Legislation

FRESNO -- Attorney General Kamala D. Harris today was joined by Fresno County Sheriff Margaret Mims, Merced County Sheriff Mark Pazin, Tulare County Sheriff Bill Wittman, and Fresno Police Chief Jerry Dyer at a press conference in support of the California Homeowner Bill of Rights, which contains law enforcement tools to help prevent blight and other crimes associated with the foreclosure crisis.
Attorney General Harris also presented Attorney General Awards to distinguished officers from the Visalia Police Department, Fresno Police Department, the California Highway Patrol (Madera area), Kings County District Attorney’s Office and the California Department of Corrections and Rehabilitation.

The press conference occurred after at a regional “zone” meeting, where law enforcement leaders discussed common challenges and collaboration. Zone 5 includes law enforcement agencies from Fresno, Kern, Kings, Madera, Mariposa, Merced and Tulare counties.

“As I meet with law enforcement leaders around the state, I repeatedly hear of their frustrations dealing with the aftermath of our foreclosure crisis and crime that is associated with it,” said Attorney General Harris. “I am gratified by the support of these Central Valley law enforcement leaders for the California Homeowner Bill of Rights, and look forward to the public safety enhancements it will bring.”

“Attorney General Harris’ proposed legislation provides increased enforcement capabilities, due process for homeowners, and gives local law enforcement additional tools to avoid blight as a result of empty homes left vacant as a result of foreclosures. I am pleased to be able to join her and support the California Homeowner Bill of Rights,” said Sheriff Margaret Mims of Fresno County.

“All Californian’s should be appreciative of these bills the Attorney General is trying to pass as they will help prevent foreclosure abuses, especially here in Merced where we ranked among some of the nation’s highest foreclosed homes,” Merced Sheriff Mark N. Pazin said.

“As the Sheriff of Tulare County, I have seen firsthand the devastating effects of the mortgage crisis, not only in Tulare County but across the State of California. In Tulare County alone, between 2008 and 2011 there were over 11,000 foreclosures. The California Homeowner Bill of Rights will assist homeowners and law enforcement agencies by providing additional resources and tools to identify and fight a multitude of crimes related to mortgage fraud, real estate fraud, and loan scams. I fully support the California Homeowner Bill of Rights,” Tulare County Sheriff Bill Wittman said.

The California Homeowner Bill of Rights, which would bring transparency and fairness to California’s broken mortgage process, is under consideration in the Legislature and includes proposals to help law enforcement respond to mortgage fraud and to crime associated with the foreclosure crisis.

These bills would empower communities to crack down on blight and the resulting crime, would support law enforcement responses to mortgage fraud by extending the statute of limitations, and would empower the Attorney General to empanel a special grand jury to target multi-jurisdictional financial crimes.

The California Homeowner Bill of Rights will also extend to all borrowers many of the same reforms negotiated for in the recent national mortgage settlement. The legislation includes protections against the dysfunctional “dual-track” foreclosures process, guarantees of a single point of contact for distressed homeowners, and an increase in penalties for robo-signing. The multistate mortgage settlement brought a commitment of up to $18 billion for California homeowners and foreclosure victims from banks.

Foreclosure-related estimates for each county in the zone are:

Fresno County:
Number of foreclosures 2008-2011: 27,837
Estimated amount of California commitment: $311,015,043

Kern County:
Number of foreclosures 2008-2011: 35,893
Estimated amount of California commitment: $374,504,344

Kings County
Number of foreclosures 2008-2011: 2,139
Estimated amount of California commitment: $24,288,347

Madera County
Number of foreclosures 2008-2011: 7,005
Estimated amount of California commitment: $84,307,143

Mariposa County
Number of foreclosures 2008-2011: 238
Estimated amount of California commitment: $6,761,727

Merced County
Number of foreclosures 2008-2011: 18,229
Estimated amount of California commitment: $215,723,069

Tulare County
Number of foreclosures 2008-2011: 11,269
Estimated amount of California commitment: $119,124,870

SACRAMENTO -- Attorney General Kamala D. Harris today issued the following statement on the Governor’s May Revision:

“The state Department of Justice stood firm for over a year against the nation’s largest banks on behalf of California homeowners harmed by the foreclosure crisis. This effort resulted in an agreement that will provide billions in relief to California homeowners who are experiencing hardship. The agreement also required the banks to pay an additional $410 million to get homeowners the expert help they need to keep their homes.

