Compliance Bulletins
AB 175 : Foreclosure: Eligible Bidders
AB 175, which was chaptered on September 23, 2021, among other additions, makes clarifying amendments to SB 1079 (Skinner), Chapter 202, Statutes of 2020 related to residential property foreclosure. These provisions will become operative on January 1, 2022.
For more information, please view the Compliance Bulletin.
AB 948: Real Estate Appraisals
AB 948 was chaptered on September 28, 2021, and among other things, will require a new notice provision on appraisals in real estate contracts and when refinancing a first lien purchase money loan secured by residential real property containing no more than four dwelling units that appraisals must be unbiased, objective and not influenced by improper or illegal considerations.
For more information, please view the Compliance Bulletin.
SB 657: Employment Posting: Electronic Documents
SB 657 was chaptered on July 16, 2021 and provides that in any instance in which an employer is required to physically post information, they may also distribute that information to employees by email with the documents attached. Employers would still be required to physically post this information as well.
For more information, please view the Compliance Bulletin.
AB 430: Debt Collection: Identity Theft
AB 430, a new law regarding debt collection and identity theft, was chaptered on September 23, 2021. This new law will require creditors, debt collectors, and debt buyers to accept the Federal Trade Commission (FTC) identity theft report as sufficient for making a claim of identity theft.
For more information, please view the Compliance Bulletin.
Brokered Deposits
On December 15, 2020, the Federal Deposit Insurance Corporation (FDIC) adopted a final rule that creates a new framework for analyzing certain provisions of the “deposit broker” definition, including “facilitating” and “primary purpose”.
S.B. 1383 – California Family Rights Act Expansion
SB 1383, which was chaptered on September 17, 2020, expands the California Family Rights Act (“CFRA”) and will go into effect on January 1, 2021.
For more information, please view the Compliance Bulletin.
S.B. 1079 – Foreclosure: Eligible Bidders
SB 1079, which was chaptered on September 28, 2020, makes three changes related to the non-judicial foreclosure sale process.
For more information, please view the Compliance Bulletin.
S.B. 973 – Annual Pay Data Report
Chaptered on September 30, 2020, SB 973 requires new pay data reporting for certain California employers.
For more information, please view the Compliance Bulletin.
S.B. 908 – Debt Collection Licensing Act
SB 908, which was chaptered on September 25, 2020, enacts the Debt Collection Licensing Act (“DCLA”) to create a new licensing law for debt collectors and debt buyers.
For more information, please view the Compliance Bulletin.
A.B. 3088 – Tenancy: Rental Payment Default: Mortgage Forbearance: State of Emergency: COVID-19
On August 31, 2020, Governor Newsom approved AB 3088 as an emergency measure that went into effect immediately. AB 3088 made important changes in many different California statutes. Two of those changes have an important impact on lenders holding liens on residential property of 1-4 residential units, borrowers who own such properties and tenants who occupy such properties.
For more information, please view the Compliance Bulletin.
A.B. 1885 – Homestead Exemption Expansion
AB 1885, which was chaptered on September 18, 2020, will expand the homestead exemption to increase the amount of equity a homeowner can retain and decrease the assets for a creditor to pursue to satisfy an outstanding debt. The effective date of the new law will be January 1, 2021.
For more information, please view the Compliance Bulletin.
A.B. 1867 – Supplemental Paid Sick Leave
AB 1867, which was chaptered on September 10, 2020, provides up to 80 hours of supplemental paid sick leave for COVID-19 reasons. This legislation will take effect no later than 10 days after the enactment of the bill.
For more information, please view the Compliance Bulletin.
A.B. 685: COVID-19 Notification
AB 685, chaptered on September 17, 2020,requires employers to provide specified notices if an employee is exposed to Covid-19. This new law will take effect on January 1, 2021.
For more information, please view the Compliance Bulletin.
S.B. 616: California’s New Automatic Exemption Applicable to a Deposit Account
Under California law, a deposit account owner currently enjoys two groups of automatic protections relating to a deposit account maintained with a financial institution when a creditor or other claimant seeks funds in the account. The financial institution is obligated to grant the protections without further actions by the accountholder.
