EVEN A MIGRANT. A STATUS TO BE
IN THE COMMUNITY TO ASK PEOPLE
QUESTIONS OR ASK. OR TO KNOW
WHAT QUESTIONS TO ASK THEY ARE
USUALLY TAKEN ADVANTAGE OF. AND
THIS BILL I SEE THE VERY SMALL
STEP THAT WE COULD TAKE THE
STAR HELPING A LOT OF CONSUMERS
IN CALIFORNIA JUST HERE LOAN I
ONLY HELP ABOUT SEVENTY FIVE
PEOPLE TO DEAL WITH ISSUES OF
HOW TO EVEN APPROACH.
UNDERSTANDING A PACE SLOWED
UNDERSTANDING HOW THEY COULD
SAVE THEIR HOMES UNDERSTANDING
IF THEY COULD GO TO SLEEP AGAIN
AND KNOW THAT THEY WILL ALL
THESE COMPANIES FAILED THEY'RE
GOING TO LOSE THEIR HOMES. I
SEE THAT ASSEMBLY MAN BRINGING
FORTH THIS BILL WITH THE HARD
COPY IS SOMETHING IS VERY
SIMPLE OLD SCHOOL IS OLD SCHOOL
WHEN YOU GO PURCHASE A CAR YOU
KNOW YOU'RE GOING TO PURCHASE
SOMETHING THAT'S GOING TO BE A
BIG RESPONSIBILITY. YOU GET
TOLD THE PRICE OF THE PRODUCT
YOU TOLD INTRODUCING TO PAY HOW
MANY YEARS YOU'RE GOING TO PAY
IN THE TOTAL BALANCE WHEN
PEOPLE ARE AWARE THAT. WILL
MAKE SURE TO ASK MORE QUESTIONS
BUT MAYBE YOU UNDERSTAND THAT
THAT'S A REALTOR SEC LOANS LIKE
PACE. NEVER EVER TO DOES THE
COUNTY ASSESSMENT TELL THE
HOMEOWNER DO YOU UNDERSTAND.
YOUR PROPERTY IS BEING SET AND
WEBER SAYS THE. SO RIGHT NOW IS
FOR ME FORTUNATELY. MAYBE HAD
THE HOT THEIR HEART IN THE
RIGHT PLACE BUT THEY DIDN'T
HAVE THEIR KNOWLEDGE IN THE
RIGHT PLACE. IT WE'RE THINKING
THE- BILL RIGHT NOW WHO'S
CURRENTLY FINALLY THIS YOU'RE
GOING TO BE HELPING TO REGULATE
THESE LOANS. IT'S GOING TO BE
ENOUGH FOR US TO HELP THE
CONSUMERS IT'S NOT. THIS BILL
ONLY HELPS US TO MAKE SURE THE
COMMUNITIES WHO ARE MIGRANT
COMMUNITIES LOW INCOME IN FIRST
A HOMEOWNERS THEY WANT TO BE
HOMEOWNERS FOR THE REST OF
THEIR LIVES. KEEP THEIR HOMES
PAYS LOANS RIGHT NOW ARE NOT
BEING DISCLOSED TO CONSUMERS TO
CALIFORNIANS WITH TRANSPARENCY.
THERE IS A LOT OF BAD
INFORMATION. AND BAD PRACTICES
IT ALSO. NOT BE HELD
RESPONSIBLE FROM THE LENDERS
AND THE CONTRACTORS THERE'S A
LOT OF PARTIES INVOLVED IN THIS
PAGE LOADS BUT ONLY ONE PARTY
ENDS UP DAMAGE AND THAT'S THE
HOMEOWNER. I DON'T THINK THAT'S
FAIR THANK YOU FOR YOUR TIME
AND I. YOU AND WE WILL GO AHEAD
AND ESTABLISH QUORUM AS THE
OPPOSITION COMES. AT THE END IF
WE'RE GONNA GO AHEAD AND CARL.
LEON HERE IN HERE CHAN CHAN
HERE BEAR CAM CAME HERE BURKE
CHOI. CHOI HERE GABRIEL CABLE
HERE GLORIA. GRAYSON. GRAYSON
HERE MELENDEZ MELENDEZ HERE
STONE. STONE HERE WEBER. WEBER
MEMBER HERE WICKS WICKS HERE.
AND I WILL NOTE THAT ASSEMBLY
MEMBER ADD GLORIA IS FEELING IN
TODAY FOR ASSEMBLY MEMBER
CERVANTES I'M AND WE DO HAVE
WITNESSES IN SUPPORT PLEASE AT
COME FORWARD TO THE MICROPHONE
AND THEN WE WILL START WITH THE
WITNESSES OPPOSITION GOOD
AFTERNOON CHARTER MEMBERS MY
NAME IS DANIELLE COUNTER
BECAUSE- ON BEHALF OF THE
CALIFORNIA LOW INCOME CONSUMER
COALITION WE ARE A COALITION OF
A DOESN'T LEGAL AID SERVICE
PROVIDERS MANY OF WHOM ARE
INUNDATED BY CASES RELATED TO
THESE PACE LOANS. WE URGE OUR
AYE VOTE. AFTERNOON DELIGHT LE
CLOWN BEHALF OF LA COUNTY IN
SUPPORT. DANIEL GOOD TERRACE ON
BEHALF OF THE CONSUMER
FEDERATION OF CALIFORNIA IN
SUPPORT. ROBERT WILSON THE
CALIFORNIA CREDIT UNION LEAGUE
IN SUPPORT. AT THE HILTON WITH
THE CALIFORNIA LAND TITLE
ASSOCIATION IN SUPPORT.
PATTERNS AWAY HERE ON BEHALF OF
THE CALIFORNIA MORTGAGE BANKERS
ASSOCIATION IN SUPPORT. MADAM
CHAIR AND MEMBERS COMMINGLED
WITH CALIFORNIA BANKERS
ASSOCIATION AND SUPPORT. THANK
YOU SEEN NO ADDITIONAL
WITNESSES IN SUPPORT AT WE WILL
HAVE. WITNESSES IN OPPOSITION
PLEASE TAKE A FEW MINUTES TO
STATE YOUR POSITION THANK YOU
MADAM CHAIR MEMBERS- HI MY
NAME'S JUSTIN STRAWN I WORK AT
MORE GREEN ENERGY FUND- HANDS
HERE TALK ABOUT FIFTEEN FIFTY
ONE. ROUGHLY EVERY OPPOSE THE
BILL BECAUSE THIS- THE LANGUAGE
SIMPLY REMOVES THE OPTION FOR A
PROPERTY OWNER TO RECEIVE THEIR
PACE DOCUMENTS AN ELECTRONIC
FORMAT. ACTUALLY WHAT'S ALREADY
IN STATUTE IS THAT THE PROPERTY
OWNER BE PROVIDED A PRINTED
COPY AND LESS THE PROPERTY
OWNER AGREES TO RECEIVE. THOSE
DOCUMENTS IN ELECTRONIC FORMAT.
I'M THERE'S BEEN SUITE OF
LEGISLATION ALREADY PASSED-
THAT IS ADDRESSED ALL OF THESE
ISSUES AB TWENTY SIX NINETY
THREE SB TWO FORTY TWO AB
TWELVE EIGHTY FOUR- THEY'VE ALL
ADDRESSED THESE COMPONENTS
ESTABLISHING COMPREHENSIVE
CONSUMER PROTECTIONS. IN THE
PACE INDUSTRY- AB TWO ALREADY
FOR ESTABLISH THE DEPARTMENT OF
BUSINESS OVERSIGHT AS THE
REGULATOR OF ALL RESIDENTIAL-
PACE FINANCING ADMINISTRATORS.
HAND OUT RIGHT NOW THEY ARE
ACTIVELY- IN THE PROCESS OF
RULE MAKING ADDRESSING THIS
PARTICULAR COMPONENT WITH
REGARD TO WRITTEN DISCLOSURES.