The Governor’s May Revision, however, proposes to redirect this $410 million from the state’s homeowners to other budget purposes. While the state is undeniably facing a difficult budget gap, these funds should be used to help Californians stay in their homes. I plan to work with the Governor and Legislature toward a balanced budget that honors our obligations to California’s homeowners.”

SACRAMENTO -- Attorney General Kamala D. Harris today testified in support of the California Homeowner Bill of Rights, a package of legislation designed to protect homeowners from unfair practices by banks and mortgage companies and to help families and communities cope with the state’s urgent mortgage and foreclosure crisis.

Attorney General Harris testified at the joint Legislative Conference Committee created to examine two key bills from the Homeowner Bill of Rights. These bills will guarantee a single point of contact for struggling homeowners, penalize the ‘robosigning’ of documents, and restrict so-called “dual track” foreclosures, where borrowers are foreclosed upon even while negotiating with their bank to pay to stay in their homes.

“This Bill of Rights is simply about common sense reform and about bringing transparency for an otherwise confusing and daunting system,” said Attorney General Harris. “It is about hard working people who believe in the American dream.”

Attorney General Harris was joined in testifying by responsible homeowners struggling with their mortgages.

Celeste Singh’s home was sold at auction before she was denied a loan modification. She has tried repeatedly to have her bank modify her loan after a car accident left her with brain damage.

“My home is where my heart is, and my community is where my children and I have laid down our grassroots,” Singh said during her testimony. “I have been an active participant in my community for years. It feels like a death sentence and thousands of Californians know what I'm talking about.”

The Homeowner Bill of Rights builds on the national mortgage settlement and California commitment announced by Attorney General Harris earlier this year. That agreement included common-sense reforms, hammered out through a thoughtful process, but which only apply to the five settling banks and only for a limited time. The bills in the Homeowner Bill of Rights would make these reforms permanent and extend them to all Californians. The bills are authored by Senator Mark Leno and Assembly Member Mike Eng.

The legislation, first introduced at a February 29th press conference, was developed in collaboration with Assembly Speaker John A. Perez, Senate President pro Tem Darrell Steinberg and other members of the legislature. The Conference Committee features three members from each house: Senators Noreen Evans, Ron Calderon and Sam Blakeslee and Assembly Members Mike Eng, Mike Feuer, and Donald Wagner.

California won up to $18 billion in the national mortgage settlement, and has appointed an independent monitor, Professor Katherine Porter, to verify the extent and timeliness of lenders meeting their obligations to California homeowners.

Other bills in the package include:
- BLIGHT PREVENTION LEGISLATION: AB 2314 (Carter) & SB 1472 (Pavley and DeSaulnier)
- TENANT PROTECTION LEGISLATION AB 2610 (Skinner) and SB 1473 (Hancock)
- ENHANCEMENT OF ATTORNEY GENERAL ENFORCEMENT ACT AB 1950 (Davis)
- ATTORNEY GENERAL SPECIAL GRAND JURY ACT AB 1763 (Davis) and SB 1474 (Hancock)

More information on the bills can be found here: www.leginfo.ca.gov

SACRAMENTO -- Attorney General Kamala D. Harris released the following statement upon the announcement that parts of the California Homeowner Bill of Rights will be heard by a Legislative Conference Committee:

“There are more than 500,000 California homeowners in the foreclosure pipeline, and securing for them the protections of the Homeowner Bill of Rights is my central concern. I am sure these reforms will receive thoughtful attention and discussion in the Legislative Conference Committee which is why I support the Assembly Speaker and Senate President pro Tem’s decision to form it. I look forward to working with the Legislative leaders and members of the committee to bring transparency and fairness to our state’s mortgage and foreclosure process.”