For more information, please click here to view the Compliance Bulletin.
Agencies Adopt Rule to Exempt Community Banks from Application of the Volcker Rule
On July 9, 2019, the OCC, Federal Reserve, FDIC, Commodity Futures Trading Commission and the SEC finalized a rule implementing provisions of the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA), that exempts certain institutions from application of the Volcker Rule. The rule exempts community banks and their controlling entities with $10 billion or less in total consolidated assets, and total trading assets and liabilities equal to five percent or less of total consolidated assets, from the application of the Volcker Rule.
Final Rule Issued on Federal Flood Insurance Coverage Requirements
The OCC, Federal Reserve, FDIC, Farm Credit Administration and the National Credit Union Administration have issued their final rule stating the circumstances under which lenders are required to accept private flood insurance in satisfaction of federal flood insurance coverage requirements. The rule became effective July 1, 2019.
For more information, please click here to view the Compliance Bulletin.
AB 3212 – Service Member Protections
AB 3212, chaptered on September 19, 2018 and effective January 1, 2019, amends sections of the California Military and Veterans Code to expand protections for service members and reservists in the context of credit extension and collection.
Agencies Seek Comment on Reduced Reporting for Covered Depository Institutions
The FDIC, the OCC and the Federal Reserve are seeking comment on a proposed rule to implement Section 205 of the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA). The proposed rulemaking increases the number of banks that qualify to file the more streamlined call report (the FFIEC 051 Call Report). Comments are due on or before January 19, 2019.
California’s New California Consumer Privacy Act
California’s new California Consumer Privacy Act of 2018 has received considerable attention, both statewide and nationwide. Commentators consider it the most sweeping law to date in this subject area. The Act, together with its subsequent amendment by SB 1121, is summarized in CBA’s Regulatory Compliance Bulletin, authored by CBA affiliate member Morrison & Foerster. The bulletin can be reviewed here.
New Law Relating to the Use of Background Checks
Signed into law by Governor Brown on September 30, 2018, SB 1412 amends California Labor Code Section 432.7, relating to the use of background checks. As originally proposed, the requirements of the bill would have contradicted the requirements of the Federal Deposit Insurance Act, which restricts financial institutions’ ability to hire employees who have been convicted of certain crimes. CBA was able to negotiate language addressing this quandary, but financial institutions are still urged to proceed with caution. CBA’s Regulatory Compliance Bulletin disc
New Mandates for Board of Directors in California
On September 30, 2018, Governor Jerry Brown signed SB 826 into law. The bill adds provisions to the California Corporations Code mandating that the boards of directors of certain corporations include a specific number of women, and provides penalties for violation. CBA’s Regulatory Compliance Bulletin discussing the new law can be found here.
California Supreme Court Decision on Independent Contractors
The California Supreme Court decision in Dynamex Operations West, Inc. v. Superior Court has caused considerable furor in the business community. It departs from prior law by establishing a presumption that workers are employees rather than independent contractors, and puts the burden on the employer to establish that a worker is truly an independent contractor and not an employee entitled to typical worker protections.
CBA Summary of the Economic Growth, Regulatory Relief and Consumer Protection Act
The Economic Growth, Regulatory Relief and Consumer Protection Act, aka S.2155, was enacted just over four months ago. CBA is taking this opportunity to summarize some of the provisions of the Act, primarily to highlight those provisions that have been, or will be, the subject of agency rulemaking. CBA will continue to update you on the effect of S.2155 as rulemaking continues. CBA’s Regulatory Compliance Bulletin can be viewed here.
Regulatory Agencies Propose Amending the Regulatory Capital Rule to Revise the Definition of “High Volatility Commercial Real Estate Exposure”
The OCC, the Fed and the FDIC propose to amend the regulatory capital rule to revise the definition of “high volatility commercial real estate exposure” to conform to the definition enacted as part of S.