AS ABOUT TO HOW WE HAVE TO
PROVIDE- THESE DISCLOSURES INWHAT FORMAT IT'S ULTRA- AND
AGAIN BY REQUIRING THAT THE
DISCLOSURE ONLY BE PROVIDED IN
PRINTED COPY REMOVES THE OPTION
FOR THE PROPERTY OWNER TO ELECT
AGAIN THEIR CHOICE JUST
PROPERTY OUR CHOICE. TO RECEIVE
THE DISCLOSURES AND THAT
DOCUMENTATION AND ELECTRONIC
FORMAT- AND AGAIN THIS IS
CURRENTLY AN ACTIVE ROLE MAKING
WITH THE DEPARTMENT OF BUSINESS
OVERSIGHT SO. WE OPPOSE BILL
FOR THAT FOR THAT REASON THANK
YOU. ARE NOTHING TO ADD THANK
YOU CRYSTAL PROPER FROM MY
GREEN HERE I'M AS NEEDED CREEK
THANK YOU ANY ADDITIONAL
WITNESSES IN OPPOSITION PLEASE
COME TO THE MICROPHONE.
INTERFERE WITH THE RENEW
FINANCIAL WE CURRENTLY HAVE A
POSITION OF OPPOSING LASSEN
ENDED ARE WE AGREED- TWO THIRDS
OF THE BILL WITH THE OFTEN THE
SPONSORS SPECIFIC TO. NO
PREMIUM PALE NO PREPAYMENT
PENALTIES AS WELL AS THE- PART
OF ME. THE GOOD THE STRONG
CONSUMER PROTECTIONS RELATED TO
THE PREPAYMENT AS WELL AS.
SIMON OF TO. AND THE REVERSE
MORTGAGES I APOLOGIZE THE ISSUE
THAT- WE STILL HAVE AN ISSUE
WITH IS RELATED TO THE HARD
COPIES OF AS STATED EARLIER DPO
IS CURRENTLY PROPAGATING
REGULATED TO THAT I'M NOT
REQUIRING THE HARD COPY- BUT IF
THE CUSTOMER REQUESTS ARE BOTH
FOR NEW FINANCIAL- WILL GRANT
IT IN ADDITION- IT'S BEEN OUR
EXPERIENCE THAT 98% OF FOR NEW
FINANCIALS ARE RICH RENEW
FINANCIAL. CUSTOMER DECLINE OF
TEAMING UP TING IN A HARD HARD
COPY- WE BELIEVE THESE THINGS
CAN CONTINUE TO BE WORKING WITH
THE AUTHOR AND SPONSOR AND-
AGAIN BELIEVE THAT'S VERY
LAUDABLE OF THIS STRONGER
CONSUMER PROTECTIONS THE AUTHOR
AND SPONSOR SEEKING IN THIS FOR
THIS LEGISLATION THANK YOU.
THANK YOU. MARCH BET PIECE
FUNDING GROUP BY OPPOSING OPEN
ENDED. ON THE PREPAYMENT PIECE
WE SUPPORT THE- OVERALL
OBJECTIVE BUT IT DOES NOT COVER
PARTIAL PREPAYMENTS. IN THEORY
A HOMEOWNER CAN MAKE A PARTIAL
PREPAYMENT OF ONE DOLLAR. IT
WOULD COST ME A HUNDRED FIFTY
DOLLARS TO FILE THE PAPERWORK
WITH THE COUNTY TO RE ADVERTISE
THAT ASSESSMENT. SHE WOULD LIKE
TO CLARIFY THAT IT'S ONLY ON
FULL PREPAYMENTS WITHOUT
PENALTY PARTIAL PREPAYMENTS MAY
HAVE A PENALTY- WISTFULLY
SUPPORT THE ABANDONED REVERSE
MORTGAGES WE THINK THAT'S A
GOOD FOR CONSUMER PROTECTION-
WE ALSO ARE OPPOSED TO THE
PAPER COPIES BEING MANDATORY.
MANY PEOPLE ARE DOING THIS FOR
ENVIRONMENTAL REASONS AND TO
FORCE US TO KILL A TREE TO
PRINT IT OUT AND SEND A FEW FED
EX- MAY MITIGATE THE
ENVIRONMENTAL BENEFITS OF PACE
SO. WE. SO MANDATORY PHYSICAL
COPY. THANK THANK YOU. MEMBERS
QUESTIONS OR COMMENTS. DR
APATHY FOR RING IS BILL FORD
DIFFICULT QUESTIONS AND
CLARIFICATIONS AND IS THAT TRUE
IN TERMS OF IF IT IS A MANDATE
ON HELPING THE PAPER DOCUMENTS
SENT TO YOU THAT THE INDIVIDUAL
OR THE CLIENT WOULD BE
PRECLUDED FROM HAVING. THE
OPPORTUNITY TO GO PAPERLESS.
THE ANSWER IS YES SITE I
BELIEVE HAVING A HARD COPY IS
NECESSARY FOR CONSUMERS TO BE
PROTECTED IN LIGHT OF WHAT
WE'VE SEEN WITH THE OPTION TO
GO ELECTRONIC. MENTAL WHAT
ABOUT THE OPPORTUNITY FOR THE
OPTION OF HAVING TO GO
PAPERLESS IN ADDITION TO THE
OPTION OF GOING TO HAVE A HEART
PAPER COPY- FOR THE INDIVIDUAL
WITH THEIR BEEN OPPORTUNITY IN
THE FUTURE I MEAN I'D GO
PAPERLESS FOR MY FINANCIAL
STATEMENTS AS I IMAGINE MOST OF
US DO YOU ARE MANY MISTER. HOW
THE OPTION OF BOTH NO I
DEFINITELY HEAR WHAT YOU'RE
SAYING AND WE'VE CONSIDERED IT
IT'S PART OF THE REASON WHY
WE'RE HERE AT A TO YOUR BILL-
BUT TO BE FAIR I THINK WE NEED
TO PLACE CONSUMER PROTECTIONS
AT THE FOREFRONT TO DO TOO MUCH
OF THE FRAUD THAT WE'VE SEEN
AND BELIEVES THAT THE HARD COPY
BETTER ALLOWS US TO INSURE
THAT. BEYOND THE PERSON SEEKING
THE LAWN FAMILY MEMBERS AND
THERS ARE ALSO ABLE TO SEE THE
INFORMATION AND PROVIDE
INSIGHTS INTO IT. IF I MAY. UM
IT'S MY UNDERSTANDING- IF FIVE
AND AM WRONG PLEASE CORRECT ME.
THE D. V. O. CURRENTLY
REGULATES. THIS TYPE OF POLICY.
IS IT NECESSARY FOR THE
LEGISLATURE TO HAVE A MANDATE.
ON THIS SPECIFIC POLICY- NOW IF
THE TPO IS REGULATING IT AS A
STANCE. WE DON'T KNOW WHAT
THOSE REGULATIONS WILL BE FROM
THE DPO AND- OR NOR WHEN THOSE
REGULATIONS WILL BE
PROMULGATED. COMMON IN
FAIRNESS- THIS DISCUSSION HAS
GONE ON FOR LONGER THAN A YEAR
WHILE. THERE ARE STILL
CONSUMERS WHO ARENOT BEING
PROTECTED BY THE PROTECTIONS
WITHIN THE SPELL. AND I WOULD
ASK THIS COMMITTEE TO CONTINUE
THAT CONVERSATION BY PASSING
THIS BILL SO WE CAN. CONTINUE
TO HAVE THAT CONVERSATION GOING
FORWARD- THANK YOU FOR YOUR
RESPONSES- I'M GOING TO SUPPORT
YOUR BILL- TODAY- MY BIGGEST
CONCERNS IS ONE OF COURSE- THE
OPPORTUNITY FOR THE CLIENTS TO
GO PAPERLESS AND IS MY SINCERE
HOPE THAT. WILL KEEP AN OPEN
MIND AS THIS BILL MOVES TOWARD.