SACRAMENTO -- Attorney General Kamala D. Harris today announced seven bills in the California Homeowner Bill of Rights to protect homeowners from unfair practices by banks and mortgage companies passed out of Legislative committees.

The bills include measures to protect tenants in the foreclosure process, allow local communities better remedies against blight and allow the Attorney General’s office more power to investigate and prosecute mortgage-related crimes.

“All Californians have been impacted by the toll the mortgage and foreclosure process has taken on our neighborhoods,” said Attorney General Harris. “Our California Homeowner Bill of Rights will provide relief for homeowners, tenants and communities. I thank the authors and supporters of these important bills.”

AB 2314 and SB 1472 would provide local jurisdictions with additional tools to fight blight from abandoned homes. These tools include increased penalties against the owners of blighted property, including the cost of taking control of that property. AB 2314 and SB 1472 unanimously passed the Assembly and Senate Judiciary Committees.

Another bill is aimed at providing greater protections to California tenants. AB 2610 and SB 1473 would provide California tenants with the same protections that they are currently afforded under federal law. This legislation would require purchasers of foreclosed homes to honor the terms of existing leases and give tenants at least 90 days before commencing eviction proceedings. The bills passed the Assembly and Senate Judiciary Committees on a 7 to 3 and 3 to 2 vote, respectively.

Two bills would provide additional tools for the Attorney General’s office to investigate and prosecute mortgage frauds and crimes. AB 1950 would extend the statute of limitations on mortgage-related crimes, including loan modification scams and the unlicensed sale of real estate. This legislation would also provide the Attorney General’s office with funding to prosecute these and other mortgage-related crimes through a $25 fee to be paid by servicers upon the recording of a notice of default. AB 1950 passed the Assembly Public Safety Committee on a 4 to 2 vote.

Attorney General Harris formed a Mortgage Fraud Strike Force last year to investigate and prosecute mortgage fraud. In August, the Strike Force filed its first suit against a law firm that took millions from desperate homeowners: http://oag.ca.gov/news/press_release?id=2552&y=&m=

AB 1763 and SB 1474 would allow the Attorney General to convene a special grand jury to investigate and indict the perpetrators of financial crimes involving victims in multiple jurisdictions. Both bills passed out of their houses’ Public Safety Committees unanimously.

SACRAMENTO – Attorney General Kamala D. Harris today announced the California Homeowner Bill of Rights designed to protect homeowners from unfair practices by banks and mortgage companies and to help consumers and communities cope with the state’s urgent mortgage and foreclosure crisis.

Joined by Senate President pro Tem Darrell Steinberg and Assembly Speaker John A. Pérez, Attorney General Harris announced her sponsorship of six bills designed to guarantee:
- Basic standards of fairness in the mortgage process, including an end to dual-track foreclosures
- Transparency in the mortgage process, including a single point of contact for homeowners
- Community tools to prevent blight after banks foreclose upon homes
- Tenant protections after foreclosures
- Enhanced law enforcement to defend homeowner rights – paid for by fees imposed on banks
- A special grand jury to investigate financial and foreclosure crime

“California communities and families are being devastated by the mortgage and foreclosure crisis. We must ensure the deceptive practices that caused it never happen again,” said Attorney General Harris. “The California Homeowner Bill of Rights will provide basic fairness and transparency for homeowners, and improve the mortgage process for everyone.”

The legislation builds on the California commitment announced by Attorney General Harris earlier this month, which is expected to result in $18 billion of benefits for California homeowners. That agreement included reforms for mortgages owned by the five banks that were signing parties. The California Homeowner Bill of Rights will strengthen those protections, make them permanent, and apply them to all mortgages in the state.

