Legislation

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.

SACRAMENTO -- Attorney General Kamala D. Harris has filed a brief in the United States Court of Appeals for the Eighth Circuit supporting the constitutionality of the Patient Protection and Affordable Care Act and urging the court to affirm the states’ rights to protect the health and safety of their citizens.

“The law strikes an appropriate, constitutional balance between federal and state authority over the health care system,” Attorney General Harris said. “It establishes federal standards, backed by federal funding, to expand access to affordable coverage while conferring considerable latitude on states to design systems that work best for their citizens.”

Attorney General Harris, joined by nine other attorneys general, asserted in the brief that the federal health care law bolsters, rather than usurps, state authority to address problems in the national health care economy that the states cannot solve effectively on their own.

According to the brief, the health care law solves a national problem in a way that gives greater power to states by building on a successful model of cooperative federalism. Further, the brief states that the framework established by the law “empowers states to create enduring solutions to those problems, and to do so with federal support.” The attorneys general also argue that the minimum coverage provision is a constitutional and integral element of Congress’s interstate solution to the health care crisis.

California was joined in this brief along with Connecticut, Delaware, Hawaii, Iowa, Maryland, New York, Oregon, Vermont, and the District of Columbia.

In July, the same group of attorneys general filed a friend-of-the court brief in the United States Court of Appeals for the District of Columbia urging that court to affirm the constitutionality of the federal health care reform law. Attorney General Harris also filed similar briefs in April in the United States Court of Appeals for the Eleventh Circuit, in March in the United States Court of Appeals for the Fourth Circuit, and in January in the United States Court of Appeals for the Sixth Circuit.

The Eighth Circuit case is Kinder v. Geithner, No. 11-1973, United States Court of Appeals for the Eighth Circuit. ###

SACRAMENTO --- Law enforcement leaders from across the state of California today criticized the deep cuts to the Department of Justice’s law enforcement budget that specifically targeted anti-gang and anti-drug programs.

The general fund reduction proposals would reduce by $71 million the budget of the Division of Law Enforcement. This could lead to the loss of several hundred special agents and other personnel, the dissolution of 55 statewide task forces – many of which coordinate responses to transnational gang and drug crime – and the loss of investigators on the state’s new Mortgage Fraud Strike Force. As a result, two entire law enforcement bureaus could be shut down, the Bureau of Investigations and Intelligence (BII) and the Bureau of Narcotic Enforcement (BNE).

California Narcotic Officers’ Association President James C. Hodges:
“Yesterday’s budget agreement contained a bad surprise – the budget decimated the General Fund resources available to Attorney General Kamala Harris’ office for law enforcement purposes. The impact of these cuts will be the shutting down of all BNE task forces, as well as their offices. Each of you may recall that these same cuts were proposed in 2009 during the Schwarzenegger administration. Fortunately, the Legislature wisely rejected those proposed cuts. The reasons for rejecting those cuts in 2009 are as valid today as they were in 2009. In fact, they have become accentuated over the past two years. It is fact that the Mexican drug cartels have dramatically increased their profile in California. Additionally, the significant challenges local law enforcement will face in 2011 with public safety realignment is further reason to restore the BNE task forces. The fact is that the loss of BNE task forces will force local law enforcement – who will tell you frankly that they lack the expertise to deal with these sophisticated, multi-national criminal enterprises – to put scarce resources to fill the void left by the loss of BNE task forces. This is a diversion of local law enforcement resources that will unacceptably undermine their efforts to make public safety realignment work.”

Irvine Police Chief and California Police Chiefs Association President Dave Maggard:
“There were strong imperatives that existed in 2009 and still exist today for the restoration of the BNE (Bureau of Narcotic Enforcement) and still exist today for restoration of the BNE task forces: the Mexican drug cartels are steadily moving their operations into the California; drug cartel violence is already spilling over into the United States; the Sinaloa Cartel is becoming firmly entrenched in California; FBI sources with whom we have spoken believe that a majority of the 200 reported abductions in California are attributable to Mexican drug cartels enforcing their business arrangements; and prosecutors are noting a disturbing diversification of the cartels where they are also engaged in human sex trafficking, as well as their more “traditional” methamphetamine trafficking.Local law enforcement relies on the ability of the BNE task force to combat the increasingly sophisticated crime families involved in drug trafficking and in human trafficking.”