TOWARD THE OTHER COMMITTEES BUT
THANK YOU VERY MUCH FOR YOUR-
ADVOCACY OF PROTECTING A
CONSUMER PROTECTION. LISTEN
pCHAIR MISTER RANDALL WANNA
THANK YOU FOR BRINGING THIS
BILL FORWARD TODAY- LORD THIS
YOU BROUGHT UP A WONDERFUL
POINT TO I THINK THERE'S BEEN
MISSING IN THIS CONVERSATION
ALONG THE WAY AND IS THAT IS
THAT THERE ARE THEIR
COMMUNITIES LOWER ECONOMIC
COMMUNITIES WHO ARE BEING HURT
BY THIS YOU ARE ABSOLUTELY
RIGHT THERE ISN'T A MONTH THAT
GOES BY THAT I DO NOT GET AN
EMAIL ABOUT THIS PARTICULAR
PROGRAM AND I REMEMBER WHEN I
WAS ON THE CITY COUNCIL IN MY
CITY. THAT ONE OF THE CAPSULES
OF GOVERNMENT CAME FORWARD
PRESENT THIS PACE PERMIT SO
FALLEN LOOK AT ALL THE GREAT
THINGS IT'S GOING TO DO AND
THAT SAYING CAME TO MIND THAT
IF SOMETHING SOUNDS TOO GOOD TO
BE TRUE IT PROBABLY IS AND
THAT'S EXACTLY WHAT HAPPENED
WITH THIS IT'S MARK I DIDN'T
VOTE FOR IT I WAS ON CITY
COUNCIL BECAUSE I YOU KNOW
THERE'S SOMETHING IN YOUR GUT
THAT SAYS. DOESN'T SEEM AN EYE
AS RIGHT AND WE HAVE PEOPLE WHO
CAN'T SELL THEIR HOMES WE
PEOPLE WHO ARE STUCK IN THIS
HAPPENS ALL THE TIME AND IT'S A
SHAME AND PEOPLE DON'T KNOW
WHAT TO DO O. THE REQUIREMENT
THEY GET IT IN A PAPER FORM. I
DON'T THINK THAT'S THAT BIG OF
A DEAL ON. TREES A RENEWABLE
SOURCES OF ENERGY ANYWAY SO YOU
KNOW YOU COME ON DOWN YOU GROW
ANOTHER ONE- I THINK IT'S GOOD
FOR PEOPLE TO HAVE THE RECORDS.
I THINK IT'S- DIFFICULT FOR
PEOPLE IF IT'S THREE YEARS
LATER TO GO BACK AND TRY TO
FIND YOUR EMAIL. NOT TOO EASY
PARTICULARLY IF YOU'RE IN SOME
OF THE COMMUNITIES THAT YOU
WERE TALKING ABOUT WHERE
THERE'S A LANGUAGE BARRIER SO.
YOU KNOW WHAT KEEP A COPY. ON
FILE BUT- EAT YOU I THINK THE
REALTOR SAID YOU DON'T HATE
THIS PROGRAM IDEAL. SO I'LL BE
SUPPORTING YOUR BILL TODAY
THANK YOU. ANY ADDITIONAL
QUESTIONS OR COMMENTS MEMBERS.
AS A MEMBER TRIED. OR SO I WHEN
I HAD MY OWN COMMENTS- NAY
APPRECIATE- ASSEMBLYMAN FROM LA
COMING UP WITH THIS OF NOT BE
ABLE TO PROTECT ALL CONSUMERS
SO I KNOW. AND MYSELF WERE
DISSIPATES HAS BEEN UP FOR A
LONG TIME- HAS BEEN THE
CONTROVERSIAL AND DOES SOME ME
I'M PRESENTING THAT ISSUES. AND
THAT THESE ARE THE WAYS OF TO
PROTECT. THE CONSUMERS WHO ARE
MORE VULNERABLE IN THE LOWER
ECONOMIC ASH ABOUT AND-
ORIGINALLY I HAD THAT SAME
QUESTION WHY MANDATING PRINTED
COPY IN A THAT WAS MY QUESTION
BUT THAT NOW LISTENING TO YOU
IT IS SO OFFICER. IT SHOULD BE.
AND ELECTRONIC COPY AND THE
PRINTED COPY AND THAT THEY CAN
HAVE A BOTH COPIES TO IN THE
AREA THIS IS SO I THINK
ENVIRONMENTAL ISSUE IS SOMEONE
THING- BUT THE CONSUMER
PROTECTION IS SO I THINK IT
THIS IS ALL MORE. OVERWHELMING.
VERY BENEFICIAL FOR THE
CONSUMERS TO SO WITH THAT THE I
APPRECIATE AND LOOK AT MY BOOK
THANK. I DON'T SEE ANY
ADDITIONAL COMMENTS- I- I WANT
TO START OFF BY ASKING A FEW
ACCEPTS THE COMMITTEES
AMENDMENTS. GRAHAM THANK YOU
AND- I DO HAVE A SUPPORT
RECOMMENDATION ON THIS BILL I
APPRECIATE THAT YOU'VE BEEN
WORKING WITH THE COMMITTEE AT
SINCE LAST SPRING AS TO YOU
KNOW KIND OF ADDRESS SOME OF
THESE ISSUES I HOPE THAT YOU
WILL CONTINUE TALKING WITH THE
OPPOSITION I THINK THAT THE
QUESTIONS RAISED IN TERMS OF
WHETHER THERE'S ANY OPPORTUNITY
FOR AN OPT OUT- FOR THOSE WHO
JUST. FILE EVERYTHING
ELECTRONICALLY AS OPPOSED TO IN
PAPER I THINK THAT'S REAL AS
WELL- I ALSO HOPE. THAT TO.
THIS BILL MAINTAINS ITS NARROW
THIS COMMITTEE HAS BEEN SEEN A
NUMBER OF PEACE BILLS ON THE
TWENTY SEVENTEEN BILL WAS
ACTUALLY PRETTY SIGNIFICANT THE
ONE THAT'S BEEN REFERENCE THAT
YOU REFERENCE THAT. D. B. O. IS
WORKING ON REGULATIONS- ON THE
ON- WORKING A REGULATIONS
SUBJECT TO- THE TWENTY
SEVENTEEN BILL AND SO I THINK
IT'S IMPORTANT THAT THIS BILL
MAINTAIN ITS NARROW FOCUS AS IT
MOVES THROUGH THE PROCESS- AND
IF FOR ANY REASON THE SCOPE IS
BROADER. I DO WANT TO LET YOU
KNOW THAT I WOULD BRING THIS
BILL BACK INTO THIS COMMITTEE-
ONE OF THE CONCERNS THAT YOU
KNOW THINKING ABOUT PACE
OVERALL. IS CERTAINLY THAT
THERE'S SOME ELEMENTS BECAUSE
THIS IS BEEN A TOPIC OF
CONVERSATION THIS COMMITTEE- OF
FOR THE LAST THREE YEARS. THERE
ARE SOME ELEMENTS THAT- I A
THINKER VERY REAL TO THIS ONE
THAT WE DON'T HAVE AN ANNUAL
REPORT AND WE DON'T HAVE AN
ANNUAL REPORT LOOKING AT THE
NUMBERS SO MUCH OF THIS IS
COMING TO US AND ANECDOTES- AND
IN THAT SPIRIT- WE ALSO HAVEN'T
BEEN ABLE TO DECIPHER WHAT'S-
THE LEGACY VERSION OF PACE.