“When I secured the California commitment, I made clear it was only one of many steps I am taking to comprehensively address the mortgage and foreclosure crisis,” Attorney General Harris continued. “I want to thank Senate President pro Tem Steinberg, Assembly Speaker Pérez and all the other lawmakers who are supporting this urgent package of legislation for homeowners.”

“I want to congratulate the Attorney General on the victory she won on behalf of the people of California,” said Speaker John A. Pérez. “Our state has suffered greatly as the result of bad actors in the banking and financial industries, and this settlement holds them accountable as we continue the difficult work of recovering the housing market and stemming the tide of foreclosures, evictions and auctions.”

“Millions of Californians have already lost their homes to foreclosure and the mortgage crisis is far from over,” said Senate President pro Tem Darrell Steinberg. “This landmark settlement negotiated by Attorney General Harris helps thousands of Californians but thousands more need the same help. We need to put these protections into law so that more people can save their homes.”

CALIFORNIA HOMEOWNER BILL OF RIGHTS LEGISLATIVE PACKAGE

If passed, the following bills would:

ASSEMBLY BILL 1602 / SENATE BILL 1470– THE FORECLOSURE REDUCTION ACT OF 2012

Authors: Assemblymen Mike Eng and Mike Feuer; Senators Mark Leno, Fran Pavley, and Senate President pro Tem Darrell Steinberg
-Require creditors to provide documentation to a borrower that establishes the creditor’s right to foreclose on real property prior to recording a notice of default.
-Require creditors to provide documentary evidence of ownership, the chain of title to real property, and the right to foreclose, at the time of the filing of a notice of default.
-Prohibit creditors from recording a notice of default when a timely-filed application for a loan modification or other loss mitigation measure is pending.
-Prohibit creditors from recording a notice of sale when a timely-filed application for a loan modification or other loss mitigation measure is pending.
-Prohibit creditors from recording a notice of sale while a borrower is in compliance with the terms of a trial loan modification or after another loss mitigation measure has been approved.
-Require creditors to disclose why an application for a loan modification or other loss mitigation measure has been denied.
-Require that notices of foreclosure sales be personally served, including notices of foreclosure sale postponement.
-Provide homeowners with a private right of action in instances in which the requirements set forth in the legislation are not followed

ASSEMBLY BILL 2425 / SENATE BILL 1471 – DUE PROCESS REFORM LEGISLATION

Authors: Assemblywoman Holly Mitchell; Senators Mark DeSaulnier and Fran Pavley
-Require creditors to provide a single point of contact to borrowers in the foreclosure process who will be responsible for providing accurate account and other information related to the foreclosure process and loss mitigation efforts.
-Require creditors to provide a dedicated electronic mail address, facsimile number and mailing address for borrowers to submit information requested as part of a loan modification, short sale or other loss mitigation option.
-Authorize borrowers to challenge the unlawful commencement of a foreclosure process in court.
-Impose a $10,000 civil penalty on the recordation or filing of “robosigned” documents, defined as documents that contain information that was not verified for accuracy by the person or persons signing or swearing to the accuracy of the document or statement.
-Require that certain documents be recorded in a county recorder’s office.

ASSEMBLY BILL 2314 / SENATE BILL 1472 – BLIGHT PREVENTION LEGISLATION

Authors: Assemblywoman Wilmer Carter; Senator Fran Pavley
-Prevent blight enforcement actions from being taken against new purchasers of blighted property for 60 days, provided that repairs are being made to the property.
-Require banks that release liens on foreclosed property to inform local code enforcement agencies of the release so that demolition of blighted property can proceed.
-Increase fines against owners of blighted property from $1,000 per day to $5,000 per day, and allow the imposition of the costs of a receivership over blighted property to be imposed directly against the owner of blighted property.

