Legislative Alert: SFNet Succeeds in Halting New CA Disclosure Legislation

Sacramento CA, January 18, 2024 - At a session of the California State Legislature, Senate Bill 869, which would have introduced new, additional disclosure requirements related to APR and subjected asset based lenders and factors to penalties for non-compliance, did not move out of the Senate Appropriations Committee.  The Bill cannot be advanced or enacted. As some members of the California Legislature have demonstrated an ongoing desire for greater regulation, we will remain vigilant to ensure no similar legislation is advanced during the 2024 legislative session.  The measure, which SFNet argued was technically flawed and over-reaching, was the target of the SFNet Advocacy Committee and its retained lobbyists efforts since its introduction last year.  This marks another success for SFNet in California, building on last year’s crucial safe harbor amendment which made it clear in Section 22806 of the California Financial Code that a lender does not have any liability if it discloses APR in conformity with the requirements but the actual APR turns out to be different at a later date, and other favorable state, federal and regulatory outcomes. For more information on this and other SFNet Advocacy initiatives please visit our website or contact MOcejo@sfnet.com.