VERSES THAN YOU REFORMED
VERSION OF PACE PACE FROM FOUR
YEARS AGO IS NOT PACE FROM TO
DAY THESE ARE DIFFERENT
PROGRAMS THERE'S NEW
REGULATIONS THERE- DB O. IS IN
THE PROCESS IN OUR
CONVERSATION. I'M IN THE
PROCESS OF THE- FINALIZE THE
REX ANYTHING IMPORTANT TO
INCLUDE THAT IN THE DISCUSS
AND- I'M AND I'M SUPPORTING THE-
I THINK. WE CAN DO. SOMETHING
I'M- FOR ALL THINK BECAUSE THE
INTENT. WERE MEANT TO TRY TO
FIND WAYS FOR HOMEOWNERS. TO
MOVE INTO RENEWABLE SPACE THAT
I DON'T WANT TO SEE THE FUTURE
OF THIS PROGRAM BE ABOUT
ELIMINATING THAT OPPORTUNITY-
SO I HOPE THAT- FOR ANY KIND OF
BROADER CONVERSATIONS OUT THERE
THAT SOME OF THESE YOU KNOW
CONSIDERATIONS- ARE ARE PART OF
THE CONVERSATIONS- BECAUSE THEY
THINK THAT THAT WILL BE VERY
IMPORTANT FOR ME AS I SEE THIS
PROGRAM CONTINUE- I AM EXCITED
THAT THIS IS THE FIRST BILL
WE'RE ADDRESSING A- NUMBER OF
COLLEAGUES TALK ABOUT. YOUR
PROTECT THE DISCLOSURES WHICH I
KNOW WE WILL CONTINUE TO TALK
ABOUT AND SO I HOPE THAT I HEAR
THAT SEEM TO THE AZAM- IS BILLS
COME FORWARD ON THIS YEAR
BECAUSE CONSUMER PROTECTIONS
AND DISCLOSURES ARE VERY
IMPORTANT AND SO I LOOK FORWARD
TO KIND OF OPENING AT THE
LEGISLATIVE YEAR WITH- A LOT OF
SUPPORT FOR CONSUMER
PROTECTIONS AND DISCLOSURE SO
THANK YOU. MEMBERS DO WE HAVE.
ANY MOTION THANK YOU WE HAVE A
MOTION. AND A SECOND THANK YOU
VERY MUCH WE WILL GO AHEAD AND
CALL- FOR- THE AUTHOR WOULD YOU
LIKE TO CLOSE RESPECTFULLY ASK
FOR AN ADVOCATE THANK YOU. AND
WE'LL GO AHEAD AND CALL FOR THE.
ABC SIX NINETY NINE SIX SORRY
AB FIFTY FIFTY ONE. MOTION IS
DO PASS AS AMENDED TO COMMITTEE
ON APPROPRIATIONS THE ONE I
LEóN I CHAN CHAN I CAN'T. CAN
I BURKE CHOI. CHOICE I CABLE
CABLE I GLORIA GLORIA I GRAYSON.
GRAYSON AYE MELENDEZ MELINDA'S
ICE STONE STONE I WEBER WEBER
AYE WICKS WICKS HIGH. YOUR BILL
HAS ELEVEN VOTES IT'S ON THE
WAY TO GETTING OUT OF THE
COMMITTEE THANK YOU. AND NEXT
WE HAVE ASSEMBLY MEMBER GRAYSON.
TAKE A- LOOK AT THAT. I'M JUST.
I AM CAM A LITTLE REST
BIRTHDATE GAS. THERE WAS. YEAH
YEAH YEAH. BECAUSE. THANK IS A
MEMBER GRAYSON WILL START WHEN
YOU'RE READY THANK YOU VERY
MUCH MADAM CHAIR IN THEM- IT'S
A HONORED TO CONTINUE MAKING
YOU HAPPY TALKING ABOUT
CONSUMER PROTECTIONS AND
DISCLOSURE. HAVING SAID THAT-
THIS AFTERNOON I BRING FORWARD
AB SIX NINETY NINE RELATED TO
CREDIT SERVICE ORGANIZATIONS AS
YOU MAY KNOW THESE
ORGANIZATIONS OFFER TO REPAIR A
CONSUMER'S CREDIT FILE IN
EXCHANGE FOR PAYMENT. TYPICAL
SERVICES INCLUDE SCORE ANALYSIS
BUREAU CHALLENGES AND CREDITOR
INTERVENTIONS HOWEVER THERE ARE
INSTANCES WHERE THE SERVICES
LACK CLEAR DISCLOSURES OF WHAT
SPECIFIC SERVICES A CONSUMER IS
PURCHASING. AND EQUALLY
IMPORTANT DISCLOSURES ON WHAT A
CSO HAS ACTUALLY DONE ON BEHALF
OF THE CLIENT CONSUMERS ARE LED
TO BELIEVE THAT BY SIMPLY
HIRING THE CS SO THEY WILL
BURKE THEY WILL BE ABLE TO
CLEAN UP. THEIR CREDIT FILE AND
IMPROVE THEIR FINANCIAL
STANDING HOWEVER THIS IGNORES
THE FACT THAT NOBODY CAN ERASE
THE NEGATIVE EFFECTS OF
LEGITIMATE UNPAID BILLS WERE
BILLS DEBTS FOR BANKRUPTCY. IN
TWO THOUSAND NINETEEN SINCE THE
INTRODUCTION OF THIS BILL WE
HAVE SEEN NUMEROUS MEDIA
STORIES ABOUT THE COMMON
PRACTICES OF THIS INDUSTRY AND
THE CONSUMER PROTECTION FINANCE
BUREAU HAS FILED. SUIT AGAINST
TWO OF THE LARGEST CREDIT
REPAIR BRANDS THE C. BECAUSE-
THE CFPB HAS ALSO IN. ISSUED AN
ADVICE. ABOUT THE ENEMA CONSUME
ABOUT HOW TO AVOID QUOTE
UNQUOTE CREATIVE MARKETING
TACTICS TO BE CLEAR THE AIR
THIS BILL IS NOT TO SHUT DOWN
CREDIT REPAIR AND I'LL REPEAT
THAT IT'S NOT TO SHUT DOWN
CREDIT REPAIR. BUT CLEARLY
INACCURATE INFORMATION CAN GET
TO A CONSUMERS THAT. SIR CREDIT
FILE OR OR- THEIR HISTORY AND
NAVIGATE ACCESS. TO THAT
INFORMATION CAN RESTAURANT IN
AND I'M GOING. FOR THE BILL
BEFORE. REALLY TAYLOR ENSURING
THE CONTENT CONSUMERS HAVE THE
BEST POSSIBLE INFORMATION TO
KNOW WHAT SERVICES THEY ARE
PURCHASING AND WHAT ACTIONS A
REPAIR ORGANIZATION IS TAKING
ON THEIR BEHALF AND I RECOGNIZE
THAT THIS BILL DOES HAVE SOME
OPPOSITION FROM THE CREDIT
REPAIR INDUSTRY AND I BELIEVE
THAT WE HAVE HAD SOME VERY GOOD
AND PRODUCTIVE MEETINGS AND I
THINK THAT WE'RE HEADED DOWN
THE RIGHT TRACK I WANT TO
CONTINUE TO WORK WITH ALL
PARTIES AS THIS BILL WOULD-
MOVED TO THE SAYS IF IT IS-
ABLE TO. OF THIS COMMITTEE
TODAY I ALSO KNOW THAT THERE'S
BEEN AN ARGUMENT THAT HAS BEEN
RAISED THAT THIS BILL IS REALLY
ABOUT ENABLING DEBT COLLECTORS
TO AVOID HAVING TO RESPOND TO
LETTERS BY A SEAT SO THIS IS
CERTAINLY NOT MINE AND ON PAGE
SIX NOW ASSIST IT CLEARLY
POINTS OUT THE CUSTOMER
BENEFITS THAT THE- BILL WILL
HAVE. OR BRING. BENEFITS SO
HAVING SAID THAT ALSO SEE
SUPPORT FROM A NUMBER OF OTHER
DATA FURNITURE'S WHO ARE
IMPACTED BY INEFFICIENT AND
MISLEADING COMMUNICATION THAT
BEING SAID I AM VERY COGNIZANT
ABOUT NOT CREATING UNINTENDED
CONSEQUENCES AND AT THIS BILL
I HAVE RICHARD ALL STAKEHOLDERS
THAT I AM COMMITTED TO ENSURING
THERE IS NO BOOM POLE I
RECOGNIZE THAT THIS WILL LIKELY
REQUIRE AMENDMENTS TO GRAPHS IN
ENVY OF SECTION THREE OF THIS
BILL. AND WITH THAT I WOULD
LIKE TO TURN IT OVER TO MR
CLICK BERG TO TESTIFY IN
SUPPORT. THANK YOU- CLIFF BURKE
HERE IN BEHALF OF THE
CALIFORNIA ASSOCIATION OF
COLLECTORS- URGING YOUR SUPPORT
OF AB SIX NINE NINE. WE BELIEVE
AB SIX NINE NINE IS AN
IMPORTANT MEASURE TO PROTECT
CALIFORNIA CONSUMERS AND THE
CALIFORNIA BUSINESS COMMUNITY.
