(1) The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner. Existing law authorizes the commissioner to suspend or revoke the license of a real estate licensee or corporation, or to deny the issuance of a license to an applicant or corporation, for specified violations. This bill would further authorize the commissioner to suspend or revoke those licenses, or to deny issuance of those licenses, upon a violation of specified federal lending laws or regulations or upon the violation or failure to comply with specified provisions of state law relating to mortgages. (2) Existing law imposes certain limitations and prohibitions on licensed persons, as defined, with respect to the making of a covered loan, defined as a consumer loan in which the original principal balance of the loan does not exceed the most current conforming loan limit for a single-family first mortgage loan established by the Federal National Mortgage Association in the case of a mortgage or deed of trust, and as specified. Existing law does not regulate or define the term "higher-priced mortgage loan." This bill would establish "higher-priced mortgage loans," as defined, as a new category of regulated loans. The bill would, among other things, limit prepayment penalties and prohibit provisions for negative amortization. The bill would prohibit a licensed person, as defined, from making false, deceptive, or misleading statements or representations in connection with higher-priced mortgage loans. The bill would also, among other things, prohibit a mortgage broker, as defined, who arranges higher-priced mortgage loans with prepayment penalties from receiving a compensation that exceeds certain amounts. The bill would provide that a violation of the provisions regulating higher-priced mortgage loans by a licensed person is also a violation of the person's licensing law. The bill would authorize a licensing agency or the Attorney General to enforce the provisions regulating higher-priced mortgage loans. The bill would authorize civil penalties in an amount up to $10,000 against a licensed person who willfully and knowingly violates the provisions regulating higher-priced mortgage loans, and would nullify prepayment penalties or yield spread premiums that violate these provisions. The bill would also establish specified duties for mortgage brokers performing mortgage brokerage services for higher-priced mortgage loans. The bill's provisions would apply to higher-priced mortgage loans originated on or after July 1, 2010. (3) Existing law imposes certain limitations and prohibitions on specified licensees, including commercial banks, credit unions, finance lenders, and residential mortgage lenders, with respect to the making of consumer loans. This bill would provide that a violation of specified federal lending laws or regulations by those licensees is also a violation of the licensing law of the licensee. The bill would also provide that a mortgage broker, as defined, providing mortgage brokerage services, as defined, to a borrower is the fiduciary of the borrower, and any violation of the broker's fiduciary duties is a violation of the mortgage broker's licensing law and specified civil penalty and liability provisions. The bill would further provide that this fiduciary duty includes a requirement that the mortgage broker place the economic interest of the borrower ahead of his or her own economic interest. (4) Because a violation of the bill's provisions by certain licensees may be punished as crimes under the licensing law of the licensees, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Sponsored bills
(1) The State Teachers' Retirement Law limits the amount of postretirement compensation that may be earned in specified types of employment by a retired member of the Defined Benefit Program without a reduction in the retirement benefits of the member. That law, operative until June 30, 2010, provides exemptions from this limit and specifies that the limitation provisions do not apply to compensation earned by a member retired for service who has returned to work after retirement and, for at least 12 consecutive months, has not performed specified activities. This bill would, as of July 1, 2010, apply a limitation of $0 to the compensation for performance of specified activities as an employee of an employer, an employee of a third party, or as an independent contractor during the first 6 calendar months after a member retired for service under this part, if the member is below normal retirement age at the time the compensation is earned. This bill would also extend the operation of these provisions until June 30, 2012. (2) Under that law, operative until June 30, 2010, the service retirement allowance of a retired member of the Defined Benefit Program is exempt from a reduction if the retired member is appointed as a trustee or administrator by the Superintendent of Public Instruction for a maximum period of 2 years, as specified. That law also exempts from the earnings limitation, until June 30, 2010, service performed by a retired member in an emergency situation to fill a vacant administrative position, as specified. The law requires the employing school district to submit documentation to substantiate the eligibility of the temporary employment of the retired member for these exemptions. This bill would provide that these exemptions end no more than 24 consecutive months, rather than 2 years, from the date the exemption commenced. The bill would prohibit an exemption under the latter provision from being granted to a member retired for service whose termination of employment with the employer is the basis for the vacant administrative position. This bill would require the documentation to substantiate that exception to be received by the system no later than June 30 of the school year for which the exemption is to apply. The bill would extend these provisions until June 30, 2012. (3) That law further exempts from the earnings limitation, until June 30, 2010, compensation received by a retired member providing specified types of services, including direct remedial instruction, as specified, if that retired member retired on or before January 1, 2007. That law requires a school district that employs the retired member to submit documentation to the retirement system that substantiates the eligibility of the temporary employment of the retired member for this exemption. This bill would provide that the compensation received by a retired member providing those specified types of services is exempt from the earnings limitation if the member retired for service with an effective date on or before January 1, 2009. The bill would require the documentation to substantiate that exception to be received by the system no later than June 30 of the school year for which the exemption is to apply. The bill would extend these provisions until June 30, 2012. (4) This bill would also make technical, nonsubstantive changes to these provisions.
