By Michael J. Arnold & Michael D. Belote, Esq.
CMA Legislative Advocates

The Legislature is scheduled to adjourn this first year of the 2021-2022 two-year legislative session on September 10th. Thus, it is a sprint to the end of the session. In many respects, this is the most dangerous period of the Legislature. Bills are often “highjacked” at this time of year and a bill on garbage trucks can suddenly become a bill on mortgage lending. It is for that reason that your lobbyists in Sacramento read every amendment to every bill daily. Amendments can transform a bill in our “watch” category into a measure we must strongly oppose – and on short notice.

COVID-19 has made this session of the Legislature the strangest one ever! Members and staff have been difficult to reach, and lobbying committees has required considerably more effort. Thus far, w e have been successful in our efforts to stop bad legislation or, in some cases, avoid the introduction of bad ideas in the form of legislation we would have opposed.

The Legislature and the Governor have had many issues to deal with this year including COVID-19, housing, homelessness, and a budget outlook which went from a $54 Billion deficit to almost a $100 Billion surplus. The roaring economy and significant assistance from Washington created a situation where the biggest problem for the Democratic majority in the Legislature was how to spend the unanticipated revenue.

As we have reported, early in the session the Governor signed a bill extending the State’s eviction moratorium through September and boosting funding for a rent relief program addressing the needs of both tenants and landlords. Working with other groups in the lending industry, we were able to avoid legislation which would have impacted the foreclosure process.

Several bills which did not pass this year, however, are now “two-year bills” which will be eligible for further consideration during the second year of this two-year session. CMA is closely tracking over 60 bills during this session. Some of the measures on our list include the following:

AB 345:
Would allow an ADU to be conveyed separate from the primary residence pursuant to a local ordinance – in Senate and likely to pass.

AB 255:
Would enact the C0VID Emergency Small Business Eviction Relief Act – killed on the Assembly Floor. This measure would have created more problems than it would have solved – 2-year bill.

AB 561:
Requires State Treasurer’s Office to help homeowners qualify for loans to construct ADUs and junior ADUs – in Senate and likely to pass.

AB 948:
Enacts measures to prevent unlawful discrimination in the conduct of real estate appraisals: (1) provides notice to buyers and sellers of their right to an unbiased appraisal of the property; (2) establishes a mechanism to track complaints of underappraisals by demographics; (3) requires appraisers to complete continuing education eliminating bias and cultural competency – in Senate and likely to pass

AB 1405:
Creates the Fair Debt Settlement Practices Act regulating debt settlement of unsecured debt, such as credit card debt – in Senate and likely to pass.

AB 1466:
Establishes task force to search, redact, and compile a publicly searchable database of unlawful and discriminatory restrictive housing covenants – in Senate and likely to pass.

SB 263:
Requires 2 hours training on “implicit bias” as part of the 45-hour continuing education for realtor license renewal – in Assembly and likely to pass.

SB 373:
Defines “economic abuse” as certain types of debt – 2-year bill.

SB 449:
Requires specified lenders to report on climate-related risks in their portfolios to the Department of Financial Protection and Innovation – 2-year bill.

SB 531:
Amends the Rosenthal Fair Debt Collection Practices Act and the Fair Debt Buying Practices Act. Defines the term “delinquent debt” as “a consumer debt, other than a mortgage debt, that is past due at least 90 days and has not been charged off” – in Assembly and likely to pass.