FROM UNSCRUPULOUS PRACTICES OF
CREDIT REPAIR ORGANIZATIONS.
UNFORTUNATELY CERTAIN PRACTICES
THE CREDIT REPAIR INDUSTRY HAVE
BEEN PROBLEMATIC FOR A LONG
TIME IN CALIFORNIA. IN NINETEEN
EIGHTY FOUR THE LEGISLATURE
ENACTED THE CREDIT SERVICES ACT
OF NINETEEN EIGHTY FOUR. THE
LEGISLATURE FOUNDED DECLARED IN
ITS FINDINGS AND DECLARATIONS
QUOTE UNQUOTE CERTAIN
ADVERTISING AND BUSINESS
PRACTICES OF SOME CREDIT
SERVICES ORGANIZATION. HAVE
WORK FINANCIAL HARDSHIP UPON
THE PEOPLE OF THE STATE THE
PURPOSES OF THIS TITLE ARE TO
PROVIDE PROSPECTIVE BUYERS IT
SERVICES. OF CREDIT SERVICES
ORGANIZATIONS WITH THE
INFORMATION NECESSARY TO MAKE
INTELLIGENT DECISIONS REGARDING
THE PURCHASE OF THE SERVICES
ENTER. THE PUBLIC UNFAIR OR
DECEPTIVE ADVERTISING AND
BUSINESSPRACTICE.
UNFORTUNATELY TODAY PROBLEMS
WITH CREDIT REPAIR INDUSTRY
MAIN FRONT PAGE NEWS. THOUSAND
AND NOT KEEN. AS UP. I MEAN
BURKE SIMPLE TO THE OUT THE
GOOD FINANCE PROTECTION BUREAU
KEEPS COMPANIES OF THE LATE IN
THE FEDERAL LAW. LOOKING ILL IS
DECEPTIVE PRACTICES IN CHARGING
CONSUMERS WITHOUT DELIVERING
RESULTS. NINE PROVIDE FIRST
YOUR UP NEXT CAL STATE
PROTECTION SINCE NINETEEN
EIGHTY FOUR AB SIX NINE NINE
REQUIRES CREDIT REPAIR
ORGANIZATIONS TO PROVIDE
CONSUMERS WITH INFORMATION ON
SERVICES FORM BEFORE CHARGING
THE CONSUMER REASONABLE
TIMELINESS TO PREVENT ENDLESS
CHARGES FULLER DISCLOSURE OF
CONTRACT TERMS BEFORE
CONTRACTORS EXECUTED IN A
LISTING A REGISTERED CONSUMER
REPORT REPAIR ORGANIZATIONS ON.
THE WEB. IMPORTANTLY. FOR
CREDIBILITY OF THE PROCESS A.
B. SIX NINE NINE REQUIRES THE
DISCLOSURE OF THE REAL SENDER
OF THE COMMUNICATION THIS WILL
PREVENT CIRCUMVENTION OF THE
ACT AND PROTECT CONSUMERS
PRIVACY AND KNOWLEDGE OF WHAT
IS BEING DONE IN THEIR NAME
OFTEN TODAY WITHOUT THEIR
KNOWLEDGE OR AUTHORIZATION AT
THE END OF THE DAY AB SIX NINE
PROTECT CALIFORNIA CONSUMERS
AND BUSINESSES PRACTICES THE
STATE OF CALIFORNIA HAS
RECOGNIZED AS TROUBLESOME FOR
MORE THAN FOUR DECADES. OR
LONGER. WELL THE GOOD NEWS THAT
THE C. F. B. IN THE F. T. C.
YOU'RE TAKING ACTION AT THE
FEDERAL LEVEL THE STATE OF
CALIFORNIA SHOULD NOT LEAVE
PROTECTION. FROM THESE
PRACTICES TO THE FEDERAL
GOVERNMENT. I URGE YOUR SUPPORT
OF AB SIX NINE NINE WE WORK
CLOSELY WITH THE AUTHOR YOUR
COMMITTEE STAFF AND OTHER
COMMITTEE. STAFF AND OTHERS TO
AMEND THE BILL TO ENSURE THAT
AB SIX NINE NINE IS FAIR AND
REASONABLE TO ALL LEGITIMATE
COULD REPAIR ORGANIZATIONS. AND
NOT UNDULY BURDENSOME. I HAVE
WITH ME. CINDY OCWEN WHO IS THE
LEGISLATIVE CHAIR OF THE
CALIFORNIA ASSOCIATION OF
COLLECTORS. THE MADAM CHAIR AND
FELLOW COMMITTEE MEMBERS- AS
CLIFF INVENTION OF CURRENTLY
SERVING FOR THE CALIFORNIA
ASSOCIATION IS AS THE
LEGISLATIVE CHAIR I AM ALSO A
SECOND GENERATION IT COLLECTION
AGENCY OWNER WITH AN OFFICE
HERE IN SACRAMENTO AB SIX NINE
NINE IS SPONSORED BY THE FORTY
INSTITUTIONAL COLLECTORS AS A
DIRECT RESULT OF CONSUMER
PROTECTION ISSUES THAT HAVE
BEEN IDENTIFIED BY OUR MEMBERS
ON BEHALF OF SHIN AGENCIES
NATIONWIDE. EACH DAY ELECTION
SEES RISK MAP GEN LETTERS FROM
THE SPARROWS ON BEHALF OF
CONSUMERS DISPUTING THE
INFORMATION PROVIDED TO THE
CREDIT REPORTING AGENCIES FIRST
STOP ACCOUNTS. HUNDREDS AND
SOME TIMES INST IN SOME
INSTANCES THOUSANDS MAYBE
RECEIVED BY OUR MEMBERS. EACH
LETTER APPEARS IN THE SAME
FORMAT TYPESET AND REQUEST
VALIDATION AND DOCUMENTATION
FOR THE REPORTED ACCOUNT AND OR
DELETION FROM A CONSUMER'S
CREDIT FILE. ALL THE LETTERS
CAN TAKE A WET OR ORIGINAL
SIGNATURE OF THE CONSUMERS NAME
THE DISPUTE ARE PROCESSED BY
OUR MEMBERS AND VALIDATION IS
MAILED. AS THE CONSUMER
REQUESTED. CONSISTENTLY OUR
MEMBERS HAVE REPORTED THAT
CONSUMERS DID NOT ACTUALLY
DISPUTE THE IS AMOUNT ASSIGNED.
THEY'VE INDICATED THE SIGNATURE
AND THE LETTER IS NOT THEIR
SIGNATURE. THEY'VE EXPRESSED
FRUSTRATION AND ANGER AS THEIR
CREDIT SCORE DID NOT INCREASE
AS THE C. R. O. HAD REPRESENTED
THEY PAID FOR SERVICES TO IS
ZERO R. C. R. O. WITH NO
RESULTS. MULTIPLE LETTERS ARE
MAILED COST HIM FOR ACCOUNTS
PREVIOUSLY VALIDATED AND AT
TIMES THEY ARE UNAWARE THAT
ACCOUNTS FOR BEING SENT ON PAID
ACCOUNTS. ON BEHALF OF
CONSUMERS AB SIX NINE NINE IS
INTRODUCED BY ASSEMBLYMAN TIM
GRAYSON AND SPONSORED BY C. A.