ASSEMBLY BILL 2610/ SENATE BILL 1473 – TENANT PROTECTION LEGISLATION

Authors: Assemblywoman Nancy Skinner; Senator Loni Hancock
-Require purchasers of foreclosed homes to honor the terms of existing leases and give tenants at least 90 days notice before commencing eviction proceedings.

ASSEMBLY BILL 1950 – ENHANCEMENT OF ATTORNEY GENERAL ENFORCEMENT

Author: Assemblyman Mike Davis
-Impose a new $25 fee to be paid by servicers upon the recording of a notice of default. The fee would be deposited into a real estate fraud prosecution trust fund that would support the Attorney General’s efforts to deter, investigate and prosecute real estate fraud crimes, including the work of the Mortgage Fraud Strike Force.
-Extend the statute of limitations from one year to four years from the date of discovery for violations of law commonly occurring in connection with foreclosure-related scams, including acting as a real-estate agent without a license and charging up-front fees for loan modification services.

SENATE BILL 1474 / ASSEMBLY BILL 1763 – ATTORNEY GENERAL SPECIAL GRAND JURY

Authors: Assemblyman Mike Davis; Senator Loni Hancock
-Authorize the Attorney General to impanel a special grand jury for the purposes of investigating and indicting multi-jurisdictional financial crimes against the state.

SACRAMENTO -- Attorney General Kamala D. Harris today announced the State Senate passed legislation to protect consumers from unfair debt collection practices.

The Fair Debt Buyers Practices Act will require purchasers of consumer debt, or debt buyers, to provide documentary evidence to consumers in order to ensure that their collection efforts are directed at the proper individual. Debt buyers have flooded California’s courts with lawsuits seeking judgments on debts without adequate documentation, often resulting in collections efforts against the wrong person.

“Too often, a consumer can get ensnarled in a long and costly battle to prove they are not the ones responsible for debt,” said Attorney General Harris. “The Fair Debt Buyers Practices Act will put reasonable requirements on debt buyers and ensure consumers are not forced to pay the debts of others.”

Consumer debt is routinely purchased and resold in bundles, made up of thousands of accounts, with inadequate documentation. As a result, debt collection efforts often target the wrong consumers or wrong amounts, or seek payment on debt that has expired or been discharged.

Senate Bill 890, by Senator Mark Leno (D-San Francisco), would prohibit debt buyers from obtaining a judgment in a debt collection lawsuit unless the debt buyer can document their ownership of the debt, the balance of the debt, the date of the default or last payment, the identity of prior owners of the debt and the name and address of the debtor in the original creditor’s records.

In addition, the debt buyer must also have the original contract or a document provided to the debtor while the account was active to show evidence of the debt.

“The passage of this legislation is a major breakthrough for consumer protection in California,” said Senator Leno. “Aggressive debt buyers are using deceptive tactics to collect funds when they cannot even prove they are targeting the right consumer for the correct debt amount. The Fair Debt Buyers Practices Act relieves consumers and courts from the burdens and costs associated with processing large volumes of unsubstantiated debts.”

The California Department of Consumer Affairs issued a report in August 2011 concluding that much of the debt purchased by debt buyers is not accompanied by sufficient documentation to identify the debtor. Yet, as many as 90 percent of some debt buyers claims result in a default judgment where no defendant appears to challenge the debt claim. This often happens because the consumer is not even aware of the claim.

The Federal Trade Commission received more than 33,000 complaints regarding the validity of collection efforts in 2010 and has described the system for resolving disputes as “broken.”

SB 890 passed the Senate on a 22 to 14 vote and now moves to the Assembly.

SAN FRANCISCO -- Attorney General Kamala D. Harris, joined by 53 other attorneys general, signed a letter calling on the U.S. Congress to reauthorize the Violence Against Women Act and ensure the sustainability of vital programs designed to keep women and families safe from violence and abuse.

“We’ve made tremendous strides in how we deal with violence against women – from prosecuting violent offenders to breaking the cycles of crime and supporting and empowering victims,” said Attorney General Harris. “But our work is not done and the Violence Against Women Act, and ongoing support, is critical to this effort.”