Existing law, the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006, approved by the voters as Proposition 1B at the November 7, 2006, general election, authorizes the issuance of general obligation bonds for various transportation-related purposes, including reducing emissions and improving air quality in trade corridors. The State Air Resources Board is required to allocate the funds to be used for air quality purposes pursuant to specified requirements. No project can be funded unless the project is sponsored by an applicant, as defined. Returned funds or unspent funds from obligated contracts received by the applicant prior to the end of a requirement to liquidate funds within 4 years of the date of the award of a contract between the applicant and a contractor revert to the California Ports Infrastructure, Security, and Air Quality Improvement Account for allocation upon appropriation by the Legislature. This bill would authorize the applicant to award these unspent or returned funds to other equipment projects included on the same competitively ranked list approved by the state board pursuant to the grant agreement, or, if there are no other eligible projects included on that list, these funds would be returned to the state board for reallocation to an applicant consistent with guidelines to be developed by the state board. Funds awarded by the applicant would be required to be liquidated within 4 years of the date of the award of the original contract or the funds would revert to the California Ports Infrastructure, Security, and Air Quality Improvement Account for allocation upon appropriation by the Legislature.
Existing law requires a person in a trade or business who negotiates specified contracts or agreements primarily in the languages of Spanish, Chinese, Tagalog, Vietnamese, or Korean to deliver to the other party, prior to execution of the contract or agreement, a translation of the contract or agreement in the applicable foreign language, except as specified. Under existing law, failure to comply with these provisions entitles the aggrieved party to rescind the contract or agreement. Under existing law, these provisions apply to specified loans or extensions of credit subject to the Industrial Loan Law and the California Finance Lenders Law. This bill would, in the alternative, require a supervised financial organization, as defined, that negotiates primarily in one of those languages in the course of entering into a contract or agreement for a loan or extension of credit secured by residential real property, to deliver, prior to the execution of the contract or agreement, and no later than 3 business days after receiving the written application, a specified form in that language summarizing the terms of the contract or agreement, as specified. The bill would provide that a supervised financial organization that complies with these provisions would be deemed to be in compliance with the translation requirement in existing law described above. The bill would also provide that a supervised financial organization that complies with the translation requirement in existing law would be in compliance with these provisions. The bill would provide for administrative penalties against specified licensed persons for violations of these provisions. The bill would require the Department of Corporations and the Department of Financial Institutions to create a new form for these purposes, as provided, and to make it available in each of the languages described above. The bill would authorize an action against a supervised financial organization for a violation of these provisions to be brought only by a licensing agency or by the Attorney General. These provisions would become operative beginning on July 1, 2010, or 90 days after issuance of a form as provided, whichever occurs later. The provisions of this bill would not affect the obligations of a real estate broker, as specified.
This measure would recognize the pioneering work of promotores and community health workers in delivering vital and cost-effective health care services in communities throughout California and declare October 2009 as California Promotores Month.
This measure would designate the month of October 2009 as Extended Opportunity Programs and Services Month to honor the mission and purposes of the Extended Opportunity Programs and Services.
This measure would make various statements regarding the importance of New United Motor Manufacturing, Inc. (NUMMI) to the California economy and would declare the necessity for the Legislature to utilize its vested powers to keep NUMMI in California.
This measure would proclaim October 23 to October 31, 2009, inclusive, as Red Ribbon Week, and would encourage all Californians to help build drug-free communities and participate in drug prevention activities.
This measure would recognize the importance of California Native American Day, celebrated this year on September 25, 2009, and the concurrent California Indian Cultural Awareness Conference to the enhancement of awareness of California Indian culture.
This measure would designate the month of October 2009, and every October thereafter, as Italian American Heritage Month. This measure would encourage public schools to highlight and include Italian American achievements and contributions to the culture of California and to take steps to promote the inclusion of the role and contributions of Italian Americans to the culture and history of California and the United States in elementary and secondary social science textbooks during the revision process for those textbooks.