Bill Text: CA AB412 | 2019-2020 | Regular Session | Enrolled
Bill Title: Escrow agents: asset requirements.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Vetoed) 2019-09-11 - Consideration of Governor's veto stricken from file. [AB412 Detail]
Download: California-2019-AB412-Enrolled.html
|
Enrolled
September 03, 2019 |
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Passed
IN
Senate
August 26, 2019 |
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Passed
IN
Assembly
August 30, 2019 |
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Amended
IN
Senate
August 15, 2019 |
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Amended
IN
Senate
May 21, 2019 |
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
Assembly Bill
No. 412
| Introduced by Assembly Member Quirk-Silva (Coauthors: Assembly Members Daly and Mullin) (Coauthor: Senator Moorlach) |
February 07, 2019 |
An act to amend Section 17210 of the Financial Code, relating to escrow agents.
LEGISLATIVE COUNSEL'S DIGEST
AB 412, Quirk-Silva.
Escrow agents: asset requirements.
Existing law, the Escrow Law, requires people engaging in business as escrow agents to be organized as corporations for that purpose, as specified, and appropriately licensed by the Commissioner of Business Oversight. Existing law requires an escrow agent licensed on or after January 1, 1986, to maintain a tangible net worth of $50,000, including liquid assets of at least $25,000 in excess of current liabilities. Existing law requires an escrow agent licensed before January 1, 1986, to maintain a tangible net worth pursuant to a prescribed schedule, the amounts of which, in 1993, matched those required for escrow agents licensed on and after that date. Existing law provides criminal penalties for willful violations of the Escrow Law.
This bill would delete the tangible net worth schedule for escrow agents licensed before January 1, 1986, as
described above, and eliminate distinctions based on when an agent was licensed in this context. The bill would exclude a liability derived from an operating lease obligation from a licensee’s current liabilities for purposes of establishing tangible net worth.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17210 of the Financial Code is amended to read:17210.
(a) An escrow agent shall maintain at all times a tangible net worth of fifty thousand dollars ($50,000), including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.(b) The commissioner may determine by rule as to which assets constitute liquid assets and may also determine in an individual case by a specific written ruling whether a particular asset is a liquid asset within the meaning of this section.
(c) For purposes of this section, a liability derived from an operating lease obligation shall be excluded from a licensee’s current liabilities.
(d) In the case of a licensed branch office, a tangible net worth in addition to that required by subdivision (a) shall be maintained at an amount equal to 50 percent of the tangible net worth required by subdivision (a), except that licensees operating or applying for more than one branch office shall maintain an additional tangible net worth of at least 25 percent of the amount required by subdivision (a) for each branch office licensed after the first branch office location.
