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AB-412 Escrow agents: asset requirements. (2019-2020)

Senate:
1st
Cmt
2nd
3rd
2nd
3rd
Pass
Assembly:
1st
Cmt
2nd
Pass
Pass
Veto
Bill Status
AB-412
Quirk-Silva (A)
-
Daly (A) , Moorlach (S) , Mullin (A)
Escrow agents: asset requirements.
03/10/19
An act to amend Section 17210 of the Financial Code, relating to escrow agents.
Assembly
09/03/19
08/15/19

Type of Measure
Inactive Bill - Vetoed
Majority Vote Required
Non-Appropriation
Fiscal Committee
Non-State-Mandated Local Program
Non-Urgency
Non-Tax levy
Last 5 History Actions
Date Action
09/11/19 Consideration of Governor's veto stricken from file.
09/09/19 Consideration of Governor's veto pending.
09/09/19 Vetoed by Governor.
09/05/19 Enrolled and presented to the Governor at 3 p.m.
08/30/19 Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0. Page 2892.).
Governor's Veto Message
To Members of the California Assembly:

I am returning the following bills without my signature:

AB 295
AB 412

These bills would allow for the exclusion of operating lease obligations from the balance sheets of escrow companies, including independent escrow companies and underwritten title companies, when calculating financial liquidity requirements.

These exemptions deviate from the new standards adopted by the Financial Accounting Standards Board. These standards were created to measure a company's ability to meet its short-term financial obligations, which in turn helps protect consumer funds.

For standards to be standard, they need to apply equally to everyone. 
When a customer works with an escrow or title company, it is often when they are making one of the biggest financial transactions of their lives. The consequences of insolvency could jeopardize a home or business purchase and cost consumers thousands of dollars.
For the health of the industry and protection of consumers' hard earned savings, these companies should adhere to the new national standards published in 2016, which provided years to plan for compliance.

For this reason, I am returning these bills without my signature.

Sincerely,




Gavin Newsom