California District Attorneys Association President Gregory D. Totten:
“If this cut is allowed to stand, numerous entities within DOJ will be devastated. Though funded by the Restitution Fund, the Witness Relocation and Protection Program is staffed by DOJ personnel. A reduction in services within this program jeopardizes the ability of law enforcement to protect and relocate vital witnesses. Of additional concern is the potential negative impact on forensic services provided by DOJ. State forensic labs assist counties across the state with blood-alcohol and drug testing that is crucial to all types of prosecutions. This cut portends access to justice issues inasmuch as the availability of these services will become less uniform, specifically in counties that do not have local labs.”

Imperial County District Attorney Gilbert G. Otero:
“As a district attorney in a county bordering Mexico, I would like to take this opportunity to urge you to oppose the Governor’s proposal to cut $71 million from the Department of Justice, Division of Law Enforcement’s budget. Such a move would have a major negative impact on public safety in my county, in the state and across the entire nation.”

San Diego District Attorney Bonnie Dumanis:
“The purpose of this letter is to share my concern with the proposed cuts to the California Department of Justice, Division of Law Enforcement (DLE). As the elected District Attorney of San Diego County, my office investigates and prosecutes crime along California’s border on a daily basis. It is through collaboration with the Division of Law Enforcement that we are able to see results from our efforts to stem the tide of violent crime crossing into California.The work of the Bureau of Narcotics Enforcement and the Bureau of Intelligence and Investigations is a key piece to a statewide strategy to prevent gang crime.I understand the challenges in balancing the state’s budget, but urge you to keep in mind that most local law enforcement agencies are taking severe staffing reductions, especially the smaller agencies, and we will need the assistance of DLE more than ever.”

East Palo Alto Police Chief Ronald L. Davis:
“The purpose of this letter is to share my concern with the proposed cuts to the California Department of Justice, Division of Law Enforcement (DLE). On June 5, 2011, two young men fired over a dozen bullets into a vehicle containing an innocent family of four leaving a baby shower in East Palo Alto. The heinous nature of this shooting shocked the entire Bay Area and underscores the real and serious danger gangs pose to our communities. Our response to this tragedy must extend beyond the arrest of the two killers: it must include holding the Nortenos and Surenos accountable as well. In order to do this, I need the assistance of DLE; otherwise, we are battling these gangs with 39 officers.”

In a statement released last night, California Attorney General Kamala D. Harris said:
“The proposed $71 million cut will cripple California’s statewide anti-gang and drug trafficking operations. Our Division of Law Enforcement leads 50 task forces across the state that target criminal gangs and drug trafficking organizations. Earlier this month, one of these task forces took down 101 leaders and members of two transnational gangs terrorizing California’s Central Valley. Last month, we announced the seizure of over 100 lbs of methamphetamine and the arrests of more than 30 gang members in the Bay Area. These cuts will eliminate many, if not all, of these task forces and jeopardize many ongoing investigations.”

The proposed $71 million cut will cripple California's statewide anti-gang and drug trafficking operations. Our Division of Law Enforcement leads 50 task forces across the state that target criminal gangs and drug trafficking organizations. Earlier this month, one of these task forces took down 101 leaders and members of two transnational gangs terrorizing California's Central Valley. Last month, we announced the seizure of over 100 lbs of methamphetamine and the arrests of more than 30 gang members in the Bay Area. These cuts will eliminate many, if not all, of these task forces and jeopardize many ongoing investigations.

SACRAMENTO – Attorney General Kamala D. Harris today testified in a state Senate committee in support of a pair of bills that will assist her efforts to fight transnational gangs that are fueled by gun violence and the drug trade.

One of the bills, SB 819 by Sen. Mark Leno of San Francisco, would dedicate funding to a unique California program that confiscates firearms from people legally barred from possessing them, including convicted felons and persons determined to be mentally unstable. The state Department of Justice, Bureau of Firearms estimates there are 18,615 armed prohibited persons possessing 34,708 handguns and 1,579 assault weapons in the state.