C. TO REVISE THE EXISTING
NINETEEN EIGHTY FOUR ACT.
INCREASE TRANSPARENCY AND
PROVIDE ADDITIONAL DISCLOSURES
TO CONSUMERS FOR THE SERVICES
PROVIDED BY THIS HERO'S WRIST
RESPECTFULLY ASK FOR YOUR
SUPPORT AND YOUR AYE VOTE TODAY
THANK YOU. THANK YOU ANY
ADDITIONAL WITNESSES IN SUPPORT.
PLEASE COME FORWARD. THIS IS
THE FIRST. THANK YOU. SEEN NONE
I SEE NO ADDITIONAL WITNESSES
IN SUPPORT AT WITNESSES IN
OPPOSITION PLEASE COME FORWARD
.
MADAM CHAIR MEMBERS- JIM GROSS
ON BEHALF OF LEXINGTON LAW I
HAVE WITH ME OUR CAMERAS WHO IS
COUNSEL- TO LEXINGTON LAW- WE
ARE- A CREDIT SERVICES
ORGANIZATION- WHICH IS THE
SUBJECT OF THIS LEGISLATION
FIRST LET ME THANK- MISTER
GRAYSON. WE DID SPEND A VERY
PRODUCTIVE OUR IN HIS OFFICE
DISCUSSING THE PROVISIONS OF
THE BILL AND THE PROBLEMS THAT
WE SAW A WITH THAT ARE AND I
ALSO WANT TO THANK. THE
COMMITTEE CONSULTANT BECAUSE I
THINK THAT HE DOES AN EXCELLENT
JOB ON THE LAST PAGE OF THE
BILL THE LAST PAGE OF THE
ANALYSIS POINTING OUT WHICH
PROVISIONS BILL. BENEFIT
SIMMERS AND PROVISIONS OF THE
BILL BENEFIT DEBT COLLECTORS.
IT IS SOMEWHAT UNUSUAL IN
MIKE'S. TO HAVE. AN ENTITY
SPONSORING A BILL THAT IN FACT.
HAS AN INTEREST IN SEEING THE
ENTITIES THAT ARE THE TARGET OF
THE BILL BE UNSUCCESSFUL.
BECAUSE OF COURSE CREDIT
REPORTING. EDIT REPAIR
ORGANIZATIONS ARE TRYING TO-
LEMONADE THE ITEMS THAT ARE NO
LONGER DEBTS ECCENTRIC CENTER.
BUT I DON'T WANT TO DEVOLVE
INTO A DISCUSSION OF WHICH
PARTY HAS DIRTY YOUR HANDS HERE
I THINK WHAT IS MOST IMPORTANT
IS TO FOCUS ON THE FACT THAT.
CONSUMERS. THAT FROM THIS
SERVICE AND IT IS VERY
IMPORTANT THAT THIS LEGISLATION.
PROVIDE CLARITY TO THE CONSUMER
ABOUT WHAT SERVICES ARE GETTING
HOW THEY'RE GETTING THEM AND
WHEN THOSE SERVICES HAVE BEEN
PROVIDED AND KEEPING THEM UP TO
DATE ON THE PROCESS BY WHICH
THE CREDIT SERVICE ORGANIZATION
IS DOING IT. BUT IT IS NOT
APPROPRIATE AND WE'VE HAD THESE
DISCUSSIONS WITH THE AUTHOR TO
FOCUS MORE ON ISSUES THAT
CLEARLY ARE DESIGNED TO E. ROAD
THE ABILITY OF CREDIT SERVICE
ORGANIZATIONS TO DO WHICH THEIR
JOB AND IT WAS A PROVISION THAT
MISTER BERG MENTIONED. WHICH IS
TO. NOT I TO COMMUNICATION TO A
DEBT COLLECTOR THAT IMPLIES
THAT IN FACT IT IS BEING DONE
ARE DIRECTLY BY THE CONSUMER
RAN OUT RATHER THAN ON BEHALF
OF THE CONSUMER AS THE
DISCUSSIONS THAT HAVE GONE ON
WITH THE CAN CONSULT AND WITH.
THE PRIVACY COMMITTEE CAN. THAT
IS A CREATURE OF FEDERAL LAW
FEDERAL LAW SPECIFICALLY A
LOUSE CREDIT OR ARE DEBT
COLLECTORS. TO PUT AT THE
BOTTOM OF THE PILE. ANY
COMMUNICATION THEY RECEIVE.
DIRECTLY FROM A CAN CONSUMER
SERVICES ORGANIZATION AS
OPPOSED TO FROM THE CONSUMER
WHICH MEANS IN THAT INSTANCE.
THAT BY PUTTING AT THE BOTTOM
OF THE PILE. IT'S INCLUDED
LEVEL BE RESPONDED TO SO
BECAUSE OF THAT PROVISION
FEDERAL LAW THE COMMUNICATION
IS DONE IN SUCH A WAY. TO
ENSURE THAT IT IS OPENED BY THE
DEBT COLLECTOR AND RESPONDED
TO. BY THE DEBT COLLECTOR WE
ARE NOT AS THE LANGUAGE OF THE
BILL AND WE TALKED REYES AND
BODY UNDERSTAND VERY WELL
IMPERSONATE. THE CUSTOMER. WE
HAVE A CONTRACT WITH THE
CUSTOMER THE CUSTOMER
UNDERSTANDS. WHY WERE
COMMUNICATING AND UNDERSTANDS
THAT WE NEED TO DO SO IN A
FASHION INSURERS AN ADEQUATE
RESPONSE. AND SO THAT IS
PROBABLY OUR BIGGEST OBJECTION-
I UNDERSTAND THAT MISTER
GRAYSON HAS NOT COMMITTED TO AN
AMENDMENT ON IT HE WANTS TO GET
IT RIGHT AND WE WANT HIM TO GET
IT RIGHT. SO WE OPPOSE THIS
BILL AS IT IS. AND BELIEVE THAT.
I THINK BY FIVE TO THREE MARGIN
IN THE NUMBER OF ITEMS THAT
ARE- IDENTIFIED BY THE
COMMITTEE CONSULTANT. THAT ARE
THERE ARE THREE GENERAL
STATEMENTS HE MAKES ABOUT WHAT
IS IN THE BEST INTERESTS OF
CONSUMERS WE ARE VERY MUCH
INTERESTED IN WORKING ON THOSE.
THE FIVE THERE IN THE BEST.
INTEREST OF THE DEBT COLLECTOR
NOT SO MUCH BUT WE WILL
CONTINUE THOSE CONVERSATIONS AS
WELL IF THIS BILL WERE TO MOVE
FORWARD. NOW I. MY CLIENT CAN
ANSWER QUESTIONS WERE PROVIDE
JAPAN IT'S ON HOW OUR BUSINESS
WORKS BUT BUT BECAUSE PERHAPS
THAT WILL. BE A BIT
ENLIGHTENING TO THE MEMBERS.
WELL SENSITIVE TO THE PEOPLE
BEHIND ME AND. RIGHT AND I HAVE
A LOT IN THIS ONE FOR AWHILE.
AGAIN MIKE MY APOLOGIES THROW
SOMETHING THAT MAY I NEVER COME
A MISSING SOMETHING. ALL RIGHT
I DO THINK IT'S IMPORTANT TO
UNDERSTAND THE SPACE THAT WE
WORK IN- BECAUSE UNLESS SOMEONE
HAS HAD THE UNFORTUNATE
EXPERIENCE OF DEALING WITH
CREDIT REPORTING ISSUES IT'S
OFTEN AN AREA THAT MANY OF US
ARE BLIND TO. PEOPLE WHO AND TO
COME TO US. ON AVERAGE IF WE
WERE JUST TO PICK OUT THE
TYPICAL PERSON THEY WOULD HAVE.
PROBABLY TEN TRADE LINES ON
EACH OF THEIR THREE CREDIT
REPORTS THAT MEANS THEY'RE
DEALING WITH- AS MANY AS THIRTY
ITEMS ON THEIR CREDIT REPORTS
THEY ARE TRYING TO UNDERSTAND.
