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SB-1269 Schoolbus safety: child safety alert system.(2017-2018)

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Date Published: 04/16/2018 12:41 PM
SB1269:v98#DOCUMENT

Amended  IN  Senate  April 16, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1269


Introduced by Senator Hueso

February 16, 2018


An act to amend Section 22001 of, and to add Article 5 (commencing with Section 22655) to Chapter 3 of Division 9 of, the Financial Code, relating to financial institutions. An act to amend Section 28160 of the Vehicle Code, relating to schoolbus safety, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


SB 1269, as amended, Hueso. California Financing Law: commercial financing: disclosures. Schoolbus safety: child safety alert system.
Existing law requires all schoolbuses to be equipped with certain safety features, as specified. Existing law requires, on or before the beginning of the 2018–19 school year, schoolbuses, school pupil activity buses, except as provided, youth buses, and child care motor vehicles to be equipped with a “child safety alert system,” which is a device located at the interior rear of a vehicle that requires the driver to either manually contact or scan the device before exiting the vehicle, thereby prompting the driver to inspect the entirety of the interior of the vehicle before exiting.
This bill would postpone that requirement until the beginning of the 2019–20 school year.
This bill would declare that it is to take effect immediately as an urgency statute.

Existing law, the California Financing Law (CFL), provides for the licensure and regulation of finance lenders and brokers, and, beginning on January 1, 2019, program administrators, by the Commissioner of Business Oversight. The CFL prohibits anyone from engaging in the business of a finance lender or broker without obtaining a license. Existing law defines a finance lender as any person who is engaged in making consumer loans or commercial loans, as defined. The CFL prohibits a licensee from making a materially false or misleading statement to a borrower about the terms or conditions of a loan. A willful violation of the CFL is a crime, except as specified.

This bill would require any person who engages in the business of small business financing to provide to the prospective borrower a written statement showing in clear and distinct terms specified information regarding that transaction, including the APR related to that transaction, all upfront charges, the total amount provided to the borrower, payment amount and frequency, and collateral requirements. The bill would require that disclosure be provided at the time the financing is offered, and at the time of closing. The bill would require that statement to be in writing in a form that is clear, complete, and easy to compare with other options. The bill would prohibit any person who engages in the business of small business financing from engaging in abusive practices. The bill would define the term “small business financing” for these purposes to mean a commercial loan of a principal amount that is less than $1,000,000, or a cash advance to a business that is less than $1,000,000, except as provided. By expanding the scope of an existing crime with respect to violations of the CFL, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: MAJORITY2/3   Appropriation: NO   Fiscal Committee: YESNO   Local Program: YESNO  

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


SECTION 1.

 Section 28160 of the Vehicle Code is amended to read:

28160.
 (a) On or before January 1, 2018, the department shall adopt regulations governing the specifications, installation, and use of child safety alert systems.
(b) (1) On or before the beginning of the 2018–19 2019–20 school year, each schoolbus, school pupil activity bus, except as provided in paragraph (2), youth bus, and child care motor vehicle shall be equipped with an operational child safety alert system.
(2) A school pupil activity bus is not required to be equipped with an operational child safety alert system if all of the following apply:
(A) The school pupil activity bus is not used exclusively to transport pupils.
(B) When the school pupil activity bus is used to transport pupils, the pupils are accompanied by at least one adult chaperone selected by a school official. If an adult chaperone is not a school employee, the chaperone shall meet the requirements for a school volunteer established by the policies of the school district, county office of education, charter school, or private school.
(C) One adult chaperone has a list of every pupil and adult chaperone, including a school employee, who is on the school pupil activity bus at the time of departure.
(D) The driver has reviewed all safety and emergency procedures before the initial departure and the driver and adult chaperone have signed a form with the time and date acknowledging that the safety plan and procedures were reviewed.
(E) Immediately before departure from any location, the adult chaperone shall account for each pupil on the list of pupils, verify the number of pupils to the driver, and sign a form indicating that all pupils are present or accounted for.
(F) After pupils have exited a school pupil activity bus, and before driving away, the driver shall check all areas of the bus, including, but not limited to, overhead compartments and bathrooms, to ensure that the bus is vacant.
(G) The driver shall sign a form with the time and date verifying that all required procedures have been followed.
(H) The information required to be recorded pursuant to subparagraphs (D), (E), and (G) may be recorded on a single form. These forms shall be retained by the school district, county office of education, charter school, or private school for a minimum of two years.
(c) A “child safety alert system” is a device located at the interior rear of a vehicle that requires the driver to either manually contact or scan the device before exiting the vehicle, thereby prompting the driver to inspect the entirety of the interior of the vehicle before exiting.
(d) For purposes of this section, the following definitions apply:
(1) “Child care motor vehicle” means a vehicle designed, used, or maintained for more than eight persons, including the driver, that is used by a child care provider to transport children.
(2) “Child care provider” has the same meaning as provided for “day care center” in Section 1596.76 of the Health and Safety Code.

