California DBO Issues Revised Proposed CFL Regulations
The California Department of Business Oversight (DBO) recently published modified proposed California Financing Law (CFL) regulations. Comments on the modified proposed regulations must be submitted by June 12, 2020.
The modified proposed regulations revise the original proposed regulations published on October 25, 2019. The changes reflect the public comments that the DBO received on the original proposed regulations.
The proposed regulations, as modified, include, among other things, renaming the “California Finance Lenders Law” to the “California Financing Law,” establishing an administrator to direct a Property Assessed Clean Energy (PACE) program, and transitioning all licenses under the CFL onto NMLS. Other changes include, for example:
- Adding and clarifying definitions (e.g., “affiliate,” “outstanding interests,” “outstanding equity securities”);
- Requiring applicants to establish, register, and maintain an email account designated for DBO communications; and
- Revising the CFL application and clarifying certain application requirements (e.g., applicability of and waivers of the Statement of Identity and Questionnaire);
- Requiring the submission of a management chart, in addition to an organizational chart (when applicable), in an initial application; and
- Adding an exception to advertising requirements if the advertisement is a written, on a platform limited to no more than 500 characters, and does not link to a location that fails to comply with advertising requirements.