WHAT THEY MEAN WHAT THEIR
IMPACT IS AND WHAT OPTIONS THEY
HAVE WITH RESPECT TO THOSE
ITEMS. UNFORTUNATELY EVEN THE
SAME TRADE LINE DOES NOT ALWAYS
APPEAR WITH THE SAME NAME- IT'S
OFTEN TRUE THAT BALANCES DO NOT
LINE UP BETWEEN THE THREE
CREDIT REPORTING AGENCIES
BECAUSE- OF TIMING DIFFERENCES.
AND SO PEOPLE WHO COME TO US.
MORE OFTEN THAN NOT COME TO US
WITH QUESTIONS. AND THEY ARE IN
A LOOK THEY ARE LOOKING TO US
TO PROVIDE THEM SOME EXPERIENCE
SOME PROFESSIONAL HELP SOME
GUIDANCE AND HELP THEM
UNDERSTAND OPTIONS. THAT COMES
IN TWO FORMS ONE IS TALKING
ABOUT THE ITEMS THAT
SPECIFICALLY APPEAR ON THE
CREDIT REPORT WHAT IMPACT THEY
MIGHT HAVE UNDERSTANDING THE
CIRCUMSTANCES THAT MAY HAVE LED
TO- THOSE CREDIT REPORTING
ITEMS AND OFTEN PEOPLE. DO NOT
NECESSARILY RECOGNIZE ITEMS ON
THEIR CREDIT REPORT THAT'S.
OFTEN MORE TRUE IN THE CASE OF
COLLECTIONS BECAUSE- CONSUMERS
DON'T HAVE A RELATIONSHIP WITH
THEIR DEBT COLLECTOR IT'S AT
THEIR NOT CHOOSING TO GO- TO A
PARTICULAR ENTITY AND SO- IT
MAY NOT BE RECOGNIZABLE- IT
ALSO CAN BE A LITTLE DIFFICULT
FOR THEM BECAUSE- DEBT TENDS TO
MOVE FROM ONE COLLECTOR TO
ANOTHER AND SO THE SAME DEBT-
ME. GO THROUGH A NUMBER OF
COLLECTORS AND A NUMBER OF
COLLECTION PROCESSES AGAIN THE
BOTTOM LINE HERE IS IT MEANS
THAT THE CONSUMER MAY NOT
RECOGNIZE. ITEMS ON THEIR
CREDIT REPORT AND NEED HELP IN
INVESTIGATING UNDERSTANDING THE
BASIS FOR THEIR CREDIT
REPORTING- THEY MAY NOT
UNDERSTAND THEIR RIGHTS- THEIR
SPECIAL PROTECTIONS FOR A
MEMBERS OF THE MILITARY- WE SEE
PEOPLE WHO GO THROUGH DIVORCE
CIRCUMSTANCES THOSE ARE OFTEN
VERY COMPLICATED CREDIT
REPORTING CIRCUMSTANCES- WE
HAVE PEOPLE WHO HAVE QUESTIONS
ABOUT STUDENT LENDING-
SOMETHING THAT'S IN THE- MEDIA
CURRENTLY. PEOPLE FREQUENTLY
HAVE A CONCERNS ABOUT MEDICAL
DEBT AND WHY IT APPEARS ON
THEIR CREDIT REPORT AND THEY
MAY BE BATTLING IT OUT WITH AN
INSURER- AND SO ALL OF THE
CIRCUMSTANCES LEAD TO US. AN
OPPORTUNITY TO ASK SOME
QUESTIONS ON THEIR BEHALF AND
PRIMARILY THAT'S WHAT WE DO
WERE ASKING QUESTIONS ON THEIR
BEHALF WHY IT IS ON THE CREDIT
REPORT. WHAT IS THE BASIS FOR
IT TO APPEAR- BECAUSE THAT
UNDERSTANDING IS CRITICAL TO
THEM BEING ABLE TO TAKE ACTION.
THE OTHER PIECES IN AND ASK YOU
TO WRAP IT UP THANK YOU. ONE OF
THE KEYS IS NEED TO UNDERSTAND
WHAT POSITIVE STEPS WHAT CAN
THEY DO TO PUT POSITIVE HISTORY
DOWN AND SO WE WORK WITH THEM
ON BOTH OF THOSE PIECES PIECES
DEALING WITH THE HISTORY. AND
WHAT CAN THEY DO GOING FORWARD
THAT'S BETTER. THANK YOU.
ADDITIONAL WITNESSES IN
OPPOSITION. ALL RIGHT SEEN NINE
MEMBERS QUESTIONS OR COMMENTS.
AS A MATTER OF OUR CAN. WELL I
WOULD I THINK THE AUTHOR FOR
BRINGING THIS BILL I THINK ITS
NAME SEEMS LIKE AN IMPORTANT
ADDED CONSUMER PROTECTION IN AN
AREA WHERE WE ALWAYS NEED MORE
SAID THANK YOU AND THERE'S SOME
REALLY STRONG AND GOOD CONSUMER
PROTECTIONS IN THE BILL I HAVE
A COUPLE QUESTIONS ONE IS THERE
SEEM TO BE SOME. IF YOU SAID
WITH THE OPPOSITION SAID ABOUT
WHETHER OR NOT. AND I ALSO READ
THE PRIVACY AND PRIVACY SO I
READ THAT. ANALYSIS AS WELL SO
I MAY BE CONFUSING THE TWO BUT-
MY- UNDERSTANDING IS THAT AND
ENVY WILL BE. ENDED SO THAT IT
WILL NOT PASS THE LEGISLATURE
AND LESS THEY ARE REQUIRED TO
RESPOND TO THE LETTERS THAT
COME FROM THE CREDIT REPORTING
AGENCIES AND YOU BIG.
COMMITMENT IS THAT RIGHT. THERE
IS LANGUAGE ORDERED THERE HAVE
BEEN CONVERSATIONS ON TRYING TO
MAKE SURE THAT THERE'S NO
LOOPHOLE THAT. RESPONSE WILL BE
REQUIRED OKAY TO- REQUESTER.
OKAY THANK YOU. I'M AND THEN MY
OTHER QUESTION. FOR THE
OPPOSITION IS WHAT WOULD YOU
SAY THE AVERAGE AMOUNT OF TIME
IT. TAKES TO PERFORM ONE OF
THESE. FUNDS THIS IS AS I'M
TRYING TO SENSE THE HUNDRED AND
EIGHTY YES. I FROM AN AVERAGE
STANDPOINT. TEND TO SEE PEOPLE.
SIX OR SEVEN MONTHS- THERE
OBVIOUSLY EXCEPTIONS TO THAT
PEOPLE WHO STAY LONGER- PEOPLE
WHO STAY FOR LESS PERIOD OF
TIME. TYPICALLY WE'RE SEEING
PEOPLE SIX TO SEVEN MONTHS.
