SACRAMENTO – Today, Senator Mike Morrell (R-Rancho Cucamonga) announced that the Governor has signed Senate Bill 647. The measure makes needed regulatory improvements to provisions put in place by important consumer protection legislation approved in 2012.
“Small businesses face many regulatory and tax hurdles in California,” said Morrell. “Any time we can simplify this process, while not reducing consumer protection, it is a win for our state. I’m pleased that the Governor signed SB 647 and am grateful to my colleagues for their unanimous support in this effort.”
SB 647 clears up ambiguous sections of SB 978 (Vargas, 2012), consumer protection legislation that was passed to respond to problems in the area of mortgage securities that resulted in consumer losses. Since its passage, the application of SB 978 has been unnecessarily broad.
The bill does three things:
- Saves time and resources by clarifying that real estate brokers are not required to obtain annual questionnaires from investors in years when no investments are made.
- Eliminates unnecessary reporting to the Department of Business Oversight.
- Brings additional clarity by specifying what the maximum loan-to-value ratio is for income-producing agricultural land.
The measure passed with the unanimous support of both legislative houses. It takes effect on January 1, 2016.