Today's Law As Amended


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AB-1172 Escrow agents: asset and accounting requirements.(2021-2022)



As Amends the Law Today


SECTION 1.

 Section 17210 of the Financial Code is amended to read:

17210.
 (a) An escrow agent licensed on or after January 1, 1986,  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) An escrow agent licensed prior to January 1, 1986, shall maintain at all times a tangible net worth according to the following schedule:
(1) Ten thousand dollars ($10,000) from January 1, 1986, through June 30, 1986, including liquid assets of at least ten thousand dollars ($10,000) in excess of current liabilities.
(2) Fifteen thousand dollars ($15,000) as of July 1, 1986, including liquid assets of at least fifteen thousand dollars ($15,000) in excess of current liabilities.
(3) Twenty thousand dollars ($20,000) as of July 1, 1987, including liquid assets of at least twenty thousand dollars ($20,000) in excess of current liabilities.
(4) Twenty-five thousand dollars ($25,000) as of July 1, 1988, including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(5)  Thirty thousand dollars ($30,000) as of July 1, 1989, including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(6)  Thirty-five thousand dollars ($35,000) as of July 1, 1990, including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(7)  Forty thousand dollars ($40,000) as of July 1, 1991, including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(8) Forty-five thousand dollars ($45,000) as of July 1, 1992, including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(9) Fifty thousand dollars ($50,000) as of July 1, 1993, and thereafter, including liquid assets of at least twenty-five thousand dollars ($25,000) in excess of current liabilities.
(c) (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.
(d) (c)  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.

SEC. 2.

 Section 17406.0.1 is added to the Financial Code, to read:

17406.0.1.
 (a) Unless the public interest requires otherwise, notwithstanding any other law, the commissioner shall exempt a licensee from the provisions of the Financial Accounting Standards Board’s Accounting Standards Update 2016-02, Leases (Topic 842), relating to lease accounting requirements, if the licensee submits to the commissioner, at the licensee’s own expense and in compliance with paragraphs (1) and (2), audited financial statements covering the current and immediately preceding calendar or fiscal years or, if the licensee has an established fiscal year, then for the current and immediately preceding fiscal years.
(1) The audited financial statements shall be or have been submitted within 105 days after the close of each respective calendar or fiscal year, as applicable.
(2) The financial statements shall be prepared in accordance with generally accepted accounting principles and the audits shall be conducted in accordance with generally accepted auditing standards and the rules of the commissioner pursuant to Section 17406.
(b) A licensee shall be exempt pursuant to subdivision (a) unless an independent public accountant or the commissioner conducts an audit of the licensee and deems the licensee’s financial reports and financial statements to be not prepared in accordance with generally accepted accounting principles and the rules of the commissioner pursuant to Section 17406.
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.