OKAY SO THAT'S A HUNDRED EIGHT
IS A SIX MONTHS. SO I GUESS MY
CONCERN IS THAT I DON'T WANT I
MEAN. HAVING SPOKEN TO PEOPLE
WHO'VE TRIED TO DO THIS
THEMSELVES THAT HAS TAKEN THEM
YEARS. TO FIX THEIR CREDIT
RATING SO I DON'T WANT US TO BE
PUTTING YOU INTO A CORNER YOU
CAN'T. CONTRACT FOR SERVICES
AND NOT COMPLETE THEM IN THE
SPECIFIED AMOUNT OF TIME AND SO
I JUST WANNA MAKE SURE WE'VE
LEFT AMOUNT OF TIME FOR
CONSUMERS TO CONTRACT AND
COMPLETE. AND THE THING IS SOME
OF THAT SEEMS TO BE OUT OF YOUR
CONTROL I JUST WANNA MAKE SURE
THAT WERE YOU. HAVE THE
SERVICE. IT'S WHAT. THE ABOUT A
HUNDRED AND- A HUNDRED EIGHTY
DAYS. MANY OTHER STATES HAVE
ALREADY OF PUT IN STATUTE OF A
HUNDRED EIGHTY DAYS AND THEN
ALSO IT DOESN'T SAY HUNDRED
EIGHTY DAYS AND THEN THE
RELATIONSHIP IS ACTUALLY OVER A
HUNDRED AND EIGHTY DAYS IS WHEN
THAT PARTICULAR CONTRACT MAY BE
OVER BUT THE SERVICE PROVIDER
CAN THEN TURN RIGHT AROUND AND
EXTEND IT WITH AN ADDITIONAL
CONTACT OR RE ENTER INTO A
CONTRACT SO IT JUST SIMPLY BE
A- POINT. OF REFERENCE FOR-
BOTH THE CLIENT WITH CONSUMER
AND THE PROVIDER TO BE A COME
BACK TOGETHER READ OR REDO THE
TERM OR LOOK AT TERMS AGAINST
SIGNED A NEW CONTRACT AND TO
THE SERVICES THAT WERE ALREADY
PROVIDED THE PREVIOUS CONTRACT
THEY CAN TEN YOU INTO AN
ADDITIONAL CONTACT. THE TIME IS
NEEDED TO CONTINUE TO
SUCCESSFULLY RIDE SERVICES. AS
MUCH AS ALREADY IN THE EXISTING
STATUTE. OKAY A LOT ALREADY
BROUGHT IT OKAY THAT'S HELPFUL
THANK YOU. ANY ADDITIONAL
QUESTIONS OR COMMENTS.
ASSEMBLYMEMBER CHOI. ONE OF THE
PRESIDENCY ARE IS THAT THE AG
ATTORNEY GENERAL IS ALLOWED TO.
INCREASE CSOS SO. ANNUAL FEE TO
ANY AMOUNT CURRENTLY HANYA
DAUGHTERS SO THAT MEANS. WHEN
THE FEES COOPER- IT'LL
EVENTUALLY HURT THE CONSUMERS
IT BECAUSE SO THEY WOULD JUST
OF PASS IT DOWN TO CONSUMERS.
THIS YES- SO WHY DO YOU WANNA.
LEAVE IT OPEN RATHER THAN
HAVING A CAP. I BELIEVE IT'S
TIED TO COST RECOVERY. AB AND
WITH THAT ONGOING DISCUSSIONS
ARE ARE IN PROGRESS WITH THE
ATTORNEY GENERAL'S OFFICE AS
WELL SO WE WILL CONTINUE TO
HAVE CONVERSATIONS IN THAT ON
THAT SUBJECT. IT THAT THAT'S A
CONTRACT TO RENEW OUR FEES SO
LET ME TO TWO HUNDRED DOLLARS
THE WAR. IS A SAID JUSTO
REGISTRATION FEE WITH THE
ATTORNEY GENERAL. I'VE BEEN A
FEES THAT. I RETURN TO. THE
REGISTRATION FEE FOR
REGISTERING CURRENT LAW
REQUIRES ALL YOU'RE TALKING
ABOUT THE NEED TO REGISTER WITH
THE STATE DEPARTMENT YEAH YES
LAW BOB THIS BILL CONTEMPLATES
A BIT MORE OVERSIGHT INCLUDING
A PUBLICATION ON THEIR WEBSITE
OF THE DEPARTMENT JUST AS
WEBSITE OF A LIST OF REGISTERED
COMPANY SO CONSUMERS ARE AWARE
OF. WHO IS A LEGITIMATE COMPANY
WHO IS REGISTERED ON THE
WEBSITE SO THAT PROVISION WAS
ADDED TO ALLOW THE DEPARTMENT
TO RECOVER THEIR COSTS BUT WE
HAVE TALKED WITH. THE M. A. N.
E. L. IT MAY BE POSSIBLE TO
REFINE IT TOO WITH A CAP AT
SOME POINT- I THINK THAT'S AN-
ISSUE THAT WE CAN CONTINUE TO
WORK ON THERE'S NO INTENT.
THERE IS NO INTENT THERE THAT
THE FEE WOULD BE. LAW A
SIGNIFICANT BURDEN ON A COMPANY
REMEMBER IT'S A PER COMPANY FEE
AND EACH ONE OF THOSE COMPANIES
MAY BE SERVICING THOUSANDS AND
THOUSANDS OF CONSUMERS. THE
NOTION OF IT ONE FOUR HUNDRED
AND FIFTY DOLLARS THAT WOULD BE
AN INCREASE COSTS FOR ANYBODY
REALLY I THINK IS A MINIMAL
WORE. MINIMAL WORRIED BECAUSE
THE NUMBER OF. CLIENTS BEING
SERVICE IN THE FACT THAT IT'S
PER COMPANY PER FEE BUT- THAT
WAS THE INTENT WAS JUST TO
ENSURE THE DOJ RECOVERS THEIR
COSTS. I'M SETTING UP THE
WEBSITE INFORMATION YEAH I
THINK IF YOU TALK ABOUT
SPREADING OUT THE COST OF A
HUNDRED DOLLARS FOR
REGISTRATION FEE AMONGST ALL
THE CLIENTS IT'S- MINIMAL TO
YES THE FRACTION OF A PENNY
YEAH OR DOES HE IS. THIS YEAR'S
OWNS SO REGISTRATION FEE ANNUAL
FEE THAT'S WHAT IT IS ABOUT THE.
EIJI CAN INCREASE TO ANY AMOUNT
THE- RIGHT NOW I'M SURE HUNDRED
DOLLARS IS THE WORKING THAT'S
THE REASON HUNDRED DOLLARS
ABOUT THE- FULL. WHATEVER
UNKNOWN REASON IF THE DOUBLE
THE FEET TWO HUNDRED DOLLARS.
THAT WOULD EVENTUALLY HURT THE
CONSUMERS TO. SAY THAT'S WHY. I
DON'T KNOW WHY YOU WANNA LEAVE
IT OPEN TO. WITH A NOR
LIMITATION I HEAR YOUR CONCERN
AND SO WE WILL DEFINITELY CARRY
THAT IF THIS BILL WAS TO GET
OUT HERE UNDER THAT INTO A
CONVERSATION MISSION. THANK YOU.
ANGEL QUESTIONS OR COMMENTS.
ALL RIGHT THANK YOU A SOME
MEMBER GRAYSON- FOR BRINGING
THIS BILL FORWARD I KNOW YOU'VE
BEEN WORKING WITH THE
COMMITTEE- THE SINCE LAST YEAR
ON- ON TRYING TO GET THIS BILL
TO A PLACE WHERE WE CAN MOVE
FORWARD- IT DOES HAVE A DO YOU
PASS TO COMMITTEES TO COMMITTEE
ON PRIVACY AND CONSUMER
PROTECTION SO WITH THAT WE WILL
GO AHEAD AND CALL THE ROLL
UNLESS I'M SORRY CLOSING
STATEMENTS RESPECT RESTAURANT
I'VE- THANK YOU. WE'LL GO AHEAD
AND CALL THE ROLL THANK YOU.
THE ONE I LIMON. TEN A NUMBER
CHEN NOT VOTING BEAR CAM. HOW
CAN I BURKE BURKE HI. CHOI HI
GABRIEL. APRIL HI GLORIA GLORIA
AYE GRAYSON AYE GRAYSON AYE
MELENDEZ. MELENDEZ NOT VOTING
MARK STONE. STONE VOTING I MEAN
I WEBER. WEBER I WICKS WICKS I.
THE BILL IS THAT WITH TEN BUCKS
THANK YOU THANK YOU. AND THEN
WE WILL GO AHEAD AND ADD ON.
THE ONLY ONE. AB FIFTEEN FIFTY
ONE BURKE. GUY ALL RIGHT THAT
BILL IS OUT TWELVE OH WE WILL
ADJOURN. THE LANGUAGE. OF THE
LETTERS AND KNOW I DIED. GOT A
LOT OF. YEAH WHEN THE
LEGISLATURE FOR