SEC. 2.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to allow schoolbus fleets the additional time required to properly install child safety alert systems, it is necessary for this act to take effect immediately.
SECTION 1.Section 22001 of the Financial Code, as added by Section 2 of Chapter 475 of the Statutes of 2017, is amended to read:
22001.

(a)This division shall be liberally construed and applied to promote its underlying purposes and policies, which are:

(1)To ensure an adequate supply of credit to borrowers in this state.

(2)To simplify, clarify, and modernize the law governing loans made by finance lenders.

(3)To foster competition among finance lenders.

(4)To protect borrowers against unfair practices by some lenders, having due regard for the interests of legitimate and scrupulous lenders.

(5)To permit and encourage the development of fair and economically sound lending practices.

(6)To encourage and foster a sound economic climate in this state.

(7)To protect property owners from deceptive and misleading practices that threaten the efficacy and viability of property assessed clean energy financing programs.

(b)Consumer loans, as defined in Sections 22203 and 22204, are subject to this chapter, Chapter 2 (commencing with Section 22200), Article 1 (commencing with Section 22700) of Chapter 4, and Article 2 (commencing with Section 22750) of Chapter 4.

(c)Commercial loans, as defined in Section 22502, are subject to this chapter, Chapter 3 (commencing with Section 22500), Article 1 (commencing with Section 22700) of Chapter 4, and Article 3 (commencing with Section 22780) of Chapter 4.

(d)A program administrator, as defined in Section 22018, is subject to this chapter, Chapter 3.5 (commencing with Section 22680), and Article 1 (commencing with Section 22700) of Chapter 4.

(e)Small business financing, as defined in Section 22655, is subject to Article 5 (commencing with Section 22655) of Chapter 3, and Article 3 (commencing with Section 22780) of Chapter 4.

(f)This section shall become operative on January 1, 2019.

SEC. 2.Article 5 (commencing with Section 22655) is added to Chapter 3 of Division 9 of the Financial Code, to read:
5.Small Business Financing
22655.

(a)Any person who engages in the business of small business financing shall provide to the prospective borrower a written statement showing in clear and distinct terms all of the following with respect to that transaction:

(1)The annual percentage rate (APR) for the small business financing calculated according to the provisions of federal Truth In Lending Act (15 U.S.C. Sec. 1601 et seq.) and Regulation Z (12 C.F.R. 226.1 et seq.).

(2)All upfront and scheduled charges.

(3)The total loan or cash advance amount.

(4)The total amount provided by the financing to the borrower, after deducting applicable fees or charges.

(5)Payment amount and frequency. If the payment frequency is monthly, the total monthly payment amount. If the payment frequency is other than monthly, the total amount owed for each payment period.

(6)Any collateral required as a condition of receiving the small business financing.

(b)The statement required by this section shall be provided at the time that the financing is offered, and at the time of closing.

(c)The statement required by this section shall be in writing in a form that is clear, complete, and easy to compare with other options.

(d)Any person who engages in the business of small business financing shall not engage in abusive practices, such as double dipping and hidden prepayment charges.

(e)For purposes of this section, “small business financing” means either of the following:

(1)A commercial loan of a principal amount of less than one million dollars ($1,000,000), or any loan under an open-end credit program, whether secured by either real or personal property, or both, or unsecured, the proceeds of which are intended by the borrower for use primarily for other than personal, family, or household purposes, except for a loan provided to a business that, in the immediately preceding calendar year, had gross receipts totaling five million dollars ($5,000,000) of annual revenue or more.

(2)A cash advance to a business of less than one million dollars ($1,000,000), except for a cash advance provided to a business that, in the immediately preceding calendar year, had gross receipts totaling five million dollars ($5,000,000) of annual revenue or more.

SEC. 3.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.