The second bill, SB 315 by Sen. Roderick Wright of Inglewood, would make products containing pseudoephedrine – a key ingredient in the illegal manufacture of methamphetamine – available only by prescription.

“Transnational gangs are the top emerging public safety threat to the people of California,” Attorney General Harris said. “These bills will help law enforcement take guns and drugs out of the hands of gang members. This is a key step in moving toward a smart on gang crime policy.”

Sen. Leno’s legislation would revise the penal code to expand the use of existing regulatory fees collected by gun dealers throughout the state to allow the state Department of Justice to confiscate unlawful firearms. The bill would not increase these fees.

Already, agents from the Justice Department’s Bureau of Firearms work extensively with local police and sheriffs to repossess thousands of weapons from people who shouldn’t possess them.

Since California in 2007 began its unique program – called “APPS” for Armed Prohibited Persons System –to identify these people and collect their weapons, more than 7,500 guns have been confiscated, an amount that would fill an Olympic-sized swimming pool.

In a sweep begun last month, agents with the Bureau of Firearms, along with local police and sheriffs, seized more than 1,100 guns, 150,000 rounds of ammunition and two grenades.

Last year, state agents and Fresno police took away 73 guns, including 17 unregistered assault weapons and a silencer fashioned out of a soda bottle, from a Fresno man recently released from a mental health facility who said he was preparing for Armageddon.

Coordinated law enforcement sweeps such as the current one could quickly reduce the backlog of APPS cases, but the sweeps cost money, and there is no likelihood of new tax money. The additional funding made available under Leno’s bill will allow the state to tackle the APPS backlog, provide continuing funding for the program, and make Californians safer.

California is at the center of the methamphetamine epidemic. It ranks first in the amount of illegal meth produced. It has more “super labs” capable of making more than 10 pounds of meth in a single day than all the other 49 states combined. Labs in California and Mexico operated by international drug cartels supply about 80 percent of the meth consumed in the United States.

Wright’s bill would make a significant impact on the meth epidemic ravaging California – and the meth labs based in this state feeding the nation’s addiction. After Oregon passed legislation in 2006 requiring a prescription to purchase pseudoephedrine, the number of meth labs there dropped from 400 to 12.

For legitimate consumers, making pseudoephedrine available only by prescription is no great loss. The drug is an active ingredient in only 14 products, and there are at least 136 other over-the-counter products that treat cold and allergy symptoms.

Both bills are common-sense solutions in an age of severe budget crisis. Neither bill costs taxpayers anything additional and each would save money by eliminating the commission of future crimes.

SACRAMENTO – Attorney General Edmund G. Brown Jr. today hailed the signing of AB 2514 (Skinner), the country’s first energy storage bill, as “a major step towards energy independence.”

Brown sponsored the new law to facilitate the development of solar and wind power, create jobs and increase California’s energy independence by providing a mechanism for storing wind and solar power for use at times it can’t be generated, such as nighttime. Governor Schwarzenegger signed the bill this afternoon.

“Californians want clean, renewable energy, and energy storage is an important part of that,” said Brown. “This law will help reduce global warming emissions, improve air quality, and will be a major step towards energy independence.’

The law will jumpstart the state’s energy storage industry and lead to the creation of up to 10,000 manufacturing jobs, according to the California Energy Storage Alliance. Companies already have invested in some technologies for storing energy, such as using a thermal reserve or pumped hydroelectricity. Newer technologies include storing energy in various kinds of large-scale batteries, transforming it into flywheels and compressing it into air fields.

Energy storage is important for an expanding renewable energy future because solar and wind power are not available at all times. Increasing storage allows California to take greater advantage of its renewable resources while making our electric power grid more reliable.

Expanded storage will also protect public health by reducing the need for the most polluting “peaker plants” that only operate during peak demand, usually during the summer when air conditioners in the state are in most intense use.

Attorney General Brown has fought to protect California’s environment and worked to build a clean-energy infrastructure for the 21st century. He has successfully defended the state’s landmark clean cars law, leading to improvements in fuel efficiency nationwide, and has worked with local governments to ensure that their long-term growth plans improve air quality by reducing traffic and greenhouse gas pollution. For more information, please see: http://ag.ca.gov/globalwarming/