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SB-484 Escrow agents: customer contact centers.(2023-2024)

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Date Published: 06/28/2023 09:00 PM
SB484:v97#DOCUMENT

Amended  IN  Assembly  June 28, 2023
Amended  IN  Senate  March 30, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 484

Introduced by Senator Newman

February 14, 2023

An act to amend Section 17005.3 of add Section 17216 to the Financial Code, relating to escrow agents.


LEGISLATIVE COUNSEL'S DIGEST


SB 484, as amended, Newman. Escrow agents: customer contact centers.
Existing law, the Escrow Law, provides for the licensure and regulation of escrow agents by the Commissioner of Financial Protection and Innovation, and makes it unlawful for any person to engage in business as an escrow agent except by a corporation organized for that purpose licensed by the commissioner.
This bill would authorize a licensed escrow agent to designate an employee to perform work on the licensee’s behalf at a remote location, as defined, in accordance with specified conditions and requirements, including that the licensee adopts and adheres to appropriate written policies and procedures to supervise and maintain appropriate control of the work of employees at remote locations and safeguard the licensee’s records and consumer personal information, as specified.

Existing law, the Escrow Law, regulates escrow agents. The Escrow Law defines various terms for these purposes, including “customer contact center” as a facility operated by an Internet escrow agent, as defined by the Escrow Law, that exists solely for the purpose of responding to customer electronic messages and telephone inquiries, subject to specified limitations.

This bill would change the definition of “customer contact center” to mean a facility operated by an escrow agent, as defined by the Escrow Law, for the purpose of remotely accessing an escrow file to further the processing of the escrow, including, but not limited to, responding to customer electronic messages and telephone inquiries, subject to specified limitations.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17216 is added to the Financial Code, to read:

17216.
 (a) For purposes of this section:
(1) “Encrypted” has the same meaning as provided in paragraph (4) of subdivision (i) of Section 1798.82 of the Civil Code.
(2) “Remote location” means a personal residence, or a temporary, nonpublic location not owned or leased by the licensee or an affiliate of the licensee that is not simultaneously physically accessible by anyone other than a single employee and individuals who maintain a common household with the employee. “Remote” location shall not include any licensed real estate office or place of business associated with a real estate office.
(b) A licensed escrow agent may designate an employee, when acting within the scope of employment, to perform work on the licensee’s behalf at a remote location if the licensee does all of the following:
(1) Prohibits in-person consumer interactions, including the physical receipt and disbursement of cash or other monetary value or the disbursement of escrow funds, at a remote location and does not advertise or designate a remote location to the public as a business location.
(2) Prohibits books and records, as determined by the department, from being physically mailed to, shipped to, or stored at a remote location except for storage on an encrypted device or encrypted media.
(3) Prohibits the physical receipt of mail or delivery of documents related to the licensee’s licensed business at a remote location.
(4) Prohibits a consumer’s personal information from being physically stored at a remote location except for storage on an encrypted device or encrypted media.
(5) Provides an employee working at a remote location with appropriate equipment, which may include encrypted devices, virtual private networks, and similar technology, to perform work and safeguard licensee records and consumer personal information.
(6) Adopts and adheres to appropriate, as determined by the department, written policies and procedures to supervise and maintain appropriate control over the work of employees at remote locations and safeguard the licensee’s records and consumer personal information in connection with work at a remote location, including but not limited to, all of the following elements:
(A) Employee data security training.
(B) Maintenance of security logs of remote logins.
(C) Procedures designed to detect suspicious logins or attempted logins and to suspend access by potentially compromised accounts or equipment.
(D) Data breach response procedures.
(7) All books, records, and persons shall be made available to the commissioner at a licensed location.

SECTION 1.Section 17005.3 of the Financial Code is amended to read:
17005.3.

“Customer contact center” means a facility operated by an escrow agent for the purpose of remotely accessing an escrow file to further the processing of the escrow, including, but not limited to, responding to customer electronic messages and telephone inquiries; provided, that no receipt or disbursements relating to an escrow are made from the facility; and provided further, that any documentation or other material generated, transmitted, or otherwise sent from the facility can be reviewed at any time from the business location of the escrow agent.