In a letter sent to members of Congress, the attorneys general note that progress has been made since the passage of the Violence Against Women Act (VAWA) in 1994. Domestic violence, sexual assault, dating violence and stalking – once considered private matters to be dealt with behind closed doors – have been brought out of the darkness.

But, while annual rates have dropped more than 50 percent, domestic violence remains a serious issue. Every day in the United States, three women are killed by abusive husbands and partners. In California, there were 166,361 domestic violence calls in 2010, including more than 65,000 that involved a weapon.

In urging Congress to reauthorize VAWA for the first time since 2006, the attorneys general cited the need to maintain services for victims and families on the local, state, and federal levels. Reauthorization would allow existing programs to continue uninterrupted, and provide for the development of new initiatives to address key areas of concern. These initiatives include:

-Addressing the high rates of domestic violence, dating violence and sexual assault among women, ages 16-24 by combating tolerant youth attitudes toward violence.
-Improving the response to sexual assault with best practices, training, and communication tools for law enforcement, as well as healthcare and legal professionals.
-Preventing domestic violence homicides through enhanced training for law enforcement, advocates and others who interact with those at risk. A growing number of experts agree that these homicides are predictable – and therefore preventable – if we know the warning signs.

The letter from the attorneys general concludes: “We know a great deal more about domestic violence, dating violence, sexual assault and stalking than we did 17 years ago. Reauthorizing VAWA will allow us to build on those lessons and continue to make progress and save lives.”

A copy of the letter is attached to the online version of this release at www.oag.ca.gov

SAN FRANCISCO - Attorney General Kamala D. Harris today sent letters regarding medical marijuana law in California. The letters are attached.

SACRAMENTO -- Attorney General Kamala D. Harris today praised Governor Jerry Brown’s signature of Senate Bill 819, which will allow law enforcement officers to take more firearms out of the hands of those who are prohibited from owning them.

“Department of Justice Special Agents are the secret weapon of California law enforcement. I applaud Governor Brown for signing this law that will authorize our Special Agents to utilize existing funds to seize firearms from felons, gang members, the mentally ill and others who cannot legally possess such weapons,” Attorney General Harris said. “Seizing guns from the most dangerous among us is the kind of smart law enforcement that makes a difference in the everyday lives of Californians.”

SB 819, by Senator Mark Leno (D-San Francisco), allows the use of existing regulatory fees collected by gun dealers to fund the Armed Prohibited Persons System (APPS), a program administered by the California Department of Justice.

“There is a troubling blind spot in our current enforcement of firearms laws,” said Senator Leno. “Thousands of gun owners who once obtained their weapons legally still possess firearms despite subsequent issues, including criminal activities, which disqualify them from owning weapons. Innocent lives have been lost because we allow guns to be in the hands of known criminals and people who have serious mental illnesses. SB 819 helps remedy this troubling threat to public safety.”

The Bureau of Firearms has identified more than 18,000 Californians who illegally possess tens of thousands of firearms. Every day, 15 to 20 names are added to the list of prohibited persons who own firearms. SB 819 allows the Department of Justice to use a surplus from the Dealer’s Record of Sale account to enforce APPS. The program, which began in 2007, cross-references five databases to find people who legally purchased firearms since 1996 with those who have since been prohibited from owning or possessing them.

Law enforcement officials in California have long struggled to disarm people who are prohibited from owning a firearm. State and local officials lack the resources necessary to confiscate the enormous backlog of weapons, nor can they keep up with the daily influx of newly-prohibited persons. SB 819 helps to ensure that more persons on the APPS list are identified and their weapons confiscated.

In June, Attorney General Harris announced the results of a statewide sweep in which 1,209 firearms were seized from individuals legally barred from possessing them. The six-week sweep conducted by 99 agents from the Department of Justice also seized 155,731 rounds of ammunition and two grenades.